Download Global Marketing - silabus fe unila

Global Marketing Management

Mudji Rachmat Ramelan
 [email protected]
 Jurusan Manajemen FE Unila
 BBS-Unilanet gd. PKM lt2
 http://unilanet.unila.ac.id/~muji
Global Marketing
 Coordinated
performance of
marketing activities to create
exchanges across countries that
satisfy individual, organizational,
and societal objectives.
Examples of Global Marketing
Product Design
Canon photocopier/McDonald’s/Toyota
Brand Name
Coke/Sony/BMW/
Product Positioning
Colgate toothpaste
Packaging
Gillette razors
Advertising Strategy
Coca-Cola/Benetton
Sales Promotion
IBM
Distribution
Benetton/Ikea
Customer Service
American Express
What is Unique about Global Marketing?
 Economic Environment
– Fiscal policies - tax and government
expenditures
– Monetary policies - regulate money supply
 Financial
Environment
– Exchange rates and fluctuations
– Foreign exchange reserves
What is Unique about Global Marketing?

Political Environment
– Tariff barriers
– Nontariff barriers
– Regulations

Cultural Environment
– Values
– Beliefs
– Attitudes
Global Marketing Environment
Global
Regional
Local
Marketing Mix
Environment
Global Marketing Evolution

Domestic Marketing (domestic focus; home
country customers; ethnocentric orientation).
 Export Marketing (ethnocentric orientation;
products developed for home country customers).
 International Marketing (markets in many
countries; polycentric orientation; use of
multidomestic marketing when customer needs are
different across national markets).
Global Marketing Evolution

Multinational Marketing (many markets;
consolidation on regional basis; regiocentric
orientation; standardization within regions).
 Global Marketing (international,
multinational & geocentric orientation;
company’s willingness to adopt a global
perspective; global products with local
variations).
Global Marketing

Standardization Efforts--product offerings,
promotional mix, price, and channel
structure.
 Coordination Across Markets—reducing
cost inefficiencies.
 Global Integration—participating in many
major world markets to gain competitive
leverage, subsidize operations in some
markets.
Global Marketing Decisions
Internationalize
Business?
Global
Marketing
Decisions
Country Market
Selection
Market Entry
Selection
Why Global Marketing?
 Exploiting
Firm-Specific Capabilities
– Technological innovations
– Strong Trade Names
 Lowering
Cost Structure
– Outsourcing
– Hub and spokes model
Why Global Marketing?
 Diversification
and competitiveness
– Product/market portfolio
– Cross-subsidization
 Country
market attractiveness
– Income
– Consumer preference
 Technology
and market globalization
Why Global Marketing

Saturation of domestic markets: Domestic
market saturation in the industrialized
countries and growing marketing
opportunities overseas.
 Global competition: Competition around the
world and proliferation of the Internet.
 Need for global cooperation: Global
competition brings global cooperation.
GLOBAL INTEGRATION
Driving Forces
Restraining Forces
Technology
Culture
Culture
Market Differences
Market Needs
Costs
Cost
National Controls
Free Markets
Nationalism
Economic Integration
War
Peace
Management Myopia
Management Vision
Organization History
Strategic Intent
Domestic Focus
Global Strategy and Action
Global Trade Importance
 World
trade has grown from $200 billion to
more than $7 trillion in the past three
decades.
 The Iron Curtain is gone and capitalism is
the new economic order.
 Firms invest on a global scale.
 Increasingly more difficult to define
“where” products come from.
 New trading blocs are emerging.
“If we distributed pictures only
in the United States, we’d lose
money. It takes the whole world
now to make the economics of
movie-making work.”
- William Mechanic
President, 20th Century Fox
“Half the people in the world have
yet to take their first picture. The
opportunity is huge, and it’s nothing
fancy. We just have to sell yellow
boxes of film.”
- George M.C. Fisher
CEO, Eastman Kodak Company
Thank You!