glolmrketing.ppt

1、Global Marketing,Spring 2003,Some Abouts,About me About this course About the project About the examination About grading,Text Structure,Introduction to global marketing The global marketing environment Global market opportunities Global marketing strategy Global marketing program Global marketing m

2、anagement,List of Questions,What is global marketing? Do we have to go global? Why? Where shall we go? What shall we know before plunging ourselves into the storming sea? How can we survive and thrive in a foreign market?,Global Marketing- Introduction,What is Global Marketing?,What is marketing?,Th

3、e process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectives.,The Three Principles of Marketing,Customer Value Value Equati

4、on: V=B/P Differential Advantage Focus,What is global marketing?,Practicing marketing in the global environment. An organization that engages in global marketing focuses its resources on global market opportunities and threats,Globalization,An open economic system Non-discrimination Global brands Gl

5、obal structures,Exports % share of world production,Annual % Growth of trade and GDP1959 96,GDP,GDP,Effects of globalization on business,Cheap offshore production Reduced transport costs Virtual communication Standardization of logistics Global marketing,Export More complicated: currency, measures a

6、nd weights, customs, monetary exchange, transportation, insurance, and counter-claim More risky: credibility, currency exchange, political risk, transportation, and pricing More opportunities and more profitable, hopefully.,Should we go global?,Internal analysis Resources, managerial mindset, streng

7、ths, weaknesses,etc. External analysis Competition, opportunities, threats, benefits, risks, etc. Cost VS Income,Management Orientation,Managements assumptions or beliefs-both conscious and unconscious-about the nature of the world Ethnocentric Polycentric Regiocentric Geocentric,Ethnocentric,Home c

8、ountry is superior. Domestic Company: No opportunities outside the home country; International Company Products and practices that succeed in the home country will be successful anywhere; Foreign operations are secondary or subordinate Nissan,Polycentric,Each country is unique. Multinational Company

9、: Each subsidiary should develop its own business and marketing strategies according to the specific situation in that country. Problem: Cost, control, headquarter out of game,Regiocentric Usage of a single currency-a struggle; Common policies on agriculture, social services and welfare, regional de

10、velopment, transportation, taxation, competition and mergers Political unity, a central government;,From GATT to WTO,GATT: A treaty between 125 nations who agreed to promote trade among members. Trade-disputes settlement, no power of enforcement WTO: A forum for trade-related negotiations. A system

11、to settle trade disputes Service industry: Market-entry barriers in banking, insurance, telecommunications, etc.,Regional Economic Organizations,APEC: Asian Pacific Economic Cooperation North American Free Trade Agreement Central American Common Market Andean Group Southern Cone Common Market Caribb

12、ean Community and Common Market,Regional Economic Organizations,Association of Southeast Asian Nations The European Union Cooperation Council for the Arab States of the Gulf Economic community of West African States South African Development Coordination Conference,Global Marketing Information Syste

13、ms and Research,Acquire Global Information,Superabundance in developed countries Scarcity in LDC and underdeveloped countries Where and how to get the right information Scanning,Global Marketing Information System,MIS defined Gathering, analyzing, classifying, storing, retrieving, and reporting EDI:

14、 Electronic Data Interchange Benetons MIS Timely, cost-efficiently, actionable,Subject Agenda for a Global MIS,Markets Competition Foreign exchange Prescriptive information Resource information General conditions,Markets,Demand estimates Consumer behavior Products Channels Communication media availa

15、bility and cost Market responsiveness,Competition,Corporate strategies Business strategies Functional strategies,Foreign Exchange,Balance of payments Interest rates Attractiveness of country currency Expectations of analysts,Prescriptive Information,Laws, regulations, rulings concerning taxes, earni

16、ngs, dividends in both hose countries and home country,Resource Information,Availability of human, financial, information, and physical resources,General Conditions,Overall review of sociocultural, political, technological environments,Scanning Modes,Surveillance Informal information gathering Viewi

17、ng and monitoring Search Formal information gathering Investigation and Research,Rule of Thumb,Create an efficient and effective scanning system in both the home country and the host countries Create a MIS system Expanding information coverage to other regions of the world,Sources of Marketing Infor

18、mation,Human sources Overseas executives Friends, acquaintances, professional colleagues, consultants, and prospective new employees Personal relationship Direct perception Seeing, feeling, hearing, smelling, or tasting The design of Lexus,Formal Marketing Research,Project-specific, systematic gathe

19、ring of data in the search scanning mode. Identify the research problem Develop a research plan Collect data Analyze data Interpret and report findings,Step 1: Problem Definition,A problem well defined is half solved. Assess the nature of the market opportunity. Existing Potential,Existing Market,Ma

20、rket size, level of demand, rate of product consumption Self-evaluation: competitiveness, product appeal, price, distribution, promotional coverage and effectiveness,Potential Market,Latent market Undiscovered segment. Prime move advantage P Profit: 0.54 billion. Changhong: unit sale 7,500,000 Toshi

21、ba: unit sale 500,000 Profit: equal,High Tech Positioning,Based on technological features Computers, video and stereo equipments, automobiles Technical products Special-interest products Products that demonstrate well,High-Touch Positioning,Less emphasis on specialized information, more on image Pro

22、ducts that solve a common problem Global village products Global brands Products that use universal themes Materialism, heroism, recreation, procreation,Sourcing:Exporting and Importing,Export Selling or Export Marketing,Export selling Does not involve tailoring the marketing mix to suit the require

