Global

MKTG 1064

Lecture One:
INTRODUCTION TO GLOBAL MARKETING

JAN 2013 Semester

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LEARNING OUTCOMES OF THE COURSE

(READ YOUR COURSE GUIDE !!!)

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ASSIGNMENT: GROUP REPORT (50%)

(3000- 5000 word Marketing Plan/ Feasibility Study)

Note: make sure the proportion of content that you write matches the marks distribution

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PREPARING FOR THE GM PROJECT REPORT

1. The project must be researched progressively- last minute work would lead to poor grades 2. You have been given guideline by RMIT lecturer on minimum research requirements standards 3. A lot of work is needed on secondary data sources for the country analysis and company analysis 4. I will be posting progressive guidelines on how to approach the project BUT you must take the initiative and start on the work early!
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THE REQUIRED TEXT

International Marketing: Asia-Pacific Edition 3rd Edition BY: Masaaki Kotabe, Sween Hoon Ang, Kathleen Griffiths, Al Marshall, Ranjit Voola, Kristiaan Helsen Wiley (2011)

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INTERNATIONAL VERSUS GLOBAL MARKETING

1. 2. 3. 4. 5. 6. Book is International Marketing Course is called Global Marketing Is there a difference? Yes and No depending on different definitions We will deal with global strategy later For the time being, lets assume we are dealing with common material

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THE TEXT AND LEARNING RESOURCES:

1. Will use the Kotabe text as a framework for each lecture 2. But may also include additional materials to supplement the concepts 3. Notes are NOT sufficient MUST read the text! 4. Back of chapter questions and short answers 5. Sample examination questions shown by relevant topics 6. Videos shown in lecture to supplement learning concepts- make sure you are present
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IMPORTANCE OF STUDYING GLOBAL MARKETING

1. 2. 3. 4. 5. 6. 7. Career prospects The rapid globalization of markets Cross-cultural adaptation Dealing with foreign customers Marketing research capabilities Widening your horizons and current affairs On the whole, an interesting course to study
a. Get to apply your previous learning of marketing b. Knowing how to adapt the marketing strategies in different global markets
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Chapter 1
INTRODUCTION TO INTERNATIONAL MARKETING

LEARNING OBJECTIVES OF CHAPTER ONE

1. Discuss the evolution of global marketing 2. Outline key processes involved in planning, implementing and monitoring an international marketing strategy 3. Understand the comparative advantage, international product cycle and internalization theories in relation to international trade and investment

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Overview of International Marketing

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DEFINITIONS:
1. The process of planning and conducting transactions across national borders to create exchanges that satisfy the objectives of individuals and organizations (Czinkota, et al. 2007). 2. International marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a companys goods and services to consumers or users in more than one nation for a profit (Cateora, 2008)

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OVERVIEW
1. International / Global Marketing: recognizes competitive pressures and market opportunities 2. Companies cannot be insulated 3. Concept of borderless- transcending national and political boundaries 4. Many organizations today have complex networks of inter-related production and sales operations located across the world

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DOMESTIC AND INTERNATIONAL MARKETING

1. Concepts and principles nearly the same 2. Similar processes for strategy development and implementation 3. But greater complexity for IM
a. Language b. Culture c. Legal and political systems

4. Managers must have cross-cultural empathy

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What is Global Marketing?

Domestic Marketing
Carried out within a defined national or geographic boundary Relatively free to plan, implement and control marketing plans within a known marketing environment

International Marketing
Begins to explore markets outside national boundaries of domestic market Direct and indirect exporting to neighbouring countries The need to manage uncontrollable international environmental elements Emphasis on central production, planning, implementation and control, with deference paid to different market conditions
Lee and Carter: Global Marketing Management, 3rd edition

What is Global Marketing?

