Global Marketing

Prof: agonzalez@liuc.it

International marketing

The international marketing or global marketing is marketing done on an international level.

The difference between marketing and international marketing is that with the International marketing the firms should consider some new issues.

The Process: firms always need to:

• Proper analysis
• Strategy planning
• Marketing programs
• Implementation
• Control of their marketing program

The main focus of IM is the costumer’s satisfaction

IM or GM is a marketing done on international level. The IM is based on strategy created in home country of company and distributed to its other offices/affiliations.

• ∙  GM is focusing on intercontinental point of view (standardized), the environment has a great role, while IM focuses on multicontinental point of view (adaptation)
• ∙  GM: standardize approach to foreign country, even if sometimes it’s really difficult
• ∙  IMS has to have a penetration program (it’s not global) and can be adapted localizing the approach to foreign country, so MS < IMS

IM Process

• ∙  Proper analysis, research
  o Segmentation of the market o Targeting
  o Choosing
• ∙  Strategy planning
• ∙  Marketing programs
• ∙  Implementation
• ∙  Intercultural negotiations (only in the IM, not in Marketing)
• ∙  Marketing Audit (Control)

In the IMP there are the Intercultural Negotiations which aren’t present in the National Marketing. After having completed the international marketing plan, international marketing manager have to implement their plan

Marketing Program

4P: Product – Price – Place – Promotion

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International (or Intercultural) Marketing: can be adapted localizing the approach to foreign country. Localizing the approach to foreign a foreign country implies

∙ Obstacles
∙ Regulations ∙ Distribution ∙ Competition ∙ Availability

Global Marketing: standardize approach to foreign country

• ∙  Global consumers (it’s a segment) while Global products are sold everywhere to homogenous clients
• ∙  Is possible to sell the same product standardize worldwide? Yes, but it’s difficult, only few firms achieve good results

o Exclusive products: Nutella o Culture brand products

▪ Illy: focalized on the espresso (typical way Italian drink coffee) and on quality

o Design oriented products: Artensa

• ∙  The alternative choices are

o Local
o Glocal: a product that is developed and distributed globally but also

accommodate consumers in a local market o Global marketing

∙ It’s not simple configure and coordinate marketing activities on a global scale, you have to use the “Contingency approach”: the way you manage should change depending on circumstances

Levels of (international) marketing:

•  Domestic marketing

Company manipulates a series of controllable variables (Price, advertising, distribution, etc.,) in a largely uncontrollable external environment.

•  International marketing
  Operating across multiple foreign countries where markets not only differ in terms of uncontrollable factors but also controllable factors.
•  Global marketing management
  Creating synergy in an overall operation to make the company as whole greater than separate parts.

International marketing defined by the involvement described above. International marketing can therefore be:

1. Export marketing
   Firm markets goods and/or services across national/political boundaries
2. International marketing
   Marketing activities include activities, interest or operations in more than one country & where there is control of marketing activities from outside the country where goods/services are sold
3. Global marketing
   Whole company focuses on selection and exploitation of global marketing opportunities and marshals resources around the globe to achieve competitive advantage

Two reasons for international marketing:

Theory of comparative advantage The international product life cycle

Comparative advantage = A country is able to produce a product at lower costs than when it is produced somewhere else.

Comparative advantage can be achieved in a variety of ways:

•  Sustained period of investment: Leads to lower operating costs
•  Lower labor cost: Locate manufacturing in country with emerging economy
•  Proximity to raw materials: Raw materials are more easily obtained in one country that

another.

•  Subsidies to help native industries: Government subsidies a certain product in a country.
•  Building expertise in certain key areas: Start to invest time and money so a country can

produce at lower costs

Porter suggests that countries can build a national advantage through four major attributes:

•  Factor conditions: The nation’s position in factors of production (skilled labor, infrastructure)
•  Demand conditions: The nature of demand in de home country
•  Related and supporting industries: The amount of supplier industries and related industries

that are internationally competitive

•  Firm strategy, structure and rivalry: The conditions in the nation governing how companies

are created organized and managed.

International and Global research

The global research is systematic gathering, recording, analyzing data about problems relating to the marketing of goods and services.

No single decision can be taken without an adequate knowledge of the new environment

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