23、ments of global markets, only “place” is changed Export marketing Targets the customer in the context of the total market environment.,Export Marketing,An understanding of the target market environment The use of marketing research and the identification of market potential Decisions concerning with

24、 every elements of the marketing mix,Buy Chinese,Nationalism Customer value Harley Davidson,Roles of Global Marketing Strategy,Configuration of marketing Coordination of marketing activities across countries Tapping opportunities in product development and R WFOE (wholly foreign owned enterprise) Ac

25、quisition VS. direct expansion,Expansion Strategies,Concentration,Diversification,Concentration,Diversification,Market,Country,Alternative Strategies,Stages of development Domestic International Multinational Global Transnational,Competitive Analysis Recruiting and training distributors; Evaluation,

26、 negotiation, and signing contracts; Terminal design and development; Promotion, sales assistance, terminal maintenance; Management, training, adjustment, reward, and improvement,Selection,Home countrys trade department Home countrys embassy or consulate in the host country, Business Counselor Local

27、 chamber of commerce or local trade organizations Local distributor commitment,Selection,Network resource; coverage, depth; Control over price, assortment Terminal and sales force management; Credibility; payment reliability; Service capability; Financial resources; Warehousing and transportation Co

28、mmitment to the product is the key.,Terms and Responsibilities,Price policy Price list, schedule of discounts, allowances Conditions of sales Payment terms, producer guarantees, Distributors territorial rights Performance and cancellation Mutual services and responsibilities,Distributor Evaluation,S

29、ales volume Sales increase speed Percentage of product sales of the total distributor sales; Selling cost against sales Inventory level Number of product lines carried Terminal display and price execution Service provided to downstream distributors and customers,Motivating Channel Members,Coercive p

30、ower Reward power Legitimate power Expert power Referent power,ProducerDistributor Relationships,Enemies Customers or clients Partners,Conflict Competition Cooperation,Trends In Global Distribution,Flattened channel Involve as few intermediaries as possible Short channel preferred Channel power movi

31、ng from producers to retailers; Booming of super-large retail chains and disappearance of small stores Application of high-tech in physical distribution of goods or services,Global Promotion,Promotion,Function of informing, persuading, and influencing the consumers purchase decision.,Objectives of P

32、romotion,Provide information to consumers and others; Increase demand; Primary demand Selective demand Differentiate a product; Accentuate a products value; Build up brand equity,The Promotional Mix,Blend of personal selling and nonpersonal selling designed to achieve promotional objectives. Persona

33、l selling: Interpersonal promotional process involving a sellers person-to-person presentation to a prospective buyer. Sales presentation, sales meeting, samples, fairs and tradeshows Nonpersonal selling: Advertising, sales promotion, direct marketing, and public relations,IMCIntegrated Marketing Co

34、mmunication,Transmission from a sender to a receiver of a message dealing with the buyer-seller relationship. IMC: Integrated Marketing Communication Coordination of all promotional activities-media advertising, direct mail, personal selling, sales promotion, and public relations-to produce a unifie

35、d, customer-focused promotional message.,Communication,Why Integrated?,Informational contradiction among different sources; Increase in media options creates information overload; Uncoordinated promotional efforts within the firm; In-house resources and outside vendors Cost,How to integrate?,Global

36、vision Customer oriented instead of product, brand or organization oriented; Intensive headquarter planning; Regular evaluation; Horizontal and vertical communication among subsidiaries, and between departments; Teamwork; Database marketing,The Communication Process,Encoding Decoding: Transforming t

37、he senders message back into thought;,Response, Feedback France:12 minutes per hour per channel, Switzerland, Germany, Austria:20 minutes Germany: Ad time must be reserved and paid a year in advance,Legal Restriction in Saudi Arabia,Horoscope, fortune-telling Use of fear Use of news or official stat

38、ement Use of comparative advertising Appearance of women,Media Vehicles and Expenditures,Per-capita advertising expenditure Availability of media vehicles in different countries Ownership of TV, radio, newpaper Target audience media preference,Media Strategy,Reach, frequency, and impact Selecting ma

39、jor media types Selecting specific media vehicles Media timing Geographical media allocation,Reach, Frequency, Impact,Reach (R) The number of different persons or households exposed to a particular media schedule at least once during a specified time period; Frequency (F) The number of times within

40、the specified time period that an average person or household is exposed to the message; Impact (I) The qualitative value of an exposure through a given medium,Choosing the Right Media,Television Combines sound, sight, and motion, high attention, high reach, high media image High absolute cost, high

41、 clutter, fleeting exposure, less audience selectivity Radio High geographic and demographic selectivity, low cost, flexibility, mobility Audio only, lower attention,Choosing the Right Media,Newspaper Flexibility, timeliness, local market coverage, broad acceptance, high believability Short life, po

42、or reproduction quality, small pass-along audience, hasty reading Magazine High geographic and demographic selectivity, credibility, high quality reproduction, long life, good pass-along readership Lack of flexibility,Choosing the Right Media,Direct mail Audience selectivity, flexibility, no competi

43、ng message, detailed, intense coverage “Junk Mail” image, low reach, mailing list quality Outdoor advertising Posters, billboards, street-light poster, neon lights, Repetition, local coverage, low cost Limited audience selectivity, brevity of message, low attention rate,Choosing the Right Media,Interact