Global Marketing ch1

Why is there Global Marketing?
companies go global to survive as competitors enter the home market
what has the home market
lower costs, more experience, better products
define marketing
the activity of creating, communicating & delivering of offerings that bring value to customers, partners and society
what is global marketing
the scope of activities outside the home market
product / market growth matrix (define axes)
horizontal: existing product – new product
vertical: existing market – new market
existing market + existing product
market penetration
existing market + new product
product development
new market + existing product
market development
new market + new product
diversification
single country market strategy has:
target market strategy
+
Marketing mix (price, product, promotion, place)
global marketing strategy
global market participation +
marketing mix (adapt OR standardize) +
concentration of marketing activities +
coordination of marketing activities +
Intergration of competative moves
concentration of marketing activities is
exent to which marketing activities are in 1 or more countries
intergration of competative moves
extend to which a firms competitive marketing tactics are interdependent in different parts of the world
globalisation or standardisation (+synonym)
developing standardized products marketed worldwide with a standardized marketing mix. (synonym = Mass marketing)
global localization or adoption ( + synonym)
mixing standardization and customization in a way that minimizes costs, but maximizes satisfaction. (synonym = Segmentation)
define Ethnocentric orientation
– home country is superior
– sees only similarities in other countries
– assumes that if product succeeds in home country it will succeed everywhere
– LEADS TO > standardisation
(= extention approach)
define Polycentric orientation
– each country is unique
– Each subsidiary develops its own unique business and marketing strategies
– = multinational
– LEADS TO> adoption approach
(= localized)
define Regiocentric orientation
– the region is the relevant geographical unit
define Geocentric orientation
– whole world is a potential market
– strives to intergrate global strategies
– LEADS TO> combination of extension and adaption elements