16-1 Chapter Objectives LO1 Identify the factors that aid the growth of globalization LO2 Explain the components of a country market assessment LO3 Describe the various market entry strategies LO4 List the similarities and differences between a domestic marketing strategy and a global marketing strategy LO5 Explain how ethical issues affect global marketing practices LEARNING OBJECTIVES
16-2 Choosing a Global Marketing Strategy: Target Market (STP) Cultural nuancesSubculturesView of product and consumer roleDifferent positioningAdaptationSingle positioning strategy LO4
16-3 Adapting for Global Success How do firms successfully introduce a new product to a global market? LO4
16-4 Case in Point: Introducing Coffee to China Challenge Answer Results Nestle wants to introduce its top global instant coffee brand Nescafe to China. Chinese consumers were not coffee drinkers thus needed to be educated in how to consume the product. Nescafe “3 in 1”, coffee, creamer and sweetener in one. Ideal mix for Chinese market easily reconstituted for best taste. Nescafe dominates the in-home coffee category in China. LO4
16-5 Case in Point: Nescafe in China LO4
16-6 The Global Marketing Mix: Product or Service Strategies Sell the same product or service in both the home country market and host country Sell a product or service similar to that sold in home country but include minor adaptations Sell totally new products or services LO4
16-7 MTV Conquers the World Seen in million households 164 countries, 34 channels, 18 languages Mix of standardized and local content benefited local music and artists E.g. Salam Dangdut in Indonesia LO4
16-8 Managing the Global Marketing Mix How do firms manage the global marketing mix? LO4
16-9 Case in Point: Walmart’s Failed Experiment Challenge Answer Results To continue to grow the most successful retailer in the U.S., Walmart. Stiff competition from entrenched local competitors, a sluggish economy as well as problems with workers and regulators led to Walmart exiting the market in The sale to competitor Metro resulted in pre-tax loss of $1Billion. Walmart enters Germany with the same value proposition (EDLP) it has in the U.S. LO4
16-10 Walmart Brazil Walmart China Walmart International LO4
16-11 Global Marketing Mix: Pricing Strategies Price TariffsQuotas Anti- dumping Policies Economic Conditions Competitive factors LO4
16-12 Global Marketing Mix: Global Distribution Strategies Some global channels are very long and complex. Consumer shop local small local stores. Suppliers must be creative in delivering to these outlets. FedEx Commercial LO4
16-13 Global Marketing Mix: Global Communication Strategies Literacy levels vary by country Firms choose whether to adapt to language differences Cultural and religious differences also matter LO4