Global Marketing
The notion that the world has no centre, but a borderless global marketplace that encompasses the participation of all countries Marketing operations that seeks to lever its assets across political and cultural boundaries Maximising opportunities and exploiting marketing similarities and differences in search for global competitive advantage Seek to add stakeholders values by:
organising world-wide efforts researching of domestic and foreign markets pursuing international partnerships Sourcing of raw materials and support services Managing international transactions

Lee and Carter: Global Marketing Management, 3rd edition

LINKAGES
INTERNATIONAL ECONOMICS You covered topics in Macro Economics relevant to this course- matters like International Trade, Comparative Advantage, Balance of Payments, etc

INTERNATIONAL BUSINESS

International Marketing is a sub-set of International Business. Globalization of business impacts on other functional areasnot just marketing. There are issues of International Finance, International HR Mgt, International Operations and Supply Chain

INTERNATIONAL MARKETING

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THERE ARE REALLY 3 BIG ISSUES IN INTERNATIONAL MARKETING:

1. Studying the market environments of the country the firm wishes to enter
a. PEST and Country Screening

2. Deciding how to enter (market entry strategy) 3. Adapting the International Marketing Plan
a. Pertaining to the Marketing Mix: How much changes are needed? (adaptation) Or can we simply replicate what we do in the home market? (standardize)

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KOTLERS MODEL ON GLOBAL MARKETING

If you have our Principles of Marketing text, revise that chapter on Global Marketing; it will give you a good overview of this course

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Marketing: Domestic versus International

The concepts are nearly the same, but the applications are different Marketing uses the concept of MC+CB+STP+ +4Ps+ MP We are going to use these concepts again but this time EXPAND them into the international marketing context
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The key tools / concepts in Marketing

MC

+
CB

+
STP

+
4 Ps

+
MP
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Differences in the application of the marketing concepts between domestic and global marketing
Issue MC: marketing concept (marketing philosophy) Consumer buying behavior Domestic Marketing
Understand the local market needs Understand motivation, attitudes, perceptions of customers Segment local market Position the brand for local consumption

International Marketing
Understand further the needs of foreign country customers needs Adaptive marketing mindset Same as DM but apply greater understanding of CULTURE to appreciate differences Segmentation by country market Knowing which country to target at Positioning differently across countries Knowing how to ADAPT or STANDARDIZE the marketing programs across different countries Need to develop multiple plans in order to enter and expand into different country markets 1-22

Segmentation, Targeting and Positioning

Marketing Mix

Develop marketing mix for different segments in the local market Develop a single marketing plan for local market

Marketing Planning

The Asian Century

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THE ASIAN CENTURY

1. Historically for most of the 20th century the triad regions have dominated world trade a. North America, Western Europe and Japan 2. Increasingly, it is the Big Emerging Markets (BEMs) which are now having an impact a. CEA, India, South Korea, Mexico, Brazil, Argentina, South Africa, Poland, Turkey & ASEAN
Also note what is meant by the BRIC countries

THE ASIAN CENTURY

1. Increasing amount of competition coming from the BEMs 2. There is a desire for modernity in these markets which fuels their competitiveness and growth 3. Infrastructure and energy needs will prove to be problematic as they grow

A good contemporary reference book to read:

http://www.theemergingmarketscentury.com/

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Why understanding international marketing is imperative

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The international marketing imperative (why must firms look to global markets) : 6 reasons
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Saturation of domestic markets forces companies to look elsewhere Local companies need to expand overseas

2. The nature of competition has changed No market can be insulated from global competition Most Asian markets have foreign companies and brands How are the local companies going to compete?

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PUSH VERSUS PULL FACTORS 1. Push factors

a. b. c. d. e. Local competition Mature domestic market Brand not performing well Overseas competitors enter local market Home government incentives

2. Pull factors
a. Overseas markets have higher growth opportunities b. Host government incentives

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The international marketing imperative (why must firms look to global markets)

3. International competition also brings about global cooperation

Joint

ventures and strategic alliances between local and foreign firms

Any examples you know of? 4. The impact that the internet and e-business has made on the global business landscape

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The international marketing imperative (why must firms look to global markets)
5.

Changing nature of the world economy

Shift in the worlds largest companies Less US and Japanese centric Consider the make up of the largest 100 companies in the world

6.

