1. “I woke up this morning and fixed myself a cup of coffee
made by a Swiss company taking milk from a Korean fridge.
I watched the news briefly on a British channel on a
Japanese TV set. I shaved with an American shaving gel
and splashed on an after shave made in France, distributed
by an American company under the license of another
Swiss company. I also shampooed my hair using a shampoo
made in Thailand. I then checked for messages on my
phone made in China. Before leaving for work, I quickly
paid my satellite TV subscription (of partly Australian
origin) with a credit card of a German bank on an
American laptop made in Taiwan. I drove to work in a car
made in Korea listening to music from a Jamaican band. ”
Welcome to Global Marketing

2. Two centuries of sweeping
changes
 In the 1800s, all products used were manufactured within a
few miles
 Great Britain actively involved in international trade in the
mid 19th
century
 Since WWII rapid expansion into global markets
 Why Global? Realize your company’s commercial potential
 Why Global? Survival…..

3. Global Marketing
 It is different from “regular” marketing?
 Marketing : Series of Activities leading to an exchange
 Organization’s efforts to satisfy customer wants and needs
with products and services with competitive value
 Marketing Mix: Marketer’s primary tools
 Marketing is a universal discipline

4. Global Marketing
 Focuses on Global markets and opportunities
 Scope of activities is different
 Universal marketing guidelines should be
combined with specific concepts, considerations
and strategies to ensure success

5. Marketing…An Universal
Discipline
 Marketing: Focusing on resources and objectives
of an organization on environmental opportunities
and threats
 Set of concepts, tools, theories, practices and
procedures, and experiences
 Teachable and learnable body of knowledge
 Marketing practice varies from country to country

6. The Marketing Concept
 Shift of focus from the product to the consumer in the 60s
 The strategic Concept of Marketing evolved in the 1990s
 Knowing the customer in a context
 From profits to stakeholders benefits
 From profit maximization to managing strategic
relationships
 Positioning the firm in the value chain

7. Boundary-less Marketing
Marketing
Customer Needs & Wants R & D Engineering MFG CV

8. Three Principles of Marketing
 Customer Value
 Competitive or Differential Advantage
 Focus

9. Customer Value
 Value(V)= B(Benefits)/P(Price)
 Task is to create better customer value than
competitors
 Companies with cost advantage: Price competitive
weapon
 Knowledge of Customer+ Innovation & Creativity
can lead to offerings of superior customer value

10. CRM empowers & delivers
superior CV
 Example: SAP Business All-in-One Solution adds new CRM
functionality
 Delivers key CRM capabilities to marketing sales and services with
ability to analyze results
 Enables companies to generate more sales leads, close more deals
and provide better service and support

11. Competitive or Differential
Advantage
 CA: Total offer that is more attractive to customers vis-à-vis competitors
 Could come from any element of the offer
 Product
 Price
 Promotion
 Distribution

12. Design…a competitive
advantage
 Unicorn Industrial Sewing Machines Company in China
 Makes Sewing Machines for Consumers and Industrial Users
 Industrial sewing machines can have over 1000 precision
parts and assemblies
 Uses Autodesk Invention software to make product design
more efficient and reduce design cycle time and
potential errors
 Makes it possible even for new engineers to design in a
third of the time

13. Global Marketing: What it is
and what it is not?
 Markets and customers are different from country
to country
 Marketing practices must vary
 Experiences not directly applicable from country
to country
 Example: Kellogg Breakfast cereals

14. Coca Cola….A major global
Marketing Success
 Success not based on standardization of marketing
mix elements
 “Global Localization”
 Think Global, Act Local
 Combination of standard (actual product itself)
and nonstandard (distribution or packaging)

15. Group Danone……A truly
Global company
World’s No. 1 in Fresh Dairy Products
World’s No. 2 in Bottled Water
World’s No. 2 in Biscuits

16. Group Danone
 Presence in 120 countries
 40% Revenues from outside Europe
 Key to Danone’s success: extensive knowledge of
local market
 Focus: Innovation and local market autonomy
 Group’s Identity “Worldwide business with local
presence”

