Keegan CHP 01
Keegan CHP 01
Keegan CHP 01
INTRODUCTION
Global vs. Regular Marketing
- Scope of activities are outside the home-country market
GLOBAL MARKETING
Create value for customers by improving benefits or reducing price
Improve the product Find new distribution channels Create better communications Cut monetary and non-monetary costs and prices Value=Benefits/Price
GLOBALIZATION
Economic globalization constitutes integration of national economies into the international economy through trade, direct foreign investment (by corporations and multinationals), short-term capital flows, international flows of workers and humanity generally, and flows of technology. ~Jagdish Bhagwait~
GLOBAL INDUSTRIES
An industry is global to the extent that a companys industry position in one country is interdependent with its industry position in another country
Indicators of globalization:
Ratio of cross-border investment to total capital investment Proportion of industry revenue generated by all companies that compete in key world regions Ratio of cross-border trade to worldwide production Coca Cola spent $5 billion worldwide on promotions and marketing in 2010
Focus
Concentration and attention on core business and competence
Chinese delicious/happiness
For Japanese companies, 90% of world market is outside the country 94% of market potential is outside of Germany for its companies even though it is the largest EU market
Management Orientations
Ethnocentric Orientation
Home country is superior to others Sees only similarities in other countries Assumes products and practices that succeed at home will be successful everywhere Leads to a standardized or extension approach
Management Orientations
Polycentric Orientation
Each country is unique
Each subsidiary develops its own unique business and marketing strategies Often referred to as multinational
Leads to a localized or adaptation approach that assumes products must be adapted to local market conditions
Management Orientations
Regiocentric Orientation
A region is the relevant geographic unit
Ex: The NAFTA or European Union market
Some companies serve markets throughout the world but on a regional basis
Ex: General Motors had four regions for decades
European Union
Management Orientations
Geocentric Orientation
Entire world is a potential market Strives for integrated global strategies Also known as a global or transnational company Retains an association with the headquarters country Pursues serving world markets from a single country or sources globally to focus on select country markets Leads to a combination of extension and adaptation elements
Leverage
Experience transfers Scale economies Resource utilization Global strategy
Book Overview
Part I: Overview of Global Marketing
Part II: Environments of Global Marketing Part III: Global Strategy