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Chapter Objectives

LO1 Identify the factors that aid the growth of globalization

LO2 Explain the components of a country market assessment

LO3 Describe the various market entry strategies

LO4 List the similarities and differences between a domestic marketing strategy and a global marketing strategy

LO5 Explain how ethical issues affect global marketing practices

LEARNING OBJECTIVES

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Choosing a Global Marketing Strategy: Target Market (STP)

LO4

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Adapting for Global Success

How do firms successfully introduce a new product to a global market?

LO4

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Case in Point: Introducing Coffee to China

Challenge

Answer

Results

Nestle wants to introduce its top global instant coffee brand Nescafe to China.

Chinese consumers were not coffee drinkers thus needed to be educated in how to consume the product. Nescafe “3 in 1”, coffee, creamer and sweetener in one. Ideal mix for Chinese market easily reconstituted for best taste.

Nescafe dominates the in-home coffee category in China.

LO4

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Case in Point: Nescafe in China

LO4

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The Global Marketing Mix: Product or Service Strategies

LO4

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MTV Conquers the World

Seen in 374.4 million households

164 countries, 34 channels, 18 languages

Mix of standardized and local content benefited local music and artists

E.g. Salam Dangdut in Indonesia

LO4

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Managing the Global Marketing Mix

How do firms manage the

global marketing mix?

LO4

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Case in Point: Walmart’s Failed Experiment

Challenge

Answer

Results

To continue to grow the most successful retailer in the U.S., Walmart.

Stiff competition from entrenched local competitors, a sluggish economy as well as problems with workers and regulators led to Walmart exiting the market in 2006. The sale to competitor Metro resulted in pre-tax loss of $1Billion.

Walmart enters Germany with the same value proposition (EDLP) it has in the U.S.

LO4

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Walmart Brazil Walmart China

Walmart International

LO4

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Global Marketing Mix: Pricing Strategies

LO4

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Global Marketing Mix: Global Distribution Strategies

• Some global channels are very long and complex.

• Consumer shop local small local stores.

• Suppliers must be creative in delivering to these outlets.

FedEx Commercial

LO4

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Global Marketing Mix: Global Communication Strategies

LO4