Summary
Global-marketing-summary Chapters 1 2 4 7 9 10 11
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Summary of Global Marketing- Warren J. Keegan. Mark C. Green. Chapters 1,2,4,7,9,10 . Eighth edition.
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Marketing summary Chapter 1,2,4,7,9,10,11Chapter 1 Introduction to global marketing
Marketing can be defined as the activity, set of institutions, and
processes for creating, communicating, delivering and exchanging
offerings that have value for customers, clients, partners and society at
large.
Marketing mix (the four P’s) are the primary marketing tools. Universal
applicable.
Global marketing focuses its resources and competencies on global
market opportunities and threats.
- Difference between regular marketing and global marketing is the
scope of activities. A company that engages in global marketing
conducts important business activities outside the home country
market.
Marketing development strategy; involves seeking new customers by
introducing existing products or services to a new market segment or to a
new geographical market.
- Global marketing can also take the form of a diversification
strategy in which a company creates new product or service
offerings targeting a new segment, country or region.
Value chain: decisions at every stage, from idea conception to support
after the sale, should be assessed in terms of their ability to create value
to customers.
Market: people or organizations that are both able and willing to buy.
Process efficiency: access to cheap materials
Economies of scales: high production level
In order to achieve market success, a product or brand must measure up
to an acceptable quality and be consistent with buyer behavior,
expectations and preferences. If a company is able to offer a combination
of superior product, distribution or promotion benefits and lower prices
than competition, it should enjoy an advantageous position.
A global industry is one in which competitive advantage can be achieved
by integrating and leveraging operations on a world wide scale.
Focus is the concentration of attention on a core business or competence.
Global marketing strategy (GMS)
- Choosing a target market
- developing a marketing mix (4p’s)
,Global market participation is the extent to which a company has
operations in major world markets.
Standardization versus adaption is the extent to which each marketing
mix element is standardized (executed in same way) or adapted (executed
in different way) in various country market.
Global localization means that a successful global marketer must have
the ability to ‘think globally and act locally’.
Management orientations:
1. A person who assumes that his or her home country is superior to
the rest of the world is said to have an ethnocentric orientation.
(assuming products and practices succeed in the home country will
succeed anywhere). This leads to standardized or extension
approach: products can be sold everywhere without adaption.
2. Polycentric: Each country in which a company does business is
unique each subsidiary should develop its own unique business.
Relevance is the geographical unit > autonomy to work. This leads
to localized or adaptation approach that assumes that products
must be adapted in response to different market conditions.
3. Regio centric orientation: a region becomes the relevant
geographic unit. Develop an integrated regional strategy. (NAFTA)
Multinationals
4. Geocentric orientation views the entire world as a potential
market and strives to develop integrated global strategies.
Forces affecting global integration
- Trade agreements to promote and protect free trade
- Converging market needs/wants
- Global product positioning
- Transportation improvement
- Product developments costs > new products, pharmaceutical
products
- Quality
- World economy trends
- Leverage: companies how to save time and money, because they
already have knowledge about going abroad.
Management myopia: ethnocentric behavior of the company’s
management. Culture of the company.
- National control
Protect commercial interest, local enterprises
- Opposition to globalization: glob phobia
Protest > against foreign forces
,Chapter 2 The global economic environment
Stages of market development:
Four categories of gross national income
Low income countries
- limited industrialization
- High agriculture
- High birth rates- short life expectancy
- Rely on foreign aid
Lower middle income countries
- Low in come categories
- Expanding rapidly > competitive threat
Upper middle income
- Industrialize + developing
- Agriculture to industrial sector
- High literacy, strong educational systems
- Low wages > innovative local companies
Newly industrializing economies
- High rate of economy
- Greater industrial output
- Heavy manufacturers
- Refined products
Major changes in the world economy
- Increased volume of capital movements. Foreign exchange
translation
- Relationship production + employment
- The world economy as the dominant economic unit
Economic systems
1. market capitalism:
Consumers decide what goods should be produced and firm
determine what + how much these goods are to be produced >
market oriented > North America+ eu countries)
2. centrally planned socialism: State had broad powers, top down
decisions, consumers can spend their money to what is available,
government ownership of industries
3. centrally planned capitalism: role of the government in a modern
market: economy varies from private to state resource ownership
, 4. market socialism: freedom within the market system policies
within the environment of state ownership.
EC of freedom
- freedom of speech, Freedom of press, Freedom of assembly
Chapter 4 Social and cultural environments
Two categories of cultural elements:
- Material cultures
- Material outline, religion, perception, education
Culture: ways of living, built up by a group of human beings that are
transmitted from one generation to another.
- Culture also concludes conscious and unconscious values, ideas,
attitudes and symbols that shape human behavior.
An attitude is a learned tendency to respond in a consistent way to given
object or entity.
A belief is an organized pattern of knowledge that an individual holds to
be true about the world.
A value can be defined as an enduring belief or feeling that a specific
mode of conduct is personally or socially preferable to another mode of
conduct.
1. attitudes learned tendency to response in a consistent way
2. religion: Impact on the way people react to global marketing
activities
3. aesthetics: Cultural considerations on what is beautiful (colors/
music/ design)
4. Dietary preferences
5. Language + communication:
Linguistics semiotics: spoken/verbal
High and low context cultures
In a low context culture, messages are explicit and specific; words carry
most of the communication power.
In a high context culture, less information is contained in the verbal part
of a message.
Hofstede cultural typology
Culture of different nations can be compared
1. Power distance: high accept in the differences in power
hierarchical world
low: not impressed by authority > joint venture
, 2. Individualistic culture: Each member of society is primarily
concerned with his or her own interest and those of his or her
immediate family.
Collectivistic culture: Person his closest family rules, group counts.
The group will take care of you.
3. Achievement: describes a society in which men should be
assertive, competitive, reach for material success while women
should nurture.
4. Uncertainty avoidance is the extent to which the members of a
society are uncomfortable with unclear, ambiguous or unstructured
situations.
High: afraid of risk, Absolute truth, Not familiar with unknown
situations
Low: comfortable with risk, Open towards different behavior+
opinions
Self reference criterion + perception: a person’s perception of the
market is defined by his/her own experience
To avoid cultural myopia (not listening to the needs of customers)
1. Define the goal in terms of home country cultural habits
2. Define the goal in terms of the host country
3. Get rid of self preference perceptions
4. Redefine the goal without any self reference
Diffusion theory: is a theory that seeks to explain how, why, and at what
rate new ideas and technology spread through cultures
Diffusion of innovation framework
Adoption process: the mental stages though which an individual passes
from time of his of her first knowledge of an innovation to the time of
product adoption or purchase.
1. Awareness: Customer becomes aware of the product or innovation.
2. Interest: interested to learn more about the product (attention and
engage in research activities)
3. Evaluation: the individual mentally assesses the product’s benefits
in relation to present and future needs. (try it or not?)
4. Trial: Free samples or for inexpensive products initial single
purchase is defined as trial.
5. Adoption: expensive; Purchase or not? , inexpensive; buy another
one?
Characteristics of innovation
1. Relative advantage: advantage compared to existing products
2. Compatibility: to which a product is consistent with existing values
and past experiences of adopters.
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