Domestic companies cannot avoid competitive pressure from globally oriented firms
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Changes in the Global Market Environment

Lee and Carter: Global Marketing Management, 3rd edition

Coming of Age: China produces its first Airbus

June 23 2009-- Airbus SAS, the worlds largest commercial plane maker, rolled out the first aircraft assembled at its China factory as it seeks to win more orders in the worlds second-largest aviation market. The plane maker aims to deliver 10 more A320s this year from its factory in Tianjin, near Beijing, it said in a statement today. Production at the plant, Airbuss first outside Europe, will be raised to four aircraft a month by the end of 2011

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International trade versus international business

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International Trade vs. International Business

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International Trade The process of exporting and importing goods between a nation and other countries in the world
International Business A combination of international trade and foreign production of goods for sale

Evolution of international and global marketing

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Reactive versus proactive strategies

Reactive Responding to changes Push factors Proactive Anticipating changes Early mover advantage International marketing is a key aspect of strategic marketing

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framework for International Marketing

Ethnocentric

Geocentric

Polycentric

Regiocentric

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Why the

framework?

Because it offers the logic that supports the kind of strategies that companies follow when seeking global markets Ethnocentric is home-country oriented Polycentric is host-country oriented Regio-centric strategy is focused on a cluster of countries (regional) Geocentric is the foundation for global strategytakes a global perspective of marketing operations
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International Marketing evolves

A marketing firm cannot become global overnight- only very few can Most firms expand gradually Each time it enters a new market, there will be risk factors Its like testing the water before going for a swim

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The road to global marketing

Companies dont become global overnight They go through different stages of evolution Start with exporting Expand to many different countries Set up planning and coordination systems to manage global operations After many years of successful international operations, they may emerge as global companies Check out the next figure
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Evolution of international and global marketing

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EVOLUTION OF GLOBAL MARKETING

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Evolution of international and global marketing

Domestic Marketing First stage in evolution Organizations focus on the domestic market and domestic competition only Ethnocentric Product development for home country customers Marketing mix decisions made at HQ
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Example:
Domestic Marketing Your local food vendor or restaurant; but a KFC vendor is a global brand Your mechanic or dentist; but some doctors and hospitals operate regionally A national bank that does not operate outside the boundaries of the country (POSB, but DBS is regional and one day might become global)

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Evolution of international and global marketing

Export Marketing Organizations sell their product or service directly or indirectly to overseas buyers Ethnocentric Product development mainly determined by home market needs; not much changes made to adapt the product Marketing mix decisions made at HQ

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Example:
Export Marketing

A clothing company that exports to the country adjacent to it (Thailand to Singapore) A food company that exports its produce to another country without changing anything about the product such as soft drinks or snacks

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Evolution of international and global marketing

International (country-by-country) marketing

Marketing functions are adapted to foreign market demands Polycentric Local product development based on local needs; major adaptations Marketing mix decisions made in each country
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Multi-domestic marketing (some refer to it as multi-nation marketing)

Involves developing entry to a number of different country markets or regions Each with their own versions of marketing programs

Marketing program for India

Marketing program for China

Marketing program for Vietnam Marketing program for Malaysia

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Strategy in Marketing (Pearson Asia 2008)

Example:
International (country-by-country) marketing A food marketer who changes the taste of the product to suit local tastes A retailer who adapts their stores to allow for aesthetics and tastes of locals Can also include multi-domestic Foreign subsidiaries operating independently of one another without control from HQ
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Evolution of international and global marketing

Multinational (region-by-region) marketing The organization realizes economies of scale by standardizing operations on a regional basis Regiocentric Product planning is standardized within region but not across Standardization seeks to look for common denominators Marketing mix decisions made regionally
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Regional Marketing Strategies

Marketing program for North Asia Regional Markets

Marketing program for South Asia Regional Markets

Marketing program for SEA Regional Markets

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Evolution of international and global marketing

Multinational (region-by-region) marketing examples:

A bookstore chain that makes adjustments to its store layout and product range within (rather than across) regions (Kino bookstores) A jewelry store that uses a different celebrity endorsement in Asian markets compared to North American markets
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Evolution of international and global marketing

