UNIVERSITY OF MAKATI

COLLEGE OF BUSINESS AND FINANCIAL SCIENCE

GLOBAL MARKET
GROUP 7

PERSONAL GROUP
NAMES APPEARANCE PRESENTATION Q&A GRADES

Jandoc,
Antoinette Vera
Malatag, Crisha

Palacios,
Desiree
Remoto, Myra

Dr. Felicisima V. Rafael

INTRODUCTION
Marketing products and services around the world, transcending national and
political boundaries, is a fascinating phenomenon. The phenomenon, however, is
not entirely new. Products have been traded across borders throughout recorded
civilization.

GLOBAL MARKETING
Global marketing is defined as the process of adjusting the marketing strategies
of your company to adapt to the conditions of other countries. Of course, global
marketing is more than selling your product or service globally. It is the full
process of planning, creating, positioning, and promoting your products in a
global market.

Big businesses usually have offices abroad for countries they market to.
Currently, with the proliferation of the internet, even small businesses can reach
consumers anywhere in the world. If a business chooses not to extend
internationally, it can face domestic competition from international companies
that are extending their international presence. The presence of this competition
almost makes it a requirement for many businesses to have an international
presence.

EVOLUTION OF GLOBAL MARKETING

FIVE STAGES IN THE EVOLUTION OF GLOBAL MARKETING

1. DOMESTIC MARKETING (ETHNOCENTRIC)

Domestic marketing means selling within one's own country. Typically, this
is the first area where companies seek to market their goods or services.
Because the market, customer needs, tastes, geography, demographics,
and distribution methods are likely familiar, it's often the easiest place for
companies to launch a product. (Domestic focus, home country customers)
2. EXPORT MARKETING (ETHNOCENTRIC)
Export marketing is the practice by which a company sells products or
services to a foreign country. Products are produced or distributed from the
company’s home country to buyers in international locations. (direct vs.
indirect exporting, country choice, exports, home country customers)
3. INTERNATIONAL MARKETING (POLYCENTRIC)
Markets in many countries, polycentric orientation, use of multi-domestic
marketing when customer needs are different across the national
countries.
4. MULTINATIONAL MARKETING (REGIOCENTRIC)
At this stage, company markets into product in many regions around the
world. Many markets, consolidation in regional basis.
5. GLOBAL MARKETING (GEOCENTRIC)
Global perspective, global products with local variations – Standardized
efforts, Coordination across markets, Global integration

ESSENTIAL FOR GLOBAL MARKETING

 Saturation of Domestic Markets

The saturation of domestic’s markets forced many companies to look for
marketing opportunities beyond their national boundaries.
 Emerging markets
As the traditional developed markets have become increasing competitive,
such emerging markets promise to offer better growth opportunities to
many firms.
Emerging markets (or EME, for emerging market economy) are economies
of countries that are in the progress of becoming a developed country and
typically are moving toward mixed or free markets. Emerging market
economies often have lower per capita income than developed countries,
and often have liquidity in equity markets, are instituting regulatory bodies
and exchanges, and see rapid growth.

 Global Competition
We believe something profound has indeed happened in our view of
competition around the world.
Is the services or products provided by competing companies that serve
international customers. Think about how you can have a pie-eating
contest or a race. These are examples of competition on a local scale
where people are competing against one another for one common goal -
the best in their core competency. Core competency is what a company
does best. Global competition has allowed companies to buy and sell their
services internationally, which opens the door to increased profits and
flattens the playing field in business.

 Global Cooperation
The interaction of persons or groups of persons representing various
nations in the pursuit of a common goal or interest.
  Internet Revolution
The proliferation of the Internet and E-Commerce is wide reaching.
Compared to business to-consumer (B2C) e-commerce, business-to-
business (B2B) ecommerce is larger, growing faster, and has less unequal
geographical distribution globally.

GLOBAL MARKETING STRATEGIES

Global marketing strategies are actually important parts of a global strategy. In

order to create a good global marketing strategy, you must be able to answer:
“What I am trying to achieve in an international market?” “What are my
company’s strengths and weaknesses for that market?” “How can I counter
challenges in the market?” “What potential will I have in this market?”

