1. Understanding the Global Marketing Environment
Class 5

2. The Marketing Task (Controllable) Implementation Product
Marketing Strategy
Product
Price
Promotion
Distribution
Segmentation
Targeting
Positioning

3. How is a product “positioned?”
Price
Promotions
Place
Implementation of Marketing Strategy

4. 4 Ps - Product
Product decisions are all decision which relate to the physical product and/or service offering, including its name, packaging, warranty, and availability. Product dimensions include:
Size of the product
Color(s) of product
Scent of the product
Materials/ composition of the product
Design of the product
Packaging materials
Package colors and package design
Brand name
Warranty
Availability of options
Customizing services
After-sale service offerings
Inventory levels

5. 4 Ps - Price
Price decision are all decisions which relate to the price of the product, price negotiation, and payment terms. Pricing dimensions include:
Price to end user
Price to distribution intermediaries
Fixed vs. negotiated pricing
Negotiation policies
Credit policies
Credit charges
Payment terms (the amount of time allowed for payment and any discount given for payment on time)
Volume discounts
Introductory allowances
Trade-in policies

6. 4 Ps - Place
Place (distribution) decisions are all decisions which relate to the places at which the product or service is made available to buyers and the methods by which the product or service reaches those places. Place dimensions include:
Selection of geographic markets
Types of outlets from which end-users buy
Level of competition among end-use outlets
Number of end-use outlets
Required qualifications for end-use outlets
Specific identities for end-use outlets
Types of intermediaries which service end-use outlets
Level of competition among intermediaries
Number of intermediaries which service end-use outlets
Required qualifications for intermediaries which service end-use outlets
Specific identities for for intermediaries which service end-use outlets
Push v. pull policy

7. 4 Ps - Promotion
Promotion decisions are all decisions which relate to communication with buyers about the product or service, solicitation of purchases, and short-term purchase incentives. Promotion dimensions include:
Size of advertising budget, if any
Selection of all ad media (television, radio, magazines, etc.)
Selection of ad vehicles (Time, Sports Illustrated, etc.)
Ad Scheduling
Ad appeals
Ad executions
Ad allowance (co-op advertising) programs
Size of sales force
Levels of sales force compensation
Method of sales force compensation
Sales quotas at which commissions or bonuses activate or change
Sales territory definitions
Sales force selection and training
Size of budget for consumer promotions
Types of consumer promotions to be used.
Size of budget for “trade promotions”
Types of trade promotions used.

8. Creating Marketing Strategies for International Markets
Standardization/
Globalization
Adaptation/
Localization
VS.

9. Global Marketing A basic strategy
A global marketing strategy involves the
creation of a single strategy for a
product, service, or company for the
entire global market
A basic strategy
Flexibility to adapt to local market conditions where necessary

10. Coca-Cola Global Marketing Strategy
Think Global
Act Local
GLOCAL

11. International Marketing Concepts
Managers’ International Orientation
International Marketing Strategy
Ethnocentric Domestic Market Extension/ Standardized
Polycentric Multidomestic Extension/ Localized
Regiocentric Pan Regional
Geocentric Globalized
Global Market Segmentation

12. Country Selection
Which particular country markets should a firm enter?
Two Common Errors
Ignore countries with good potential
Spend too much time and effort investigating countries with poor potential

13. The Search Begins… Macrovariables
Describe total market in terms of economic, social, geographic, political information
Macrovariables are especially useful for determining which countries get rejected early on!

14. Geographic Indicators
Size of country, in terms of geographic area
Climatic conditions
Topographical characteristics

15. Demographic Characteristics
Total population
Population growth rate
Age distribution of the population
Degree of population density

16. Economic Characteristics
Total gross national product
Per-capita income (also income growth rate)
Personal or household disposable income
Income distribution

17. GLOBAL INCOME AND POPULATION: 1995
Purchasing Power Parity Compared
% of
world
GNP
with PPP
% of
world
GNP
GNP
Per
Capita
GNP
Per Capita
with PPP
GNP
with PPP
Market
GNP
(billion)
World (Total) $25, $30, $4, $5,863
Triad (Total) , , , ,511
North America* ,253 7, , ,877
Japan ,247 2, , ,636
EU ,619 6, , ,502
Other High Income , ,904
Upper Middle Income 2,239 3, , ,604
Lower Middle Income 2,403 7, , ,126
Low Income , ,370
*Not including Mexico

18. Standard of Living Number of people per: Life Expectancy Schooling
(av. years)
Doctor TV
Phone
McDonald’s
China ,000,000
Hong Kong ,000
Japan ,000
U.S ,000
Russia ,000,000
Sources: WEFA, AsiaWeek, McDonald’s, The New York Times

19. Average Monthly Expenditures for Chinese Households National and Urban Areas - 1994
National Urban Areas
Food (includes eating out) $22.10 $38.00
Savings
Clothing
Child's Education
Home (includes Rent & Utilities)
Daily Goods other than Food
Medical Expenses & Drugs
Entertainment
SOURCE: Gallup China.

20. Developing a Marketing Strategy
Situation Analysis
Segmentation and Targeting
Positioning
Marketing Objectives
Implementation - Marketing Mix
Budget

21. Roper Starch Worldwide Global Study
40,000 consumers in 40 countries
Shopping Styles
Deal Makers (29%) - love the buying process
Price Seekers (27%) - place primary value on the price of the product that they are buying
Brand Loyalists (23%) - purchase name brands and remain true to them
Luxury Innovators (21%) - seek new, prestigious brands

22. How the World Shops
Source: “How the World Shops,” Advertising Age, June 5, 1995, p.3.

23. Type Of Segmentation Grouping Countries
Segments Within and Across Foreign Markets

24. Global Scan Segmentation Study

25. Life Style
Exhibit : Typology of European Car Market

26. International Positioning Strategies
Global Positioning and Segmentation Strategies
Universal Segment / Uniform Positioning Theme
Universal Segment / Different Positioning Themes
Different Segment / Different Positioning Themes

27. Global Positioning & Segmentation Strategies