Global Marketing

An organization strives for efficiencies of scale by developing a standardized marketing mix across national, regional and global markets Geocentric Global products with local variations Marketing mix decisions made jointly with mutual consultation
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Evolution of international and global marketing

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Global Marketing Note the three points on page 15: Standardization Efforts Coordination across Markets Global Integration
Read up further on the implications of these three points- vital for understanding of International Marketing
Global Marketing Strategy will be developed further in Chapters 9 and 15
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Examples:
Global Marketing

A global hair care brand adjusts the product formula to allow for different conditions in different countries

More on global marketing will be discussed later in this lecture

A global retailer opens in overseas markets but sources for more local products to suit local needs. However it still uses its global brand name and follows the same kind of retail format (example hypermarket concept)
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After going through these 5 stages of evolution, go back and review Figure12 again.. Note the key differences in the marketing strategies at each stage of evolution

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Evolution of international and global marketing

Global marketing key concerns

Impact of environmental factors on global marketing Impact of the Internet on global marketing

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Global Marketing Impact of Environmental Factors

Location

and its central location in Asia Dubai in Middle East Culture Halal products produced in Dubai or Pakistan There could be commonalities in life styles across country markets- coffee drinking and Starbucks

Singapore

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Global Marketing Impact of Environmental Factors

Availability

of human resources Education in Bangalore, India especially in IT and services How is Singapore positioning for customer service expertise? Geographic/physical landscape Hong Kong and its deep water port Natural beaches in Thailand for developing resorts and spas
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Impact of internet on global marketing

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Impact of the Internet in International marketing

Global Marketing Impact of the internet Information and Computer Technology (ICT) allow global reach for small and medium-sized companies in what has traditionally been a big players market Liberating and empowering consumer and marketer Does location really matter now in global marketing? Internet provides a new mode for the marketing mix elements such as Promotions and Place (ecommerce)

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International marketing planning and strategy

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International Marketing Planning and Strategy Development

Changing the controllable variables The Marketing Mix

Understanding the need to fit the strategy to the environment

The necessity for effective planning Same concerns as domestic marketing planning, except the major interest is with international marketing variables

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International Marketing Planning and Strategy Development

Marketing planning is concerned with the specification of the existing situation and future trends, and on this basis, the development of a set of alternatives for action Kotabe et, al, p.17
Essentially

the same message in international marketing but with a focus on the global environment and the opportunities and challenges this brings
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Some implications of international marketing on strategic marketing planning

Issue in Strategic Marketing Planning Mission Implications for International Marketing
Aligning global marketing as part of the mission of the business; attaching significance of global markets in the mission statement

SWOT analysis
Objectives

Undertake a more extensive analysis of many different markets (PEST of several country markets). Matching country market opportunities to the companys capabilities to operate in those markets
Listing market penetration objectives as part of marketing plan. Market share by country markets Determining the proportion of total sales that will be derived from overseas markets as compared to domestic market What countries with what product mix? Basis of competition in foreign markets- differentiation or cost advantage? Leveraging on the Value Chain Target market segments across country markets Positioning strategies Issues of standardization versus adaptation of the Marketing Mix Tracking market performance by countries and regions Portfolio analysis by country markets and product lines 1-67

Strategies

Marketing Mix Evaluation and Controls

Additional Notes: What is Globalization?

The text does not have a good discussion of this issue. Here are a few additional slides to help you understand the meaning and impact of the phenomenon of globalization.

