Handout_MGMT450_YongKim_Module12

Global Marketing Strategy MGMT 450 / IBUS 450

International Environment of Business by Yong Kim

The Inglehart-Welzel World Cultural Map 2022

• Visual representation of cultural values across different countries.

  • Survival Values vs. Self-Expression Values: Key dimensions plotted on an axis.

  • Key cultural groups identified e.g., Confucian, Protestant, Catholic, and Orthodox countries.

  • Cultural Patterns: Significant cultural patterns observed in different regions, indicating diverse social values.

  • Source: World Values Survey & European Values Study (2005-2022).

Page 2: Globalization and Culture

Does Globalization Mean We Will Become One Culture?

• Exploration of the impact of globalization on cultural diversity.

• Mark Pagel's Perspective: Analyzes thousands of distinct cultures and their evolution under globalization.

• Cultural Homogeneity: Questions whether globalization leads to a singular global culture.

Page 3: The Voice Franchise

Localization of 'The Voice'

• Various versions of 'The Voice' adapted worldwide.

  • Different formats include kids, teens, and senior versions.

  • Mechanism: Adaptation to local cultural contexts while maintaining core identity.

Page 4: Economic vs. Cultural Globalization

Key Points by Theodore Levitt

• Technology as a Catalyst: Drives a convergence towards shared commercial practices.

• Emergence of global markets with standardized products.

• Shift from Multinational Corporations (MNCs) to Global Corporations which operate consistently across regions.

Page 5: Evidence of Homogenization and Diversification

Influences on Consumer Tastes

• Factors Contributing to Homogenization:

  • Exposure to global media, internet, and cosmopolitan culture.

  • Marketing strategies from Multinational Enterprises (MNEs).

• Path Dependency: Notable cultural preferences that persist (e.g., food specificities).

• Distribution Differences:

  • Contrast between countries with high and low retail concentration and channel length.

Page 6: Market Concentration in Grocery Retail

Case Study: Kroger-Albertsons-Safeway Merger

• Discussion on market concentration within grocery retail sectors.

• Statistics: Analysis of market shares held by leading retailers in select countries.

• Implications on competition and policy in the grocery sector.

Page 7: Distribution Channels Across Countries

Channel Exclusivity and Quality

• Exclusivity Challenges:

  • Legal and informal barriers to entry for foreign businesses.

• Channel Quality: Importance of retailer competence in selling certain products (e.g., cars).

• Implications for foreign businesses in strategies to access markets.

Page 8: Challenges of International Promotion

Cultural and Regulatory Barriers

• Communication Challenges: Different meanings and historical contexts across cultures.

• Source Effects: Sender's features affecting message interpretation positively or negatively.

• Regulatory Constraints: Variability in advertising laws across countries influences strategy.

Page 9: Price Discrimination Explained

Distinction in Elasticities and Market Segregation

• Price Discrimination: Charging different prices in different markets based on factors like elasticity.

• Examples include variances in fast food prices globally and the pharmaceutical sector.

Page 10: MNE Price Discrimination

Global Pricing Strategies of the Big Mac

• Pricing Analysis: Overview of Big Mac prices across various countries in 2021.

• Impact of Local Factors: Economic conditions, currency value, and market accessibility influence price levels.

Page 11: Marketing Strategies for Countries

Global vs. Local Advertising

• Pros of Global Standardization:

  • Cost efficiency and unified brand image.

• Cons:

  • Cultural nuances and significant regulatory variations that affect advertising effectiveness.

Page 12: Market Strategy Approaches

Global vs. Local Market Strategies

• Global Market Segment Strategies: Focusing on consistent international segments with similar preferences.

  • Examples include luxury goods and technology.

• Localized Market Strategies: Adapting marketing to specific local requirements.

  • Important for addressing diverse cultural and socio-economic factors.