Transcript Review of Global Marketing Management

Review of Global Marketing
Management
Sandy Mcantire
Jonathan Peters
Zhibin Wang
January 9 2012
Summary:
1. Global market and
relative conceptions
2. Global market analysis
3. Global market strategy:
4. Current issues and cases
Global market conceptions
 Changing globe:
 What’s global market:
• Why go to global market:
Changing globe:
Change the transportation and
communication technology; Ecommerce changes all models
business and national; end of
the capitalism/socialism
struggle; capital movements
replaced trade levels; production
“uncoupled” from employment
What’s global market:
A “homogenous global village”, Levitt
advised organizations to develop
standardized , high-quality world
products and globe using
standardized advertising, pricing, and
distribution(p.8,global marketing
management by warren J. Keegan).
Why go to global market:
Access to products not
available at home; get raw
materials for products; better
quality of life; comparative
advantage; mature market at
home; under utilitized capacity;
leverage competitive
advantage; compete in home
market of others. Cases:
Ghana and south Korea.
Global market analysis
Micheal porter’s five forces
National competitive advantage analysis.
( porter’s diamond of national advantage)
Factor condition:
The national ability to customers
for the industry’s product or
service.
Human resources, Physical
resources, Knowledge resources,
Infrastructure and Capital
Demand condition
The nature of domestic demand and
the sophistication of domestic for the
industry’s product or service.
Rapid home market growth , Push or
Pull , Composition of demand , Pattern
of growth at home
Relative and supporting industries
The existence or absence in the
country of supplier and related industry
that are also internationally
competitive
The advantage that a nation gains by
being home to internationally
competitive industries in fields that are
related to, or in direct support of, other
industries
Company strategy, strategy, and
rivalry
The conditions in the nation
that govern how companies
are created, organized, and
managed, and how
intensely they compete
domestically.
Global Marketing Strategy
• Cost
– Leadership
– Focus
• Differentiation
– Product
– Focused
Global Marketing Strategy
•
Broad market strategies
– Cost leadership—low price
– Product differentiation—premium price
•
Narrow market strategies
– Cost focus—low price
– Focused differentiation—premium price
Global Marketing Strategy
• Building Layers of Advantage
– Build a wide portfolio of advantages
– Develop portfolios by establishing layers on top of one
another
– Move along the value chain to strengthen competitive
advantage
• Searching For Loose Bricks
– Search for opportunities in the defensive walls of
competitors whose attention is narrowly focused
– Focused on a market segment
– Focused on a geographic area to the exclusion of others
Global Marketing Strategy
• Changing The Rules of Engagement
• 4 Cs of Partner Selection
•
•
•
•
Complementary skills
Cooperative cultures
Compatible goals
Commensurate levels of risk
Current Issues
Economic Freedom
Corruption & Foreign Corrupt Practices Act
Currency Rate Changes
Tariffs
Intellectual Property Protection
Fair Trade
Stages of Market Development
High-Income Countries
86% of the
world’s
population
Low-Income Countries
• There is Money at the BOP
• BOP Markets are brand & value
conscious
• BOP Market is connected
• BOP Customers accept advanced
technology readily
• Ease of access to BOP markets
FORTUNE AT THE BOTTOM OF THE PYRAMID, Prahalad
Philosophy for Developing Products
and Services for BOP market
• The basic economics of the BOP market are
based on
– small unit packages
– low margin per unit
– high volume
– high return on capital employed
Anheuser-Busch
Global Advertising Strategy
Contemporary Relevance
SPEAKS TO “Consumer’s Heart”
Knows my language- relevant to my lifestyle
Brand Quality
SPEAKS TO “Consumer’s Head”
Value perception
Anheuser-Busch
Brand Development Basics
New Brands
Motivated
Quality
People
Control
& Partners
Right
Right
Product Distribution
Right
Profit
Revenue
& Cost
Management
Right
Image
Promotion
Advertising
Packaging
Cautionary Tales
Nike:
Nike was forced to recall thousands of pairs of Air Bakin, Air BBQ, Air
Grill, and Air Melt shoes because of a decoration intended to resemble
fire on the back of the sneakers. Unfortunately, when viewed from right
to left (which is the way Arabic is read), the flames resembled the Arabic
world for Allah. Muslims saw this as a desecration on two levels: 1) the
name of Allah may not be used on a product, and 2) Arabic tradition
deems that the foot is unclean. Facing worldwide protests and boycotts,
Nike implemented an enormous recall of the expensive sneakers.
Kiss, Bow, or Shake Hands 2nd Edition, 2006, Terri Morrison and Wayne A.
Conaway
Discussion
Miller Time is the “MILLER WAY”
Rooted in the “urban cool” mindset
Globalmiller.com website