GLOBAL

MARKETING
Presentation by Laura Gómez, Valentina Bermudez, Loren

Vargas, Felipe Blanco, Danilo Serrano, Sebastian Pantoja

Marketing as a Means of Pursuing an international Strategy
FIVE COMMON MARKETING ORIENTATIONS

CAN BE APPLIED AROUND THE WORLD:

Production: A company may focus primarily on production

either efficiency or high-quality.

Sales:  means a company tries to sell abroad what it can

sell domestically on the assumption that consumers are

similar.

Marketing
Customer: asks, What and how can the company sell in

country A or to a particular type of consumer?

Strategic

sales adopt
marketing:

a
The

strategy

and customer orientations.

companies

that combines
committed

production,
foreign

sales, orientations
Social marketing: pay attention to the potential

environmental, health, social, and work-related problems

that may arise when selling or making their products abroad

SEGMENTING AND
TARGETING
MARKETS
Companies must segment markets for their

products and services and then decide which

to target and how. The most common way to

do this is through demographics, such as

income, age, gender, ethnicity, religion, or a

combination of factors . Companies may

further refine these segments by adding

psychographics (attitudes, values, lifestyles).

Product Is concerned with defining the type, volume and

Policies
timing of products a company offers for sale.

Companies have legal considerations, Labeling

Requirements, Environmental Protection

Regulations, Indirect Legal Considerations,

cultural considerations, and economic reasons

for altering their products to fit the needs of

customers in different countries.

The product policies are general rules set up by

the management itself in making product

decisions. Good product policies are the basis

on which the right products are produced and

marketed successfully.
 A PRICE MUST BE LOW ENOUGH TO GAIN SALES BUT HIGH

ENOUGH TO GUAR- ANTEE THE FLOW OF FUNDS REQUIRED

Pricing
TO COVER SUCH EXPENSES AS R&D, PRODUCTION, AND

DISTRIBUTION.

strategies THE PROPER PRICE NOT ONLY ENSURES

PROFITS BUT ALSO PROVIDES THE RESOURCES NECESSARY

TO ACHIEVE LONG-TERM COMPETITIVE VIABILITY.

SHORT-TERM

POTENTIAL OBSTACLES IN INTERNATIONAL PRICING

Government intervention

Market diversity

Export Price escalation

Fluctuations in currency Value

Fixed Versus Variable Pricing

Supplier relations
Promotion strategies
Is the presentation of messages intended to help sell a

product or service.

THE PUSH-PULL MIX

Promotion may be categorized as push, which uses direct

selling techniques, or pull, which relies on mass media

INTERNATIONAL PROMOTION

Standardization: Advertising standardization may improve

the quality of ads at the local level, prevent internationally

mobile consumers from being confused by different

images, and speed the entry of products

Branding Strategies
WHAT IS A BRAND?

A brand is an identifying mark for products or services.

A legally registered brand is a trademark.

A brand gives a product or service instant recognition and may

save promotional costs.

TOMMY HILFIGER

It built a following for its brand even before consumers were

familiar with its product offerings.

CHINESE APPLIANCE MAKER HAIER

Has had trouble in the US market due to theiir brand positioning.

Worldwide brand vs Local
Brands
MAIN CHALLENGE

international marketers must decide whether to adopt a

worldwide brand or use different brands for different countries

ADVANTAGES OF WORLDWIDE

there is evidence that the use of global brands helps identify

companies as global players. Within the United States,

consumers view products of global players more favorably.

aswell almost the entire marketing efforts are in one brand and

not in a bunch of brands, which makes the marketing more

efficient.
Problems
LANGUAGE: BRAND NAMES MAY

CARRY A DIFFERENT ASSOCIATION IN

ANOTHER LANGUAGE.

MARCEL BICH DROPPED THE H FROM

HIS NAME WHEN BRANDING BIC PENS

BECAUSE OF THE FEAR OF

Uniform Brands
MISPRONUNCIATION IN ENGLISH

IKEA, USES SCANDINAVIAN NAMES

FOR ITS PRODUCTS, HIRED A GROUP

OF THAI SPEAKERS TO MODIFY ITS

CATALOGUE SO THAT NAMES WOULD

USING DIFFERENT BRANDS FOR
NOT BE MISINTERPRETED WHEN
DIFFERENT COUNTRIES
PRONOUNCED IN THAI.
Problems
BRAND ACQUISITION: MUCH

INTERNATIONAL EXPANSION TAKES

PLACE BY ACQUIRING FOREIGN

COMPANIES WITH BRANDED

PRODUCTS,

SUCH AS SARA LEE ACQUIRING

Uniform Brands
VARIOUS BRAZILIAN COFFEE

ROASTERS.

