UNDERSTADING

REACHING GLOBAL
CONSUMERS AND MARKETS

Slide 5-1

BUILDING A BILLION DOLLAR BUSINESS

IN INDIA THE DELL INC. WAY

Slide 5-2

MARKETING IN A BORDERLESS ECONOMIC WORLD

GLOBAL COMPETITION

 Global Competition

 Strategic Alliances

General Mills and Nestlé of Switzerland

Slide 5-3

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 MARKETING IN A BORDERLESS ECONOMIC WORLD
GLOBAL COMPANIES

 International Firms
Market their existing products and services in other countries
the same way they do in their home country.

 Multinational Firms
View the world as consisting of unique parts and markets to
each part differently.

• Multidomestic Marketing Strategy

Slide 5-4

MARKETING IN A BORDERLESS ECONOMIC WORLD

GLOBAL COMPANIES

• Multidomestic Marketing Strategy

North America Latin American Europe, Africa

Asia Middle East

Slide 5-5

MARKETING IN A BORDERLESS ECONOMIC WORLD

GLOBAL COMPANIES

 Transnational Firms
View the world as one market and emphasize cultural
similarities across countries or universal consumer needs
and wants more than differences.

• Global Brand
A brand marketed under the
same name in multiple
countries with similar and
centrally coordinated
marketing program.

Slide 5-6

2
 The World’s Most Valuable Brands

Slide 5-7

MARKETING IN A BORDERLESS ECONOMIC WORLD

GLOBAL COMPANIES
• Global Marketing Strategy

The practice of standardizing marketing

activities when there are cultural
similarities and adapting them when
cultures differ.

Slide 5-8

MARKETING IN A BORDERLESS ECONOMIC WORLD

GLOBAL COMPANIES

Slide 5-9

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MARKETING IN A BORDERLESS ECONOMIC WORLD
GLOBAL COMPANIES

Slide 5-10

Global companies and

marketing strategy

Slide 5-11

McDonald

Slide 5-12

4
 Big Mac index

Slide 5-13

Global companies and

marketing strategy

Slide 5-14

MARKETING IN A BORDERLESS ECONOMIC WORLD

GLOBAL Consumers

 Global Consumers
Consumer groups living in many countries or regions of the world
who have similar needs or seek similar features and benefits
from products or services.

Slide 5-15

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MARKETING IN A BORDERLESS ECONOMIC WORLD
GLOBAL Consumers

Slide 5-16

MARKETING MATTERS
The Global Teenager—A Market of 2 Billion Voracious Consumers

Slide 5-17

MARKETING IN A BORDERLESSECONOMIC WORLD

A NETWORKED GLOBAL MARKETPLACE

Slide 5-18

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 A GLOBAL ENVIRONMENTAL SCAN
CULTURAL DIVERSITY

 Cross-Cultural Analysis
The study of similarities and differences among consumers in
two or more nations or societies.

 Values
Represent a society’s personally or socially preferable modes of
conduct or states of existence that tend to persist over time.

 Customs
what is considered normal and expected about the way people
do things in a specific country.

Slide 5-19

A GLOBAL ENVIRONMENTAL SCAN

Value

Debt = Schuld = Guilt

Slide 5-20

A GLOBAL ENVIRONMENTAL SCAN

Customs

Slide 5-21

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 A GLOBAL ENVIRONMENTAL SCAN
CULTURAL DIVERSITY

 Cultural Symbols : Things that represent ideas

and concepts.

#13 #4

Slide 5-22

A GLOBAL ENVIRONMENTAL SCAN

CULTURAL DIVERSITY

 Language

• Back Translation
the practice where a translated word or phrase is
retranslated into the original language by a different interpreter to
catch errors.
Kitto Katsu = Surely win

Slide 5-23

A GLOBAL ENVIRONMENTAL SCAN

ECONOMIC CONSIDERATIONS

 Stage of Economic Development

• Developed Countries: Japan

• Developing Countries 86% = 7.1B = 1/5 of total world

income

 Made the Move:  Remain Locked:

Brazil Tanzania

• Bottom of the Pyramid 4 B = less than $2 per day

Slide 5-24

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 A GLOBAL ENVIRONMENTAL SCAN
ECONOMIC CONSIDERATIONS

 Economic Infrastructure

• Communications • Financial

• Transportation • Distribution Systems

 Consumer Income and

Purchasing Power

Slide 5-25

A GLOBAL ENVIRONMENTAL SCAN

ECONOMIC CONSIDERATIONS

Slide 5-26

A GLOBAL ENVIRONMENTAL SCAN

POLITICAL-REGULATORY CLIMATE

 Political Stability

 Trade Regulations

Slide 5-27