GLOBAL

MARKETING

TOPIC- 10
 Global marketing refers to the
comprehensive process of
planning, producing, promoting,
pricing, and distributing a
INTRODUCTION company’s products or services
across international markets. It
involves understanding and
adapting to the cultural, economic,
legal, and social differences in
various countries while maintaining
a consistent brand image.
•Focus: Entire marketing mix
(product, price, place, promotion).
•Objective: To create a unified
and effective strategy for entering
 •Product Strategy: Deciding
GLOBAL whether to standardize or adapt
products for different markets.
MARKETING •Pricing Strategy: Setting
prices based on local
purchasing power, competition,
and costs.
•Placement
Strategy: Determining how to
deliver products to consumers
in different regions.
•Promotion Strategy: Includes
advertising, sales promotion,
public
Best marketing ever- [Link]
relations, personal
IMC-Integrated IMC is becoming more popular because
Marketing of the challenges of communicating
across national borders.
Communications Importance of IMC in
Global Marketing:
Ensures consistent
brand messaging
across markets.
Maximizes the impact
of promotional efforts.
Builds stronger
customer relationships.
IMC-Integrated IMC is a strategic approach that ensures
Marketing all forms of communication and
messaging are carefully linked together
Communications to deliver a consistent and compelling
message to the target audience.

Components of IMC-
o Advertising
o Sales Promotion
o Public Relations
o Direct Marketing
o Personal Selling
o Digital Marketing
[Link]
Promotional
Mix

The promotional mix is

the combination of tools
used by marketers to
communicate with their
target audience.
In global marketing, the
promotional mix must be
adapted to suit the
cultural and economic
context of each market.
Global
Advertising

Advertising is any sponsored,

paid message that is
communicated in a non-
personal way

Global advertising involves

creating and disseminating
messages across international
markets to promote a product
or service.
 Global
Advertising
• Single Country: Some
advertising messages are
designed to resonate with
consumers in a single country or
market area.
• Regional: advertising is created
for audiences across several
country markets, such as Europe
or Latin America
• Global: advertising by using the
same advertising appeals,
messages, art, copy,
photographs, stories, and video
segments developed expressly
for worldwide suitability
 Global
Advertising
MARKET TRENDS
Products such as coffee and beer
have emerged as true global
products
 Starbucks and the coffee
culture
Marketing managers also realize that
some market segments can be
defined on the basis of global
demography—i.e. youth culture

Standardization vs. Adaptation:

o Standardization: Using the same advertising message globally (e.g.,
Coca-Cola’s “Taste the Feeling” campaign).
o Adaptation: Modifying the message to suit local cultures (e.g.,
McDonald’s adapting its menu and ads to reflect local tastes in India).
 Global
Advertising
• Global advertising offers companies
economies of scale in advertising as
well as improved access to distribution
channels.
• Where shelf space is at a premium, a
company has to convince retailers to
stock its products.
• A global brand supported by global
advertising may be very attractive
because, from the retailer’s standpoint,
that brand may be less likely to languish
on the shelves
 Global
Advertising
Top 5 Global Marketers, Ad
Spending:
1. Procter & Gamble (U.S.)-over
$12 billion
2. Amazon
3. Samsung Electronics (Korea)
4. Nestlé (Switzerland)
5. Unilever (U.K., Netherlands)

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 Sales Promotion
• Sales promotion refers to any paid
consumer or trade communication
program of limited duration that
increases tangible value to a product
or brand
– Price v s non-price promotions
ersu

– Consumer v s trade promotions

ersu
 Sales Promotion
• Provide a tangible incentive to buyers
• Reduce the perceived risk associated with
purchasing a product
• Provide accountability for communications activity
• Provide method of collecting additional data for
database
Sales Promotion: Global or Local
• In countries with low levels of economic development, low
incomes limit the range of promotional tools available.
• Market maturity can also be different from country to
country.
• Local perceptions of a particular promotional tool or
program can vary.
• Local regulations may rule out use of a particular
promotion in certain countries.
• Trade structure in the retailing industry can affect the use
of sales promotions.
Non-Price Promotion-Sampling
Provides consumers with opportunity to try products at no cost

May be distributed in stores, in the mail, through print media, at events, or

door-to-door

Consumers can request samples from web site

May include a free week of premium TV channels or internet service

Kikkoman soy sauce launched a sampling program in supermarkets in the

U.S.; today the U.S. contributes 70% of profit from international operations
Price Promotion- Couponing
A coupon is a printed certificates entitle the bearer to a price reduction
or some other special consideration for purchasing a particular product
or service.

