L2 International marketing strategy: globalisation
1 Overview
1 Introduction: examples of global companies and those at different .
stages of globalisation.
2 Comparison of international with global marketing
3 Stages in globalisation
4 Key factors for success for companies wishing to globalise
2 Global marketing origins
Introduction :
Early work by Robert Buzzell proclaimed .
the advantages of standardisation [1968 ]
Seminal article by Theodore Levitt[ 1983] in which he
said world markets were growing more and more
homogeneous.
Examples of American and Japanese and European
global companies include K.F.C., Sony,Swatch ,
Mercedes- Benz
3 Key concepts of global marketing
• A comparison of Global v International marketing
• A global marketing company seeks to market globally/ to the world.
Towards this end it will seek out one of its products and launch it
globally. Its’ marketing activities will therefore be global/ the same
for all countries. It assumes that markets are driven to a converging
commonality
Cateora &Hess
• An international marketing company seeks ‘ to tailor –fit’ its
marketing strategy to a particular country / market environment .It
adapts to particular markets
Cateora &Hess
3 Key concepts of global marketing [continued]
A further definition provides another insight this time about
segmentation / buyer preferences
Global markets are defined as’ those markets in which buyer
preferences are similar across countries. Within each country,
several segments with differing preferences may exist, but the
country borders are not important segment limits. In some cases the
global market is more like a regional market encompassing a trade
area such as EC, NAFTA or Mercosur’
J. Johansson 2006
3 Key concepts of global marketing [continued]
Customers – consumers analysed by common requirements world
wide
- business customers seen as having global networks .
with centralised purchasing
Countries - national boundaries disappear in favour of a supra
national trading blocs
Competitors- appear as same world- class players in every national
market
3 Key concepts of global marketing [continued]
• Global products : these are standardised products. They offer higher
quality , better value and more advanced features
than alternative products in those countries. They
are able to do this via combined production runs
from several markets
•
Global brands: these are brands that are available, well known
and highly regarded throughout the world’s markets
•
Global advertising: uses standardized campaigns where
possible. Or, standard filmed footage with
different ‘voice- overs’ in each language.
4 Stages in Globalisation
1st stage: export orientated company. This is where the
company sells to overseas customers.Usually due
to success with at least one of its products.Also in
response to requests from overseas customers [ order takers]
2nd stage: overseas branch [s] are set up looking after marketing and
sales plus after- sales service
3rd stage: the production base is relocated overseas e.g.Mulberry
announced in Dec2006 that it would produce in China.
4th stage: other business functions transfer such as engineering, R&D
,finance, personnel.[Complete insiderisation is when all business
functions have transferred].
5 th stage: ‘coagulate functions’ sending some back to the centre e.g.
corporate R&D. All members now feel part of a global family.All use
local management.All are free to ‘act locally’e.g Levi Strauss.
Sources
Kotabe &Helsen 2011
Hollensen 2007
Peng 2009
Johansson 2006
Keegan&Green 2008