Global Marketing Management Mudji Rachmat Ramelan muji@unila.ac.id Jurusan Manajemen FE Unila BBS-Unilanet gd. PKM lt2 http://unilanet.unila.ac.id/~muji

Global Marketing Coordinated performance of marketing activities to create exchanges across countries that satisfy individual, organizational, and societal objectives.

Examples of Global Marketing Product Design Canon photocopier/McDonald’s/Toyota Brand Name Coke/Sony/BMW/ Product Positioning Colgate toothpaste Packaging Gillette razors Advertising Strategy Coca-Cola/Benetton Sales Promotion IBM Distribution Benetton/Ikea Customer Service American Express

What is Unique about Global Marketing? Economic Environment Fiscal policies - tax and government expenditures Monetary policies - regulate money supply Financial Environment Exchange rates and fluctuations Foreign exchange reserves

What is Unique about Global Marketing? Political Environment Tariff barriers Nontariff barriers Regulations Cultural Environment Values Beliefs Attitudes

Global Marketing Environment Regional Local Marketing Mix Environment

Global Marketing Evolution Domestic Marketing (domestic focus; home country customers; ethnocentric orientation). Export Marketing (ethnocentric orientation; products developed for home country customers). International Marketing (markets in many countries; polycentric orientation; use of multidomestic marketing when customer needs are different across national markets).

Global Marketing Evolution Multinational Marketing (many markets; consolidation on regional basis; regiocentric orientation; standardization within regions). Global Marketing (international, multinational & geocentric orientation; company’s willingness to adopt a global perspective; global products with local variations).

Global Marketing Standardization Efforts--product offerings, promotional mix, price, and channel structure. Coordination Across Markets—reducing cost inefficiencies. Global Integration—participating in many major world markets to gain competitive leverage, subsidize operations in some markets.

Global Marketing Decisions Internationalize Business? Country Market Selection Global Marketing Decisions Market Entry Selection

Why Global Marketing? Exploiting Firm-Specific Capabilities Technological innovations Strong Trade Names Lowering Cost Structure Outsourcing Hub and spokes model

Why Global Marketing? Diversification and competitiveness Product/market portfolio Cross-subsidization Country market attractiveness Income Consumer preference Technology and market globalization

Why Global Marketing Saturation of domestic markets: Domestic market saturation in the industrialized countries and growing marketing opportunities overseas. Global competition: Competition around the world and proliferation of the Internet. Need for global cooperation: Global competition brings global cooperation.

GLOBAL INTEGRATION Driving Forces Restraining Forces Technology Culture Market Needs Cost Free Markets Economic Integration Peace Management Vision Strategic Intent Global Strategy and Action Culture Market Differences Costs National Controls Nationalism War Management Myopia Organization History Domestic Focus

Global Trade Importance World trade has grown from $200 billion to more than $7 trillion in the past three decades. The Iron Curtain is gone and capitalism is the new economic order. Firms invest on a global scale. Increasingly more difficult to define “where” products come from. New trading blocs are emerging.

“If we distributed pictures only in the United States, we’d lose money “If we distributed pictures only in the United States, we’d lose money. It takes the whole world now to make the economics of movie-making work.” - William Mechanic President, 20th Century Fox

“Half the people in the world have yet to take their first picture “Half the people in the world have yet to take their first picture. The opportunity is huge, and it’s nothing fancy. We just have to sell yellow boxes of film.” - George M.C. Fisher CEO, Eastman Kodak Company

Thank You!