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Chapter Objectives
LEARNING OBJECTIVES
LO1 Identify the factors that aid the growth of
globalization
LO2 Explain the components of a country market
assessment
LO3 Describe the various market entry strategies
LO4 List the similarities and differences between
a domestic marketing strategy and a global
marketing strategy
LO5 Explain how ethical issues affect global
marketing practices
16-1
LO4
Choosing a Global Marketing Strategy:
Target Market (STP)
Cultural nuances
Subcultures
View of product and consumer role
Different positioning
Adaptation
Single positioning strategy
16-2
LO4
Adapting for Global Success
How do firms successfully introduce a
new product to a global market?
16-3
LO4
Case in Point: Introducing Coffee to
China
Challenge
Answer
Results
Nestle wants to introduce its top
global instant coffee brand
Nescafe to China.
Chinese consumers were not
coffee drinkers thus needed to be
educated in how to consume the
product. Nescafe “3 in 1”, coffee,
creamer and sweetener in one.
Ideal mix for Chinese market easily
reconstituted for best taste.
Nescafe dominates the in-home
coffee category in China.
16-4
LO4
Case in Point: Nescafe in China
16-5
LO4
The Global Marketing Mix:
Product or Service Strategies
Sell the same
product or service
in both the home
country market and
host country
Sell a product or
service similar to
that sold in home
country but include
minor adaptations
Sell totally new
products or
services
16-6
LO4
MTV Conquers the World




Seen in 374.4 million
households
164 countries, 34
channels, 18 languages
Mix of standardized and
local content benefited
local music and artists
E.g. Salam Dangdut in
Indonesia
16-7
LO4
Managing the Global Marketing Mix
How do firms
manage the
global
marketing mix?
16-8
LO4
Case in Point: Walmart’s Failed
Experiment
Challenge
Answer
Results
To continue to grow the most
successful retailer in the U.S.,
Walmart.
Walmart enters Germany with
the same value proposition
(EDLP) it has in the U.S.
Stiff competition from entrenched
local competitors, a sluggish
economy as well as problems with
workers and regulators led to
Walmart exiting the market in 2006.
The sale to competitor Metro resulted
in pre-tax loss of $1Billion.
16-9
LO4
Walmart International
Walmart Brazil
Walmart China
16-10
LO4
Global Marketing Mix:
Pricing Strategies
Antidumping
Policies
Quotas
Tariffs
Price
Economic
Conditions
Competitive
factors
16-11
LO4
Global Marketing Mix:
Global Distribution Strategies
• Some global
channels are very
long and complex.
• Consumer shop local
small local stores.
• Suppliers must be
creative in delivering
to these outlets.
FedEx Commercial
16-12
LO4
Global Marketing Mix: Global
Communication Strategies
Literacy levels vary by
country
Firms choose whether to
adapt to language
differences
Cultural and religious
differences also matter
16-13