90% are distributed as free-standing inserts primarily in Sunday

newspapers.

On-pack coupons are on the package and can be redeemed at

checkout.

In-pack coupons are inside a package for later use.

Price Promotion- Couponing
Cross coupons are distributed with one product but
redeemable for another. (Toothpaste & toothbrush)

70% of consumer promotion spending in the U.S.

Much less or nonexistent in other countries; Some Asians are

reluctant to use coupons as they may be bring shame on
them.

300 billion coupons distributed but only 1% redeemed

Sales Promotion: Issues and Problems

• Fraud
– Pepsi promotion with Apple
• Regulations vary by country; Highly regulated in Europe;
Popular in Scandinavia where broadcast ads are highly
regulated; May be seen as exploiting regulatory loopholes in
developing countries
• Cultural dispositions to coupons and other sales promotions
– Malaysians see coupon usage as embarrassing
– Islam frowns on gambling so lottery may not work
Personal Selling
• Person-to-person communication between a company
representative and a prospective buyer
• Focus is to inform and persuade prospect
• Short-term goal: make a sale
• Long-term goal: build a relationship
• Especially important in industrial products that are
expensive and complex
• Important in countries that restrict advertising
Special Forms of Marketing
Communications
• Direct Marketing
– Direct mail
– Catalogs
– Infomercials, teleshopping
• Event Sponsorship
– Concerts, sporting events
– Product placement in movies
• Internet Communications
Direct Marketing
• Any communication with a consumer or business recipient
that is designed to generate a response in the form of:
– An order
– Request for further information
– A visit to a store or other place of business

 Examples:
o Email campaigns by Amazon
tailored to user preferences.
o Telemarketing by insurance
companies in the UK.
o Catalog marketing by IKEA in
Europe
One-to-One Marketing
• Building from Customer Relationship Management
– Identify customers and accumulate detailed information
about them
– Differentiate customers and rank them in terms of their
value to the company
– Interact with customers and develop more cost efficient
and effective forms of interaction
– Customize the product/service offered to the customer
Direct Marketing v s Mass Marketing er su

Table 14-2 Comparison of Direct Marketing and Mass Marketing.

Direct Marketing Mass Marketing

The marketer adds value (creates place utility) The product benefits do not typically include
by arranging for delivery of the product to the delivery to the customer’s door.
customer’s door.
The marketer controls the product all the way The marketer typically loses control as the
through to delivery. product is turned over to distribution channel
intermediaries.
Direct-response advertising is used to Advertising is used for its cumulative effect over
generate an immediate inquiry or order. time to build image, awareness, loyalty, and
benefit recall. Purchase action is deferred.
Repetition is used within the ad/offer. Repetition is used over a period of time.

