Review of Global Marketing Management

Sandy McantireJonathan Peters

Zhibin WangJanuary 9 2012

Summary:1. Global market and relative conceptions 2. Global market analysis3. Global market strategy:4. Current issues and cases

Global market conceptions

Changing globe: What’s global market:• Why go to global market:

Changing globe:

Change the transportation and communication technology; E-commerce changes all models business and national; end of the capitalism/socialism struggle; capital movements replaced trade levels; production “uncoupled” from employment

What’s global market:

A “homogenous global village”, Levitt advised organizations to develop standardized , high-quality world

products and globe using standardized advertising, pricing, and

distribution(p.8,global marketing management by warren J. Keegan).

Why go to global market:Access to products not available at home; get raw materials for products; better quality of life; comparative advantage; mature market at home; under utilitized capacity; leverage competitive advantage; compete in home market of others. Cases: Ghana and south Korea.

Global market analysis Micheal porter’s five forces

National competitive advantage analysis.( porter’s diamond of national advantage)

Factor condition:

The national ability to customers for the industry’s product or service. Human resources, Physical resources, Knowledge resources, Infrastructure and Capital

Demand condition

The nature of domestic demand and the sophistication of domestic for the industry’s product or service.Rapid home market growth , Push or Pull , Composition of demand , Pattern of growth at home

Relative and supporting industries

The existence or absence in the country of supplier and related industry that are also internationally competitiveThe advantage that a nation gains by being home to internationally competitive industries in fields that are related to, or in direct support of, other industries

Company strategy, strategy, and rivalry

The conditions in the nation that govern how companies are created, organized, and managed, and how intensely they compete domestically.

• CostCost– LeadershipLeadership– FocusFocus

• DifferentiationDifferentiation– ProductProduct– FocusedFocused

Global Marketing Strategy

• Broad market strategies– Cost leadership—low price– Product differentiation—premium price

• Narrow market strategies– Cost focus—low price– Focused differentiation—premium price

Global Marketing Strategy

• Building Layers of Advantage– Build a wide portfolio of advantages– Develop portfolios by establishing layers on top of one

another– Move along the value chain to strengthen competitive

advantage

• Searching For Loose Bricks– Search for opportunities in the defensive walls of

competitors whose attention is narrowly focused – Focused on a market segment– Focused on a geographic area to the exclusion of others

Global Marketing Strategy

Global Marketing Strategy

• Changing The Rules of Engagement• 4 Cs of Partner Selection

• Complementary skills• Cooperative cultures• Compatible goals• Commensurate levels of risk

Current Issues

Economic FreedomCorruption & Foreign Corrupt Practices ActCurrency Rate ChangesTariffsIntellectual Property ProtectionFair Trade

Stages of Market Development

Low-Income CountriesLow-Income Countries

High-Income CountriesHigh-Income Countries

86% of the 86% of the world’s world’s populationpopulation

• There is Money at the BOP• BOP Markets are brand & value

conscious• BOP Market is connected• BOP Customers accept

advanced technology readily• Ease of access to BOP markets

Philosophy for Developing Products and Services for BOP market

• The basic economics of the BOP market are based on – small unit packages– low margin per unit – high volume– high return on capital employed

FORTUNE AT THE BOTTOM OF THE PYRAMID, Prahalad

Anheuser-Busch

Global Advertising StrategyContemporary Relevance

SPEAKS TO “Consumer’s Heart”Knows my language- relevant to my lifestyle

Brand QualitySPEAKS TO “Consumer’s Head”Value perception

Anheuser-Busch Brand Development BasicsBrand Development Basics

RightRight ProductProduct

RightRight ImageImage

Right Right ProfitProfit

Right Right DistributionDistribution

Cautionary Tales

Nike:Nike was forced to recall thousands of pairs of Air Bakin, Air BBQ, Air Grill, and Air Melt shoes because of a decoration intended to resemble fire on the back of the sneakers. Unfortunately, when viewed from right to left (which is the way Arabic is read), the flames resembled the Arabic world for Allah. Muslims saw this as a desecration on two levels: 1) the name of Allah may not be used on a product, and 2) Arabic tradition deems that the foot is unclean. Facing worldwide protests and boycotts, Nike implemented an enormous recall of the expensive sneakers.

Kiss, Bow, or Shake Hands 2nd Edition, 2006, Terri Morrison and Wayne A. Conaway

Discussion

Miller Time is the “MILLER WAY”Miller Time is the “MILLER WAY”Rooted in the “urban cool” mindset

Globalmiller.com website