Moreover, a good global marketing strategy incorporates all the countries from all
regions of the world and coordinates their marketing efforts accordingly. Of
course, this strategy does not always cover all the countries but should be
applied for particular regions.

For example, you can break down regions like North America, Latin America,
Europe and the Middle East, Asia and the Pacific, and Africa.

Beyond its breakdown per country or region, a global marketing strategy almost
always consists of several things: (1) uniform brand names; (2) identical
packaging; (3) similar products; (4) standardized advertising messages; (5)
synchronized pricing; (6) coordinated product launches; and (7)
harmonious sales campaigns.

As a whole, these two are the most well-known global marketing strategies used
by companies expanding internationally:
  Create a consistent and strong brand culture
Creating a strong and consistent brand that always seems familiar to
customers is a priority for companies growing internationally. With the
ever-more rising and expanding internet, brand structure has become
more of a brand culture. To be more specific, it has become more
prevalent nowadays that the brand you support reflects your culture. It can
be damaging if you compromise your brand culture. For example, Google
found out the hard way when it launched a self-censored search engine in
China, even though China subjects its new media to government blocks.
Google’s brand has been known to make the world access information at
any time. How can Google set up something in China against its own
culture? As a result, customer backlash versus Google was substantial.
 Market as if there were no borders
Due to the proliferation of digital platforms, brands cannot always adopt
different strategies per country. In a way, due to the internet, companies
have to adopt a marketing approach that is more or less unified.

GLOBAL MARKETING CAMPAIGN DEVELOPMENT

In order to develop your campaign globally, there are a few things you should
keep in mind. You have to know the market, you have to create a marketing plan,
you should tailor fit your approach to marketing, and you should localize your
communications.

 KNOW YOUR MARKET

As soon as your company decides to extend your marketing worldwide,
you have to understand the context of where you will be working. Every
region has various behaviors and norms as it deals with marketing
messages; how people would like to be contacted; and what is appropriate
for that place, and the like.
 You have to make sure that you research how the market will respond to
the marketing strategy you have, so you can get much leverage from your
new market.
 CREATE A MARKETING PLAN
Becoming successful worldwide is not merely altering your language. You
have to make your global marketing plan consistent with your local efforts.
Yet it still needs to be customized, according to your regional knowledge.
Once you have an insight of the global environment, draft a marketing plan
that details your actions.
First, identify your objectives and goals. As soon as that has been
established, draw a map that covers the overall strategy and techniques to
attain those objectives.
 TAILOR FIT YOUR APPROACH
Keep in mind that what may have worked for your local audience may not
translate as well to your foreign audience. Try to adapt your initiatives to
your audience, giving them a tailor fit experience. Definitely, what works for
one country may not work for another.
 LOCALIZE YOUR COMMUNICATIONS
It is not only relevant to know the language and cultural hurdles and
adjusting your communications for every market, it is also critical to know
all the cultural references and relevant holidays and events. You need to
create a more personalized experience.
But make sure not to make international marketing mistakes when
translating your brand message.
GLOBAL MARKETING ISSUES AND MISTAKES

Companies, especially their marketing teams, often face the following issues and
mistakes when expanding worldwide. These can become hurdles in achieving
international success.

1. Non-Specification of Countries
Many business persons usually think of foreign markets vaguely, like they
want to shift to Asia or they want to increase their growth by offering their
products to Europe. It is problematic to take things too simply. Europe can
mean the European Union, Western Europe, Eastern Europe, and so on
and so forth. Consumers always identify themselves at the local level and
marketing teams have to remember that each country has its own norms,
laws, payment types, and particular business practices.
By being specific in the start, companies can prioritize the markets they
want to get into, generate a staffing plan, and allocate the budget. These
are all important for a business to attain its global objectives.

