You are on page 1of 9

Marketing

Global Marketing Strategy


Course Outline

The Old Question The New Questions


The Marketing Concept

Customer Value Strategy

Customer Analysis

Market Structure & Competitor Analysis "How global is my


industry?
Marketing Decision-Making "How can my business How global should my
increase its sales in business be?
foreign markets?" What do we need to do to
Global Marketing Strategy become more global?"

Copyright 2010. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, copied, or reproduced without express written permission.
Global Marketing Strategy Global Marketing Strategy
Multi-Domestic
(National) Market Global Market
Multi-Domestic Global Structures Structures
Structures Structures
INTERdependent Competition:
Independent Competition: United
States Business A
USA
Cross-subsidized national Japan
Competition in each domestic market share battles in pursuit
Mexico
Brazil
market is essentially of global brand & distribution
independent positions Business B
Canada Colombia
Industry is present in many Mexico
Required SCA or volume is not Germany USA
domestic markets available in home market Europe
Many value chain activities Numerous value-chain activities
replicated in each market Business C
decoupled from buyer Saudi
USA
Often independent subsidiary Activities most related to buyer
Arabia
Canada
ownership and management tied to where buyer is
structures/systems located

Copyright 2010. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, copied, or reproduced without express written permission.
Global Marketing Strategy Global Marketing Strategy
Multi-Domestic Multi-Domestic
(National) Market Global Market (National) Market Global Market
Structures Structures Structures Structures

United United
States Business A States Business A
USA USA
Mexico Japan Mexico Japan
Brazil Brazil
vs. vs.
Business B Business B
Canada Colombia Canada Colombia
Mexico Mexico
Germany USA Germany USA
Europe Europe

Suadi Business C Suadi Business C


Arabia USA Arabia USA
Canada Canada

Managing the Managing the Heterogeneous Target Segment Homogeneous


Portfolio of vs. Portfolio of Varied Mktg Mix Content Uniform
Countries Businesses

Copyright 2010. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, copied, or reproduced without express written permission.
Global Marketing Strategy Global Marketing Strategy
Multi-Domestic
(National) Market Global Market
Structures MARKET & The Drivers of
Structures
SEGMENT Industry
STRUCTURES Globalization
United
Potential
States Business A
USA
Mexico Japan
Brazil
vs.
Business B INDUSTRY
Canada Colombia COST GOVERNMENT
Mexico
GLOBAL
Germany USA
Europe STRUCTURES POLICY
Business C
POTENTIAL
Suadi
Arabia USA
Canada Supporting &
Facilitating Factors
Knowledge of local Source of Knowledge of vertical
market conditions COMPETITIVE
wins Competitive market, plus firm's
ability to create unique STRUCTURES
Advantage value in vertical, wins

Copyright 2010. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, copied, or reproduced without express written permission.
Global Marketing Strategy
Global Marketing Strategy

MARKET &
Global segment need(s)
Global customer(s)
The Drivers of Industry
Global scale economies
Steep experience curves SEGMENT Global channels of distribution Globalization Potential
Sourcing efficiencies Transferable marketing
Favorable logistics
STRUCTURES Lead countries
High country-cost differences
High product development costs
Market & Segment Structures
Rapid technology obsolescence

INDUSTRY Global segment need(s)


COST GOVERNMENT
GLOBAL
STRUCTURES POLICY Global customer(s)
POTENTIAL
Open trade policies
Uniform technical standards Global channels of distribution
Common marketing
Strong presence of regulations
foreign competitors Absence of government-owned Transferable marketing
Interdependent countries COMPETITIVE competitors or customers
Globalized competitors
High level of multi-lateral STRUCTURES Weak sectoral or development
policies
Lead countries
trade

Copyright 2010. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, copied, or reproduced without express written permission.
Global Marketing Strategy Global Marketing Strategy

Types of Customers The Drivers of Industry


Globalization Potential
Buy in foreign
markets from
foreign suppliers Competitive Structure Drivers
Increasing Internationalization

Buy in domestic
markets from
foreign suppliers Strong presence of foreign
lo e competitors

r
ba l
Buy in domestic
C u st o m
markets from
domestic Interdependent countries
suppliers
No HQ HQ HQ mandates HQ does the Globalized competitors
involvement recommends specs/products/ purchasing
specs/products/ vendors
vendors High level of multi-lateral
Increasing Globalization trade

Copyright 2010. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, copied, or reproduced without express written permission.
Global Marketing Strategy Global Marketing Strategy

Speed to Market
Cost Structure Drivers - Printer Development -
Global scale economies
Steep experience curves
Sourcing efficiencies
Favorable logistics IMPACT ON
PROBLEM CUMULATIVE PROFIT
High country-cost differences 30% over-run in development costs -2.3%
Product unit cost goal exceeded by 10% -3.8%
High product development costs Product compatibility problems, 10% sales -3.8%
volume reduction
Rapid technology obsolescence Product quality problems; 10% price reduction -14.9%
Six month delay in product introduction -31.5%

Copyright 2010. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, copied, or reproduced without express written permission.
Global Marketing Strategy
Global Marketing Strategy Industry Globalization Potential: Computers

Market/Segment,
Competitive
Government Policy Drivers Drivers
Cost Drivers
Gov't Policy
Open trade policies Drivers

Uniform technical standards


Common marketing regulations
Absence of government-owned
competitors or customers
Weak sectoral or development
policies Low High

Copyright 2010. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, copied, or reproduced without express written permission.
Global Marketing Strategy Global Marketing Strategy
Industry Globalization Potential: OTC Pharmaceuticals Industry Globalization Potential: Civil Aircraft

Market/Segment,
Competitive Drivers
Cost Drivers

Cost Drivers
Gov't Policy
Competitive Drivers
Drivers
Market/Segment
Drivers
Gov't Policy
Drivers

Low High Low High

Copyright 2010. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, copied, or reproduced without express written permission.

You might also like