GLOBAL MARKETING - Gunadarma...

9/16/2007 Dr. Hotniar Siringoringo 1

GLOBAL MARKETING

• OverviewGlobal marketers consider

the world as their market and different country markets as components of this world market


Defining Global Marketing

AMA’s Definition of Marketing:

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives


Defining Global Marketing• Distinguishing Features of AMA’s

Definition1. Includes nonprofit and for profit

activities2. Includes products, ideas, and services3. Includes activities that precede and

follow the production process4. Includes the four P’s and regards them

each as equally important



• Global Marketing Defined:• … the coordinated

performance of marketing activities to create exchanges across countries that satisfy individual, organizational , and societal objectives



Global marketing is conducted across countries (not domestic or foreign)Global marketing coordinates

activities across different country marketsGlobal marketing should be

motivated by individual, organizational, and societal goals


The Global Marketing Environment

• Focal Point--Consumer

• Use the Four P’s to Satisfy Consumers

• Economic, Financial, Political, and Cultural Environmental of Each Country Affect marketing

• Regional and Global Environments Affect Marketing


Why Should Firms Engage in Global Marketing?

• To Survive and Grow

1. Learn to satisfy consumers in diverse conditions

2. Manage marketing tasks more efficiently and effectivel

3. Preempt or counter competitive attacks in more than one market

4. Expand customer base to include developed and developing nations



• To Diversify Product and Market Portfolios and Improve competitiveness

1. Effects of seasonal and cyclical fluctuations in one market offset by others

2. Diversification increases market size and enhances economies of scale



• To Capitalize on the Attractiveness of Additional Country Markets

1. The U.S. is attractive-but won’t accommodate unlimited growth

2. Expand market size by expanding into other countries

3. Maurice G. Hardy: Why expand into other countries?

a. Keep competitors in their own countries;

b. Take advantage of growing opportunities in Europe and the Pacific



• To Operate Within a Global Marketplace

1. Goods, services, capital, technology, and labor are going global

2. Reduced government restrictions are affecting global marketing

3. Bilateral and multilateral negotiations are reducing restrictions


What is Unique about Global Marketing? Country market environments different

• Economic Environment ( Purchasing Power, Competitive Intensity, Economy’s Health)

1. Fiscal policies - tax rates and spending programs of government

2. Monetary policies - regulate money supply


What is Unique about Global Marketing? Country market environments different

• Financial Environment

1. Exchange rate - price of one currency in relation to another

2. Exchange rate fluctuations can adversely or favorably affect performance of a firm


What is Unique about Global Marketing? Country market

environments different

• Political Environment1. Tariff barriers - taxes on imports paid to customs

officials – includes:

a. Specific - fixed amount per physical unit of import

b. Ad -valorem ( on the value ) - percentage of estimated value of import

2. Nontariff barriers include:

a. Import quotas

b. Exchange controls

c. Buy-domestic policies

d. administrative red tape


What is Unique about Global Marketing?Country market environments different ?

• Cultural Environment

1. Differences encourage marketing adaptations

2. Similarities encourage standardization

3. Balancing the two is a key to success


Why Should We Study Global Marketing ?

• Influences Product Choices of Consumers

• Influences standard of living

• Influences Job Opportunities

• Influences the society


Global Marketing Decisions

CountryRegion

Global


Examples of Global Marketing

Product Design

Brand Name

Product Positioning

Packaging

Advertising Strategy

Sales Promotion

Distribution

Customer Service

Canon photocopier/McDonald’s/Toyota

Marlboro/Coke/Sony/BMW/

Colgate toothpaste

Gillette razors

Coca-Cola/Benetton

IBM

Benetton/Ikea

American Express


What is Unique about Global Marketing?

• Economic Environment• Fiscal policies - tax and

government expenditures• Monetary policies - regulate

money supply

• Financial Environment• Exchange rates and fluctuations• Foreign exchange reserves


What is Unique about Global Marketing?

• Political Environment• Tariff barriers• Nontariff barriers• Regulations

• Cultural Environment• Values• Beliefs• Attitudes


Global Marketing Environment

GlobalGlobal

RegionalRegionalLocalLocal

Marketing MixMarketing Mix

EnvironmentEnvironment


Management Orientation

• Ethnocentric

• Polycentric

• Regiocentric

• Geocentric


Global Marketing Evolution

• Domestic Marketing (domestic focus; home country customers; ethnocentric orientation).

• Export Marketing (ethnocentric orientation; products developed for home country customers).

• International Marketing (markets in many countries; polycentric orientation; use of multidomestic marketing when customer needs are different across national markets).