The customer perceives higher risk because The customer perceives less risk due to direct
the product is bought unseen. Recourse may contact with the product. Recourse is viewed as
be viewed as distant or inconvenient. less distant.
Advice for U.S. Direct Marketers Going
Global
• The world is full of people who are not Americans. Be sure not to
treat them like they are.
• Like politics, all marketing is local. Just because your direct mail
campaign worked in Texas, do not assume it will work in Toronto.
• Although there may be a European Union, there is no such thing
as a “European.”
• Pick your target, focus on one country, and do your homework.
• Customers need to be able to return products locally or at least
believe there are services available in their country.
Direct Mail
• A vehicle for delivering a personally addressed offer to a
prospect targeted by a marketer
• Popular with banks, insurance co., other financial service
providers
• Responses allow the company to build a database
• U.S. direct mail lists are easy to rent; Europe and Japan
lists are lower in quality
• Germans spend the most, $500 per capita, in mail-order
shopping
Catalogs
• Catalog: magazine-style publication that features
photographs, illustrations, and extensive information
about a company’s products
• U.S.: 1/3 of world market, peaked in 2007 with 20 billion
mailed; dropped in 2015 to 12 million due to online
shopping
• EU: Elimination of barriers led to growth in cross-border
shopping due to no VAT tax
• Hong Kong and Singapore have efficient postal systems
and highly educated consumers with credit cards
• China, South Korea, and Taiwan are attractive markets
Infomercials and Teleshopping
• An infomercial is a form of paid TV in which a particular
product is demonstrated, explained, and offered for sale
to viewers who call a toll-free number on the screen.
• In Asia, infomercials make $100s of millions in sales.
Consumers have up to a 40% savings rate since housing
and health care are provided by the state. Low
penetration rates of private phones, credit cards, &
delivery issues create difficulties.
• Teleshopping on channels like HSN and QVC is
exclusively devoted to demonstration and selling.
Sponsorships
• A company pays a fee to be associated with an event,
team or athletic association, or sports facility.
• Combines elements of PR and sales promotion
• Ensures the company name will be mentioned on air by
on-air or public address announcers and later on news
reports or talk shows
• Events draw large crowds so perfect for sampling and
other sales promotion
Product Placement
• Arranging to have the
company’s products and
brand names appear in TV
shows, movies, and other
types of entertainment
• Marketers also lend or donate
products to celebrities and
other public figures
• Issue for Marketers: Once
seen in a movie, products
cannot be easily adapted to
meet local market needs Drake’s jacket by Moncler in the
video Hotline Bling provided a
boost to company sales.
Public Relations (1 of 2)
• Public relations (PR) is a “strategic communication
process that builds mutually beneficial relationships
between organizations and their publics.”
• Fosters goodwill and understanding
• Generates favorable publicity aka earned media
• Tools
– News releases
– Media kits
– Press conferences
– Tours of plants and other facilities
Public Relations (2 of 2)
• Tools
– Articles in trade, professional journals
– Company publications and brochures
– TV and radio talk show appearances
– Special events
– Social media
– Corporate Web sites
Negative Publicity Affecting Global
Marketers (1 of 2)
• Facebook (U.S.) Privacy scandal when personal data
for 87 million of 2 billion users were shared with
Cambridge Analytica, a firm that allegedly use the data
to influence the 2016 U.S. presidential election.
• Volkswagen (Germany) The “Dieselgate” emissions
cheating scandal involved illegal software defeat
devices installed on millions of vehicles.
• Samsung (S. Korea) Galaxy Note 7 batteries
overheated and some caught fire leading to a massive
recall and owners were told to turn off phones
immediately.
Role of Public Relations in Global
Marketing Communications
• PR’s role is growing in the post global recession
– Build consensus and understanding
– Create harmony and trust
– Articulate and influence public opinion
– Anticipate conflicts and resolve disputes
– Smartphones, broadband Internet, social media,
satellite links allow PR pros to stay in touch with media
anywhere, anytime
Public Relations Practices Around the
World
• Public relations practices can be affected by:
– Cultural traditions
– Social and political contexts
– Economic environments
• Public relations professionals must understand these
differences and tailor the message appropriately
• PR can shine in a crisis; best to be forthright, direct,
reassure the public, be accurate with the media
 Cross-Cultural Marketing
In order to successfully enter global markets, businesses need
to be aware of the importance of cross-cultural marketing.
Cross-cultural marketing is “a form of marketing adapted to the
customs, traditions, and beliefs of a specific group of people.”
In order to reach consumers in other cultures, businesses need
to be respectful of cultural differences and produce marketing
strategies tailored to each culture.
Major Mistakes
Failing to research the target market properly
Failing to adjust the marketing mix to account for cultural
differences.
Unaware of regulations or restrictions of the host market
 Use Hofstede’s Cultural Dimensions in
Marketing
 Hofstede’s Cultural Dimensions:
Hofstede’s framework helps marketers understand cultural differences and
tailor their strategies accordingly.

o Power Distance: In high power distance cultures (e.g., India), marketing

messages may emphasize authority and hierarchy.

o Individualism vs. Collectivism: In collectivist cultures (e.g., Japan), ads

may focus on family and community.

o Masculinity vs. Femininity: In masculine cultures (e.g., the U.S.), ads

may highlight competition and success.

o Uncertainty Avoidance: In high uncertainty avoidance cultures (e.g.,

Germany), marketers may emphasize safety and reliability.

