Global Marketing By Karriem A
COCA-COLA – Successfully Going Global Background
Established in 1893 in
Atlanta pharmacy. 1900: Coke was available in foreign countries. 1940s: built bottling plants abroad to supply soldiers. Growth fueled by strong marketing: “I’d like to buy the world a Coke” TV ad. Now in emerging markets.
How They Did It
Balances brand building
and global standardization with local adaptation. Consistent positioning, packaging, and taste. Brands, flavors, ads, price, distribution and promotions are adapted to local markets. Sprite: a global success.
Global Marketing in the 21st Century
The world is shrinking rapidly with the advent of faster communication, transportation, and financial flows. International trade is booming and accounts for 20 percent of GDP worldwide. Global competition is intensifying. Higher risks with globalization.
Marketing in Action
Globalization by U.S. Firms
Coca-Cola has been a leader in globalization.
Global Firms
A global firm is one that, by operating in more than one country, gains marketing, production, R&D, and financial advantages that are not available to purely domestic competitors.
Major International Marketing Decisions
Key Influences in the Global Marketing Environment
The International
Trade System Economic Environment
Political-Legal
Environment Cultural Environment
Looking at the Global Marketing Environment
The International Trade System: – Restrictions—tariffs, quotas, embargos, exchange controls, and nontariff trade barriers.
The World Trade Organization and GATT: – Helps trade—reduces tariffs and other international trade barriers.
Regional Free Trade Zones: – Groups of nations organized to work toward common goals in the regulation of international trade.
Economic Environment
Industrial Structure: – Shapes a country’s product and service needs, income levels, and employment levels.
Four types: – Subsistence economies – Raw material exporting economies – Industrializing economies – Industrial economies
Market Entry Strategies
Market Entry Strategies
Exporting: – Indirect: Working via independent international marketing intermediaries. – Direct: Company handles its own exports.
Market Entry Strategies Joint Venturing: – Joining with foreign companies to produce or market products or services.
Approaches: – – – –
Licensing Contract manufacturing Management contracting Joint ownership
Toyoko’s Disneyland Resort is operated under a licensing agreement.
Marketing in Action
Joint Ownership
KFC entered Japan through a joint ownership agreement with Japanese conglomerate Mitsubishi.
Market Entry Strategies
 Direct Investment: – The development of foreign-based assembly or manufacturing facilities. – This approach has both advantages and disadvantages which must be carefully evaluated before making a decision.
Deciding on the Global Marketing Program
Standardized Marketing Mix: – Selling largely the same products and using the same marketing approaches worldwide.
Adapted Marketing Mix: – Producer adjusts the marketing mix elements to each target market, bearing more costs but hoping for a larger market share and return.
Marketing in Action
Marketing Mix Adaptation
In India, McDonald’s serves chicken, fish, and veggie burgers, but no beef. Check out the Maharaja Mac!
Global Product and Communication Strategies
Global Product Strategies
Straight Product Extension: – Marketing a product in a foreign market without any change.
Product Adaptation: – Adapting a product to meet local conditions or wants in foreign markets.
Product Invention: – Creating new products or services for foreign markets.
Global Pricing Strategies
 Companies face many problems in setting their international prices. – Standard pricing methods such as uniform pricing, standard markup of costs everywhere, or charging what the market will bear ignores cost differentials and local market conditions.
Global Pricing Challenges  International prices tend to be higher than 

domestic prices because of price escalation. Companies may become guilty of dumping when a foreign subsidiary charges less than its costs or less than it charges in its home market. The Internet makes global price differences obvious and the euro has reduced the amount of price differentiation.
Marketing in Action
Economic Impact of Global Pricing
The adoption of the euro as a common currency by several nations has created a “pricing transparency� that is forcing companies to harmonize their prices throughout Europe.
Whole-Channel Concept for International Marketing
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