COUNTRY-OF-ORIGIN IMAGE:
MARKETERS HAVE LONG NOTED THIS

PRODUCTS’ INFLUENCES ON
USING DIFFERENT BRANDS FOR
CONSUMERS’ OPINIONS OF THEIR
DIFFERENT COUNTRIES
QUALITY. BUT THIS INFLUENCE IS

COMPLEX, DEPENDING ON SUCH

NATIONAL CULTURE ATRIBUTE

ECONOMIC DEVELOPMENT
DISTRIBUTION STRATEGY

A COMPANY MAY ACCURATELY ASSESS MARKET POTENTIAL, DESIGN

GOODS OR SERVICES FOR THAT MARKET, PRICE THEM

APPROPRIATELY, AND PROMOTE THEM TO PROBABLE CONSUMERS.

HOWEVER, IT WILL HAVE LITTLE LIKELIHOOD OF REACHING ITS SALES

POTENTIAL IF IT DOESN’T MAKE THE GOODS OR SERVICES

CONVENIENTLY AVAILABLE TO CUSTOMERS. GOODS NEED TO BE

PLACED WHERE PEOPLE WANT TO BUY THEM.

 STANDARDIZED OR
NOT
Is very difficult to standardized
internationally. Different
distribution system, which an MNE
finds difficult to modify because
it is entwined with the country’s
cultural, economic, and legal
environments.
Avon´s case: depending on the
market it manages online sells or
independent reps. China: beauty
counters. Philippines: franchise
centerss
SELF-HANDLING OR
NOT?
Sales Volume and cost: When
sales volume is low, a company
usually finds reliance on external
distributors to be more
economical.
As sales grow, it may handle
distribution itself to gain more
control.
factors favoring self handle:
products high technology, high
value or need special customer
Choosing distribution partner:
servicing (more control over
delivery)
Companies main competitive
advantage is the distribution.
DISTRIBUTION
PARTNERSHIP
Promoting to Potential
distributors: Companies evaluate
potential distributors, but distributors
must choose which companies and
products to represent and
emphasize.
Due to the restrictions Wholesalers
and retailers have ( limited storage
facilities, display space, money for
they try to carry
inventories, etc), 
only those products with the
greatest profit potential.
financial strength.
Goods connections
business commitment
status
 DISTRIBUTION CHALLENGES AND
OPPORTUNITIES

THE NEED FOR AFTER THE THE

SELL SERVICES OFTEN OVERLOOKED COST USE OF INTERNET

ADVANTAGES AND SALES

DISADVANTAGES
Every product needs after sell service. However for

new prodcuts that have new technology is more

important because consumers are more reluctant

to new products when they dont know if they have

a problem with the prodcut it would be resolved.

For a company considering to launch prodcuts in a foreign

market this factors are essential for cost calculation.

infrastructure,

levels in distribution system.

Three main
retail inefficiencies.

operating restrictions.

challenges and
Online sells as a fundamental factor to impulse the

commercialization of the brand worldwide

oportunitues
E-COMMERCE
AND THE
INTERNET
INTERNET IMPROVE THE WAYS OF DO

BUSINESS

CUSTOMERS WORLDWIDE CAN QUICKLY

COMPARE PRICES, QUALITY AND

RELIABILITY FROM

DIFFERENT DISTRIBUTORS AND

PRODUCTS.
 OPPORTUNITIES
offers firms an opportunity to promote products globally.    It  does not relieve

= TENRETNI + GNITEKRAM them of the need to develop the marketing tools.

Suppliers deal more quickly with their customs

For airline tickets and  hotel space the internet change the traditional sales

methods

Reduction in the distribution chain, offering a lower price.

ECREMMOC-E

Immediate when ordering, online pre and post-sale service.

PROBLEMS
On internet an MNE cannot easily differentiate its marketing program for

each  country in which it operates.

If MNE makes international sales over the internet, it must expeditiously

deliver  what it sells, which may require warehouses and service facilities abroad.

The MNE internet ads and prices must comply with the laws of each country

of  sales. Problematic because of the Webs global reach

Implement others means of promotion and distribution to ads internet sales, can

be very expensive.
 EVERY ELEMENT IN THE
MARKET MIX IS
IMPORTANT
Product

MANAGING
Price

THE
Promotion

Brand

MARKETING
Distribution

MIX •THE IMPORTANCE COULD

BE DIFFERENT DEPENDING
THE PLACE AND THE TIME.
 GAP ANALYSIS

•IT´S A METHOD FOR ESTIMATING A TYPES OF GAPS

COMPANY’S POTENTIAL SALES BY

Usages
IDENTIFYING PROSPECTIVE
Product line
CUSTOMERS IT COULD SERVE MORE
Distribution
ADEQUATELY.
Competitive
LOOKING TO THE FUTURE
Recall the discussion earlier, the three segmentation

involves geographic the nation with key components,

probably new trends will affect the way how the

international marketing is going. A clear example of this

is Technological Development, the internet connection is

getting better and people can search for low prices

instantly from their cell phone and digital marketing has

to adapt to this situation. A more educated population

in the future will want to have more options to buy and

that is where good international marketing will have

results.
 Will national
Markets Become
passé?
́
•By globalization many products and services are

arriving in countries where they did not arrive

before, this causes an increase in demand but

there are also a series of secondary effects such

as the acceptance of these same products that in

different regions have different acceptances.

