GLOBAL MARKETING
Global
Marketing
Global Edition
Warren J. Keegan Mark C. Green
Introduction to
Global Marketing
Chapter 1
Copyright 2013, Pearson Education
INTRODUCTION
• Global vs. “Regular” Marketing
- Scope of activities are outside the home-country market
Copyright 2013, Pearson Education
GLOBAL MARKETING
• Create value for customers by improving benefits or reducing price
–
–
–
–
Improve the product
Find new distribution channels
Create better communications
Cut monetary and non-monetary costs and prices
Value=Benefits/Price
Copyright 2013, Pearson Education
GLOBALIZATION
“Economic globalization constitutes integration of national economies into the international economy through trade, direct foreign investment (by corporations and multinationals), short-term capital flows, international flows of workers and humanity generally, and flows of technology.”
~Jagdish Bhagwait~
Copyright 2013, Pearson Education
GLOBAL INDUSTRIES
• An industry is global to the extent that a company’s industry position in one country is interdependent with its industry position in another country
Indicators of globalization:
•Ratio of cross-border investment to total capital investment
•Proportion of industry revenue generated by all companies that compete in key world regions
•Ratio of cross-border trade to worldwide production
Coca Cola spent $5 billion worldwide on promotions and marketing in 2010
Copyright 2013, Pearson Education
COMPETITIVE ADVANTAGE, GLOBALIZATION
& GLOBAL INDUSTRIES
• Focus
– Concentration and attention on core business and competence “Nestle is focused: We are food and beverages. We are not running bicycle shops. Even in food we are not in all fields.
There are certain areas we do not touch…We have no soft drinks because I have said we will either buy Coca-Cola or we leave it alone. This is focus.”
~Helmut Maucher, former chairman of Nestlé SA~
Copyright 2013, Pearson Education
Marketing
Global Edition
Warren J. Keegan Mark C. Green
Introduction to
Global Marketing
Chapter 1
Copyright 2013, Pearson Education
INTRODUCTION
• Global vs. “Regular” Marketing
- Scope of activities are outside the home-country market
Copyright 2013, Pearson Education
GLOBAL MARKETING
• Create value for customers by improving benefits or reducing price
–
–
–
–
Improve the product
Find new distribution channels
Create better communications
Cut monetary and non-monetary costs and prices
Value=Benefits/Price
Copyright 2013, Pearson Education
GLOBALIZATION
“Economic globalization constitutes integration of national economies into the international economy through trade, direct foreign investment (by corporations and multinationals), short-term capital flows, international flows of workers and humanity generally, and flows of technology.”
~Jagdish Bhagwait~
Copyright 2013, Pearson Education
GLOBAL INDUSTRIES
• An industry is global to the extent that a company’s industry position in one country is interdependent with its industry position in another country
Indicators of globalization:
•Ratio of cross-border investment to total capital investment
•Proportion of industry revenue generated by all companies that compete in key world regions
•Ratio of cross-border trade to worldwide production
Coca Cola spent $5 billion worldwide on promotions and marketing in 2010
Copyright 2013, Pearson Education
COMPETITIVE ADVANTAGE, GLOBALIZATION
& GLOBAL INDUSTRIES
• Focus
– Concentration and attention on core business and competence “Nestle is focused: We are food and beverages. We are not running bicycle shops. Even in food we are not in all fields.
There are certain areas we do not touch…We have no soft drinks because I have said we will either buy Coca-Cola or we leave it alone. This is focus.”
~Helmut Maucher, former chairman of Nestlé SA~
Copyright 2013, Pearson Education