Global Marketing Evolution

• Multinational Marketing (many markets; consolidation on regional basis; regiocentric orientation; standardization within regions).

• Global Marketing (international, multinational & geocentric orientation; company’s willingness to adopt a global perspective; global products with local variations).


Global Marketing

• Standardization Efforts--product offerings, promotional mix, price, and channel structure.

• Coordination Across Markets—reducing cost inefficiencies.

• Global Integration—participating in many major world markets to gain competitive leverage, subsidize operations in some markets.



Internationalize Business?


Market Entry Selection

Country Market Selection


Why Global Marketing?• Exploiting Firm-Specific

Capabilities• Technological innovations• Strong Trade Names

• Lowering Cost Structure• Outsourcing• Hub and spokes model


Why Global Marketing?• Diversification and

competitiveness• Product/market portfolio• Cross-subsidization

• Country market attractiveness• Income• Consumer preference

• Technology and market


Why Global Marketing• Saturation of domestic markets:

Domestic market saturation in the industrialized countries and growing marketing opportunities overseas.

• Global competition: Competition around the world and proliferation of the Internet.

• Need for global cooperation: Global competition brings global cooperation.


GLOBAL INTEGRATION

Restraining ForcesTechnology

Culture

Market Needs

Cost

Free Markets

Economic Integration

Peace

Management Vision

Strategic Intent

Global Strategy and Action

Culture

Market Differences

Costs

National Controls

Nationalism

War

Management Myopia

Organization History

Domestic Focus

Driving Forces


Global Trade Importance• World trade has grown from

$200 billion to more than $7 trillion in the past three decades.

• The Iron Curtain is gone and capitalism is the new economic order.

• Firms invest on a global scale.• Increasingly more difficult to

define “where” products come from.


Domestic and Global Trade Growth

0%

2%

4%

6%

8%

10%

12%

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000 Year

Percentage of Growth

Trade Growth Domestic Growth

Source: International Financial Statistics Yearbook 2000, International Monetary Fund, Washington D. C.


The Changing Face of Exporting

0%

50%

100%

150%

200%

250%

300%

350%

400%

Gro

wth

(198

3-19

98)

Australia Canada Germany Japan USA

Merchandise Exports Commercial Services ExportsSource: The World Bank, World Development Report, 1999.


Domestic Policy Repercussions in the US• 1 out of every 3 U.S. farm acres is

producing for export• 1 of every 6 U.S. manufacturing jobs

produces for export• $1 of every $7 of U.S. sales goes abroad • 1 of every 3 cars, 9 out of 10 TVs, 2 out of 3

suits, and every VCR sold in the U.S. is imported.

• Travel and tourism is the #1 source of U.S. foreign exchange.

• $1 of every $4 of U.S. bonds & notes is issued to foreigners.


“If we distributed pictures only in the United States, we’d lose money. It takes the whole world now to make the economics of movie-making work.”

- William MechanicPresident, 20th Century

Fox


“Half the people in the world have yet to take their first picture. The opportunity is huge, and it’s nothing fancy. We just have to sell yellow boxes of film.”

- George M.C. FisherCEO, Eastman Kodak Company


E-MARKETINGWakil presiden Al Gore :

information highway

Cyberspace

Pemikiran, strategi, pendekatanbaru


Web Marketing Strategies

•Four Ps of marketing• Product : Physical item or service that

the company is selling• Price : Amount customer pays for the

product• Promotion : Any means of spreading

the word about the product• Place : Need to have products or

services available in different locations


Product-Based MarketingStrategies

• When creating a marketing strategy• Managers must consider both the

nature of their products and the nature of their potential customers

• Most office supply stores on the Web• Believe customers organize their

needs into product categories


• Good first step in building a customer-based marketing strategy

• Identify groups of customers who share commoncharacteristics

• B2B sellers

• More aware of the need to customize product and service offerings to match their customers’ needs


Communicating with Different Market Segments

• Identify groups of potential customers • The first step in selling to those

customers

• Media selection • Can be critical for an online firm

• Challenge for online businesses • Convince customers to trust them


Trust and Media Choice

• The Web is an intermediate step between mass media and personal contact

• Cost of mass media advertising can be spread over its audience

• Companies can use the Web to capture some of the benefits of personal contact, yet avoid some of the costs inherent in that approach


• HOTNIAR SIRINGORINGO• LEMBAGA PENELITIAN• KAMPUS D GD 4 LT. 1• JL. MARGONDA RAYA NO. 100

DEPOK• [email protected]• [email protected]• http://staffsite.gunadarma.ac.id

mailto:[email protected]

mailto:[email protected]


