Global Marketing Mix

Module - 4
Dr. Jerry John
Assistant Professor
KCM
Introduction
• Global Marketing combines the promotion and selling of goods and
services with an increasingly interdependent and integrated global
economy.
• It makes the companies stateless and without walls.
• The term marketing mix was first coined by the American Marketing
expert James Culliton.
• Marketing Mix means to collect and mix the resources of marketing in
the manner that objects of the enterprise may be achieved and
maximum satisfaction may be provided to the customers.
• The 4P's of Marketing − product, price, place, and promotion − pose
many challenges when applied to global marketing.
Promotion Strategy
• Promotion strategy is the method of spreading the word about the
product or services to customers, stakeholders, and the broader
public.
• Generic Promotions is defined as the marketing of a product without
differentiation between manufacturer or distributor.
• It has been described as setting for promotion for branded products.
• Generic promotions in International Marketing refer to marketing of a
product without differentiation between country of a manufacture
and distribution.
Global Marketing Mix: Consumer Products
• The product and service mix is one of the most important ingredients
for the global marketer today.
• The diverse demand for products and services in the era of
globalization is mind-blowing.
• Presence of industrialized and emerging markets, increasing
purchasing power, and the growth of Internet has made the
customers aware, smart, and more demanding.
• The result is a greater competition between firms.
• The global consumer makes
purchasing decisions to get
the best quality products at
the most affordable price.
• They have information
available in abundance,
thanks to the Internet.
Therefore, innovation takes
center-stage to gain
adequate attention from
potential consumer.
• Lastly, it is essential to
understand that a product or
service is not just one
"thing." It should be seen as
a part of the whole
marketing mix so that a great
synergy can be built among
different strategies and
actions.
Global Marketing Mix: Price
• Pricing is a crucial part of the marketing mix for international firms.
• Pricing techniques play a critical role when a company wants to
penetrate into a market and expand its operations.
• The most important factors that decide the prices are labelled the 4
C’s −
• Company (costs, company goals)
• Customers (price sensitivity, segments, consumer preferences)
• Competition (market structure and intensity of competition)
• Channels (of distribution)
Global Marketing Mix: Promotion
• Promotion comes into picture when a global company wants to
communicate its offering to potential customers.
• How an organization chooses to promote its products and services can
have a direct and substantial impact on its sales.
• Advertising can create a popular culture and a culture may influence the
ad as well.
• Culture’s impact in advertising is prevalent, especially in culturally-
sensitive issues like religion and politics.
• Cultural Effect Example:
• Procter & Gamble had problems advertising the Pert Plus shampoo in Saudi Arabia,
where only veiled women can be shown in TV commercials. The company had to
show the face of a veiled woman, and the hair of another from the back.
Application of 4 P’s
Branding
• Brand Name
• A name given by the maker to a product or range of products that identifies
not only the product but also its manufacturer or product.
• Branding
• Branding is the practice of giving a specified name to a product or group of
products from one seller.
• Specified name creates individuality in the product.
• Pan Regional Brand
• Certain brands that are marketed in INDIA and its pan-regions such as Delhi,
Mumbai
Global Branding
• Global branding is the act of marketing a product or service under the same
name in multiple countries, with similar and centrally coordinated marketing
strategies.
• Global branding means using standardized global advertising and global
marketing strategies.
• It's basically a method of designing standardized global advertising and global
marketing strategies in order to develop a product or service that is
recognized worldwide, regardless of the country, continent or region where it
is marketed.
• Global brands are products or services that are recognized pretty much
worldwide.
• Companies that use global branding use the same, or at least a very similar,
marketing strategy to promote the brand everywhere the brand is offered,
regardless of the country or region.
What Are the Benefits of Global Marketing?
• Global marketing offers consumers and companies the advantages
explained previously, but there are other advantages.
• When companies market on a global scale, they vastly increase their client
base, and ultimately, their bottom line.
• Clearly, boosting the number of customers a company has generally means
an increase in revenue and profits.
1. Marketing globally improves the effectiveness of a company’s products
and services. 
2. Global branding creates a stronger competitive advantage for companies. 
3. Global branding and marketing also increase customer awareness of a
company. 
Branding Decisions
• Branding consists of a set of complex branding decisions.
• Major brand strategy decisions involve brand positioning, brand name
selection, brand sponsorship and brand development.
