A Presentation On

Marketing Globally

Introduction

A global marketing strategy is consistent with the mass production of a standardized output. Ignoring country

differences in consumer tastes and preferences can lead to failure.

Marketing on a worldwide scale reconciling or taking

commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives.

Oxford university.

EVOLUTION TO GLOBAL MARKETING

Global marketing is not a revolutionary shift, it is an evolutionary process.

Domestic marketing
A marketing restricted to the political boundaries of a
country, is called "Domestic Marketing".

International marketing

ADVANTAGES & DISADVANTAGES:

The advantages of global market we can introduce our product by using advertising.

Economies of scale in production and distribution. Lower marketing costs. Power and scope. Consistency in brand image. Ability to leverage good ideas quickly and efficiently Uniformity of marketing practices Helps to establish relationships outside of the "political arena Helps to encourage ancillary industries to be set up to cater for the needs of the global player Benefits of e-Marketing over traditional marketing

Disadvantages: -

Differences in
1. 2. 3. 4.

Consumer needs, wants, and usage patterns for products Consumer response to marketing mix elements. Brand & product Legal environment, some of which may conflict with those of the home market

5.

Institutions available, some of which may call for the creation of entirely new ones (e.g. infrastructure).

6. 7. 8.

Administrative procedures. Product placement. Administrative procedures and product placement can occur.

MARKET SEGMENTATION:

Markets can be segmented in numerous ways: by

geography,

demography,social-cultural

factors,

and

psychological factors (personality).

For example, Toyota uses its Lexus division to sell highprices luxury cars to high-income consumers.

The structure of market segments may differ significantly

from country to country

PRODUCT ATTRIBUTES:

For example, the attributes that make up a car include

power, design, quality, performance, fuel consumption, and

comfort; the attributes of a hamburger include taste, texture, and size; a hotels attributes include atmosphere, quality, comfort, and service.

Cultural Differences
Ex- Cheetos, the bright orange and cheesy-tasting snack from
PepsiCos Frito-Lay unit, do not have a cheese taste in China

Economic Development:
features found in developed nations.

- Ex- Cars sold in less developed nations typically lack many of the

Product and Technical Standards: production and marketing of a standardized product. Ex- DVD equipment manufactured

- Differing government-mandated product standards can rule out mass

DISTRIBUTION STRATEGY

A critical element of a firms marketing mix is its distribution strategy: the means it chooses for delivering the product to the consumer.

Difference between Countries: Retail concentration Channel length Channel exclusivity Channel quality.

CHOOSING A DISTRIBUTION STRATEGY

Manufacturer inside the Country Manufacturer outside the Country Import Agent Wholesale Distributor

Retail Distributor

Final Customer

A Typical Distribution System

COMMUNICATION STRATEGY:

A number of communication channels are available to a firmDirect selling, sales promotion, Direct marketing, Advertising.

Choice of channel partly defines a firms communication strategy.

Barriers to International Communication:

Cultural Barriers: Source and Country of Origin Effects: Noise Levels

PUSH versus PULL STRATEGY:

A push strategy emphasized personal selling rather than mass media advertising in the promotional mix.

A pull strategy depends more on mass media advertising to communicate the marketing message to potential consumers

Factors that determine the relative attractiveness of push and pull strategies

Product type relative to consumer sophistication

Channel length Media availability.

THE PUSH-PULL MIX:

Push strategies tend to be emphasized: - For industrial products and complex new products. - When distribution channels are short. - When few print or electronic media are available.

Pull strategies tend to emphasized: - For consumer goods. - When distribution channels are long - When sufficient print and electronic media are available to carry

the marketing message.

BRANDING:

A brand is an identifying mark for products or services. When a company registers a brand legally, it is a

trademark.

Business Week magazine estimates- at least 100 global brands are worth at least a billion Dollars.

Four major branding decisions:

Brand versus no brand

Manufacturers brand versus private brand

One brand versus multiple brands Worldwide brand versus local brand

Global Advertising

One of the most successful standardized campaigns in history was Philip Morriss promotion of Marlboro cigarettes.

For Standardized Advertising: Against Standardized Advertising: Dealing with Country Differences: -

PRICING STRATEGY:

Price Discrimination: Inelastic Demand Curve

Price $

Elastic Demand Curve

Output

Continued..

Strategic Pricing:
Predatory Pricing Multipoint Pricing Strategy Experience Curve Pricing

Regulatory Influences on Prices:

Antidumping Regulation Competition Policy

Benefits that SAMSUNG got by Global Marketing

Established in 1969 3rd largest player in Korean electronicsMarket Exports 70%

In 1998, Samsung wanted to sponsor Olympics to

establish itself as a global brand

In 1990s, Samsung entered into various marketing

alliances with companies worldwide (brand value was

appreciated by 200% from $3.1 billion in 1999 to $8.3 billion in 2002.)

In 2002, Samsung emerged as the only non-Japanese brand from Asia to be listed in the global top 100 brands valued by

Interbrand Inc.

Net Profit of 1.7 trillion won in 2002 (425 Million Won,2001)

In 2003, 3rd Cell Phone company & Leaer in $24.9 billion memory chip market.

At Last
Samsung realized that to become a global brand, it had to

change the perceptions of consumers who felt that it was

an OEM player and associated its products with low technology. Generally, consumers in developed markets (such as the US) opted for Samsung when they could not afford brands such as Sony and Panasonic. To change consumer perceptions, Samsung decided to focus on product design and launch innovative products.