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MKT 3620

MKT 3620. Name: Surej P John Office : MSM 3 rd floor, Cabin# 01 Email : surejpjohn@gmail.com Website: http://surejpjohn.hpage.com /. Mark Allocations. Online resources. Course syllabus, project outline, power points are all available in www.lms.au.edu Enrollment key: MKT 30

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MKT 3620

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  1. MKT 3620

  2. Name: Surej P John Office: MSM 3rd floor, Cabin# 01 Email: surejpjohn@gmail.com Website: http://surejpjohn.hpage.com/

  3. Mark Allocations Surej P John

  4. Online resources • Course syllabus, project outline, power points are all available in www.lms.au.edu • Enrollment key: MKT 30 • All students are requested to register online to make use of the online resources. Surej P John

  5. Chapter 1Introduction toGlobal Marketing

  6. Introduction • Global versus “regular” marketing • Scope of activities are outside the home-country market Product/market growth matrix

  7. Market Penetration Started the first shop in 2004 In 2009, the number of shops reached 41 including 8 University campuses Surej P John

  8. Market Development

  9. Product Development Surej P John

  10. Diversification • Diversification is developing new products for new markets Surej P John

  11. Global Marketing • Create value for customers by improving benefits or reducing price • Improve the product • Find new distribution channels • Create better communications • Cut monetary and non-monetary costs and prices Value = Benefits/Price

  12. Surej P John

  13. Globalization • Globalization is the inexorable integration of markets, nation-states & technologies to a degree never witnessed before— • in a way that is enabling: • individuals, corporations & nation-states to reach around the world farther, faster, deeper & cheaper than ever before, & • in a way that is enabling: • the world to reach into individuals,corporations & nation-states farther, faster, deeper & cheaper than ever before.

  14. Competitive Advantage and Global Industries • Competitive advantage: • When a company succeeds in creating more value for customers than its competitors, that company is said to enjoy more competitive advantage. • Global industry • A global industry is one in which competitive advantage can be achieved by integrating and leveraging operations on a world wide OR • An industry is global to the extent that a company’s industry position in one country is interdependent with its industry position in another country

  15. Degree of Industrial Globalization Surej P John

  16. Competitive Advantage Surej P John

  17. Global Marketing: What it is & What it Isn’t??? • Single Country Marketing Strategy • Target market strategy • Marketing mix • Product • Price • Promotion • Place • (Domestic Marketing activities) (Table 1-2) p. 43

  18. Global Marketing: What it is & What it Isn’t??? • Global Marketing Strategy (GMS) • Global market participation • (companies have operations in more than one market) • Marketing mix development • 4 P’s: adapt or standardize? • Concentration of marketing activities. • Coordinationof marketing activities. • Integration of competitive moves. (Eg. Lenovo) p. 43-4

  19. 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

  20. Change in the Slogan of Nike in European market Surej P John

  21. Standardization versus Adaptation Arabic read right to left Chinese “delicious/happiness” The faces of Coca-Cola around the world

  22. McDonald’s Global Marketing Marketing Mix Element Standardization Localized McAlooTikka potato burger (India) Slang ’Macca’s (Australia) MakDo (Philippines) McJoymagazine, “Hawaii Surfing Hula” promotion (Japan) Home delivery (India) Swiss rail system dining cars $5.21 (Switzerland) $1.31(China) Big Mac Brand name Advertising slogan “I’m Loving It” Free-standing Big Mac is $3.10 in U.S. and Turkey Product Promotion Place Price

  23. In India, there are no Big Macs because the Hindu people don't eat beef. However, they have the Maharaja Mac, which is a Big Mac made of lamb or chicken meat. There is also a vegetarian burger, the McAlooTikki.