17. Group Danone
 Priority: Develop a strong brand that reflect
consumer needs in that market as closely as possible
 Danone: seen as French in France
 Spanish in Spain
 Mexican in Mexico
 Dannon in America
 In Argentina, fresh dairy brand Le Serenissiree 65%
market share

18. Group Danone
 Most new product ideas come from specific needs in a
country
 Usually tested in the country
 Drinking yoghurt Actimel first tested in Belgium
 Juice brand Dano first tested in France
 If product works, local office takes and adapts it
 Role of HQ: For each product, the pureness of the concept

19. Group Danone
 Local office: can adapt to individual markets,
encouraged to
 Some change advertising, some change name
 Some opt for sweeter tasting yoghurt, some will
have simpler packaging

20. Global Marketing
 No imposition of a standardized approach
 Does not mean entering every market in the world
 Means widening business horizons to encompass the
world when scanning for opportunities and threats
 Decision to enter markets will depend on several
factors like resources, managerial mind-set and
nature of opportunities and threats

21. The Importance of Global
Markets
 Largest Market in the world: USA: 25%
 Second largest market: China: 23%
 Third largest Market: Japan: 15%
 Largest European Market: Germany: 8%
 Rise of the global corporation is happening faster
 Inefficient companies will disappear

22. Management Orientations
 Co’s responses depends on management’s
assumption or beliefs
 Ethnocentric
 Polycentric
 Regiocentric
 Geocentric

23. Ethnocentric Orientation
 Home country is superior
 Sees similarities in foreign countries
 Assumption is: successful products in home countries can
be sold anywhere without adaptation
 Foreign operations viewed as secondary or subordinate
 Assumption is HQ knowledge and capabilities applicable
anywhere
 For MFG co’s, foreign markets means of disposal of surplus

24. Ethnocentric Orientation
 No systematic marketing research outside home country
 No major modification in product
 Differences in consumer needs ignored
 Ethnocentrism big internal threat

25. Polycentric Orientation
 Belief that each country is unique
 Each subsidiary develops its unique business and marketing
strategies
 Called a Multinational Company

26. GE in Korea
 GE Capital, financing arm
 Started with fully owned subsidiary in Korea
 For six years, tried to market auto, personal loans and
leasing of office equipment
 Negligible market share
 Folded ops of its two subsidiaries in 2004 into two
subsidiaries of Hyundai Motors-Hyundai Capital(car
financing arm) and Hyundai Card(credit card arm)

27. GE in Korea
 Since 2004, invested $ 3 billion in these two subsidiaries
 Owns 43% of the shares
 GE’s biggest minority investments in the world
 Now, among GE’s most profitable investments
 Model for GE’s marketing and branding strategies
worldwide
 Before Hyundai, GE strongly preferred management control
in JVs

28. GE in Korea
 GE success in Korea led to similar decisions……25.4% of Bank of
Ayudha in Thailand
 Hyundai had 75% of the Korean auto market
 Korean operations provide 5.1% of GE’s worldwide profits of the
consumer financing business
 GE: moving from ethnocentricity to polycentricism

29. Regiocentric Orientation
 Regions as Unique
 Integrated Regional Strategy
 US company focusing on the NAFTA countries
 European company focusing on EU or Europe

30. Geocentric Orientation
 Entire world as potential market
 Integrated world marketing strategy
 “Worldview”: similarities and differences in markets and
countries
 Global strategy fully responsive to local needs and wants

31. Ford and the World car
 Modelled after the BMW world car the 3 Series
Sports Sedan

32. Ford and the World Car
 Ford planning the “world car”
 Simple premise “ Building one product for multiple
markets”
 Basic belief: To make money on small cars, development
and other costs to be spread over one huge global market
 First test: the subcompact Fiesta
 Fiesta selling well in Europe and Asia, to debut in the USA
early 2010

33. Ford and the World Car
 Risky strategy, failures earlier
 Potential for huge profits
 Regional divisions disagreement
 CEO has organized the company around the world car
 Global version of other models planned