2. No Focus on Internal Information

You have to conduct specialized and complicated market research when
you are going to create a global market entry strategy. You would need to
consider the potential opportunity in the market, how easy or hard it would
be for your business to work in that market, and how successful you
already are in the market.
There are a lot of companies that concentrated on outside data to help
their decision-making, as described above. Nonetheless, you can simply
use your own internal information to get the data, on whether there is a
strong fit between your product or service and the market. Remember that
data from third parties do not understand your company or even know your
consumer. Only you have the best input on this.
3. Lack of Adaptation of Sales and Marketing Channels
Most Western companies think that they can go into new markets by doing
the same things that brought them success domestically.
As previously mentioned, it is important to have brand consistency, but
differing markets would like particular marketing approaches. Moreover,
marketers have to consider at which channels it would be best to market,
based on market behavior.
Case in point, for Brazil, marketing campaigns are more successful
through Facebook because of its popularity there. However, in Latin
America, you can draw in a bigger audience through Twitter. Hence, you
may need to check which channels give you the best results through
market research.

4. No Adaptation of Product Offerings

Business can only attain a fit between their product and the market one at
a time. However, more often than not, businesses attempt to launch the
same products in varying markets. In essence, they are ignoring that they
are interacting with a different set of consumers.
Case in point, if a tech company sells a similar product abroad that it sells
domestically and if the new customers do not know the advanced features
of the product, the company could be in trouble. Alternatively, the company
should begin with the basic version.
On the same note, a market that is more advanced might need additional
features than what the product already has.

5. Non-Usage of Local Team Leads

Perhaps one of the usual mistakes companies make in global marketing is
failing to consider the input of strong and competent employees in their
foreign markets, especially when establishing strategic decisions.
 These individuals are significant because they know their country and your
company. Since one of the biggest issues businesses face when including
local input is communication, the marketing team must have a system that
guarantees that local perspectives are gathered and distributed often.

6. Lack of Knowledge on Global Logistics

Marketers often make use of software that allows them to publish website
content, send email, publish updates on social media, and accomplish
other marketing-related activities. However, these tools do not always
support each market.
For example, you have payment solutions only for a couple of countries,
but your customer relationship management system has many contacts
coming from a hundred countries.
Marketers have to guarantee that they could market to customers in the
countries they are entering. They should consider how to display the local
currency, how to email consumers in particular time zones, and how to
support the languages of the consumers.

PROS AND CONS OF GLOBAL MARKETING

The internet has made the world a very small place. Anyone from the
comfort of their home computer can start a legitimate global business.
This means the pros and cons of global marketing are something that
every business owner should be thinking about. If you’re just thinking
about starting your own business, then you’ll want to look at these key
points as well to see if there are opportunities for you as well.
WHAT ARE THE PROS OF GLOBAL MARKETING?

1. You can reach more customers.

It’s a simple practice of supply and demand. If you are able to connect
with customers globally instead of locally, then you are able to reach
more people. As long as you have some level of demand for what you
have, global marketing can allow you to target communities anywhere in
the world so that you can make a sell.

2. It can be the inspiration of new ideas.

When you make a push for global marketing, you’re exposing yourself to
new ideas because you are involved in new cultures. This can inspire
innovation that can take your business to new levels while you’re able to
reach out with your existing portfolio to generate revenues. It really can
be a win/win situation for everyone involved.

3. It increases the visibility of your brand.

Global marketing is all about branding. When you are able to reach new
markets with your brand, then your visibility increases along with it. This
makes it a lot easier to take advantage of future opportunities because
you’ll have established a cornerstone within global markets. Each new
campaign makes it easier to expand upon these opportunities as well.

4. There’s the potential for higher revenues.

If you have a 2% conversion rate and an average sale of $10, then you’ll
get two customers out of every 100 prospects with revenues of $20. If
you target local customers and reach 1,000 people, that’s potential
revenues of $200. If you can target global customers at the level of 1
million people… let’s just say the revenue math gets a whole lot better,
doesn’t it?

5. Believe it or not, global marketing reduces your competition.

It’s all about reputation. Customers want the best possible product with
the best value proposition from the brand with the most expertise. These
three factors will trump local loyalty and transfer the customer to your
business. Now if the local business can match just one of those three
factors, your brand could lose out to local business, so clear
communication within your global marketing strategy is absolutely
essential for ongoing success.

6. You can create new relationships that make the process easy to
complete.
There are people with local experience around the world which can help
your business be able to target specific demographics with ease. Thanks
to video calling from Skype or Face Time, Instant Messaging, e-mail
services, and other communication platforms, you can work with
delegates from around the world instantly to move in real-time with
potential customers so that the global marketing process becomes quite
simple.

