ib- globle marketing

7/29/2019 Ib- Globle Marketing

1/22

A

Presentation

OnMarketing Globally


2/22

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.


3/22

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


4/22

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 goodideas 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


5/22

Disadvantages: -

Differences in

1. Consumer needs, wants, and usage patterns for products

2. Consumer response to marketing mix elements.

3. Brand & product

4. Legal environment, some of which may conflict with those of the homemarket

5. Institutions available, some of which may call for the creation of entirely

new ones (e.g. infrastructure).

6. Administrative procedures.

7. Product placement.

8. Administrative procedures and product placement can occur.


6/22

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 high-

prices luxury cars to high-income consumers.

The structure of market segments may differ significantly

from country to country


7/22

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.


8/22

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:

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

features found in developed nations.

Product and Technical Standards: -- Differing government-mandated product standards can rule out mass

production and marketing of a standardized product. Ex- DVD

equipment manufactured


9/22

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.


10/22

CHOOSING A DISTRIBUTION

STRATEGY

Manufacturer inside

the Country

Manufacturer outside

the Country

Wholesale

Distributor

Retail

Distributor

Final

Customer

Import

Agent

A Typical Distribution System


11/22

COMMUNICATION

STRATEGY: A number of communication channels are available to a firm-

Direct 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


12/22

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


13/22

Factors that determine the relative attractiveness of

push and pull strategies

Product type relative to consumer

sophistication

Channel length

Media availability.


14/22

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.


15/22

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


16/22

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: -


17/22

PRICING STRATEGY:

Price Discrimination: -

Inelastic Demand Curve

Price $ Elastic Demand Curve

Output


18/22

Strategic Pricing:

- Predatory Pricing

- Multipoint Pricing Strategy

- Experience Curve Pricing

Regulatory Influences on Prices:

- Antidumping Regulation

- Competition Policy

Continued..


19/22

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 marketingalliances with companies worldwide (brand value was

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

billion in 2002.)


20/22

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.


21/22

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.


22/22

ib- globle marketing

Documents