Marketing Latam - 01 Introduction

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Global MarketingDoing Business in Latin America

1. Introduction

This presentation (and extra material) belongs to Natalia Ceruti´s Global Marketing Course, within the Leading the Way to Success in Latin America Program. Should not be copied, nor reproduced, in full or in parts, without Natalia Ceruti´s permission.

The Very Basics


Growth - Ansoff´s Grid


Value

Value Proposition is the set of benefits or values a company promises to deliver to customers to satisfy their needs.

Perceived Benefit• Product or Service

• Additional Services

• Personal Value

• Image

Perceived Sacrifice• Price (Money)

• Time

• Effort

• Psichologycal Cost

Value: difference (between benefits and sacrifices) perceived by a Customer, among the company´s

offering and the competence´s offering.

V = B - S


Value

Value for Customer

Value for Shareholder

VALUE FOR MONEY MONEY FOR MONEY

Double mission


Marketing Strategy & Plan


Controllable & Uncontrollable

Going Global?


• Questions to consider to deal with international issues and repercussions and make appropriate decisions:• Does my market have borders?• Should I obtain my supplies domestically or from abroad?• What marketing adjustments are or will be necessary?• What threats from global competition should I expect?• How can I work with these threats to turn them into opportunities?• What are my strategic global alternatives?

International Marketing consists of the activity, institutions, and processes across national borders that

create, communicate, deliver, and exchange offerings that have value for stakeholders and society.


Global Industries

• Indicators of globalization:• Ratio of cross-border trade to total worldwide production• Ratio of cross-border investment to total capital investment• Proportion of industry revenue generated by companies that

compete in key world regions

An industry is global to the extent that a company’s industry position in one country is interdependent with

its industry position in another country.


Inward/outward internationalization



Global Marketing: What It Is and What It Isn’t

Global Marketing Strategy

• Global Market Participation

• Marketing Mix Development• 4 P’s: Adapt or Standardize?

• Concentration of Marketing Activities

• Coordination of Marketing Activities

• Integration of Competitive Moves

Single CountryMarketing Strategy

• Target Market Strategy

• Marketing Mix • Product• Price• Promotion• Place


Global Marketing Task


Standarization vs Adaptation

Globalization (Standardization): Developing standardized products marketed worldwide with a standardized

marketing mix. Essence of mass marketing.

Global localization (Adaptation): Mixing standardization and customization in a way that minimizes costs while

maximizing satisfaction. Essence of segmentation. Think globally, act locally.

Standard Customized


Product and promotionstrategies for global marketing


Standarization versus Adaptation

ArabicRead right to left

Chinese “delicious/happiness”

The Faces of Coca-Cola Around the World


Management Orientations

Ethnocentric Orientation: Home country is superior to others. Sees only similarities in other countries. Assumes products and practices that succeed at home will be successful everywhere.

Leads to a standardized or extension approach.

Polycentric Orientation: Each country is unique. Each subsidiary develops its own unique business and marketing

strategies. Often referred to as multinational. Leads to a localized or adaptation approach that assumes products must

be adapted to local market conditions.

Ethnocentric Polycentric


Management Orientations

Ethnocentric Orientation: Home country is superior to others. Sees only similarities in other countries. Assumes products and practices that succeed at home will be successful everywhere.

Leads to a standardized or extension approach.

Polycentric Orientation: Each country is unique. Each subsidiary develops its own unique business and marketing

strategies. Often referred to as multinational. Leads to a localized or adaptation approach that assumes products must

be adapted to local market conditions.

Ethnocentric Polycentric


Stages of International Marketing Involvement


Internationalization Strategies


Marketing Entry Strategies


Which Strategy Should Be Used?

• It depends on:• Vision• Attitude toward risk• Available investment capital • How much control is desired


Global Marketing Program


Video Case:Domino´s Pizza in Mexico


Video Case:Domino´s Pizza in Mexico

• 1. Domino’s has successfully grown its international presence very quickly. Compare and contrast its strategy with that of another well-known international fast food operation, McDonald’s. What similarities do you see? Are they any significant differences between the two companies? What has led to the success of Domino’s?

• 2. Domino’s owes its rapid expansion into foreign markets to its franchisees. Consider the company’s franchising strategy. How does Domino’s ensure that its corporate values and strategies are adopted by the franchise operations?

• 3. While its pizza appears to be universally accepted, Domino’s has had to make some adjustments to its marketing mix. Discuss the different components in the marketing mix and how the company has responded to local needs.

• 4. Domino’s made some significant changes to its Mexican operation in the late 1990s. Discuss Domino’s efforts there, the economic risk the company was facing, and the strategies it used. Is Domino’s current strategy viable in the long-term? Why or why not?



Sources

• Cateora, P., Gilly, M. and Graham, J. (2009). International Marketing, 14th ed. New York: MacGraw-Hill.

• Czinkota, M. and Ronkainen, I. (2010). International Marketing, 9th ed. New York: Cengage Learning.

• Keegan, W. and Green, M. (2011). Global Marketing, 6th ed. New Jersey: Pearson Education.

• Kerin, R., Hartley, S. and Rudelius, W. (2007). Marketing The Core, 2nd ed. New York: MacGraw-Hill Irwin.

• Kotler, P. and Armstrong, G. (2006). Principles of Marketing, 11th ed. New Jersey: Pearson Education.

• Kotler, P. and Keller, K. L. (2009). Marketing Management, 13th ed. New Jersey: Pearson Education.

Marketing Latam - 01 Introduction

Business

global marketing program

marketing strategies

marketing adjustments

global competition

essence of mass marketing

global localization

global marketingdoing

home country