DATE 04 0915 Course Title Introduction to Marketing Course MKTG 2201 CRN 34372 The Global Marketplace Video Link Example Chinese owned car maker will invest 500 million to build the Volvo plant Deciding on the Global Marketing Program Adapted global marketing o o International marketing approach that adjusts the marketing strategy and mix elements to each international target market which creates more costs but hopefully produces a larger market share Standardized global marketing International marketing strategy that basically uses all the same marketing strategy and mix in all of the company s international markets Marketing Mix Adaptation Ex In India McDonald s serve chicken fish vegetable burgers and the Maharja Mac two all mutton patties special sauce lettuce cheese pickles onions on a sesame seed bun Five Global Product and Communications Strategies Figure 17 3 Straight product extension o Marketing a product in a foreign market without making any changes to the product Ex McDonald s in France Product adaption o Adapting a product to meet local conditions or wants in foreign markets Ex McDonald s in India Product invention o Creating new products or services for foreign markets Page 1 of 3 Global Promotion Strategies Companies can either DATE 04 0915 o Adopt the same communications strategy they use in the home market o Change it for each local market Even in highly standardized communications campaigns adjustments might be required for language and cultural differences Communication adaptation o Global communication strategy of fully adapting advertising messages to local markets Global Price Considerations Companies could o Charge what consumers in each country would bear o Use a standard markup of its costs everywhere Companies foreign prices are usually higher than their domestic prices for comparable products Ex Levi Strauss recently launched the Denizen brand created for teens and young adults in emerging markets such as China India and Brazil who cannot afford Levi s branded jeans Whole channel view o Designing international channels that take into account the entire global supply chain and marketing channel o Whole channel concept for international marketing Figure 17 4 Global distribution channels Ex In its efforts to sell rugged affordable phones to Indian consumers Nokia forged its own distribution structure including a fleet of distinctive blue Nokia branded bans that prowl rutted country roads to visit remote villages Deciding on global marketing organization International marketing efforts can be managed in 3 different ways o Organizing an export department o Creating international divisions Geographical organizations World product groups Page 2 of 3 DATE 04 0915 International subsidiaries o Becoming a global organization Page 3 of 3
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