Lee and Carter: Global Marketing Management, 3rd edition

What is Globalization?
A clich in todays language, but the concept is not new In modern history, there are three waves of Globalization First wave: 1870-1914
Triggered by reduction in transportation costs and trade barriers 60 million people migrated from Europe to the New World

Second wave: 1950-1980

Post World War Two integration of economies among OECD countries Multilateral trade liberalisation treaties including GATT

Third wave: 1980s onwards

Technological advances in computing, telecommunications and transportation Rise of multinational corporations in search of new markets, cheaper resources and skilled labour Economic growth in many developing countries

Lee and Carter: Global Marketing Management, 3rd edition

Different aspects of Globalization

Lee and Carter: Global Marketing Management, 3rd edition

Opportunities of Globalization Market Access

Increased integration and independence of trade, capital, direct investment, technology, information and labour across national borders GATT and its successor WTO made significant achievements in liberalising trade by reducing tariff barriers for over 50,000 products By 1995, tariffs reduced from an average of 40% in 1940 to 5% Reduction of non-tariff barriers such as excessive bureaucracy and government subsidies Many previously inaccessible countries such as India, China and previous Soviet Union are now opened up for trade
Lee and Carter: Global Marketing Management, 3rd edition

Opportunities of Globalization Financial Integration

Movement of goods and services needs to be facilitated by financial exchange and transaction Two important types of cross-border financial flow to facilitate international business Portfolio Capital:
Consists of investment short-term in nature E.g. loans between banks, traded bonds and equities etc. Global daily flow of foreign exchange is >US$2 trillion

Foreign Direct Investment:

Consists of longer-term investment by international companies to establish local presence to do business Financial flow mainly from developed countries to less developed countries to take advantage of lower labour costs, emerging markets and cheaper resources
Lee and Carter: Global Marketing Management, 3rd edition

Opportunities of Globalization
Reduction in Communication and Transportation Costs
Transportation Costs: 1930-1990 Year
Ocean transport Wheat, % of production costs 1920 = 100 Average air transportation Revenue per passenger mile (1990 US$)

1930 1950 1990

100 38 30

0.68 0.30 0.11

Communication and Computing Costs: 1960-2000 Year

Cost of a 3-minute phone call from New York to London Price of computers relative to GDP deflator (2000 = 1000)

1960 1980 2000

60.42 6.32 0.40

1,869,004 27,938 1,000

Lee and Carter: Global Marketing Management, 3rd edition

Opportunities of Globalization
Global Sourcing, Purchasing and Production

Increasing complexity in product design, production process and logistical infrastructure means that companies need global sourcing, purchasing and production For example, a car can be designed by a Japanese company, components sourced in South East Asia, then shipped to Czech Republic for assembly before shipping to the US for sale Locating production in strategic target markets can help overcome market entry and trade barriers, and tap into fresh ideas for new products
Lee and Carter: Global Marketing Management, 3rd edition

Threats of Globalization
Macroeconomic Volatility
Increased vulnerability of national economies to global macroeconomic volatility
Erratic speculations, sudden shifts of investor sentiments, and rapid movements of capital in and out of countries Approximately 95% of international capital flows are speculative

A number of financial crises have brought catastrophic economic repercussions especially to developing countries Volatility of short-term capital flows leads to large fluctuations in foreign exchange and interest rates. This creates difficulties for global companies to manage long-term borrowing, financial risks and market expansion
Lee and Carter: Global Marketing Management, 3rd edition

Threats of Globalization - The Globalization of Competition

Growth of competition on a global basis facilitated by liberalization, deregulation and privatization Dynamics of market more turbulent and unpredictable as companies now compete with greater number of international competitors Greater competition has meant companies need to manage shorter product life cycle and learn to harness opportunities made available globally Developing technological competence is crucial to managing successful global operations - MNCs need advanced computing technologies to align processes and information flows throughout their entire supply chains
Lee and Carter: Global Marketing Management, 3rd edition

Threats of Globalization Growing Anti-Globalization Sentiments

Growing number of anti-globalization demonstrations at international meetings such as WTO Many protestors see globalisation as mis(used) to justify and legitimise free market capitalism that benefits rich MNCs Globalisation has been blamed for exacerbating:
Global warming and climate change Environmental degradation Global poverty and inequalities Systematic exploitation of cheap labour

Lee and Carter: Global Marketing Management, 3rd edition

Global Economic Disparities

The Champagne Glass Phenomenon

income inequalities

Lee and Carter: Global Marketing Management, 3rd edition

Global Migration
Cross-border migration has become a widely debated global social issue
United Nations estimates 175million persons (3% of world population) reside outside the country of their birth Most of worlds migrants live in Europe (56million; Asia (50million); North America (41million)

