3042MKT – Global Marketing
Table of Contents
Topic 1:
Introduction to International Marketing (Ch. 1) 1
Economic and Financial Environment (Ch. 2) 4
Topic 2: Political and Legal Environment (Ch. 3) 6
Topic 3: Cultural Environment (Ch. 4) 11
Topic 4: Understanding International Consumers (Ch. 5) 17
Topic 5: International Marketing Research 24
Topic 6: Segmentation and Positioning 31
Topic 7: 40
Market Selection and Entry Strategies (Ch. 8) 40
Developing New Goods and Services for International Markets (Ch. 9) 44
Marketing Goods and Services (Ch. 10) 47
Topic 8: International Marketing Strategies (Ch. 11) 52
Topic 9: 57
Logistics – Sourcing and Distribution (Ch. 12) 57
Export and Import Management (Ch. 13) 61
Topic 10: 67
International Pricing (Ch. 14) 67
Global Marketing Strategy (Ch.15) 71
,3042MKT – Global Marketing
Topic 1:
Chapter 1: Introduction to International Marketing
Philip Kotler: Marketing Strategy
• CCDVTP - create, communicate, deliver value to the target market at a profit
• Co-create with the consumer (e.g. Nike cricket campaign)
• Brand management, the ability to communicate the brand value with the consumers (e.g.
Pepsi and Ramadan)
• The promise to go beyond just materialistic issues (e.g. supporting causes)
Globalisation
• Economic unification/integration
• Market liberalization
• Privatization
• Allowing new players into domestic market
• Trading partnerships (e.g. NAFTA, EU, ASEAN)
Overview
• Increasingly global environment for today's marketing manager
• This is not a new phenomenon (e.g. silk road, trade routes from ancient Rome)
• The focus should not be the nature but the rate and type of change
• 2000 to 2010 world trade has more than doubled
The Asian Century
• For much of the 20th century the triad regions dominated world trade
• E.g. North America, Western Europe, Japan
• Increasingly, it is the Big Emerging Markets (BEMs) which are now having an impact
• E.g. China, HK, Taiwan, South Korea, Mexico, Brazil, Argentina, South Africa, Poland,
Turkey and ASEAN
• An increasing number of competitors are expected to originate from these emerging
economies
• Asia had fastest real export growth of any region in 2010
• Asia represents the world's fastest growing consumer market
• Projected to overtake the US by 2020
• Infrastructure and energy needs will be enormous
Why Understanding International Marketing is Imperative
1. Saturation of domestic markets forces companies to look elsewhere
2. The nature of competition has changed
• In terms of market share, country source and global reach
3. International competition also brings about global cooperation
• Partnerships between Toshiba and Sony, from Japan with US computer manufacturer
IBM
4. The impact that the internet and e-business has made on the global business landscape
• Growing area of mobile e-commerce
• Social networking and marketing
5. Changing nature of the world economy
• Shifts in the world's largest economy (less US and Japanese centric)
6. Domestic companies cannot avoid competitive pressure from globally oriented firms
1
,3042MKT – Global Marketing
Selection of Top 100 Largest Organisations
International Trade vs International Business
• International Trade
• The process of exporting and importing goods between a national border and other
countries in the world
• International Business
• A combination of international trade and foreign production of goods for sale
Evolution of International and Global Marketing
• Shift in management paradigms
• Traditional paradigm rooted in US management theory
• There is more of a global approach now
• Marketing strategies are based on an organization's degree of experience and nature of
operations in international markets
Five Stages:
1. Domestic Marketing
2. Export Marketing
3. International (country by country) marketing
4. Multinational (region by region) marketing
5. Global Marketing
Domestic Marketing:
• An approach where organisations focus on the domestic market and domestic competition
only
• Ethnocentric
• Product development for home country customers
• Marketing mix decisions made at head office level
2
, 3042MKT – Global Marketing
• E.g. local pizza shop, car mechanics, national bank that doesn’t operate outside the boundaries
of the country
Export Marketing
• Organisations sell their product or service directly or indirectly to overseas buyers
• Ethnocentric
• Product development mainly determined by home market needs
• Marketing mix decisions made at head office level
• E.g. clothing company that exports to the country adjacent to it, food company that exports its
produce to another country without changing anything about the product
International Marketing (country-by-country)
• Marketing functions are adapted to foreign market demands
• Polycentric
• Local product development based on local needs
• Marketing mix decisions made in each country
• E.g. food marketer who changes the taste of the product to suit local tastes, retailer who
adapts their stores to allow for aesthetics and tastes of locals
• Can also include "multi-domestic", foreign subsidiaries operating independently of one
another without control from the organisations head office
Multinational Marketing (region-by-region)
• The organisation realizes economies of scale by standardising operations on a regional basis
• Regiocentric
• Product planning is standardised within region but not across
• Marketing mix decisions made regionally
• E.g. bookstore chain that adjsuts its store layout and product range within regions, jewelry
store that uses a different celebrity endorsement in Asian markets compared to US markets
Global Marketing
• An organisation strives for efficiencies of scale by developing a standardised marketing mix
across national, regional and global markets
• Geocentric
• Global products with local variations
• Marketing mix decisions made jointly with mutual consultation
• E.g. global hair care brand adjusts the product formula to allow for different conditions in
different countries, global advertising agency maintains its global branding but adjusts its mix
to allow for local conditions such as access to media
Key Challenges of Global Marketing
• Impact of environmental factors on global marketing
• Impact of the internet on global marketing
International Marketing Planning and Strategy Development
• Changing the controllable variables (the marketing mix)
• Understanding the need to fit the strategy to the environment
• The necessity for effective planning
• Same concerns as domestic marketing planning, except the major interest is with
international marketing variables
• Tailoring is effective but not cost efficient
3
Table of Contents
Topic 1:
Introduction to International Marketing (Ch. 1) 1
Economic and Financial Environment (Ch. 2) 4
Topic 2: Political and Legal Environment (Ch. 3) 6
Topic 3: Cultural Environment (Ch. 4) 11
Topic 4: Understanding International Consumers (Ch. 5) 17
Topic 5: International Marketing Research 24
Topic 6: Segmentation and Positioning 31
Topic 7: 40
Market Selection and Entry Strategies (Ch. 8) 40
Developing New Goods and Services for International Markets (Ch. 9) 44
Marketing Goods and Services (Ch. 10) 47
Topic 8: International Marketing Strategies (Ch. 11) 52
Topic 9: 57
Logistics – Sourcing and Distribution (Ch. 12) 57
Export and Import Management (Ch. 13) 61
Topic 10: 67
International Pricing (Ch. 14) 67
Global Marketing Strategy (Ch.15) 71
,3042MKT – Global Marketing
Topic 1:
Chapter 1: Introduction to International Marketing
Philip Kotler: Marketing Strategy
• CCDVTP - create, communicate, deliver value to the target market at a profit
• Co-create with the consumer (e.g. Nike cricket campaign)
• Brand management, the ability to communicate the brand value with the consumers (e.g.
