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Introduction to Global Marketing(Continued)
Lecture 2
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Recap
• Introduction to Marketing• Introduction to Global Marketing• Reason for Global Marketing• Globalization
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Global Marketing: What it is and What it isn’t
• Strategy development comes down to two main issues similar to single country marketing– Target market– Marketing Mix
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© 2005 Prentice Hall 1-4
Global Marketing: What it is and What it isn’t
NEED TO:• Search for similarities and adjust to differences
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The Development of Global Marketing
• Domestic Marketing• Export Marketing• International Marketing• Multinational Marketing• Pan-Regional Marketing• Global Marketing
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Global Marketing: What it is and What it isn’t
• Global marketing does not mean doing business in all of the 200-plus country markets
• Global marketing does mean widening business horizons to encompass the world in scanning for opportunity and threat
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The Importance of Global Marketing
• For US-based companies, 75% of sales potential is outside the US.– About 90% of Coca-Cola’s operating income is
generated outside the US.• For Japanese companies, 85% of potential is
outside Japan.• For German and EU companies, 94% of
potential is outside Germany.
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Standardization versus
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
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Standardization versus
Adaptation
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Amsterdam Singapore
Germany
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1-11
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Why Companies Seek Global Markets?
• To respond to orders from abroad• To increase sales and profits• To counter the competitors• To grow• To follow customers• For economic reasons
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Why Study Global Marketing?
• Job opportunities in export business• Job opportunities in foreign-based
companies• Job opportunities in service sector• Emergence of e-marketing
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Summary
• Global Marketing: What it is and What it isn’t
• The Development of Global Marketing
• The Importance of Global Marketing• Standardization versus Adaptation• Why Companies Seek Global
Markets?• Why Study Global Marketing?
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References
• Gillespie, K., Jeannet, J.P. and Hennessey, H.D. (2004), Global Marketing: An Interactive Approach, Houghton Mifflin, Boston, NY.