Global Solutions in Hospitality &

Tourism Marketing

Week 1
Introduction to Global Marketing and the Global Marketing
Environment.
Nancy Mpofu
Module Structure

• Runs for 12 weeks

• Two-hour lecture
• One hour seminar
• 2 assignments – a report and a business meeting
simulation
Module Learning Outcomes

1. Critically analyse opportunities within global marketing environments for

hospitality, tourism and events services.
2. Develop and critically assess global strategies for market development.
3. Compile a market entry plan for a hospitality, tourism or events
organisation
Session Learning Outcomes

• Define globalisation
• Global marketing vs International marketing
• Identify the major market entry strategies employed in hospitality, tourism and
events .
• Critically appraise different strategies deployed by hospitality, tourism and
events companies in global operations.
• Apply relevant theories and models in explaining strategy implementation.
Get to know you…

Tell us 3 things you would like us to

know about you.
My expectations:

• Attend – if not let me know by email in advance

N.Mpofu@ucb.ac.uk
Room 217 Moss House
Contact: 01216041000 (Ext: 3212)
• Be prepared – have done some reading.
• Ask questions and engage/debate/share
• If you like something - tell me
• If you do not like something – tell me
• Take accountability for your learning
Assessment for this module

 A destination/ regional marketing research audit in the form of an

individual report. 2500 words
Launched in Week 2 Seminar
Due in Week 8
Weighting 50%

• A business meeting in teams of 4/6. Students apply theories to

defend their strategic market entry plan for a hospitality, tourism,
or events organisation.
• 2 hours in Weeks 11 or 12
Weighting 50%
What is
Globalisation?
• Go to www.menti.com and
use the code … and write
your answer
Globalisation

• It is an intricate concept to define and grasp

• Has been used loosely in many sense
• Refers to the absence of borders and barriers to trade between
nations (Ohmae, 1995).
• Globalisation can be considered as a growing synthesis of
economies, societies, and civilisations worldwide (Hjalager, 2007).
• It is a multifaceted concept that describes economic dynamics and
associated social and political consequences
 What has led to Globalisation ?

https://www.youtube.com/watch?v=3oTLy
PPrZE4&t=3s
Drivers of Globalisation
• Technological advancement
• Communication – video conferencing, email etc., this enable organisations to
control and monitor their worldwide activities easily
• Transport - improvement in transportation technology has shrunk the world
significantly and ease of entry into transport business particularly airline
business has also made movement of people and materials simpler.
• Economic changes – trade and investment liberalization e.g., trade agreements
like GATT and GATS, bilateral agreements between nations and multilateral
agreements.
• Cultural and demographic trends - for example the aging population has
encouraged hospitality organisations to develop products that meet the needs
of this expanding market segment. Also, trends in sharing economy has
further synthesized economies, societies, and civilisations. 
• Political climate - this is an area that has contributed both positively and
negatively. 
Why go Global ?
• Globalisation has facilitated market integration in the modern society.
• Motivation to be sustainable and expand by organisations also play a major role.
Some of the motivations for expanding globally include:

• Brand loyalty
• Worldwide brand recognition
• Maturing markets
• New markets
• Sales expansion
• Spreading business risks across several markets
• Cost advantages
Global Marketing…International
Marketing

• What is the difference?

• International Marketing means that marketing
decisions are made in the individual countries with
staff who are the most knowledgeable about the
target market.
• Global marketing views the whole world as one
market and creates products that will only require
weeks to fit into any regional marketplace.
Global Marketing
Defined
‘The systematic planning, coordination and
implementation of the firm’s marketing activities across
national borders’ (Farrell, 2015).

Note there is no stipulation about the number of

countries a firm should be operating in to be global, but
the firm should be conducting marketing activities
outside of its home country. It does not need to be in
every country in the world given that there are over 200
countries.
So, what does Global Marketing actually involve ?

