Introduction to Global Marketing

Global Marketing refers to the practice of promoting a company's products or services across international markets.
Analyzes different countries to develop strategies to reach a worldwide audience.
Often requires adaptations to messaging and products to suit local cultures and regulations.

Use the product/market growth matrix to explain various ways a company can expand globally.

Compare and contrast a single-country marketing strategy with a global marketing strategy.

Scope of activities in Global Marketing extends outside the home-country market.

Product Orientation
- Existing Products
- Market Penetration Strategy
- New Products
- Product Development Strategy
Market Orientation
- Existing Markets
- Market Penetration Strategy
- New Markets
- Market Development Strategy
- Diversification Strategy

Marketers face unique or unfamiliar features in different countries.
- Examples include:
- Counterfeiting and piracy in China.
- Bribery and corruption.
Managers of global companies recognize the necessity of local excellence and quote:
“The best global brands are also the best local brands.” ~ John Quelch & Katherine Jocz

The Value Chain includes marketing, product design, manufacturing, and transportation logistics.
The essence of marketing is to provide a superior value proposition to surpass competition.
Companies can create value for customers by:
- Improving the product.
- Finding new distribution channels.
- Creating better communications.
- Cutting monetary and non-monetary costs and prices.
$ext{Value Benefits/Price}$

Created when a company achieves more value for customers than competitors.
Measured in relation to industry rivals.
Defined by Jay Barney as:
“Created when a firm has a value-creating strategy not simultaneously being implemented by any current or potential competitors.”

An industry is considered global if position in one country is interdependent with position in another country.
- Indicators of globalization include:
- Ratio of cross-border investment to total capital investment.
- Proportion of industry revenue generated by companies competing in key world regions.
- Ratio of cross-border trade to worldwide production.

Major leagues like the NBA, NFL, and MLS are expanding their fan bases internationally.
Soccer is recognized as a truly global sport.
The NFL is targeting growth in Canada, China, Germany, Japan, Mexico, and the UK.

Companies like Nestlé emphasize focus on core businesses.
Ex: Helmut Maucher, former chairman of Nestlé SA, advocates for focus by stating:
“We are food and beverages. We do not run bicycle shops…”

Pros:
- Hundreds of millions have exited poverty and entered the middle class.
- Globalization has often led to rising wages and living standards.
Cons:
- Gains from globalization are not equally distributed.
- Isolationist policies (e.g., Trump’s “America First”) represent a retreat into protectionism.

Single-Country Marketing Strategy
- Target Market Strategies.
- Marketing Mix components: Product, Price, Promotion, Place.
Global Marketing Strategy
- Global market participation.
- Development of marketing mixes while deciding between adaptation and standardization.
- Concentration, coordination, and integration of marketing activities.

Brazil, Russia, India, China, and South Africa are recognized for significant growth opportunities.

Mexico, Indonesia, Nigeria, and Turkey are newly identified markets with great potential.

The principle of “think globally, act locally” may adopt a mix of standardized products and localized approaches.
Example: McDonald's in France uses muted colors for branding, influenced by local design preferences.
Product adaptations in emerging markets lead to budget-friendly options suitable for local consumers in countries like Spain and Greece.

Product:
- Standardized: Big Mac.
- Localized: McAloo Tikka (India), Chicken Maharaja Mac (India), Rye McFeast (Finland), Adagio (Italy).
Promotion:
- Brand Name: “I’m lovin’ it.”
- Localized Slogans: Different dialects and expressions in various countries, e.g., “Venez comme vous êtes” in France emphasizes individuality.
Place:
- Standard: Freestanding restaurants.
- Local: Themed dining cars in Switzerland, home deliveries in India.
Price:
- USA: Average Big Mac cost - $4.20; Norway - $6.79; China - $2.44.

For U.S. companies, 75% of total world market for goods and services lies outside the country.
Coca-Cola reports 75% of operating income and 2/3 of profits from outside North America.
For Japanese companies, 90% of the world market is outside Japan.
For German companies, 94% of market potential is outside of Germany despite it being the largest EU market.
97% of market potential lies outside Canada.

Ethnocentric Orientation:
- Belief that home country is superior.
- Assumes products successful at home will succeed globally, leading to minimal variation in marketing strategies.
Polycentric Orientation:
- Belief in each country's uniqueness.
- Each subsidiary develops its marketing strategies, leading to substantial market mix variations.
Regiocentric Orientation:
- A region (e.g., USMCA, EU) recognized as the relevant unit.
- Companies serve regional markets rather than the global market.
Geocentric Orientation:
- Views the entire world as a potential market.
- Aims for integrated global strategies.
- Strives for a mix of extension and adaptation, acknowledging the similarities and differences of country markets.

Management myopia (nearsightedness).
Organizational culture.
National controls.
Opposition to globalization (e.g., Globophobia).
Examples of restraining forces include Brexit and isolationist policies in the US.