Global Marketing Strategies and Management
Market Environment
Macro Environment (Long-Term & Uncontrollable)
Political (Home & Host), Economic, Social, Technological, Environmental, and Legal + Cultural:
Attitudes, beliefs, motivation, morality… High and low context. National (meanings, unconditional, born into, totally immersed) and organizational (shared behaviors, conditional, socialize into, partly involved).
Economic:
Population, income = purchasing power parity, consumption patterns, infrastructure, social development…
Market Types:
- Developed Markets: Requires adapting entry strategy, managing affordability, investing in distribution, and building strong brands.
- Emerging Markets: Requires research, creating buying power, tailoring local solutions, improving access, and shaping aspirations.
- Developing Markets: Requires specific strategies based on market characteristics.
Micro Environment (Close to the Firm, Day-to-Day)
Company, suppliers, intermediaries, customers, competitors (create sustainable competitive advantage, differentiate), publics.
Consumer Behaviour
Factors Affecting Consumer Behavior:
- Cultural: How they use the product.
- Social: Family, groups (membership, reference, aspirational).
- Personal: Age, occupation, economic situation.
Consumer Buying Roles:
Initiation, influencer/prescriptor, decider, buyer, and user. Push (point of sales) or Pull (advertising).
Segment, Target, and Positioning = Strategic Plan
People inside a segment must be heterogeneous, but people of different segments must be heterogeneous. Measurable (how large), accessible (capabilities), and substantial (big enough).
Segmentation:
- Identifying bases.
- Developing profiles.
- Developing measures of attractiveness.
- Selecting segments.
- Developing positioning for each segment.
- Developing the marketing mix for each segment.
Targeting:
Evaluate market segments and select them:
- Mass Marketing: (e.g., Ford)
- Product Variety Marketing: (Products with different features)
- Target Marketing: (Identifies segments and tailors offerings)
- Customized Marketing: (e.g., Gluten-free products)
Global Marketing Program Development
Local, global, glocal. Product offering: Globalization does not equal standardization. Marketing approach: Glocal. Location of value-added activities (local). Cross-subsidization: Use of resources accumulated in one part of the world to fight a competitive battle in another.
Implementation:
Market-related reasons and internal factors. Balance between country manager and global product manager.
Globalization Drivers:
Market factors, costs, environmental, competitive.
Strategic Planning
Mission statement, objectives, design…
- Leverage of domestic capabilities in foreign market entry. Objective: Economies of scale. Corporate actions…
- Expansion of foreign market presence. Objective: Economies of scope.
- Coordination of global operations.
Branding
Brand is name, term, sign… to identify and differentiate.
Brand Equity:
Product made in factory, brand bought by the consumer. How the consumer perceives the product. Brand loyalty, brand assets, associations, awareness, and perceived quality.
Brand Policy:
New brands or global brands, extensions, lines, repositioning.
Marketing Plan
Executive summary, current situation and trends, reviewing performance, key issues (SWOT analysis), targets, marketing strategy, action plans (to whom, what, who will do it, when, budgets), plan P&L statement, control, contingency plans.
Global Pricing
Internal Factors:
Marketing objectives and costs.
External Factors:
Demand, competitors, price calculation.
Pricing Strategies for New Products:
- Skimming: Setting the highest possible price.
- Penetration Pricing: Setting a low price to gain market share.
- Me-Too Pricing: Matching competitor’s prices.
Pricing Strategies for Established Products:
- Maintain price.
- Reduce price.
- Increase price.
Snob Effect:
Based on other people’s consumption; buying exclusivity.
Veblen Effect:
Based on price; higher price signifies higher quality.
Single Price vs. Flexible Price
Overcoming Price Escalation:
Reorganize the channel of distribution, adapt the product, or use new taxes.
Global Pricing Considerations:
Transfer pricing, pricing within individual markets, dealing with financial crises, and countertrade.
Global Distribution
Proactive Stimuli:
Going international without analyzing competitors: Profit, unique product, technological advantage, exclusive information, economies of scale, market size.
Reactive Stimuli:
Reacting to something external: Competitive pressures, overproduction, declining domestic sales, excess capacity, proximity.
Types of Distribution:
Subsidiary, distributor, joint venture, agent.
Distribution Channels:
Traditional channel (small shop), impulse purchase channel, hypermarket, supermarket, hard discounter, category killers, malls, department stores, catalogs, internet.
Global Promotion and Communication
Promotion Mix:
Advertising, personal selling, sales promotion, and public relations.
Requirements for Effective Communication:
Product, market, and customer factors.
Developing Effective Communication:
Identify the audience, determine the message, choose media, collect feedback, set the budget and mix.
Advertising:
Informative, persuasive, comparison.
Global Product Management
How to use resources worldwide and exploit opportunities in each market.
Product Levels:
- Core Product: (Emotional benefit)
- Actual Product: (Benefits)
- Augmented Product: (Additional benefits like free delivery and after-sales service)
Product Classification:
Durability or tangibility, customers (convenience, shopping goods, specialty goods).
Product Attributes:
Local vs. global, quality, features, design, lines, packaging, brand…
Product Lifecycle:
Introduction, growth, maturity, decline.
Marketing Mix or Product Adaptation:
- Standardize: Easier to obtain economies of scale, global competition, global image, higher demand.
- Adapt: Government and regulatory influences, differing consumer behavior patterns, local competition, differing use conditions.