The Global Marketplace and McDonalds Bus Principles of Marketing Tanja Kuehni Elisa Lokmagozian Andrew Mirto Erik Sharp

Agenda What is global marketing Global marketing environment Deciding to go global Deciding on the market and how to enter Global marketing program and McDonalds Global marketing organization What we learned

What is Global Marketing Global firms: ◦ Operate in over 100 countries Global firms ask the questions strategies/

Looking at the Global Marketing Environment International trade system ◦ Tariffs, Quotas, Exchange Controls etc. The economic environment ◦ Industrial Structure ◦ Income Distribution the-brand-mcdonald-s

Looking at the Global Marketing Environment The political-legal environment ◦ Differ country to country The cultural environment ◦ Understand cultural traditions, behavior, and religion

Deciding Whether to Go Global Risks: ◦ Language ◦ Laws and politics Reasons to go global ◦ Global competition ◦ Customers demand ◦ Growth opportunities of-small-businesses/s19-going-global-yes-or-no.html

Deciding Which Markets to Enter International marketing objectives and policies Rank potential markets based on: ◦ Market size ◦ Cost of doing business ◦ Competitive advantage Decide which markets offer greatest long- run return on investment

Deciding How to Enter the Market Export ◦ Indirect ◦ Direct Joint Venturing ◦ Licensing ◦ Contract manufacturing ◦ Management contracting ◦ Joint ownership development/

Deciding How to Enter the Market Direct investment ◦ Foreign – Based assembly or manufacturing facilities

Deciding on the Global Marketing Program Adapt or standardize? Recognizing cultural differences Find the right balance

Deciding on The Global Marketing Program

McDonalds Products International marketing ◦ Involves recognizing different needs  Different menus catering to the communities at-mcdonalds/

McDonalds and Promotion Promotion ◦ McDonalds keeps all of the famous items world wide ◦ “Everything is affordable, portable, great-tasting, and distinctly McDonalds”

McDonalds Promotion Ad

McDonalds and Promotion International promotion ◦ Culturally sensitive ◦ Local food trends ◦ Distinctly McDonalds

McDonalds and Price Adapt to local currencies and income levels ◦ Big Mac Switzerland: CHF 6.50 ($7.13) ◦ Big Mac US: $4.20 (on average) ebook-price-trends/

McDonalds and Distribution International distribution ◦ Supported by franchisees, the corporation, and affiliates

Deciding on the Global Marketing Organization Recommended organization according to global size: ◦ Export department ◦ International divisions ◦ Global organizations

What We Learned

References ds_system/what_we_do.html segmentation.html _stories/food/catering_to_local_tastes.html Marketing.shtml