Many of these future approaches will have an

effect on international marketing.

•A feature of the above said is the materialism

that refers to the fact that people like to buy

many things and by globalization this is becoming

a global trend.
 It is to create a company that generates social benefit while

What Is a
being sustainable. All profits are reinvested, unlike NGOs

these organizations obtain their profits competitively

Social Business? instead of receiving new contributions.

Mohammad  Yunus, founder of the Grameen Bank in 1974

and winner of the Nobel Peace Prize in 2006,

The Grameen
Bank and
Foundation
The Grameen Bank began giving micro

loans in Bangladesh, often without very

low interest or interest trying to compete

with the usurers they lent on a daily basis

and trying to give people opportunities

without any interest. Many banks from

Bangladesh have copied their practices.

 Groupe
Danone
It is a France’s largest food company,

Groupe Danone (spelled “Dannon” for the

U.S. market) operates in four product

divisions: dairy (world’s largest, with Danone

being almost a generic word for yogurt);

bottled water (ranked second globally,

including such brands as Evian and  Volvic);

baby food (second globally under

the  Blédinebrand); and medical nutrition

(largest in Europe).
 Why
Invest in
Why would Danone, or anyone, want to

invest in an operation that yields them no

a Social
dividends or capital gains?

Business? It is explained that people

want more than economic benefits, such as

in investments

the desire to help the less fortunate.

Companies or people when they are

successful want to help the needy and do

Social Business is the way they do it, so

companies like Danone invest in these types

of causes.
 MATURING OF PROMOTING LDC BUILDING SALES

TRADITIONAL GROWTH AND LOYALTY

MARKETS ABROAD
Ending poverty in good

After Danone in the for Danone, this by Investing in these

richest countries already selling cheap and businesses creates loyalty

has a mature market, it healthy food not only and commitment, for this

focuses on the poorest helps the poor to eat reason, Danone is very

countries where it can well but they can committed to Social

reach, to create a contribute to the local Business in which they

demand and to be able to economy and by doing invest capital and support

make a social aid. Social Business they are

giving a different

proposal to what other

Multinationals with low-

cost junk food have.

 PRECEDING THE BANGLADESHI JV

Since Danone decided to invest in this project and demonstrated results that

help people doing business on a social level, many brands have begun to do the

same and create products that help society and create demand. Companies

that want to take advantage of this with a nutritious product should have:

Price: Low and stable prices, something that is always available.

Product compatibility: In this case, not only does it have to be nutrition, but it

has to be tasty, it has to adapt to the flavors that people are accustomed to.

Education: Many sites have illiterate people, for this reason, the way to reach

new countries has to be done in creative and non-traditional ways such as

teaching about food nutrition.

Promotion: Advertising is important, in these cases you can use opinion

leaders for example.

Competition: there are many agents in societies that also do beneficial work,

for this reason we must see how to overcome them or how to work in

cooperation with them.

Product Policies
The products created must always have the purpose of meeting the goals of Social

Business.

Through market testing, Danone decided to sell a sweeter and thinner yogurt,

drinkable directly from the container (subsequent market feedback led the JV to sell

spoons as well). It fortifies the yogurt with 30 percent of the daily need for vitamin A,

zinc, and iodine, and it uses biodegradable technology so that containers can be

converted to fertilizer.
 PRICING PROMOTION

To keep costs and prices low, the Most promotion is word of

plant uses only local ingredients, mouth; however, one

mainly from small suppliers, they promotional event was

try to do other things that reduce noteworthy with Zinedine

the cost to put a better price. Zidane.

PROCESS DISTRIBUTION BRAND

They do campaigns to improve

Bangladesh’s high underemployment

attracted more than enough women the brand like Lion-dressed

to work part- time selling yogurt, mascots visit youth areas to

they train women so they can describe the value of eating

distribute yoghurt in the best way. yogurt.

EVALUATION Evaluating the JV’s financial performance

straightforward; however, assessing its social effects

is challenging. For this, the JV has hired a Swiss-

is

based nutrition organization (GAIN) to develop, test,

and validate its, and they show that the children who

have consumed yogurt with and without

micronutrient fortification and conclude that the

former have grown more in height and other

important things.

Grameen Danone Foods’ sales have increased

steadily, from 150,000 cups in 2008 to 22.5 million

cups in 2011. The number of saleswomen employed

at the end of 2011 was 821. Further, Danone has

learned much in Bangladesh about running small-

scale production. Inspired by this new model of

collaboration, other major MNEs are establishing

social businesses with Grameen Foundation.

 THE FUTURE

Grameen Danone Foods’ sales have increased steadily,

from 150,000 cups in 2008 to 22.5 million cups in 2011.

The number of saleswomen employed at the end of 2011

was 821. Further, Danone has learned much in

Bangladesh about running small-scale production.

Inspired by this new model of collaboration, other major

MNEs are establishing social businesses with Grameen

Foundation.
https://play.kahoot.it/v2/lobby?quizId=c58e509c-25a4-4e26-879d-c901fba8543c