Class 14

Principles of Marketing

Presented by
Pajaree Ackaradejruangsri, PhD.
@ APU, Jan 25th, 2021
 Ch. 19: Global Marketing
Learning Objectives:
• To describe three key approaches to entering international markets.
• To explain how companies adapt their marketing strategies and mixes
for international markets.
• To identify the three major forms of international marketing
organization.
• To learn how to conduct business model canvas.
 Discussion Questions
• If yes, why does Coca-Cola view Africa as a promising
market?
• What are some of the key challenges Coca-Cola has faced in
entering the African marketplace?
• Why so many Africans enjoy Coca-Cola products?
• If no, what are your reasons behind?
 Global Marketing Today
A global firm:
• operates in more than one country
• gains marketing, production, R&D, and financial advantages not
available to purely domestic competitors
• sees the world as one market with different needs
 Global Marketing Today (cont)
A global firm ask a number of questions:
• What market position should we try to establish in our own country, in our
economic region, and globally?
• Who will our global competitors be, and what are their strategies and
resources?
• Where should we produce or source our product?
• What strategic alliances should we form with other firms around the world?
1. Looking at the Global Marketing Environment
Economic Environment
• Two economic factors
reflect a country’s
attractiveness as a
market:
• Industrial structure
• Income distribution
1. Looking at the Global Marketing Environment (cont)
Political-Legal Environment
• A company must consider:
• Country’s attitude toward international
buying
• Political stability
• Monetary regulations…
1. Looking at the Global Marketing Environment (cont)
Cultural Environment
A company must understand:
• Impact of culture on marketing strategy
• Impact of marketing strategy on cultures
 2. Deciding Whether to Go Global
Factors to consider:
• Can the company understand the consumers?
• Can company offer competitively attractive products?
• Will company be able to adapt to local culture?
• Can company deal with foreign nationals?
• Do the company’s managers have the necessary international
experience?
• Has management considered regulation and political
environment of other countries?

?
 3. Deciding Which Markets to Enter
• Define international marketing objectives and policies
• Foreign sales volume
• How many countries to enter and what countries
• Geography
• Income and population
• Political climate
• Market potential
• Market size
• Market growth
• Cost of doing business
• Competitive advantage
• Risk level
4. Deciding How to Enter the Market
Three key approaches to entering international markets:
5. Deciding on the Global Marketing Program
• Standardized marketing mix: Selling the same products and using
the same marketing approaches worldwide.

• Adapted marketing mix: Adjusting the marketing mix elements in

each target market, bearing more costs but hoping for a larger
market share and ROI.
5. Deciding on the Global Marketing Program (cont)
Product
• Straight product extension means marketing a
product in a foreign market without any
change.

• Product adaptation involves changing the

product to meet local conditions or wants.

• Product invention consists of creating

something new for a specific country market.
5. Deciding on the Global Marketing Program (cont)
Promotion
• Companies can either adopt the same communication strategy
they use at home or change it for each market.
• Even in standardized communications campaigns, adjustments
may be required for language or cultural differences.
5. Deciding on the Global Marketing Program (cont)
Price
• Uniform pricing charges the same price in
all markets but does not consider income
or wealth where the price may be too
high in some markets.

• Standard markup pricing is a price based

on a percentage of cost but can cause
problems in countries with high costs.
5. Deciding on the Global Marketing Program (cont)
Distribution Channels
• Seller’s headquarters organization supervises the channel and is
also a part of the channel.
• Channels between nations move the products to the borders of
the foreign nations.
• Channels within nations move the products from their foreign
point of entry to the final customers.

Channels Channels Final User or

International
between within Buyers
Seller
Nations Nations

Global Value Delivery Network

6. Deciding on the Global Marketing Organization
• Typical management of international marketing
activities include:
• Establishing an exporting department with a sales
manager and staff
• Creating an international division organized by geography,
products, or operating units
• Becoming a complete global organization.
Global Marketing: Finding Unique Value Proposition
A value proposition is a promise of value to be delivered. It’s the primary
reason a customer should buy from you!

Product Market Fit

Source: https://www.b2binternational.com/research/methods/faq/what-is-the-value-proposition-canvas/
 Business Model Canvas

• A business canvas model

describes the rationale of
how an existing/new
organization creates,
delivers, and captures
value.
• The business model
canvas is used to visualize
all the building blocks of
starting a business,
including customers,
route to market, value
proposition and finance.
 Business Model Canvas

価値提案に求められる重要
な活動は何か.
どのようにターゲット 誰に価値を創造するの
重要なパートナーは
誰か . (7) 顧客を獲得し、維持し、
増やすか .
(4) か.

ターゲット顧客にどのよう
な価値を提⽰したいのか .

価値提案において求められ
る資源は何か .

どのようなチャネルを通
(8) (6) (2) じてターゲット顧客に到 (3) (1)
達するか .

ビジネスモデルに内在する最も重要なコストは何か. (9) 収益の流れはどのようなものか.

(5)
 Business Model Canvas Example
• R&D
• Bottle suppliers • Product development World leading in • Traditional & digital ads • Mass Market
• Customer • Manufacturing beverage that opens • Seasonal flavors & special
bottle collections • Teens
distributors • Promotion & Sales the happiness. The
• Sales rep available to all • Young adults
• Ad agency • Customer beverage that distributors • Large retail outlets
relationship & service everyone can enjoy! • Share your moments with • Restaurants
• Retailer, wholesaler 6 us (community)
• Storytelling • Vending machine
distributor mgmt
operators
• Redistributors
• World’s most powerful • Stores & Restaurants
brand in beverage • Vending machines
• Coca-Cola formula • Supermarkets
• Websites
• Bottling factory
• SNS
• Franchise contract • Newsletter
• Distribution deal • Regional & local HQ
• Truck fleet
• Packaging innovation

• HQs, Offices • Bottling & distribution

• R&D • Product sales (retailers & wholesalers)
• Taxes
• Marketing & advertising • Licensing and Royalties
• Staff and employees
• Manufacturing & operation
 Quiz 6
• Date: Jan 25th – Jan 31st before 18:00 pm.
• Exam length: 18 Minutes
• Exam type: 13 MCQs
• Venue: Online via Manaba >>Test>>Quiz 6
Any Question