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Transcript
Global Marketing 4.4 Global marketing What you need to know • a) Global marketing strategy and global localisation (glocalisation) • b) Different marketing approaches: – domestic/ethnocentric – mixed/geocentric – international/polycentric • c) Application and adaptation of the marketing mix (4Ps) and Ansoff’s Matrix to global markets What is Glocalisation? Glocalisation describes a product or service that is developed and sold globally, but is also adapted to meet the needs and wants of customers in a local market Two Examples of Glocalisation Different Marketing Approaches to Global Markets Domestic / Ethnocentric Mixed / Geocentric Assumes that work works in home markets will also work in international markets Recognises differences in national markets Effective if international consumers value authenticity But main aim of marketing strategy is to build a truly global brand International / Polycentric Recognises that every national market requires a different marketing mix Products designed specifically to meet local needs Alternative Model – Bartlett & Ghoshal The Bartlett & Ghoshal Model indicates the marketing strategy options for businesses wanting to manage their global marketing based on two pressures: local responsiveness & global integration The Bartlett & Ghoshal Matrix HIGH PRESSURE FOR GLOBAL INTEGRATION LOW PRESSURE FOR GLOBAL INTEGRATION LOW PRESSURE FOR LOCAL RESPONSIVENESS HIGH PRESSURE FOR LOCAL RESPONSIVENESS Global Transnational International Multidomestic How Two Key Forces Impact How to Approach the Marketing Mix in Global Markets Force for local responsiveness • Do customers in each country expect the product to be adapted to meet local requirements? • Do local (domestic competitors) have an advantage based on their ability to be more responsive? Force for global integration • How important is standardisation of the product in order to operate efficiently (e.g. economies of scale) • Is consistent global branding required in order to achieve international success? Global Strategy Pressure for Local Responsiveness: LOW Key Features Highly centralised Focus on efficiency (economies of scale) Little sharing of expertise locally Standardised products Pressure for Global Integration: HIGH Examples Transnational Strategy Pressure for Local Responsiveness: HIGH Key Features Complex to achieve Aim is to maximise local responsiveness but also gain benefits from global integration Wide sharing of expertise (technology, staff etc.) Pressure for Global Integration: HIGH Examples International Strategy Pressure for Local Responsiveness: LOW Key Features Aims to achieve efficiency by focusing on domestic activities International operations are largely managed centrally Relatively little adaption of product to local needs Pressure for Global Integration: LOW Examples Multi-domestic Strategy Pressure for Local Responsiveness: HIGH Key Features Aims to maximise benefits of meeting local market needs through extensive customisation Decision-making decentralised Local businesses treated as separate businesses Strategies for each country Pressure for Global Integration: LOW Examples Ansoff & Global Business: Market Development A growth strategy where the business seeks to sell its existing products into new markets Approaches to Market Development • New geographical markets; e.g. exporting to emerging markets • New distribution channels (e.g. using ecommerce and mail order) • Different pricing policies to attract new customers in different segments Examples of Market Development Strategies Starbucks expansion into China is a classic example of a successful market development strategy Tesco’s market development strategy to enter the US grocery supermarket sector was a disaster for shareholders Evaluating Market Development • A logical strategy where existing markets are saturated or in decline • Often more risky than product development – particularly expansion into international markets • Existing products may not suite new markets: depends on customer needs