7. It offers greater stability to a business.

Trends in every industry are constantly evolving. What was popular 5
years ago might not be popular today, but every local market is unique.
Today’s treasure in North America might be tomorrow’s treasure in Asia,
allowing you to create new products for the evolving market while
maintaining the value proposition of the older product for the new market.
WHAT ARE THE CONS OF GLOBAL MARKETING?

1. It can be difficult to determine if there is an available market.

Different cultures and local societies have different needs which need to be
met. Although many products perform well globally if they are able to
perform well locally, that isn’t always the case for niche products. As
Amber Keefer mentions on Chron.com: “If you sell Canadian flags, you
might not find much demand in countries outside Canada.”
2. There will always be risk.
The costs of marketing globally are dramatically reduced from what they
once were, but they still exist. There is also a time investment involved with
marketing that keeps getting larger as you target more potential
customers. The risk here is that you can make these time and money
investments and wind up not receiving anything in return.
3. There may be different laws and standards which need to be met.
Different countries have different product or service requirements that
businesses must meet in order to finalize a sale. Some markets can run up
against some very stiff regulations that all but prevent an international
business presence. Without due diligence being performed by a business
owner before attempting global marketing, unintentionally violating these
laws or regulations could bring potentially severe consequences.
4. It can create numerous barriers to entry.
From cultural customs to language differences, there are a number of
barriers to entry that must be addressed when creating a global marketing
campaign. Programs like Google Translate are helping to reduce the
number of barriers which exist, but there will always be obstacles standing
in the way, especially for small-to-medium-sized businesses.
5. International politics and market conditions can eliminate profits.
The Brexit vote in 2016 proved that billions of dollars in wealth can be
 eliminated overnight. Political changes and changing market conditions
can cause an immediate elimination of profits, especially for small
businesses that are not well diversified. Even something as simple as a
strengthening of a currency can make it difficult for a global marketing
effort to succeed.
6. It creates a need for international product delivery.
When a business goes global, then it creates a need for international
shipping structures. Although you can mail virtually anything to anyone in
the world today, there are taxes and tariffs which must be considered.
These may apply to the business or the business customer. There are also
customs delays, payment guarantees, and other processes that can break
down and cause a delay in delivery, canceled orders, and lost revenues.
7. There will still be competition in the market.
You might have the best product in the world and be effective with a global
marketing strategy, but eliminating local competition doesn’t mean you’ll
eliminate international competition. You might be competing for a target
market in China with a business down the block from you. By
understanding the markets, you’ll be able to adapt to what the competition
is marketing so that you can remain on-point with your message.

The pros and cons of global marketing show that with the right strategy,
just about any business can extend their brand to any community on the
planet. Carefully consider each key point as the marketing campaign is
created, anticipate evolving conditions that might bring a challenge, and
there will be a great potential for success.
BENEFITS OF GOING GLOBAL
1. New Revenue Potential
By taking your business global, you get access to a much larger base of
customers. If your product or service is a success, you can enjoy increased
revenues from these new customers even if you have saturated your
markets domestically. Globalizing could be exactly the shot of life your
company needs to take its revenues to new heights.

2. The Ability to Help More People

The solutions your business offers undoubtedly have the potential to help
your customers improve their lives in some way. When you take your
business global, you can help an exponentially greater number of people
find the answers to the questions or challenges your company helps solve.

3. Greater Access to Talent

Another excellent benefit of taking your business global is that you get
access to a new pool of potential employees with unique skills and
mindsets. You may even find that these potential hires have skills that are
hard to find in your home country, which gives you an edge on other
organizations in your field that have not yet gone global.

4. Learning a New Culture

Getting information about a new place can help make your organization
more well-rounded. Having an understanding of people who are not from
your country will give you a new perspective on relations with customers,
and may even help you work better with domestic customers and business
partners. Hiring a cultural consultant will help guide you in creating
marketing content that takes into account culture and any linguistic nuances.
 5. Exposure to Foreign Investment Opportunities
Foreign investment can be extremely valuable for your business as many
companies already know. This may be the reason why in 1997, foreign
investment was up to seven times the level it was in the 1970s. When you
go global, you can more easily learn about these investment opportunities
and how beneficial they can be for your company.