E-business vs. E-CommerceAlthough the terms are usually used

interchangeably:• E-Commerce comprises of electronic

transactions (buying and selling online)

• E-Business on the other hand, goes well beyond ecommerce as it also encompasses the integration of ICT into business processes of enterprises. This includes flows of information within the company, i.e., between departments, subsidiaries and branches. Flows of information within the company, i.e., between departments subsidiaries and


E-Business/Commerce

E-Business – Definition:

the conduct of business with the assistance of telecommunications and Telecommunications-based tools*

* htt // d / l /R Cl k /EC/ECD


E-Business/CommerceE-Commerce – Definition:

Selling online, with or through a website, or by means of email. E-commerce or electronic commerce is usually subdivided into B2B (business to business: wholesale), B2C (business to customer: retail) and C2C (customer to customer: auctions and information portals). * http://www.ecommerce-digest.com/ecommerce-definition.html


E-Business/CommerceE-Commerce – Definition: (cont)

Much more demanding — and not usually served by off-the-shelf software — is e-business or electronic business, where information technology is applied to all aspects of company's operations. In e-business are to be found systems for CRM (customer resource management), ERP (enterprise resource planning), SFM (sales force management), SCM (supply chain management) and EP (electronic procurement).


E-Business/Commerce

E-Business – Definition:Any business that is going to become a “on demand”businessAny business that is going to “practice” Electronic data interchange (EDI)Any business that is going to leverage their existing business through web based interfaces (ie website)


E-Business/Commerce

Definition(s)/Implementations“Best Case” – All transactions are

performed electronically, between vendor and customer. Some companies like Ford Motor Co., check supplier inventory/price/shipping options and order parts all “computer to computer”


E-Business/Commerce

Definition(s) /Implementations“Average Case” – Most

transactions are performed electronically, between vendor and customer. For example, ordering hams from Burgers’Smokehouse, where customer gets notified of specials via e-mail and can then click and order.


E-Business/Commerce

Definition(s) /Implementations“Least Case” – Simple payment

portal, or maybe only a website with business description and product offerings. For example, my web hosting business accepts renewal payments via our website.


E-Business/Commerce

Issue: Traditional E-BusinessAdvertsing/Exposure

Usually a local event. Reaching 10-50K people

Can reach all 275 million people in the US, or a large portion of the world


E-Business/Commerce

Issue: Traditional E-BusinessSales “counter”

Each person can handle only hundred of people per day

Website can process millions of orders per day


E-Business/Commerce

Issue: Traditional E-BusinessFund transfer

Mail or in person. Can take up to 7 business days

Instant


E-Business/Commerce

Issue: Traditional E-BusinessDelivery Pickup in

person, U.S. Mail, truck delivery.

Can be via traditional means, or instantly via email or download


E-Business/Commerce

Issue: Traditional E-BusinessCost If you hire

people to sell, at least $12K/yr/person

Can be as low as $350/yr to just a coupe of thousand per year


E-Business/Commerce

Examples:Examples:AuctionsAuctions

Trading boardsTrading boards

OnOn--line salesline sales

Scheduling (like returning trucksScheduling (like returning trucks)

Information only (like what I have to sell)Information only (like what I have to sell)


Decision Making ProcessA decision to adopt a technology happens onceperceived benefits outweigh perceived riskslimited by constraints. For example:

• Resources• Skills availability• TCO, ROI• Distribution network• Other constraint


Internet usage growth in major direct selling markets


Online Sales: A Surplus


WEB STRATEGY IN DIRECT SELLING INDUSTRY• Web strategy objectives:

• Promote the brand internationally• Support global, Field organization

building• About the company

• Brand message• Region/country message• Public information


Promote the brand internationally

• About the opportunity• Stories/testimonials• How to get started

• About the products• Categories/local specifics• Science• Marketing• How to purchase or promote


Support Field Organization•Lead generation/conversion

• Contact management

– Collect, organize and mine information

– Leverage web technologies

• Training and communication

– Electronic documentation and presentation

– Leverage web technologies


Enable Efficient E-Commerce

• Cost and operational interaction• Global reach• Self-service• Process integration

• Information for business management• Personnel• Product transactions

• Marketing• To distributors• To ultimate users


Technology Plans and Providers• Begin with a global, integrated,

web-based backbone (e.g. QuinStreet)

• Implement in components/stages (e.g. order-entry,distributor tools)

• Add targeted, enhanced solutions• search (e.g. WebSideStory)• call center• events management (e.g. Lenos)

GLOBAL MARKETING - Gunadarma...

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