Global Marketing Strategies - Ms. Katon's Class...
Transcript of Global Marketing Strategies - Ms. Katon's Class...
Global Marketing Strategies Marketing Strategies for Going Abroad
What You Will Learn… � 3 marketing strategies when selling abroad:
1. Globalization 2. Adaptation 3. Customization
� Risks and challenges of each strategy � Examples of successful strategies � Failures
Review � What does PEST stand for? � Political, Economic, Socio-cultural, Technology � What is a PEST analysis used for? � Gain a better understanding of potential
opportunities or threats to a company
Global Marketing Strategies
� When selling abroad: ◦ Consider the 4 P’s ◦ Conduct a PEST analysis ◦ Explore the 3 global marketing strategies
3 Global Marketing Strategies:
Global Marketing Strategies
Globalization Adaptation Customization
Globalization
� Globalization: Selling the same product and using the same promotion methods in all countries
� Mass marketing on a global scale
� Very few products will succeed-Why?
Globalization Benefits & Challenges
� Benefits: ◦ Global brand recognition ◦ Reduced marketing costs ◦ Design one logo ◦ Design one ad campaign
� Challenges: ◦ Difficult to translate words and phrases ◦ Meanings are perceived wrong
Successful Globalization Examples
� Microsoft: ◦ Basic applications are the same ◦ Offer in different languages
� Internet search engines ◦ Google = Google everywhere!
Adaptation � Adaptation: Make changes to an existing
product or promotion to suit the characteristics of a country or region
� Two types of adaptation: 1. Product Adaptation 2. Promotion Adaptation
Types of Adaptation
Product Adaptation: *Change name, brand or ingredients *Meets specific needs or cultural differences
Promotion Adaptation: *Change advertising message *Reflect values, familiar images, cultural differences, or government regulations
Adaptation Benefits & Challenges
� Benefits: ◦ Addresses specific cultural tastes and
interests ◦ Products are more accepted
� Challenges: ◦ Increase in marketing costs ◦ Increase in research and development
Product Adaptation Example � Unilever’s Sunsilk hair products: ◦ Called Seda (means silk) in Latin America ◦ Ingredients are formulated to match hair
types and styles in different countries
Promotion Adaptation Example � McDonalds: ◦ Must use adults in its advertising in Sweden ◦ Advertising to children is prohibited
Customization � Customization: Creating specifically designed
products or promotions for certain countries or regions
� Each geographical area is a unique market
segment
Customization Benefits & Challenges � Benefits: ◦ Reach a specific market with new products
and promotions ◦ Creates excitement and interest
� Challenges: ◦ Increased costs ◦ Time (research and development) ◦ Risky
Customization Example
� Coca Cola: ◦ Creates drinks solely for the Chinese market ◦ Yuan Ye “Original Leaf” ◦ Ready-to-drink tea ◦ Incorporate herbs used in Chinese medicine
International McDonald’s Menu
� Link to Examples
Summary � Must consider the following before going
abroad: ◦ 4P’s ◦ PEST analysis ◦ Marketing strategies
� 3 global marketing strategies: ◦ Globalization ◦ Adaptation ◦ Customization
Failures…
� Rotate and read the scenario you were given and write your group’s answers to the questions on the sheet.
� You will share momentarily with the class.
Global Examples
� Research & find 3 more examples of products that have been marketed globally. Include the following information: 1. Company & Product Name 2. Describe how the product has been
modified 1. Customization? Adaptation (Product or
Promotion)?
3. Has this been successful? Why or why not?
Resources � Links: ◦ http://www.businessweek.com/stories/2006-05-07/brand-magic-in-india ◦ http://www.minyanville.com/businessmarkets/articles/wendys-google-japan-
economy-apple-citigroup/12/14/2009/id/25893
◦ http://marketingfailure.blogspot.com/2007/09/funny-marketing-fiascos.html � Google Images � Textbook (Teacher-Edition): Farese, L.S., Kimbrell, G., & Woloszyk,
C.A. (2012). Marketing essentials. Columbus, OH: The McGraw-Hill Companies.