  24. MANAGEMENT ORIENTATIONS

  25. MANAGEMENT ORIENTATIONS EPRG FRAMEWORK • Ethnocentric orientation/ INTERNATIONAL • Home country is superior to others • Sees only similarities in other • countries. • Assumes products & practices that • succeed at home will be successful • everywhere . • Leads to a standardized or • extensionapproach. Home country DO NOT adjust To Host country!! p. 52

  26. Domestic going International New true coffee shops at Vientiane, Laos & Shanghai, China

  27. MANAGEMENT ORIENTATIONS EPRG FRAMEWORK 2. Polycentric Orientations/ MULTINATIONAL • Each country is unique. • Each subsidiary develops its own • unique business & marketing strategies. • Leads to a localized or adaptation approach. Focus is HOST country p. 53

  28. Multi-National Approach • In Polycentric stage, subsidiaries are formed in each market and each subsidiaries operates independent of each other and formulates its own marketing strategies • Separate product lines are formed in each country and these products are modified to meet local needs ( Adaptation) • Sales force in each country is local nationals • Channels of distribution are those traditionally used by each country.

  29. MANAGEMENT ORIENTATIONS EPRG FRAMEWORK 3. Regiocentric orientation • A region is the relevant geographic unit. • Ex: NAFTA (North American Free Trade • Agreement between: Canada, Mexico & U.S.) Regional airline serving Malaysia and south-east Asian destinations p. 53

  30. MANAGEMENT ORIENTATIONS EPRG FRAMEWORK 4. GEOCENTRIC ORIENTATIONS/ GLOBAL OR TRANSNATIONAL • Entire world is a potential market. • Strives for integrated global strategies. • Retains an association with headquarters country • Pursues serving world markets from a single • country or sources globally to focus on select • country markets. • Leads to a combination of extension & • adaptation elements. HD serves world Markets from U.S. p. 53

  31. DRIVING FORCES AFFECTING GLOBAL INTEGRATION & GLOBAL MARKETGING Multilateral economic agreements Converging market needs & the information revolution Transportation & communication improvements Product development costs p. 56

  32. DRIVING FORCES AFFECTING GLOBAL INTEGRATION & GLOBAL MARKETGING Quality World economic trends Leverage p. 59

  33. Leverage Scale economies. • The global company can take advantage of its greater manufacturing volume to obtain traditional scale advantages within a single factory. • Also, finished products can be produced by combining components manufactured in scale-efficient plants in different countries. • The larger scale of the global company also creates opportunities to improve corporate staff competence and quality.

  34. Leverage Experience transfers. A global company can leverage its experience in any market in the world. It can draw on management practices, strategies, products, advertising appeals, or sales or promotional ideas that have been tested in actual markets and apply them in other comparable markets. ABB- 1400 subsidiaries in 140 countries. Very famous for running the operations with the minimum number of staff

  35. Leverage Global strategy. • The global company's greatest single advantage can be its global strategy.

  36. Leverage Resource utilization. A major strength of the global company is its ability to scan the entire world to identify people, money, and raw materials that will enable it to compete most effectively in world markets. This is equally true for established companies and start-ups. For example, British Biotechnology Group, founded in 1986, raised $60 million from investors in the United States, Japan, and Great Britain. For a global company, it is not problematic if the value of the "home" currency rises or falls dramatically, because for this company there really is no such thing as a home currency.

  37. RESTRAININGFORCES AFFECTING GLOBAL INTEGRATION & GLOBAL MARKETGING Management myopia & Organizational culture Opposition to globalization National controls – (to protect local industries) p. 62

  38. Summary • Global marketing is the process of focusing resources on global marketing opportunities • Goal, to create customer value & competitive advantage by maintaining focus • Three classifications of management orientation: ethnocentric, polycentric, regiocentric, geocentric • Global marketing importance is shaped by a variety of driving & restraining forces

  39. Group Assignment No. 1 • Make a detailed study on the Socio-Economic and Cultural factors of BRIC Nations and submit the assignment as a typewritten report. • All groups has to prepare a short presentation ( not more than 15 mins.) and one of the groups may be asked to do the presentation in the class!! IT MAY BE ANY OF YOU…..GOOD LUCK 

  40. Looking Ahead to Chapter 2 The global economic environment

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