Migration and Economic Growth

For receiving countries, international migration can ease labour shortages especially skilled labour For sending (especially poor) countries, transfer of talented skilled labour can be dire for their developments. But transfer of unskilled labour can ease poverty

Migration and Humanitarian Crisis

End of 20th century, total number of refugees is 16 million (9million in Asia; 4million; 3 million in developed countries) The increase number of humanitarian crises are directed linked to international migration
Lee and Carter: Global Marketing Management, 3rd edition

Environmental Sustainability
Climate Change
Most discussed but least quantitatively understood global issue IPCC claims that global warming in the last 50 years most likely caused by increase of green house gas emission Warming of 2-3 Celsius can cause damage of up to US$500 billion per year

Climate Change and Food Security

Hunger and malnutrition are widespread and persistent in developing countries Progressive loss of cultivable lands, degradation of coastal areas and shortage of fresh water affecting livelihood

Energy Security
Strong correlation between energy consumption and economic growth Demand for energy sources has increased significantly The increasing scarcity and costs of non-renewable energy sources such as oil and gas will threaten global economic growth
Lee and Carter: Global Marketing Management, 3rd edition

Components of Global Climate Change

Lee and Carter: Global Marketing Management, 3rd edition

Energy Consumption and Economic Income

Lee and Carter: Global Marketing Management, 3rd edition

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Theories of international trade and the multinational organization

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Optional: but read up the different theories:

1.

2.

3.

Comparative Advantage (should have learnt this in your Macro Econ class) Absolute and Comparative Advantages Terms of Trade International PLC Theory Theory explains how changes in international competition occurs over time and places Internationalization/transaction cost theory Focuses on the internal costs of economic changes within an MNC
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Comparative Advantage:
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Comparative advantage theory English economist, David Ricardo A country can gain from engaging in trade even if it has an absolute advantage or disadvantage

Absolute advantage
situation in which one region can produce goods with lower unit labour requirements than any other region and so is able to export these goods

The

International Trade Theories:

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Principles of international trade Countries benefit from international trade International trade increases worldwide production through specialisation Exchange rates are determined primarily by traded goods Factor endowment theory Based on notions that nations possess different amounts of land, labour, capital that determine a nation's comparative advantage
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An extension to the model: moving from Economics to Strategic Management (M Porter)- Competitive Advantage of Nations

The Diamond Model:

http://www.valuebasedmanagement.net/methods_porter_diamond_model.html http://www.quickmba.com/strategy/global/diamond/

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International Product Life Cycle Theory

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Explains a realistic, dynamic change in international competition over time and place through: Economies of scale and scope Technological gap Preference similarity

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Summary
You should now have an understanding of: The growth of Asian markets and the implication for global trade and international marketing The aspects of the international trade and business environment that have made understanding international marketing imperative The evolution of global marketing
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Summary
The key processes involved in planning, implementing and monitoring an international marketing strategy The role of comparative advantage, international product cycle and internalization theories in relation to international trade and investment

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Selected Practice Questions and Short Answers

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Why is international business is much more complex today than it was 20 years ago.
Among the commonly cited reasons for increasingly complex international business environments are: Saturation of domestic markets and more sophisticated consumers. More consumers and markets to analyse. Increasing global competition that impacts the international as well as the domestic environment. Need for global cooperation and expanding international opportunities. Political and governmental barriers. Ethical and moral concerns. Cultural barriers. Shifting multinational environments. Role of the internet and electronic commerce, especially in B2B commerce.
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Why is it important for students to understand international marketing?

Factors that make understanding international marketing important are: the saturation of markets in developed countries forcing companies to look at international markets for opportunities. the change in how competition is viewed around the world in terms of market share, country source and global reach. international competition bringing about global pressure. because of the proliferation of the internet and e-business. Todays business environment is characterised not only by more competition from other parts of the world but also by more fluid and international market conditions than in the past.
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How is global marketing different from international marketing?

