3305 SP10 Bb - Ch04 Global Marketing

8/6/2019 3305 SP10 Bb - Ch04 Global Marketing

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the world is flat or is it?

[ reaching global markets ]


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big ideas

globalization: importance, benefits, fears

globalglobalmarketing strategy?

standardization versus customization

what do we mean by a global economy?

operating globally high risk-high reward


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benefits of globalization

benefits to U.S. economy

Dell theory of conflict prevention

expands economic freedom, spurscompetition, increases living standards

access to capital, markets, technology

but


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1 | 4Dr. Christopher P. Blocker

it is not always so

popular

-job loss-risks associated


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global industry

where firms competitive position in onecountry is affected by its position in others

A key question facing managers is theextent of globalization of their industry.

Every industry has global aspects


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Core Business StrategyCore Business Strategy

Country

A

Country

B

Country

C

Country

D

1. develop core1. develop corebusiness strategybusiness strategy

2. internationalize2. internationalizethe strategythe strategy

3. globalize3. globalizethe strategythe strategy

global strategy evolution


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evolution of global marketing


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evolution of global marketing


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marketingvegemite


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cultural issues

high context vs. low context

hofstedes cultural dimensions

individualism vs. collectivism masculinity vs. femininity

uncertainty avoidance

power distance

long-term vs. short-term orientation


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key issue for global marketers:

standardization vs. customization

of

products, services, packaging, branding,advertising, selling, promotion,

publicity, pricing, distribution .

everything!


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vanilla ice creamglobal

standardized

fish ice creamlocal

customized

gelato*glocal*both


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the global economy:what are we really talking about?


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facets of the global economy

- intertwined economies

- global trade agreements

- multinational corporations- regional economic integration


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North American Free Trade (NAFTA) 1994Central America-Dominican Republic-U.S.A Free Trade (CAFTA-DR) 2005

European Union (EU) 1993

Common Market of Southern Cone (MERCOSUR) 1991

Asia-Pacific Economic Cooperation (APEC) 1989

World Trade Organization (WTO) 1995

regional economic integration


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levels of economic integration

Free

TradeArea

Customs

Union

CommonMarket

EconomicUnion

PoliticalUnion

Increasing Levels of Integration

NAFTA

EU 1992ASEAN in pure form U.S.EU has attempted


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market entry strategy

entry modes:1) import/exporting

2) using a trading company3) licensing and franchising

4) contract manufacturing (outsourcing)

5) joint ventures / strategic alliances6) direct ownership

7) multinational enterprise


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risk & control in market entry

Amount of commitment, risk, costs, but ALSO control & profit potential


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what does this mean to you?

all markets ARE NOT on a level playing field!

your job is to take advantage of anomalies between

markets in order to compete.

understanding how markets are integrated, and

regulations for each market.

it is the marketing managers responsibility tounderstand how products and services can move

across borders most efficiently!


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method

a global company?


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summary of big ideas

1. globalization: significant force you cant ignore2. markets are increasingly intertwined

3. understanding when and how culture plays arole is both complex and critical

4. pendulum swings between global

standardization and local customization5. global marketing - often high risk, high reward


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Dr. Bs deep marketing metaphorsso far

customer-centricitym spatial orbit

marketingstrategym mix recipe orchestra

marketing environmentm natural environment

marketingm conversation, dialogue, communication

global:local:glocalm ice cream (vanilla : fish: gelato)

3305 SP10 Bb - Ch04 Global Marketing

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