7. global marketing

• SYLLABUS

  • Students learn to: Explain how globalisation has affected marketing management.

• Many transnational corporations (TNCs) adopt a global marketing approach that involves developing marketing strategies as if the entire globe were one large market

Global branding

• Global branding is :
  ?
• the worldwide use of a name, term, symbol, or logo to identify a seller
• reasons for global branding:
  • cost effective
    • one advertisement can be used in multiple locations
  • provides a uniform worldwide image
  • the successful brand name can be linked to new products being introduced
• marketing managers need to ensure the brand provides relevant meaning and experience to people across societies and cultures.

Standardisation

• Standardisation is :
  ?

• ==a global marketing approach that assumes the way the product is used and the needs it satisfies are the same all over the world.==

• increasing globalisation has seen standardisation occur

  • it’s ‘one marketing plan that fits all’ approach, has allowed businesses to adopt identical marketing mixes in domestic and global markets.

• has cost savings for businesses

  • Production runs can be longer
    • (tf: achieves economies of scale)
  • R&D costs reduces
  • promotion can be standardised

Customisation

• Customised (or local market) approach is :
  ?
• a global marketing approach that assumes the way the product is used and the needs it satisfies are different between countries
• businesses customise their marketing plan to match the economic, political, and sociocultural characteristics of the target country
  • e.g. McDonalds not selling pork in the middle east

Global pricing

• Global pricing is :: how businesses coordinate their pricing policies across different countries

• As price is the only element of the marketing mix that generates revenue,

  • it is critical for businesses to select an appropriate global pricing strategy.

• There are three main types of global pricing:
  ?

• Customised pricing

  • different prices in different countries for the same product
  • cost-based pricing used to cover added costs of transportation and tariffs

• Standard worldwide price

  • same price for a product anywhere in the world
  • risks of
    • domestic businesses undercutting
    • fluctuations in the ER

• Market customised pricing

  • when prices are set according to local market conditions
  • allows for flexibility according to levels of demand
  • mainly focused on addressing competition
  • exposed to risks of fluctuations in the ER

Competitive positioning

• Competitive positioning relates to :
  ?
• ==how a business will differentiate its products==
• Global businesses need to ensure their products are of higher quality than their competitors, (differentiation)
  • allowing them to garner larger market share and broaden customer reach
    • all at a lesser overall cost of time and money
    • to gain a sustainable competitive advantage.
  • and avoid competing on price only
    • (difficult to sustain in long term)