Transcript Global Versus Localized Marketing - Cal State LA

Global Versus Localized
Marketing
• Global marketing emphasizes selling the same
product with the same marketing mix all over the
world
• Localized marketing emphasizes a unique marketing
mix for each country or trading block
Successful Global Marketing
Requires:
 Comparative Advantage
 Opportunity
THE LAW OF
COMPARATIVE ADVANTAGE
“Countries are better off producing items
where they have inherent advantages
and buying from others’ products
where they have handicaps.”
Foreign Market Selection Factors
• Size of Market (enough customers?)
• Distinct competitive advantage?
• Level of Financial Risk
– Cultural differences
– Government instabilities
Market Entry Strategies
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Export
Licensing
Joint ventures
Investing in your own facilities
Increasing levels
of commitment,
risk, control,
and profit potential
Risks in Global Marketing
 Trade Restrictions
 Currency Exchange
 Unstable Governments
 Cultural Factors
Problems with Global Marketing
can be due to:
• Insufficient research on the intended countries
• Overstandardization or lack of flexibility in
approaches utilized
Risks of Cultural Factors
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Standard of Living Differences
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Style of Living Differences
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Religion Differences
Understanding Cultural Factors
• Overseas buyers often have different
concepts of time, space, and etiquette
• Need to study how potential customers
regard and use your product
• Examples:
– Privacy may be viewed differently
– comparative advertising or sexual innuendo
may be taboo
Think Global But Act Local
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Global marketing often works and can save money
Have global objectives
But don’t ignore local market conditions
Adjust plans to meet the special needs of particular
customers in other countries
DYNAMICS OF WORLD TRADE
• A New Reality: Global Competition
Among Global Companies for
Global Customers
 Global Competition
 Global Companies
• International Firm
• Multinational Firm
 Multidomestic
Marketing Strategy
• Transnational Firm
 Global Marketing
Strategy
Concept Check
1. Cross-cultural analysis involves the
study of _________.
A: similarities and differences among
consumers in two or more nations or
societies
Concept Check
2. When foreign currencies can buy
more U.S. dollars, are U.S. products
more or less expensive for a foreign
consumer?
A: Less expensive.
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GLOBAL MARKET-ENTRY
STRATEGIES
• Exporting
 Indirect Exporting
 Direct Exporting
• Licensing
 Franchising
• Joint Venture
• Direct Investment
Alternative global market-entry strategies
Global Competition
Global competition exists when firms
originate, produce, and market their
products and services worldwide.
Multi-domestic Marketing
Strategy
Multinational firms use a multi-domestic
marketing strategy when they have as
many different product variations, brand
names, and advertising programs as
countries in which
they do business.
Global Marketing Strategy
Transnational firms employ a global
marketing strategy, which is the
practice of standardizing marketing
activities when there are cultural
similarities and adapting them when
cultures differ.
Global Consumers
Global consumers consist of customer
groups living in many different
countries who have similar needs or
seek similar features and benefits from
products or services.
Cross-Cultural Analysis
Cross-cultural analysis involves the
study of similarities and differences
among consumers in two or more
nations or societies.
Exporting
Exporting is producing goods in one
country and selling them in another
country.
Joint Venture
A joint venture is when a foreign
country and a local firm invest
together to create a local business.
Direct Investment
Direct investment entails a domestic
firm actually investing in and owning
a foreign subsidiary or division.