Long-term vs. Short-term Orientation: In long-term oriented cultures (e.g.,

China), ads may focus on perseverance and future benefits
USA vs Guatemala MacDonald's Ad
 Collectivism vs Individualism

• McDonald’s Guatemala is currently

 In the USA, on the promoting meal plans for 4 people
other hand, or more and their Happy Meal, or
McDonald’s is Cajita Feliz.
promoting a Buy One
• This is a young child’s product yet
Get One meal and
the minimum age to create a
rewards for
Facebook account is 13 years old
downloading their
which tells me that this
app. advertisement is probably targeted
 As an individualist to parents.
society, this promotion
plays into their need • McDonald’s understands that adults
for individual benefits in Guatemala, a collectivist society,
and rewards. are more likely to treat the children
in their family to a fast food meal
than themselves.
Cross-Cultural Marketing Example —
Elkjøp
Elkjøp, the Norwegian electronics retail company, excellently markets its
products to highly feminine societies like Sweden, Denmark and, of
course, Norway.
[Link]
Again, as a highly feminine culture, the way they use social media as a
brand demonstrates their dedication to nurturing relationships with their
clients

 At large, highly masculine societies like Japan are highly

competitive and uphold high standards. They value achievements
and material rewards.
 In highly feminine societies, people generally actively work to reach
a consensus and lead a life of quality and nurturing. Sweden and
other Scandinavian countries are highly feminine
Greece & NOYNOY
• Embracing Uncertainty Avoidance in Greece: Countries with high
uncertainty avoidance, like Greece, feel uncomfortable with ambiguity
and they see uncertainty as a danger. They desire to have rules and
formalities.
[Link]
• For those who grew up in Greece, NOYNOY evaporated milk is
probably their childhood favorite. However, due to dietary changes,
sales were declining. ADMINE crafted a campaign for NOYNOY to
convey the message “What is worthy, stands the test of time”.
• Being a high uncertainty avoidance culture, ADMINE knew that the
best way to rekindle the Greek’s interest in NOYNOY was to remind
them of its legacy, tradition, and the role it played in their childhood.
Long Term Orientation in Nigeria
• This dimension represents a society’s relationships to its own
past, present, and future.
• It is used to understand a culture’s priorities and motivations
when making investments and large purchases.
• Cultures that score high are long-term oriented. This means that
they celebrate pragmatic values oriented to future rewards.
Egypt and Nigeria are examples.
• As AXA explains, their insurance plans help Nigerians “remain
influential in the lives of their families and loved ones while they
are here and even more when they are gone.
 Cross-Cultural Marketing Examples —
AXA
 AXA uses history and storytelling to make
Nigerians see the big picture of their services
in print advertising.
 As a long-term oriented culture, AXA tied the
connection between the country’s founding
fathers and the future of the country by
highlighting the “enduring value” of their
insurance plans.
 They emphasized the future rewards and
benefits of their benefits. This works great for
long-term oriented cultures. Since they
understand that traditions and habits can
change, they want to equip themselves with
the best resources to adapt.
Recommendation
Global marketing communication decisions require a balance between
standardization and adaptation. By understanding cultural differences
and leveraging tools like IMC, companies can create effective
campaigns that resonate with diverse audiences. Hofstede’s cultural
dimensions provide a valuable framework for tailoring strategies to local
markets.

Always Work with Local Partners

Although the marketing world changes and evolves, one principle has
always stayed the same – know your audience and know how to speak
to them.
Experts in local marketing and advertising may help with both cultural
awareness and adapting a campaign for maximum success in a specific
region.