Transcript Amsterdam Singapore Germany

Introduction to Global Marketing
(Continued)
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Lecture 2
Recap
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Introduction to Marketing
Introduction to Global Marketing
Reason for Global Marketing
Globalization
Global Marketing: What
it is and What it isn’t
• Strategy development comes down to two
main issues similar to single country
marketing
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– Target market
– Marketing Mix
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Global Marketing: What it is and What it
isn’t
NEED TO:
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Search for similarities and adjust to differences
© 2005 Prentice Hall
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The Development of
Global Marketing
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Domestic Marketing
Export Marketing
International Marketing
Multinational Marketing
Pan-Regional Marketing
Global Marketing
Global Marketing: What it
is and What it isn’t
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• Global marketing does not mean doing
business in all of the 200-plus country
markets
• Global marketing does mean widening
business horizons to encompass the world in
scanning for opportunity and threat
The Importance of
Global Marketing
• For US-based companies, 75% of sales
potential is outside the US.
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– About 90% of Coca-Cola’s operating income is
generated outside the US.
• For Japanese companies, 85% of potential is
outside Japan.
• For German and EU companies, 94% of
potential is outside Germany.
Standardization
versus Adaptation
• Globalization (Standardization)
– Developing standardized products marketed worldwide
with a standardized marketing mix
– Essence of mass marketing
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• Global localization (Adaptation)
– Mixing standardization and customization in a way that
minimizes costs while maximizing satisfaction
– Essence of segmentation
– Think globally, act locally
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Standardization
versus Adaptation
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Amsterdam
Singapore
Germany
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Why Companies Seek
Global Markets?
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To respond to orders from abroad
To increase sales and profits
To counter the competitors
To grow
To follow customers
For economic reasons
Why Study Global
Marketing?
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• Job opportunities in export business
• Job opportunities in foreign-based
companies
• Job opportunities in service sector
• Emergence of e-marketing
Summary
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Global Marketing: What it is and What it isn’t
The Development of Global Marketing
The Importance of Global Marketing
Standardization versus Adaptation
Why Companies Seek Global Markets?
Why Study Global Marketing?
References
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• Gillespie, K., Jeannet, J.P. and Hennessey,
H.D. (2004), Global Marketing: An
Interactive Approach, Houghton Mifflin,
Boston, NY.