• The sale of a standardised product in all international

markets

• The use of a consistent brand name

• A consistent advertising message across all foreign

markets

• A coherent pricing strategy followed by all managers

regardless of geographic location
Market Entry Strategies
International Marketing Strategy

Key strategies employed include

• consortium marketing,
• direct marketing, and
• communication strategy
In international marketing, language plays an important role. Marketers must make
sure the message is appropriately translated and conveys the intended meaning.
Abbreviations and slang words and phrases may cause misunderstandings.
The use of appropriate channels cannot be overemphasised.
The International Competitive Posture Matrix (ICPM)

• A major model used in determining

where marketing efforts should be
concentrated
• Can be used to compare characteristics
of multiple brand with an organisation
portfolio.
• It helps identify product unique selling
point, strength and weakness, and gap
within a market.
The International Competitive Posture Matrix
(ICPM)

• Kings: Mostly large global corporations in a strong competitive position

with an effective global strategy.

• Barons: Companies with strong products and limited geographic coverage.

Expansion to foreign markets is attractive to them.

• Commoners: Companies with relatively weak products on domestic

markets. Before undertaking geographical expansion, it is advisable for
commoners to improve their product portfolio.

• Crusaders: Because they have already expanded geographically with a

relatively weak range of products, these companies are vulnerable. Their
challenge is to improve and further develop their product portfolio.
Using the Ansoff Matrix
to Develop Marketing
Strategy

•Ansoff suggested that there were effectively

only two approaches to developing a growth
strategy; through varying what is sold (product
growth) and who it is sold to (market growth).
•When combined with the Ansoff Matrix
detailed opposite, it delivers four strategic
options, each with a differing level of risk.
Developing a Globalisation Strategy

• What aspects of our strategy should be globalised ?

“ Managers can answer this question by systematically analysing industry

conditions or industry global drivers, by evaluating the benefits and costs of
globalisation, and by understanding the different ways in which a
globalisation strategy can be used through global strategy leavers “ (Yip,
2005)
Developing a Globalisation
Strategy
• Developing a global strategy may be complicated yet it is feasible but beset with
several issues – chief amongst them – standardisation vs cultural differences.
• The hospitality business may therefore have to make adaptations to the product
to meet the needs and wants of the local market
• Strategies employed may be predetermined or emergent; unitary or holistic,
brand specific or across brand; property/location specific or global.
• Whichever way the main objective is towards growth and competitiveness
bearing in mind prevailing circumstances.
The importance of the Internet in
Globalisation
• ‘…..clusters of customers with similar tastes and interests are connecting with each
other to form new global niches and segments.

The Internet, and broadband in particular, has changed business dynamics. It has
created a level playing field for the smaller niche brands to compete with the
established global players. Small brands have access to bigger, global markets and
can communicate directly with customers across the world in new and more
meaningful ways – ways never dreamt of 10 years ago.

Chaffey and Smith (2008)

Management Orientation towards
Globalisation
• Management attitude will influence their approach to global markets.

• The EPRG framework ( Chakravarthy and Perlmutter, 1985) illustrates how these
orientations translate into different strategic approaches.

• E = ethnocentric
• P = polycentric
• R = regiocentric
• G = geocentric
Ethnocentric approach

• The firm takes the position that headquarters should exercise a

significant degree of control over international operations.

• Important decisions are localised at head office and the firm is

largely driven by the needs of its customers in its home market.

• Foreign subsidiaries utilise technologies and business processes

transferred from headquarters serving their local customers.
Polycentric approach

• Management allow their foreign subsidiary management considerable

flexibility to make decisions with respect to marketing, production and
technology choices in serving their local markets.

• Head office views each foreign market as unique and distinct and
exercises little centralised authority over the local operation.
Regiocentric approach
In this approach, the firm views the world as a district set of regional markets
typically divide as
• Europe
• Latin America
• North America
• Asia
• Africa
• Regiocentric firms attempt to coordinate their activities within these regions
but not across them.
• A UK-based manager would be expected to coordinate and execute the firm’s
pan- European business strategy and not their counterparts in other regions.
Geocentric approach

• Firms attempt to offer standardised global products for example using

only one brand name/packaging style but do make adaptations to the
various country markets they serve.