34. Ford and the World Car
 Potential savings: up to $ 700 million per model
 Plus factor: European and US tastes seem to be converging
 Midsize sedans earlier much smaller in EU than USA, now almost
comparable
 Tastes to a degree are globalizing

35. The Inspiration…the BMW 3 Series
Sports Sedan
 Virtually the same in every market
 Secret of success” Show consumers what the next big thing
is,not relect what they know now”
 Ubiquity engenders trust while design creates inspiration

36. The Research
 Ford researched small car buyers…owners of VW in EU,
Honda in USA and Toyota in China
 Consumer: Aged 20-30
 Limited funds
 Big appetite for fashion and design
 Imaginary Global archetype customer: Isabella
 Recent college graduate living near Milan
 Creative, thinking about pursuing journalism

37. Isabella…..
 Modest earner, likes city living
 Fashionable, very much in social media
 Customer Clinics conducted all around the world
 Isabell’s personality traits, aspirations and
sensibilities and what she wants resonated around
the world
 What worked for BMW, will it work for Ford???????

38. Factors driving Global
Integration and Marketing
Technology
 Truly stateless
 No cultural boundaries
 Soon available everywhere in the world

39. Regional Economic
Agreements
 NAFTA (North Atlantic Free Trade
Agreement)
 WTO (World Trade Organization)
 EU (European Union)

40. Market Needs and Wants
 Cultural universals and differences
 Common elements in human nature: Basis for
creating global markets
 Converging consumer needs and wants
 Top global brands built on fulfilling universal
needs…..basic appeals are global

41. The Top Global Brands

42. Transportation and
Communication Improvements
 Time and cost barriers with distance has fallen dramatically
 Physical distribution costs and time has reduced

43. Product Development costs
 High Product Development costs
must be recovered in global
marketplace
 No single national market likely to
be large enough

44. Quality
 Global Marketing Strategies generates greater
revenue, greater margins and larger investments in
product design and quality
 Global companies “raise the bar”
 Uniformity drives down research, eng, design and
production cost

45. World Economic Trends
 Economic Growth resulted in market
opportunities
 India: Fertile Ground for long-term sustainable growth
 India: A “guaranteed- to-happen” success story: Between
’92-93 to 2005-2006, average growth rate: 6.2%
 India : Young people, virgin market: 400 Million people
below 21 and 20 Million new babies every year

46. World Economic Trends
 Reduced resistance to entry of
foreign firms
 Worldwide movement towards
deregulation and privatization

47. Leverages....Experience
transfer
Can leverage its experience in any market in the world:
Management Practices
Strategies
Products
Advertising Appeals
Sales Ideas
Promotional Ideas

48. Leverages…..Scale Economies
 Advantage of greater manufacturing
volumes to obtain economies of scale
 Finished products can be produced by
combining components manufactured
by scale-sufficient plants in different
countries

49. Scale Economies
 Buying….Levers “Global procurement Officer”
 Manufacturing
 Marketing
 Research & Development
 Logistics

50. Resource Utilization
 Ability to scan the world to identify people,
money, and raw materials that will enable it to
compete efficiently in world markets

51. Global Strategy
 Greatest single advantage
 Based on info system that scans the whole world to
identify opportunities, trends, threats and resources
 Once opportunities are identified, leverages its skills
and focuses its resources to create superior customer
value and achieve competitive advantage
 Design to create winning effort on a global scale

52. The Global/Transnational Corporation
 Any Business Enterprise that pursues global business
objectives by linking world resources to world market
opportunities
 Within the international financial framework
 Under the umbrella of global peace
 Advantage of expanding communication technologies
 Serve needs and wants on global scale

53. Restraining Forces
 Management Myopia and
Organizational Culture
 Essential to combine global vision and
perspective with local market initiative
and input

54. National Controls and Barriers
 Protectionist forces
 Control over market access and entry
 Control over advertising
 Nontariff Barriers
 Only solution: Become “insiders” in every country