Global Marketing: (Chapter 1: Introduction)

Marketing
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Global Marketing
The scope of activities outside the home market.
Globalization (Standardization)
– Developing standardized products marketed worldwide with a standardized marketing mix.
– Essence of mass marketing
Global Localization (Adaptation)
– Mixing standardization and customization in a way that minimizes costs while maximizing satisfaction.
– Essence of segmentation
– Think globally, act locally
Focus
Concentration and attention on core business and competence.
Perceived Value =
Benefits/Price
Price
money, time, effort, etc.
Create value for customers by improving benefits or reducing prices:
– Improve the product
– Find new distribution channels
– Create better communications
– Cut monetary and non-monetary costs and prices.
Ethnocentric Orientation
Evolution of Global Marketing:
1. Domestic Marketing
2. Export Marketing
3. International Marketing
4. Multinational Marketing
5. Global Marketing
Domestic Marketing
– First stage of evolution of marketing across international boundaries.
– Companies focus on domestic sales and markets
– Strategies is based on domestic needs and domestic competition.
– Result: companies are often vulnerable to foreign competition
Indicators of Globalization:
– Ratio of cross-border investment to total capital investment.
– Proportion of the industry revenue generated by all companies that compete in key world regions.
– Ratio of cross-boarder trade to worldwide production.
Global Industries
an industry is global to the extent that a company’s industry position in one country is interdependent with its industry position in another country.