• A brand is a company’s promise to deliver a specific set of features,
benefits, services and experiences consistently to buyers. 
• Complex bundle of images and experience in customer mind
• Brand Image: Sum of impression, customer perception
• E.g.: Apple & Nokia
• Brand Equity: Value created by relationship between customer & brand.
• Logo of Nike, McDonald, Apple…
Branding Globally: Adapting Locally
• Reaching out internationally and • Starbucks.
adopting a strategy of global • Coca-Cola.
branding and advertising may • Ikea.
seem daunting for a small but • These companies have come to
growing business. understand the advantages and
• Companies like the following all disadvantages of adaptation in
started small, at one point, international marketing, and
but benefited greatly from global have adopted global branding
branding. strategies, but they have also
• Airbnb. tailored their products, or at least
• Apple. their marketing strategies, to
local cultures and regions when
needed.
Local, International & Global Products
• Local: Available in single country.
• International: Available in several countries.
• Global: Meets needs and wants of global market.
• Co-branding: Combination of two or more products or company
• Brand Extension: Using established brand name when developing a
new product.
Exploiting Product Life Cycles In
International Marketing
• For companies interested in continued growth and profits, successful new
product strategy should be viewed as a planned totality that looks ahead
over some years
• For its own good, new product strategy should try to predict in some
measure the likelihood, character, and timing of competitive and market
events.
• Even before entering the market development stage, the originator should
make a judgment regarding the probable length of the product’s normal life,
taking into account the possibilities of expanding its uses and users.
• At each stage in a product’s life cycle each management decision must
consider the competitive requirements of the next stage
International Promotion Strategies
• An international promotion strategy is when promotional messages vary from one
country to the next or where campaigns are tailored to different regions.
• This strategy is used with either the standardized or customized product.
• Product Standardization
• A standardized product strategy is when your business decides to produce and market the
same basic product in all markets. 
• Product Customization
• Customization as a global product strategy means that you offer product variations or
customized versions of your product in each country or market.
• Global Promotion
• A global promotion strategy is when your company presents the same basic message of brand
or product value around the globe.
• This approach ties closely with the standardized product strategy.
• International Promotion
• An international promotion strategy is when promotional messages vary from one country to
the next or where campaigns are tailored to different regions.
International Promotion Strategies
• Push Strategy:
• Push marketing is a promotional strategy where businesses attempt to take
their products to the customers. The term push stems from the idea that
marketers are attempting to push their products at consumers.
• Pull Strategy:
• A pull promotional strategy uses advertising to build up customer demand for
a product or service. ... Other pull strategies include sales promotions,
offering discounts or two-for-one offers and building demand through social
media sites such as YouTube.
Global Advertising
• Global advertising and international advertising are two distinct geographical ad
strategies used by companies that conduct business globally. 
• Global advertising is an approach where the same general message is applied in all
countries.
• Advertising is any paid form of non-personal presentation of ideas, goods or services
by an identified sponsor.
• Global advertising or international advertising consists of collecting, processing,
analyzing and interpreting information. There are two main purposes of international
advertising research:
• (1) to assist business executives to make profitable international advertising
decisions for their specific products and services and
• (2) to contribute to general knowledge of international advertising that is potentially
useful to a variety of business executives, educators, government policy makers,
advertising self-regulatory organizations and others interested in understanding the
process and effects international advertising.
Role of Global Advertising
• Persuasion
• Promotion of the products and services
• Communication and Consumers
• Widens customer base and cultivates new prospects.
• Communication with consumers
• Profit for the organization
Media Planning and Analysis
• Specific Media Information
• Newspapers
• Magazines
• Radio and Television
• Satellite and Cable T.V
• Direct Mail
• Internet
• Other Media
Role of Media
• Enhances Brand Image
• Enhances Demand
• Enhances Awareness
• Influences Demographics (Gender, Age, Education, Marital Status,
Employment Status)
• Maximize Product Usage
• Effective Communication
Media Planning
• It functions as conceiving, analyzing and selecting channels of
communications that will direct the ad message to the right people in
the right place at the right time.
• It helps in determining the advertising budget
• It helps in achieving higher profits through better planning in
advertising
• It helps to select the right media
• It helps in reducing cost
Advertising Challenges
• Language Barrier
• Difference in Literacy Rate
• Cultural Diversity
• Local Attitudes Towards Advertising
• Media Limitations
• Difference in Laws and Regulations of the Countries