Global marketing is a more advanced phase of international marketing. Once export marketing becomes an integral part of a companys marketing activity, it begins to seek growth and expansion through international marketing. The emphasis is polycentric (emphasis on product and promotional adaptation in foreign markets--wherever necessary). In global marketing, fragmentation caused by international marketing is overcome. Global marketing refers to marketing activities by companies that emphasise: Standardisation efforts standardising marketing programs across different countries. Coordination across markets reducing cost inefficiencies and duplication of efforts at the national and regional levels. Global integration participating in many major world markets to gain competitive advantage.

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Why do you think a company should or should not market the same product in the same way around the world?

Think about the standardisation versus the adaptation alternative. Standardisation has the advantages of efficiencies in production and communication as well as economies of scale. Adaptation has the advantages of customisation, matching the true unique desires and wants of the customer, and the ability to compete against local competition more effectively. Think of product examples for standardisation and then adaptation. Try to make a case for each form being effective

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How is global strategy different from a multidomestic strategy?

1. The implications of a distinction between a global strategy and a multidomestic strategy are quite profound. In a multidomestic strategy, a firm manages its international activities as a portfolio. 2. Each of the firms subsidiaries around the world controls all the important activities necessary to maximise their returns in their area of operation independent of the activities of other subsidiaries in the firm. The subsidiaries enjoy a large degree of autonomy and the firms activities in each of its national markets are determined by the competitive conditions in that national market. 3. In contrast, a global strategy integrates the activities of a firm worldwide to capture the linkages among countries and to treat the entire world as a single, borderless market. This requires more than the transferring of intangible assets between countries.

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How is a global marketing strategy distinct from standardisation?

Global marketing is not about standardising the marketing process globally. Although every element of the marketing process product design, product and brand positioning, brand name, packaging, pricing, advertising strategy and execution, promotion and distribution may be a candidate for standardisation, it is only part of a global marketing strategy and it may or may not be used by a company, depending on the mix of product-market conditions, stage of market development and the inclinations of the firms management. A marketing element can be global without being 100 per cent uniform in content or coverage. A global marketing strategy is just one component of a firms global strategy.

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Discuss the conditions that have led to the development of global markets

According to the Professor Levitt and others who suggest that there is a global market for goods, this phenomenon has resulted from new communications technology, travel and other factors which have led to the markets of the world being more aware of different products and processes. As a result of this awareness, there are segments in each market who have had similar experiences and thus have common needs. These common needs are described as a demand for high quality, reasonably priced, standardized products. There is a strong feeling that within each countrys market there is a growing segment that has been exposed to ideas from around the world and thus have had their tastes and perceived needs affected. There is a strong feeling that world markets are being driven toward a converging commonality of taste and needs leading toward global markets.
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How is the internet reshaping global marketing?

The internet is one of the most useful inventions of the twentieth century. In the global marketplace, the internet and its webrelated activities have brought a multitude of benefits to consumers and producers. The internets future prospects and fundamentals seem very strong especially in the area of B2B e-commerce. There is still a digital divide between developed and developing countries regarding the availability of internet marketing and its web-related activities. In the coming years, many companies will be using this medium to reach far flung places on the earth. In short, the internet will help connect buyers and suppliers in most efficient and effective ways.

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Think globally act locally. Discuss your understanding of this statement in relation to international marketing strategies. What are the benefits and/or disadvantages of this approach?

This question requires you to consider the globalisation/standardisationlocalisation/adaptation debate. The statement suggests a hybrid approach that international corporations adopt a global mindset in the development of their marketing strategies (think global) but that they recognise there may be a need for adaptation of these strategies, or aspects of them, when implemented in individual countries or regions (act local). Discuss the benefits of such an approach such as companies capitalising on the advantages of a globalised approach (e.g. economies of scale, consistent image) in aspects of their strategies that can be globalised. By localising the aspects that require such adaptation, companies can better serve local consumers and operate in the local environments (e.g. legal, political, economic, social). Such an approach has disadvantages (e.g. additional costs, increased coordination). 1-100