1. Global Marketing Management
Chapter 5 Global Customers
Warren J. Keegan

2. Overview Regional Market Characteristics
Marketing in Transitional Economies & Less Developed Countries
Global Buyers
Global Marketing Plan
Summary

3. Learning Objectives Become familiar with different regional markets
Learn how transitional & developing markets differ from developed countries
Understand the customer value & the value equation
Discuss diffusion theory

4. Western Europe Smaller than Australia 32 % Global Income
460 million population
7% World Population
23 Countries

5. Product Strategies in the EU
Harmonization in product standards
Common patenting & branding
Harmonization in packaging

6. Pricing Strategies in the EU
More competitive
Withdrawal of restrictions on foreign products
Anti-monopoly measures
Widening of public procurement market

7. Distribution Strategies in the EU
Simplification of transit
documents & procedures
Elimination of customs formalities

8. Promotion Strategies in the EU
Common guidelines for TV broadcasting
Deregulation of national monopolies
Uniform standard for TV commercials

9. Eastern & Central Europe
Balkans: Albania, Bosnia-Herzegovina, etc.
Baltics:Lithuania, Latvia & Estonia
Commonwealth of Independent States
Poland, Hungary, etc.

10. Eastern & Central Europe Before – After Market Economy
% World GNP 6.9% 2.5%
GNP per Capita $3,665 $2,219

11. Marketing in Eastern & Central Europe
Wide range in economic development
Young people have “unlearned” the communist past
Needs business and distribution infrastructure
Familiar with Western Brands

12. North America - NAFTA $9,254 trillion GNP 30% of Global Income
407 million population
7% world population

13. Asia-Pacific $8,230 billion Global Income 25% of Global Income
2.8 Billion population
52% World Population

14. Traditional Western & Asian Marketing Values
Brand segmentation; personal
choice & self expression
through brands
Presenters/testimonials important
but more to draw attention to
brands
Seeding & diffusion from
leading edge
“Understatement” of wealth
Environmentalism
Asian
Popular famous brands; confidence in brand & corporate names
Imitation,emulation,use of presenters as role models
Rapid adoption of successful brands
Display of wealth and status
Confidence in technology

15. JAPAN Home of most demanding customers Home market of global customers
Home market of global competitors
Significant market of global competitors
Major source of industry innovation.

16. China $1,179 Billion GNP 3.9% Global Income 1.27 Billion population
21% world population
$930 GNP per Capita
Nearly 10% annual growth in GNP

17. India: A Closer Look 2000 Per capita income $330 Per capita GDP $310
Population
950m
Literacy rate
<50%
Telephones 6m
Television Sets
35m
Access to clean sanitation*
14%
Population with income>$2500
2.3%
Average household size
5.2
Growth Rate
3.5%
* One of the lowest rates of access in the world

18. Latin America Consists of South and Central America & Caribbean
Mexico is economically part of NAFTA
7% of global Income
510 million population
9.5% world population

19. Africa
3.5 times size of US
3 Regions: North Africa, Sub-Sahara and Republic of South Africa
1.3% Global Income
730 million population
12% of world population
Average per capita = $536

20. Transitional Economies & Less Developed Countries
1.      Low per capita income - under $4000
2.      High inflation – 10 to 30% annually
3.      Wide gap in income distribution
4.      High level of taxes, duties & bureaucratic hurdles
5.      Lack of marketing awareness
6.      Fragmented communications & distribution
Inadequate infrastructure

21. To Enter or Not to Enter? Look beyond per capita GNP
Consider LDCs collectively
Weigh the benefits of being first
Set realistic deadlines

22. Middle East 16 countries 2% of Global Income 260 million population
4% of world population
Predominately Muslim

23. Roger’s Diffusion Theory
Awareness
Interest
Evaluation
Trial
Adoption

24. Roger’s Factors Affecting Rate of Innovation Adoption
Relative advantage
Compatibility
Complexity
Divisibility
Communicability

25. Summary % Population is not related to % GNP
Major regions differ by income and population
Diffusion of innovation varies around world