6. Improving Your Company’s Reputation

Businesses that can successfully go global and market their offerings to a
totally different population will enjoy the prestige of calling themselves an
international company. It is not an easy feat to accomplish, meaning
prospects and potential business partners will instantly think more highly of
your company when they know you have an international presence.

7. Diversifying Company Markets

If your business only has one or two areas where it can sell services or
products, what would happen if these markets experienced a dramatic shift
because of a natural disaster or other unforeseen circumstance? Taking
your business global allows you to diversify your markets so your revenue
sources are more stable: even if your domestic activity is slow, your
business will not take as large of a hit since your global market will make up
the difference.

GLOBAL MARKETING EXAMPLES

If you are searching for inspiration on how to market your company successfully
in the international arena, check out these examples from well-known
companies.
1. Airbnb
Airbnb is for people who book and list accommodations all over the world.
Generally, it is a community marketplace that has more than a million
listings in more than 34,000 cities in the world. Airbnb became very
successful globally because of social media. In 2015, Airbnb began a
social media campaign using the #OneLessStranger hashtag.
This social experiment had Airbnb asking its community to do random acts
of hospitality for people they did not know and take a photograph or video
with them and share by making use of the hashtag. In only 3 weeks after
the campaign was launched, more than 3 million people created content,
engaged, or talked about the campaign.
2. Coca-Cola
Even though Coca-Cola is a big corporation, it also concentrates on
programs in small communities and infuses a lot of funds and time in small
charities.
Case in point, Coca-Cola built 650 clean water installations in Beni, Suef in
Egypt and sponsored meals (Ramadan) for children in the Middle East.
Moreover, the brand goes with an emotion that everyone knows —
happiness.
3. Domino’s
Domino’s positioned menu innovation in the forefront to increase its
international awareness and interest. They have consistent items for the
pizza in all markets like their sauce, bread, and cheese, where it works
anywhere.
They just update the toppings for every market. If it is Asia, they have fish
and seafood, for example.
4. Dunkin’ Donuts
Did you know that Dunkin’ Donuts China has seaweed and dry pork
donuts? With thousands of stores in over 30 countries worldwide, Dunkin’
Donuts updated its menus to satisfy its international consumers. In
Lebanon, they have the Mango Chocolate Donut; in South Korea, they
have the Grapefruit Coolatta; and in Russia, they have Dunclairs!
5. H&M
H&M almost always increases its store openings by 10 to 15 percent each
year. One of the secrets of their global expansion is maximizing their
online experience.
6. Kentucky Fried Chicken
Kentucky Fried Chicken was able to do something quite interesting. In
Japan, they were able to connect their products with Christmas. So every
Christmas, Japanese line up at their nearest KFC for some chicken!
7. McDonald’s
Even though McDonald’s keeps its branding consistent, McDonald’s tries to
bring in some local flavor to particular menu items. McDonald’s has the
McArabia in the Middle East—this is a flatbread sandwich. It also introduced
France to its macaroons and included the McSpaghetti in the Philippines. In
Mexico, they have a green chili cheeseburger and in South Korea, they have
bulgogi burgers.
8. Nike
Nike has evolved his international presence by carefully selecting
international sponsorships.
Even though spending for sponsorships is quite unpredictable, demand
costs usually rise sharply because of triggers such as tournaments and
championships. This has captured the attention of the international arena.

9. Red Bull
 One of Red Bull’s successful techniques is hosting extreme sports in the
world. They have the Red Bull Air Race in the U.K., the Red Bull Soapbox
Race in Jordan, and the Red Bull Indianapolis Grand Prix.
10. Starbucks
Starbucks adjusts its menu for local tastes. For Hong Kong, they
have Dragon Dumplings, for example. The company has had a wide
reputation for the engagement of local cultures.

Global marketing is the process of focusing an organization`s resources on the

selection and exploitation of global market opportunities consistent with and
supportive of its short and long-term strategic objectives and goals. A company
must be careful in using these tactics before globalizing its operations. Because
sometimes these strategies may fail and result in losses to the organization or
even put an end to it.