Global MKTG – Ch. 1 – Flashcards
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Product/Market Growth Matrix
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Existing/New Products Existing/New Markets
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Market Development Strategy
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Existing Products - New Markets EX: Walmart's expansion into Guatemala
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Diversification Strategy
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New Products - New Markets EX: LG entered American appliance mkt
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Market Penetration Strategy
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Existing Products - Existing Markets
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Product Development Strategy
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New Products - Existing Markets
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Marketing
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An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
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Marketing Mix
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Product, Price, Place, Promotion Comprises a contemporary marketer's primary tools.
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Global Marketing
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- An organization that focuses its resources and competencies on global market opportunities and threats. - Companies that conduct important business activities outside the home-country market.
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Value Chain
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A set of activities and processes, along with product design, manufacturing, and transportation logistics.
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Value Equation
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Value = Benefits / Price
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How can you create value for customers?
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By improving benefits or reducing prices
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A Market
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People and organizations taht are both able and willing to buy.
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Competitive Advantage
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When a company succeeds in creating more value for customers than its competitors
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Global Industry
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- Competitive advantage can be achieved by integrating and leveraging operations on a worldwide scale. - An industry is global to the extent that a company's industry position in one country is interdependent with its industry position in other countries.
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Indicators of Globalization
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1. Ratio of cross-border trade to total worldwide production 2. Ratio of cross-border investment to total capital investment 3. Proportion of industry revenue generated by companies that compete in key world regions
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Focus
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Concentration and attention on core business and competence.
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Standardization versus Adaptation
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The extent to which each marketing mix element can be executed in the same or different ways in various country markets
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Single Country Marketing Strategy
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- Target Market Strategy - Marketing Mix (4 P's)
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Global Marketing Strategy
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- Global Market Participation - Marketing Mix Development (Adapt or Standardize?) - Concentration of MKTG Activities - Coordination of MKTG Activities - Integration of Competitive Moves
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Concentration of MKTG Activities
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The extent to which MKTG Mix activities are performed in one or a few country locations
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Coordination of MKTG Activities
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The extent to which MKTG Mix activities are planned and executed interdependently around the globe
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Integration of Competitive Moves
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The extent to which a firm's competitive marketing tactics are interdependent in different parts of the world
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Globalization (Standardization)
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Developing standardized products marketed worldwide with a standardized marketing mix *Essence of mass marketing
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Global Localization (Adaptation)
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Mixing standardization and customization in a way that minimizes costs while maximizing satisfaction *Essence of segmentation *Think globally act locally
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Top 5 Largest Global Corporations by Revenues
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1. Wal-Mart Stores (USA) 2. Exxon Mobil (USA) 3. Royal Dutch/Shell Group (UK/Nether.) 4. BP (Britain) 5. Toyota Motor (Japan)
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Ethnocentric Orientation
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- Home country is superior to others - Sees only similarities in other countries - Assumes products & practices that succeed at home will be successful everywhere * Leads to a STANDARDIZED or EXTENSION Approach EX: When Japan 1st exported cars to US
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Polycentric Orientation
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- Each country is unique - Each subsidiary develops its own unique business and marketing strategies - Often referred to as MULTINATIONAL *Leads to a LOCALIZED or ADAPTATION Approach
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Regiocentric Orientation
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- A region is the relevant geographic unit (EX: European Union market) - Some companies serve markets throughout the world but on a regional basis (EX: General Motors had 4 regions)
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Geocentric Orientation
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- Entire world is a potential market - Strives for integrated global strategies - Also known as a GLOBAL or TRANSNATIONAL Company - Retains association w/HQ country *Leads to combination of EXTENSION and ADAPTATION elements Pursues serving world mkts from a single country or sources globally to focus on a select country markets EX: Harley-Davidson (US) & GAP (US)
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Driving forces affecting global integration & global MKTG
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1. Multilateral trade agreements 2. Converging mkt needs & wants and the information revolution 3. Transportation & comm improvements 4. Product development costs 5. Quality (5% of sales on R&D) 6. World economic trends 7. Leverage
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Experience Transfers
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A company can leverage its experience in any part of the world
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Resource Utilization
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Global companies can scan the entire world to identify people, money, and raw material will enable it to compete most effectively in world markets
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Global Strategy
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A design to create a winning offering on a global scale. - Built on information systems that scan the world business environment to identify opportunities, trends, threats, and resources
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When opportunities are identified, the global company _______ its skills and _________ its resources to create _________ for customers and achieve ____________.
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When opportunities are identified, the global company LEVERAGES its skills and FOCUSES its resources to create SUPERIOR VALUE for customers and achieve COMPETITIVE ADVANTAGE.
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Management Myopia
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Successful global companies have learned to integrate global vision and perspective with local market initiative and input
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National Controls
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Every country tries to protect its home industries and services through tariff and non-tariff controls. * Non-tariff barriers to trade include "buy local" campaigns
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Globophobia
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Term used to describe an attitude of hostility toward trade agreements, global brands, or company policies that appear to result in hardship for some individuals or countries while benefiting others.
