Chapter 1 - Slide 1
1. Distinguish between international and domestic marketing.
2. Describe the global environment in which marketing takes place. 3. Show a variety of ways in which a firm may practice international marketing.
4. Discuss current global trends affecting global marketing.
Chapter 1 - Slide 2
The Concept of Global Marketing
• Global marketing has become important to companies around the world for three reasons:
1. Foreign markets constitute an increasing portion of the total world market, leading to sizeable international sales and profits for many companies.
2. Foreign competitors are increasing their market share in one another’s markets.
3. Foreign markets can be essential sources of low-cost products, technology, and financial and human capital as major economies are increasingly interdependent.
Chapter 1 - Slide 3
Global and Domestic Marketing
• Marketing is defined as “the collection of activities undertaken by a firm in order to assess and satisfy customer needs, wants, and desires.”
• Marketing management is the planning and coordinating of these activities to achieve a successfully integrated marketing program. • Global marketing is the act of marketing across national boundaries. Global marketing includes the task of marketing between countries, as well as within each country.
The global marketer moves products across national boundaries in addition to moving products within each market the company serves.
Chapter 1 - Slide 4
International Marketing: A Closer Look
Identifying and understanding global consumer needs
Carrying out international marketing research and analyzing market segments; seeking to understand similarities and differences in customer groups across countries.
Satisfying customer needs
Adapting manufactured goods, services, and elements of the marketing mix to satisfy different customer needs across countries and regions. Included in manufacturing and technology decisions are the implications of costs and prices, development of global customer information databases, and distribution channel and logistics information.
Being better than the competition Assessing, monitoring, and responding to global competition by offering better value and developing superior brand image and product positioning; broader product range; low prices; high quality; good performance; superior distribution, advertising, and service. Recognizing that competitors may include state-owned enterprises, other multinationals, and domestic firms, each having different goals, such as market share instead of profits.
Coordinating marketing activities Coordinating and integrating marketing strategies and implementing them across countries, regions, and the global market, which involves centralization, delegation, standardization, and local responsiveness.
Recognizing the constraints of the global environment
Recognizing that the global environment includes
• Complex variation due to governmental, protectionist, and industrial policies.
• Cultural and economic differences.
• Differences in marketing infrastructure.
• Financial constraints due to exchange-rate variation and differences in inflation rates.
Chapter 1 - Slide 5
Five International Marketing Essentials
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1. Identifying and Understanding Global Consumer Needs
Research helps a firm understand consumer needs in different markets and determine whether those needs are different from those of the customers it currently serves.
Companies also need to analyze market segments across countries to be able to position their products appropriately for entry into international markets.
2. Satisfying Customer Needs
If needs differ across countries and regions, a company must consider how to adapt its products and the various elements of the marketing mix to best satisfy customers.
Well-developed distribution is needed to make sufficient quantities of goods…