Global Marketing: Navigation Search
Global Marketing: Navigation Search
Global Marketing: Navigation Search
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Promotional media
Printing • Publication • Broadcasting
Out-of-home • Internet marketing
Point of sale • Promotional items
Digital marketing • In-game
In-store demonstration • Brand Ambassador
Word of mouth • Drip Marketing
This box: view • talk • edit
Here are three reasons for the shift from domestic to global marketing as given by the
authors of the textbook, Global Marketing Management—3rd Edition by Masaaki Kotabe
and Kristiaan Helsen, 2004.
Contents
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• 1 Worldwide competition
• 2 Evolution to global marketing
o 2.1 Domestic marketing
o 2.2 International marketing
o 2.3 Multinational marketing
• 3 Elements of the global marketing mix
o 3.1 Product
o 3.2 Price
o 3.3 Placement
o 3.4 Promotion
• 4 Global marketing Advantages and Disadvantages
o 4.1 Disadvantages
• 5 See also
• 6 References
• 7 Further reading
• 8 External links
The biggest obstacle these marketers face is being blindsided by emerging global
marketers. Because domestic marketers do not generally focus on the changes in the
global marketplace, they may not be aware of a potential competitor who is a market
leader on three continents until they simultaneously open 20 stores in the Northeastern
U.S. These marketers can be considered ethnocentric as they are most concerned with
how they are perceived in their home country. exporting goods to other countries.
loosener Rhett
If the exporting departments are becoming successful but the costs of doing business
from headquarters plus time differences, language barriers, and cultural ignorance are
hindering the company’s competitiveness in the foreign market, then offices could be
built in the foreign countries. Sometimes companies buy firms in the foreign countries to
take advantage of relationships, storefronts, factories, and personnel already in place.
These offices still report to headquarters in the home market but most of the marketing
mix decisions are made in the individual countries since that staff is the most
knowledgeable about the target markets. Local product development is based on the
needs of local customers. These marketers are considered polycentric because they
acknowledge that each market/country has different needs.
At the multi-national stage, the company is marketing its products and services in many
countries around the world and wants to benefit from economies of scale. Consolidation
of research, development, production, and marketing on a regional level is the next step.
An example of a region is Western Europe with the US. But, at the multi-national stage,
consolidation, and thus product planning, does not take place across regions; a
regiocentric approach. It should be noted that most companies that self describe their
organization as multinational really are not entirely multinational. In fact, the definition
of the multinational corporation itself is somewhat suspect. Simply calling a company a
multinational corporation is not enough. A company must make adjustments to the ways
it perceives its role in the international market place so that it might reap the rewards the
multinational environment. Essentially there are three responses or behaviors that the
multinational corporation can use in the international market place. These three
orientations that a multinational corporation have been described as ethnocentric,
polycentric, and geocentric. In ethnocentric company the culture of the home country
pervades the organization. In the polycentric organization the host country begins to play
more of a role but the company still treats each individual country unit as a somewhat
disparate group with only a very small information flow back to headquarters. In the most
mature stage of multinational development, geocentric, the company has truly started to
act globally. The company can now begin to reap the benefits of the multinational
economy. The somewhat parasitic nature of the previous types of multinational system
are now replaced with the give and take of international relationships that involve the all
important two way communications.
[edit] Product
A global company is one that can create a single product and only have to tweak elements
for different markets. For example, Coca-Cola uses two formulas (one with sugar, one
with corn syrup) for all markets. The product packaging in every country incorporates the
contour bottle design and the dynamic ribbon in some way, shape, or form. However, the
bottle or can also includes the country’s native language and is the same size as other
beverage bottles or cans in that same country.
[edit] Price
Price will always vary from market to market. Price is affected by many variables: cost of
product development (produced locally or imported), cost of ingredients, cost of delivery
(transportation, tariffs, etc.), and much more. Additionally, the product’s position in
relation to the competition influences the ultimate profit margin. Whether this product is
considered the high-end, expensive choice, the economical, low-cost choice, or
something in-between helps determine the price point.
[edit] Placement
[edit] Promotion
Effective global advertising techniques do exist. The key is testing advertising ideas
using a marketing research system proven to provide results that can be compared across
countries. The ability to identify which elements or moments of an ad are contributing to
that success is how economies of scale are maximized. Market research measures such as
Flow of Attention, Flow of Emotion and branding moments provide insights into what is
working in an ad in any country because the measures are based on visual, not verbal,
elements of the ad.
Reach
The nature of the internet means businesses now have a truly global reach. While
traditional media costs limit this kind of reach to huge multinationals, eMarketing opens
up new avenues for smaller businesses, on a much smaller budget, to access potential
consumers from all over the world.
Scope
Internet marketing allows the marketer to reach consumers in a wide range of ways and
enables them to offer a wide range of products and services. eMarketing includes, among
other things, information management, public relations, customer service and sales. With
the range of new technologies becoming available all the time, this scope can only grow.
Interactivity
Whereas traditional marketing is largely about getting a brand’s message out there,
eMarketing facilitates conversations between companies and consumers. With a two way
communication channel, companies can feed off of the responses of their consumers,
making them more dynamic and adaptive.
Immediacy
Internet marketing is able to, in ways never before imagined, provide an immediate
impact. Imagine you’re reading your favorite magazine. You see a double-page advert for
some new product or service, maybe BMW’s latest luxury sedan or Apple’s latest iPod
offering. With this kind of traditional media, it’s not that easy for you, the consumer, to
take the step from hearing about a product to actual acquisition. With eMarketing, it’s
easy to make that step as simple as possible, meaning that within a few short clicks you
could have booked a test drive or ordered the iPod. And all of this can happen regardless
of normal office hours. Effectively, Internet marketing makes business hours 24 hours per
day, 7 days per week for every week of the year. By closing the gap between providing
information and eliciting a consumer reaction, the consumer’s buying cycle is speeded up
and advertising spend can go much further in creating immediate leads.
Generally speaking, the demographics of the Internet are a marketer’s dream. Internet
users, considered as a group, have greater buying power and could perhaps be considered
as a population group skewed towards the middle-classes. Buying power is not all
though. The nature of the Internet is such that its users will tend to organize themselves
into far more focused groupings. Savvy marketers who know where to look can quite
easily find access to the niche markets they wish to target. Marketing messages are most
effective when they are presented directly to the audience most likely to be interested.
The Internet creates the perfect environment for niche marketing to targeted groups.
[edit] Disadvantages