1. Global Marketing
4.4 Global marketing

2. a) Global marketing strategy and global localisation (glocalisation)
What you need to know
a) Global marketing strategy and global localisation (glocalisation)
b) Different marketing approaches:
domestic/ethnocentric
mixed/geocentric
international/polycentric
c) Application and adaptation of the marketing mix (4Ps) and Ansoff’s Matrix to global markets

3. What is Glocalisation?
Glocalisation describes a product or service that is developed and sold globally, but is also adapted to meet the needs and wants of customers in a local market

4. Two Examples of Glocalisation

5. Different Marketing Approaches to Global Markets
Domestic / Ethnocentric
Mixed / Geocentric
International / Polycentric
Assumes that work works in home markets will also work in international markets
Effective if international consumers value authenticity
Recognises differences in national markets
But main aim of marketing strategy is to build a truly global brand
Recognises that every national market requires a different marketing mix
Products designed specifically to meet local needs

6. Alternative Model – Bartlett & Ghoshal
The Bartlett & Ghoshal Model indicates the marketing strategy options for businesses wanting to manage their global marketing based on two pressures: local responsiveness & global integration

7. The Bartlett & Ghoshal Matrix
LOW PRESSURE FOR LOCAL RESPONSIVENESS
HIGH PRESSURE FOR LOCAL RESPONSIVENESS
Global
Transnational
HIGH PRESSURE FOR GLOBAL INTEGRATION
International
Multi-domestic
LOW PRESSURE FOR GLOBAL INTEGRATION

8. How Two Key Forces Impact How to Approach the Marketing Mix in Global Markets
Do customers in each country expect the product to be adapted to meet local requirements?
Do local (domestic competitors) have an advantage based on their ability to be more responsive?
Force for local responsiveness
How important is standardisation of the product in order to operate efficiently (e.g. economies of scale)
Is consistent global branding required in order to achieve international success?
Force for global integration

9. LOW HIGH Key Features Examples
Global Strategy
Pressure for Local Responsiveness:
Pressure for Global Integration:
LOW
HIGH
Key Features
Examples
Highly centralised
Focus on efficiency (economies of scale)
Little sharing of expertise locally
Standardised products

10. Transnational Strategy
Pressure for Local Responsiveness:
Pressure for Global Integration:
HIGH
HIGH
Key Features
Examples
Complex to achieve
Aim is to maximise local responsiveness but also gain benefits from global integration
Wide sharing of expertise (technology, staff etc.)

11. International Strategy
Pressure for Local Responsiveness:
Pressure for Global Integration:
LOW
LOW
Key Features
Examples
Aims to achieve efficiency by focusing on domestic activities
International operations are largely managed centrally
Relatively little adaption of product to local needs

12. Multi-domestic Strategy
Pressure for Local Responsiveness:
Pressure for Global Integration:
HIGH
LOW
Key Features
Examples
Aims to maximise benefits of meeting local market needs through extensive customisation
Decision-making decentralised
Local businesses treated as separate businesses
Strategies for each country

13. Ansoff & Global Business: Market Development
A growth strategy where the business seeks to sell its existing products into new markets

14. Approaches to Market Development
New geographical markets; e.g. exporting to emerging markets
New distribution channels (e.g. using e-commerce and mail order)
Different pricing policies to attract new customers in different segments

15. Examples of Market Development Strategies
Starbucks expansion into China is a classic example of a successful market development strategy
Tesco’s market development strategy to enter the US grocery supermarket sector was a disaster for shareholders

16. Evaluating Market Development
A logical strategy where existing markets are saturated or in decline
Often more risky than product development – particularly expansion into international markets
Existing products may not suite new markets: depends on customer needs