Global Versus Localized Marketing Global marketing emphasizes selling the same product with the same marketing mix all over the world Localized marketing.

Global Versus Localized Marketing

• Global marketing emphasizes selling the same product with the same marketing mix all over the world

• Localized marketing emphasizes a unique marketing mix for each country or trading block

Successful Global Marketing Requires:

Comparative Advantage

Opportunity

THE LAW OF COMPARATIVE ADVANTAGE

“Countries are better off producing items

where they have inherent advantages

and buying from others’ products

where they have handicaps.”

Foreign Market Selection Factors

• Size of Market (enough customers?)

• Distinct competitive advantage?

• Level of Financial Risk– Cultural differences– Government instabilities

Market Entry Strategies

• Export• Licensing• Joint ventures• Investing in your own facilities

Increasing levels

of commitment,

risk, control,

and profit potential

Risks in Global Marketing

Trade Restrictions

Currency Exchange

Unstable Governments

Cultural Factors

Problems with Global Marketing can be due to:

• Insufficient research on the intended countries

• Overstandardization or lack of flexibility in approaches utilized

Risks of Cultural Factors

Standard of Living Differences

Style of Living Differences

Religion Differences

Understanding Cultural Factors

• Overseas buyers often have different concepts of time, space, and etiquette

• Need to study how potential customers regard and use your product

• Examples:– Privacy may be viewed differently– comparative advertising or sexual innuendo

may be taboo

Think Global But Act Local

• Global marketing often works and can save money• Have global objectives• But don’t ignore local market conditions• Adjust plans to meet the special needs of particular

customers in other countries

DYNAMICS OF WORLD TRADE

• A New Reality: Global Competition Among Global Companies forGlobal Customers

Global Competition

Global Companies

• International Firm

• Multinational Firm

MultidomesticMarketing Strategy

• Transnational Firm

Global MarketingStrategy

1. Cross-cultural analysis involves the study of _________.

Concept Check

A: similarities and differences among consumers in two or more nations or societies

Slide 7-32

2. When foreign currencies can buy more U.S. dollars, are U.S. products more or less expensive for a foreign consumer?

A: Less expensive.

Concept Check

GLOBAL MARKET-ENTRY STRATEGIES

• Exporting

Indirect Exporting

Direct Exporting

• Licensing

• Joint Venture

• Direct Investment

Franchising

Alternative global market-entry strategies

Global competition exists when firms originate, produce, and market their products and services worldwide.

Global competition exists when firms originate, produce, and market their products and services worldwide.

Global Competition

Multinational firms use a multi-domestic marketing strategy when they have as many different product variations, brand

names, and advertising programs as countries in whichthey do business.

Multinational firms use a multi-domestic marketing strategy when they have as many different product variations, brand

names, and advertising programs as countries in whichthey do business.

Multi-domestic Marketing Strategy

Transnational firms employ a global marketing strategy, which is the

practice of standardizing marketing activities when there are cultural

similarities and adapting them when cultures differ.

Transnational firms employ a global marketing strategy, which is the

practice of standardizing marketing activities when there are cultural

similarities and adapting them when cultures differ.

Global Marketing Strategy

Global consumers consist of customer groups living in many different

countries who have similar needs or seek similar features and benefits from

products or services.

Global consumers consist of customer groups living in many different

countries who have similar needs or seek similar features and benefits from

products or services.

Global Consumers

Cross-cultural analysis involves the study of similarities and differences among consumers in two or more

nations or societies.

Cross-cultural analysis involves the study of similarities and differences among consumers in two or more

nations or societies.

Cross-Cultural Analysis

Exporting is producing goods in one country and selling them in another

country.

Exporting is producing goods in one country and selling them in another

country.

Exporting

A joint venture is when a foreign country and a local firm invest

together to create a local business.

A joint venture is when a foreign country and a local firm invest

together to create a local business.

Joint Venture

Direct investment entails a domestic firm actually investing in and owning

a foreign subsidiary or division.

Direct investment entails a domestic firm actually investing in and owning

a foreign subsidiary or division.

Direct Investment