Pepsi and Ramadan)
• The promise to go beyond just materialistic issues (e.g. supporting causes)
Globalisation
• Economic unification/integration
• Market liberalization
• Privatization
• Allowing new players into domestic market
• Trading partnerships (e.g. NAFTA, EU, ASEAN)
Overview
• Increasingly global environment for today's marketing manager
• This is not a new phenomenon (e.g. silk road, trade routes from ancient Rome)
• The focus should not be the nature but the rate and type of change
• 2000 to 2010 world trade has more than doubled
The Asian Century
• For much of the 20th century the triad regions dominated world trade
• E.g. North America, Western Europe, Japan
• Increasingly, it is the Big Emerging Markets (BEMs) which are now having an impact
• E.g. China, HK, Taiwan, South Korea, Mexico, Brazil, Argentina, South Africa, Poland,
Turkey and ASEAN
• An increasing number of competitors are expected to originate from these emerging
economies
• Asia had fastest real export growth of any region in 2010
• Asia represents the world's fastest growing consumer market
• Projected to overtake the US by 2020
• Infrastructure and energy needs will be enormous
Why Understanding International Marketing is Imperative
1. Saturation of domestic markets forces companies to look elsewhere
2. The nature of competition has changed
• In terms of market share, country source and global reach
3. International competition also brings about global cooperation
• Partnerships between Toshiba and Sony, from Japan with US computer manufacturer
IBM
4. The impact that the internet and e-business has made on the global business landscape
• Growing area of mobile e-commerce
• Social networking and marketing
5. Changing nature of the world economy
• Shifts in the world's largest economy (less US and Japanese centric)
6. Domestic companies cannot avoid competitive pressure from globally oriented firms
1
,3042MKT – Global Marketing
Selection of Top 100 Largest Organisations
International Trade vs International Business
• International Trade
• The process of exporting and importing goods between a national border and other
countries in the world
• International Business
• A combination of international trade and foreign production of goods for sale
Evolution of International and Global Marketing
• Shift in management paradigms
• Traditional paradigm rooted in US management theory
• There is more of a global approach now
• Marketing strategies are based on an organization's degree of experience and nature of
operations in international markets
Five Stages:
1. Domestic Marketing
2. Export Marketing
3. International (country by country) marketing
4. Multinational (region by region) marketing
5. Global Marketing
Domestic Marketing:
• An approach where organisations focus on the domestic market and domestic competition
only
• Ethnocentric
• Product development for home country customers
• Marketing mix decisions made at head office level
2
, 3042MKT – Global Marketing
• E.g. local pizza shop, car mechanics, national bank that doesn’t operate outside the boundaries
of the country
Export Marketing
• Organisations sell their product or service directly or indirectly to overseas buyers
• Ethnocentric
• Product development mainly determined by home market needs
• Marketing mix decisions made at head office level
• E.g. clothing company that exports to the country adjacent to it, food company that exports its
produce to another country without changing anything about the product
International Marketing (country-by-country)
• Marketing functions are adapted to foreign market demands
• Polycentric
• Local product development based on local needs
• Marketing mix decisions made in each country
• E.g. food marketer who changes the taste of the product to suit local tastes, retailer who
adapts their stores to allow for aesthetics and tastes of locals
• Can also include "multi-domestic", foreign subsidiaries operating independently of one
another without control from the organisations head office
Multinational Marketing (region-by-region)
• The organisation realizes economies of scale by standardising operations on a regional basis
• Regiocentric
• Product planning is standardised within region but not across
• Marketing mix decisions made regionally
• E.g. bookstore chain that adjsuts its store layout and product range within regions, jewelry
store that uses a different celebrity endorsement in Asian markets compared to US markets
Global Marketing
• An organisation strives for efficiencies of scale by developing a standardised marketing mix
across national, regional and global markets
• Geocentric
• Global products with local variations
• Marketing mix decisions made jointly with mutual consultation
• E.g. global hair care brand adjusts the product formula to allow for different conditions in
different countries, global advertising agency maintains its global branding but adjusts its mix
to allow for local conditions such as access to media
Key Challenges of Global Marketing
• Impact of environmental factors on global marketing
• Impact of the internet on global marketing
International Marketing Planning and Strategy Development
• Changing the controllable variables (the marketing mix)
• Understanding the need to fit the strategy to the environment
• The necessity for effective planning
• Same concerns as domestic marketing planning, except the major interest is with
international marketing variables
• Tailoring is effective but not cost efficient
3
