00 GM Revisited & Exam Briefing

8/6/2019 00 GM Revisited & Exam Briefing

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Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5

Published by Cengage Learning DOOLE AND LOWE

GLOBALMARKETING

Ian McPhee

Session 00

GM Revisited

& Exam Briefing


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WHAT IS MARKETING?

Marketing Involves:

Focusing on the needs and wants of

customers Identifying the best method of satisfying

those needs and wants

Orienting the company towards the

process of providing that satisfaction

Meeting organisational objectives


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Understanding

Global Marketing: a framework

Scope ofInternational Marketing

Company

capabilities Environment

Analysing

competitors

Culture, valuesand technology

Political economy&

created advantage

Public policy, risk& regulation

Product andbrand strategies

Market Selection

Market entry

Operations andperformance

Consumerproducts

Strategic alliances

Exporting

Distribution

Pricing

Acquisitions and FDI

Strategic market entry

Selling andnegotiations

Assessingperformance

Services

Stage 1

Stage 2

Stage 3

Stage 4

International Marketingin the global economy

Industrialproducts

Brand


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1-4

Global Marketing

Create value forcustomers by

improving benefits or reducing price

Improve the product

Find new distribution channels

Create bettercommunications

Cut monetary and non-monetary costs andprices

Value=Benefits/Price


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Globalization

Globalization is the inexorable integration ofmarkets, nation-states and technologies to adegree never witnessed beforein a way that isenabling individuals, corporations and nation-states to reach around the world farther, faster,deeper and cheaper than every before, and in away that is enabling the world to reach into

individuals, corporations and nation-statesfarther, faster, deeper and cheaper than everbefore.

Thomas Friedman


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ECONOMIC ENVIRONMENT

Developed triad Economies account for 80% of world trade

Emerging Economies huge and growing consumer demand government directed economic reforms

dual economy

Less Developed Countries (LDCs) low GDP, limited manufacturing base infrastructure weaknesses

heavy reliance on one product/one trading partner


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Porters Determinants of National Advantage

(1990)

Firm strategy,

structure,

and rivalry

Factory

conditions

Demand

conditions

Related and

supporting

industries


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National Competitive

Advantages

Factorconditions e.g skilled labour,

infrastructure

Demand conditions e.g. home demandfor the product of service

Related and supporting industries e.g

raw materials, components Firm strategy, structure and rivalry


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Standardization versus Adaptation

Globalization (Standardization)

Developing standardized products marketed

worldwide with a standardized marketing mix Essence of mass marketing

Global localization (Adaptation)

Mixing standardization and customization in a way

that minimizes costs while maximizing satisfaction Essence of segmentation

Think globally, act locally


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Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE

1-11

The Importance of

Going Global

For U.S. companies, 75% of total world

market for goods and services is outside the

country Coca-Cola earns 75% ofoperating income and

2/3 of profit outside of North America

For Japanese companies, 85% of world

market is outside the country 94% of market potential is outside of

Germany for its companies


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Driving Forces Affecting Global Integration

and Global Marketing

Multilateral trade

agreements

Converging market needs

and wants and the informationrevolution

Transportation andcommunication improvements

Leverage Experience transfers

Scale economies

Resource utilization

Global strategy

Quality R&D as a percent of sales

World economic trends

2008 global crisis Growing middle class in China,

India, Brazil, etc.

Rapid growth in China pre-2008

Movement to free marketsworldwide

Product Development Costs


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Restraining Forces Affecting Global

Integration and Global Marketing

Management myopia

Organizational culture National controls

Opposition to globalization


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The World Trade Organization

Forum for trade-related negotiationsamong 150 members

Based in Geneva Serves as dispute mediator through

DSB

Has enforcement power and can imposesanctions


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Free Trade Area

Twoor more countries agree to abolish tariffs

and other barriers to trade amongst

themselves

Countries continue independent trade policieswith countries outside agreement

Rules of origin requirements restrict

transshipment of goods from the country with

the lowest tariff to another


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ENVIRONMENTAL INFLUENCES ON

INTERNATIONAL MARKETING

Socio/Cultural

Language

Religion

Aesthetics

Values and attributesSocial organisation

Material culture

Political

Operational restrictions

Discriminatory restriction

Physical actions

Environmental

Influences onInternational

Marketing

Legal

Local domestic laws

International law

Home domestic law

Technological

Satellite

Communications

ISDNInternet

WWW

The Electronic

Superhighway

EconomicDeveloped economies

Emerging economies

Less developed economies

Currency movements


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Society, Culture, and

Global Consumer Culture

Cultureways of living, built up by a group of

human beings, that are transmitted from one

generation to another Culture has both conscious and unconscious

values, ideas, attitudes, and symbols

Culture is acted out in social institutions

Culture is both physical (clothing and tools)

and nonphysical (religion, attitudes, beliefs,

and values)


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Society, Culture, and

Global Consumer Culture

Culture is the collective programming of the

mind that distinguishes the members of one

category of people from those of another.Geert Hofstede

A nation, an ethic group, a gender group, an

organization, or a family may be consideredas a category.


