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.