4. Lesson outline
• Global marketing strategies
• Key concepts
• Theoretical foundations
• Cultural foundations
• Foreign entry
4
5. Globalisation
• What is globalisation?
• Explain three causes for globalisation with
examples.
5
6. Globalisation Advantages
• New market opportunities
• Resources of different countries are used for producing
goods and services they are able to do most efficiently.
• Consumers to get much wider variety of products to
choose from.
• Consumers get the product they want at more
competitive prices.
• It promotes understanding and goodwill among different
countries.
6
7. Globalisation Disadvantages
• It increases country inequality
• Threatens cultural traditions and values
• Economic depression in one country can trigger
adverse reaction across the globe.
• Companies face much greater competition. This
can put smaller companies, at a disadvantage
as they do not have resources to compete at
global scale. 7
9. Global market segmentation
• Targeting is to find homogeneous groups of
customers with high demand potential for the
firm.
• Target segments have to posses the following
characteristics
– Identifiable
– Measurables
– Reachable
9
- Able to buy
- Willing to buy
10. Global market segmentation
Two-Stage Global segmentation
• Macro segmentation - Grouping countries into
different regions based on common
characteristics.
• Micro segmentation – collect data on the
potential customers and identify clusters in the
market place.
10
11. Macro segmentation
• Many companies often start with existing trade blogs or
geographical regions when clustering.
• Variables include
– Sociodemographic data
– Population size and character
– Disposable income level
– Educational background
– Indicators of level of development
– Infrastructure
• Variables used for the segmentation depend on the
purpose of the segmentation 11
13. Macro segmentation
• Clustering countries – Computerised technieque
such as cluster analysis can be used for this
purpose.
• Examples
– A market oriented clustering of world market
– Think and Feel country clusters
(see the handout – country clusters)
13
14. Micro segmentation
• Selection of similar target segments within the
countries selected in macro segmentation.
• Data collected in micro segmentation is different
to the typical domestic segmentation.
– Product usage pattern
– Benefits desired
– Price sensitivity
– Media usage
– Shopping behaviour
14
15. Micro segmentation
• Example
15
The bicycle-riders product market
Submarket 3
Transportation
Riders
Submarket 5
Environmentalists
Submarket 4
Socializers
Submarket 1
Exercisers
Submarket 2
Off-Road
Adventurers
Concept: divide a broad product-market (or generic market) into
homogeneous submarkets
16. Global Product Positioning
• Positioning means saving a place in customer’s
mind .
• Positioning includes activities such as
Communicate the features, benefits of the
product and image to the actual and potential
customers.
16
17. Positioning issues
1. Should be positioned the same way everywhere or
not ?
– Even if same segment targeted everywhere, positioning
strategy should not be same.
E.g. Levi’s - US – fun and practical
Overseas – status of the original jeans
– If the important attributes and benefits customers look for
are similar, then for those global markets similar
positioning is feasible and desirable – Uniform Positioning
17
18. Positioning issues
1. contd.
– In more multi domestic markets such as foods and
clothing consumers in different countries will be
looking at products with different eyes.
– e.g. McDonald, Levi’s
2. The stage of the PLC
– Different country markets are at different stage of
PLC, this makes uniform positioning less attractive
18
19. The product space
• Salient attributes – attributes what customers
looks from a product. Consumers in mature
markets are very sure about the features of a
product.
• Evoke set – brands that are considered for
purchase
• Attribute rating – rate the brands in evoke set on
the salient attributes.
• Preference – How the brand rank in terms of
overall preference.
19
20. Perceptual Map of Automobiles (from WSJ, 1984)
Has a Touch of Class
A Car to be Proud to Own
Distinctive Looking
Pontiac
BMW
Porsche
Lincoln
Cadillac
Mercedes
Chrysler
Buick
Chevrolet
Oldsmobile Has Spirited Performance
Appeals to Young People
Fun to Drive
Sporty Looking
Very Practical
Provides Good Gas Mileage
Affordable
Datsun
Toyota
VW
Conservative looking
Appeals to Older People
Ford
Dodge
Plymouth
21. Activity
• Select a product category in Sri Lankan context
and prepare a perceptual map, positioning the
brands.
21
22. Standardisation vs. adaptation
• Standardization’’ means uniformity of product or
service features, design, and styling
• Adaptation means adapting according to the
local requirements.
22
23. Standardisation
Advantages Disadvantages
Cost reduction – scale of economy Off-target - Not being perfectly
adapted to customer’s requirements
Improve quality Lack of uniqueness
Enhanced customer preference Valnerable to trade barriers – when
country is protected by trade barriers,
local manufacturing is necessary.
Global customers – demand uniform
quality and service everywhere
Strong local competition – locally
adapted products
Global segments - customer
segments in one market can often be
similar to those in other markets.
23
29. Tutorial
• Select one international product and answer
following questions.
– Evaluate up to what degree the product offering has
been customised to the local requirements.
– Compare positioning strategy in international market
with the positioning strategy in Sri Lanka.
29
31. Key concepts
• Global marketing – Marketing activities that are
coordinated and integrated across multiple
markets.
– It involve standardised products, uniform packaging,
identical brand name and similar advertising
campaign.
• Foreign marketing
– Primarily for exports to selective countries
31
32. Key concepts
• Multi-domestic marketing
– Company offering has been customised according to
the culture and preference of the target market.
– E.g. McDonald, Unilever
32
34. Key concepts
• Global competition
– Competitors are expanding globally
– Home market is challenged by a global competitor
– Global raw material procurement will drive down cost
– Saturated home market is slowing down growth
• Global brands
– Brands that are available, well known and highly
regarded throughout the world’s markets.
Activity – provide some examples for global brands. 34
35. Key concepts
• Leading markets
Country markets where global firm wants to be
present even if competition is fierce and profitability is
uncertain.
Leading markets emerge because of country’s
location specific advantages such as natural
resources, technology know-how and labour skills.
E.g. US PC market, Japanese camera market,
German automobile market.
35
36. Key concepts
• Leading markets contd.
– Lead markets are characterised by strong competitors
and demanding customers.
– Free from government regulation and protective
measures.
– Products and services incorporate latest technology.
36
37. Sum up
• Global marketing strategies
– Segmentation
– Positioning
– Positioning issues
– The product space
– Standardisation vs. adaptation
• Key concepts
– Global marketing
– International marketing
– Multidomestic markets 37