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Global Marketing Management. Chapter 5 Global Customers. Warren J. Keegan. Overview. Regional Market Characteristics Marketing in Transitional Economies & Less Developed Countries Global Buyers Global Marketing Plan Summary. Become familiar with different regional markets
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Global Marketing Management Chapter 5 Global Customers Warren J. Keegan
Overview • Regional Market Characteristics • Marketing in Transitional Economies & Less Developed Countries • Global Buyers • Global Marketing Plan • Summary
Become familiar with different regional markets Learn how transitional & developing markets differ from developed countries Understand the customer value & the value equation Discuss diffusion theory Learning Objectives
Smaller than Australia 32 % Global Income 460 million population 7% World Population 23 Countries Western Europe
Harmonization in product standards Common patenting & branding Harmonization in packaging Product Strategies in the EU
More competitive Withdrawal of restrictions on foreign products Anti-monopoly measures Widening of public procurement market Pricing Strategies in the EU
Simplification of transit documents & procedures Elimination of customs formalities Distribution Strategies in the EU
Common guidelines for TV broadcasting Deregulation of national monopolies Uniform standard for TV commercials Promotion Strategies in the EU
Balkans: Albania, Bosnia-Herzegovina, etc. Baltics:Lithuania, Latvia & Estonia Commonwealth of Independent States Poland, Hungary, etc. Eastern & Central Europe
Before After % World GNP 6.9% 2.5% GNP per Capita $3,665 $2,219 Eastern & Central EuropeBefore – After Market Economy
Wide range in economic development Young people have “unlearned” the communist past Needs business and distribution infrastructure Familiar with Western Brands Marketing in Eastern & Central Europe
$9,254 trillion GNP 30% of Global Income 407 million population 7% world population North America - NAFTA
$8,230 billion Global Income 25% of Global Income 2.8 Billion population 52% World Population Asia-Pacific
Traditional Western & Asian Marketing Values • Western • Brand segmentation; personal • choice & self expression • through brands • Presenters/testimonials important • but more to draw attention to • brands • Seeding & diffusion from • leading edge • “Understatement” of wealth • Environmentalism • Asian • Popular famous brands; confidence in brand & corporate names • Imitation,emulation,use of presenters as role models • Rapid adoption of successful brands • Display of wealth and status • Confidence in technology
JAPAN • Home of most demanding customers • Home market of global customers • Home market of global competitors • Significant market of global competitors • Major source of industry innovation.
$1,179 Billion GNP 3.9% Global Income 1.27 Billion population 21% world population $930 GNP per Capita Nearly 10% annual growth in GNP China
India: A Closer Look 2000 * One of the lowest rates of access in the world
Consists of South and Central America & Caribbean Mexico is economically part of NAFTA 7% of global Income 510 million population 9.5% world population Latin America
3.5 times size of US 3 Regions: North Africa, Sub-Sahara and Republic of South Africa 1.3% Global Income 730 million population 12% of world population Average per capita = $536 Africa
1.Low per capita income - under $4000 2.High inflation – 10 to 30% annually 3.Wide gap in income distribution 4.High level of taxes, duties & bureaucratic hurdles 5.Lack of marketing awareness 6.Fragmented communications & distribution 7. Inadequate infrastructure Transitional Economies & Less Developed Countries
Look beyond per capita GNP Consider LDCs collectively Weigh the benefits of being first Set realistic deadlines To Enter or Not to Enter?
16 countries 2% of Global Income 260 million population 4% of world population Predominately Muslim Middle East
Awareness Interest Evaluation Trial Adoption Roger’s Diffusion Theory
Relative advantage Compatibility Complexity Divisibility Communicability Roger’s Factors Affecting Rate of Innovation Adoption
% Population is not related to % GNP Major regions differ by income and population Diffusion of innovation varies around world Summary