Muhammad Waqas Introduction to Global Marketing (Continued) Lecture 2

Muhammad Waqas Recap Introduction to Marketing Introduction to Global Marketing Reason for Global Marketing Globalization

Muhammad Waqas Global Marketing: What it is and What it isn’t Strategy development comes down to two main issues similar to single country marketing – Target market – Marketing Mix

Muhammad Waqas © 2005 Prentice Hall1-4 Global Marketing: What it is and What it isn’t NEED TO: Search for similarities and adjust to differences

Muhammad Waqas The Development of Global Marketing Domestic Marketing Export Marketing International Marketing Multinational Marketing Pan-Regional Marketing Global Marketing

Muhammad Waqas Global Marketing: What it is and What it isn’t Global marketing does not mean doing business in all of the 200-plus country markets Global marketing does mean widening business horizons to encompass the world in scanning for opportunity and threat

Muhammad Waqas The Importance of Global Marketing For US-based companies, 75% of sales potential is outside the US. – About 90% of Coca-Cola’s operating income is generated outside the US. For Japanese companies, 85% of potential is outside Japan. For German and EU companies, 94% of potential is outside Germany.

Muhammad Waqas Standardization versus Adaptation Globalization (Standardization) – Developing standardized products marketed worldwide with a standardized marketing mix – Essence of mass marketing Global localization (Adaptation) – Mixing standardization and customization in a way that minimizes costs while maximizing satisfaction – Essence of segmentation – Think globally, act locally

Muhammad Waqas Standardization versus Adaptation

Muhammad Waqas Amsterdam Singapore Germany

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Muhammad Waqas

Why Companies Seek Global Markets? To respond to orders from abroad To increase sales and profits To counter the competitors To grow To follow customers For economic reasons

Muhammad Waqas Why Study Global Marketing? Job opportunities in export business Job opportunities in foreign-based companies Job opportunities in service sector Emergence of e-marketing

Muhammad Waqas Summary Global Marketing: What it is and What it isn’t The Development of Global Marketing The Importance of Global Marketing Standardization versus Adaptation Why Companies Seek Global Markets? Why Study Global Marketing?

Muhammad Waqas References Gillespie, K., Jeannet, J.P. and Hennessey, H.D. (2004), Global Marketing: An Interactive Approach, Houghton Mifflin, Boston, NY.