Transcript 4.3.1x

Global Marketing
4.4 Global marketing
What you need to know
• a) Global marketing strategy and global
localisation (glocalisation)
• b) Different marketing approaches:
– domestic/ethnocentric
– mixed/geocentric
– international/polycentric
• c) Application and adaptation of the
marketing mix (4Ps) and Ansoff’s Matrix to
global markets
What is Glocalisation?
Glocalisation describes a
product or service that is
developed and sold globally,
but is also adapted to meet the
needs and wants of customers
in a local market
Two Examples of Glocalisation
Different Marketing Approaches to Global Markets
Domestic /
Ethnocentric
Mixed /
Geocentric
Assumes that work
works in home markets
will also work in
international markets
Recognises differences
in national markets
Effective if
international
consumers value
authenticity
But main aim of
marketing strategy is
to build a truly global
brand
International
/ Polycentric
Recognises that every
national market
requires a different
marketing mix
Products designed
specifically to meet
local needs
Alternative Model – Bartlett & Ghoshal
The Bartlett & Ghoshal Model
indicates the marketing strategy
options for businesses wanting to
manage their global marketing
based on two pressures: local
responsiveness & global integration
The Bartlett & Ghoshal Matrix
HIGH PRESSURE
FOR GLOBAL
INTEGRATION
LOW PRESSURE
FOR GLOBAL
INTEGRATION
LOW PRESSURE FOR
LOCAL RESPONSIVENESS
HIGH PRESSURE FOR
LOCAL RESPONSIVENESS
Global
Transnational
International
Multidomestic
How Two Key Forces Impact How to Approach
the Marketing Mix in Global Markets
Force for local responsiveness
• Do customers in each country expect the product to be
adapted to meet local requirements?
• Do local (domestic competitors) have an advantage based on
their ability to be more responsive?
Force for global integration
• How important is standardisation of the product in order to
operate efficiently (e.g. economies of scale)
• Is consistent global branding required in order to achieve
international success?
Global Strategy
Pressure for Local
Responsiveness:
LOW
Key Features
Highly centralised
Focus on efficiency (economies
of scale)
Little sharing of expertise
locally
Standardised products
Pressure for Global
Integration:
HIGH
Examples
Transnational Strategy
Pressure for Local
Responsiveness:
HIGH
Key Features
Complex to achieve
Aim is to maximise local
responsiveness but also gain
benefits from global integration
Wide sharing of expertise
(technology, staff etc.)
Pressure for Global
Integration:
HIGH
Examples
International Strategy
Pressure for Local
Responsiveness:
LOW
Key Features
Aims to achieve efficiency by
focusing on domestic activities
International operations are
largely managed centrally
Relatively little adaption of
product to local needs
Pressure for Global
Integration:
LOW
Examples
Multi-domestic Strategy
Pressure for Local
Responsiveness:
HIGH
Key Features
Aims to maximise benefits of
meeting local market needs
through extensive customisation
Decision-making decentralised
Local businesses treated as
separate businesses
Strategies for each country
Pressure for Global
Integration:
LOW
Examples
Ansoff & Global Business:
Market Development
A growth strategy where
the business seeks to
sell its existing products
into new markets
Approaches to Market Development
• New geographical markets; e.g.
exporting to emerging markets
• New distribution channels (e.g. using ecommerce and mail order)
• Different pricing policies to attract new
customers in different segments
Examples of Market Development Strategies
Starbucks expansion into
China is a classic example
of a successful market
development strategy
Tesco’s market development
strategy to enter the US
grocery supermarket sector
was a disaster for shareholders
Evaluating Market Development
• A logical strategy where existing
markets are saturated or in decline
• Often more risky than product
development – particularly expansion
into international markets
• Existing products may not suite new
markets: depends on customer needs