• Local differences are recognised and allowances and modifications are

made for that market.
McDonald’s

• McDonalds entered the Indian marketplace in 1996.

• The predominant religion in India is Hinduism where the cow is
viewed as sacred. No beef products are therefore sold in any of the
McDonald's restaurants in India.
• Due to the diversity of other religions including Sikhism and Islam the
dietary habits of the majority of India are vegetarian.
• To ensure cultural sensitivity and to meet eating tastes in India,
• McDonalds provide vegetarian burgers in the form of the McVeggie,
McAloo Tikki and meat options which are chicken based such as
Chicken Maharaja Mac
Top 10 World’s Most Valuable Brands ?
Question: Who would be on your list?

% Brand Value
Rank 2022 Brand Country of Origin Brand Value 2022 ($M)
Change 2022 vs 2021

1 Apple US 947,062 55%

2 Google US 819,573 79%
3 Amazon US 705,646 3%
4 Microsoft US 611,460 49%
5 Tencent China 214,023 -11%
6 McDonald's US 196,526 27%
7 Visa US 191,032 0%
8 Facebook US 186,421 -18%
9 Alibaba China 169,966 -14%
10 Louis Vuitton France 124,273 64%

What are the most valuable global brands in 2022? (kantar.com)

The Anti – Globalisation Movement
Anti – globalisation protest continue
to attract media attention. Various
groups are represented and each has
its own agenda. Some groups are
concerned with the impact of
globalisation on the environment,
others are concerned about the poor
in developing countries or the impact
on women and children. Some groups
advocate the intervention of the state
whilst other are totally opposed to
any state authority. All groups are
generally against economic
inequality.
Strategies for Globalisation - Conclusions &
Reflections
• There is growing practice among organisation to device strategies for growth by
focusing on strengthening diverse portfolio of differentiated brands, building
scale in key markets, creating lifetime guest relationships, and delivering
revenue to the business by reducing both direct and indirect costs.
• There are also increased practices in the area of underpinning strategy with
technology (or making technology the core of the strategy).
• The role of third-party owners is now emphasised in ensuring competitiveness
and driving superior returns. However, businesses have to think hard and ahead
about what their aims are, and what issues are affecting the organisation and the
sector as a whole in order to develop an effective strategy.
Reading
• Ansoff, H.L. (1965) Corporate Strategy. McGraw-Hill, New York.
• Deloitte Center for Industry Insights (2017) Travel and Hospitality Industry Outlook. Accessed on: 13 th September 2022.
Available at:
https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/us-cb-2017-travel-hospitality-industr
y-outlook.pdf

• Farrell, C. (2015) Global Marketing: Practical Insights & International Analysis. Sage London Chpt 1.
• Knowles, T., Diamantis, D. & El-Mourhabi, J. (2004) The Globalization of tourism and hospitality: a strategic
perspective, 2nd edition, London: Thomson Learning.
• Organisation for Economic Co-Operation & Development (2010) The Changing Consumer & Market Landscape.
Consumer Policy Toolkit, Chapter 1. Accessed on: 13th September 2017. Available at:
http://www.oecd.org/berlin/45710126.pdf
• Westhead, P. Wright, M. & McElwee, G. (2011) Entrepreneurship – Perspectives and Cases. Prentice Hall: London.
Chpts 1 – 3, & 13.
• World Travel & Tourism Council (2017) Travel & Tourism: Global Economic Impact & Issues, 2017. Accessed on: 13th
September 2017. Available at:
https://www.wttc.org/-/media/files/reports/economic-impact-research/2017-documents/global-economic-impact-and-issu
es-2017.pdf