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High- and Low-Context Cultures

High Context

Information resides in

context

Emphasis onbackground, basic

values, societal status

Less emphasis on legal

paperwork

Focus on personalreputation

Saudi Arabia, Japan

Low Context Messages are explicit

and specific

Words carry allinformation

Reliance on legalpaperwork

Focus on non-personaldocumentation of

credibility Switzerland, U.S.,

Germany


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4-20

Hofstedes Cultural Typology

Power Distance

Individualism/Collectivism

Masculinity

Uncertainty Avoidance

Long-term Orientation


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Segmentation, Targeting &

Positioning

How to identify like groupsofpotential

customers?

How to chose the groups to target?

How tosegment those groups?

How toposition the brand in the mind of the

customer?


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9-22

Marketing Entry Strategies


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Brand Equity Benefits

Greater loyalty

Less vulnerability to marketing actions

Less vulnerability to marketing crises Larger margins

More inelasticconsumer response to priceincreases

More elasticconsumer response to pricedecreases

Increased marketing communicationeffectiveness


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Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE

Establishing Channels

Direct involvement the company

establishes its own sales force oroperates its

own retail stores Indirect involvement the company utilizes

independent agents, distributors, and/or

wholesalers

Channel strategy must fit the companyscompetitive position and marketing objectives

within each national market


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Global Marketing Communications

Standardization vs.Adaptation

Primary Issue

Must the specific advertising

message and media strategy be

changed from region to region or

country tocountry?

Think ofcultural and legal issues


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Sales Promotion: Global or Local

In countries with low levels of economicdevelopment, low incomes limit the range ofpromotional tools available

Market maturity can also be different from country tocountry

Local perceptions of a particular promotional tool orprogram can vary

Local regulations may rule out use of a particular

promotion in certain countries

Trade structure in the retailing industry can affect theuse of sales promotions


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Global E-Commerce

Divided into three broad categories Business to Business (B2B)

Business to Consumer (B2C)

Consumer to Consumer

(Peer to peer)

Internet penetration

Korea 76.1% (highest)

U.S. 75%

China has 300 million users; largest e-commerce market

Western European online retail and travel sales will growat 8% CAGR, 2008-2014

37% (136 million) European adults shop online


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THE CHALLENGES OF INTERNATIONAL MARKETING

Culture

Often diverse and multicultural

Markets

Widespread and sometimes fragmented

Data

Difficult toobtain and sometimes expensive

Politics

Regimes vary in stability, political risk an important variable

Governments

Can be a strong influence in regulating importers and foreignbusiness ventures

Economies Varying levels of development

Finance

Many differing finance systems and regulatory bodies

Control

Difficult tocontrol and co-ordinate across markets


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INTERNATIONAL MARKETING STRATEGIES

Success and Failure

Failure arises from: inability to find right market niche

unwilling to adapt products

products not perceived as sufficiently unique vacillating commitment

assigning the wrong people

picking the wrong partners

inability to manage local stakeholders mutual distrust/lack of respect between HQ &

management

inability to leverage ideas to all countries


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Global Marketing

Exam Briefing


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Exam Briefing

Its a 3 houropen-book exam

Worth 50% of total module grade

Read the instructions and plan your answers

before you start.


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Exam Briefing (cont)

Check the weighting of the questions

Divide your time equally between the questions.

You are strongly advised to read the questions

carefully. Dont start writing out your answers straight away

I suggest you allow at least 5-10 minutes perquestion in order to plan your answer.


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Write legibly if your answers cannot be read,they cant be assessed!

Please write in a concise fashion. You will not

gain extra marks by including pointless waffle. The exam will test your ability to demonstrate

yourunderstanding of the key marketing theoriescovered during this module.

You are required to analyse, synthesize andevaluate, not merely describe whats going on inthe case study organisation


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You will also be required toconsider the practicalimplications of such strategies in the organisation.

Please ensure that you answer the questions that

have been set, and not the ones that you wishhad been set!

Make sure you bring sufficient pens along withyou.

Remember to read the questions carefully and planyour answers.


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Blooms Taxonomy

Analysing

Applying

Understanding

Remembering

Evaluating

Creating

Recognising;

Naming; Describing

Interpreting;Summarising; Explaining

Using; Executing;

Implementing

Comparing; Outlining;

Integrating

Judging;

Hypothesising; Testing

Designing;

Planning; Inventing

Documents

00 GM Revisited & Exam Briefing