Professional Documents
Culture Documents
Social Marketing 1
Globalization -a Example
process of interaction • 18-year-old Hanna logs on
to a Canadian web site,
and integration among
orders the latest CD
people, companies, and recorded by Madonna, and
governments of many pays for it in Kroner, using
nations, is driven by a Danish credit card issued
by her local bank.
international trade and
investment and has
resulted in what some
call a global economy.
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Increasingly mobile workforce, more
informative customers, and rapidly changing
technologies and business models.
Marketing strategy is the key to attaining
competitive advantage in the global
marketplace.
How can a successful global marketing
strategy be developed and sustained?
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Requires the firm to focus its efforts world-
wide, rather than developing marketing
strategies on a country by country basis
The objective: Coordination and integration
of production, marketing and other
functional activities across countries
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Global markets:
• The idea that regional and/or world markets are
converging, allowing for a more standardized
marketing strategy.
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Measured by 4 dimensions
• Cultural
Language, ethnicities/traditions, religion, values, norms
• Administrative
Laws, political risk, government structure
• Geographic
Country size, infrastructure, climate, remoteness from
neighboring countries.
• Economic
Differences in national income, costs of doing business,
prices, availability of human and natural resources
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Global markets are characterized by:
1. Greater uncertainty in markets and environments.
2. Greater diversity and dynamism/interest than
domestic, internal markets.
3. Greater separation of geographical and
psychological distances.
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Spatial(depth/position) distances between
domestic and global marketing have been
reduced by the substitution of IT media for
face-to-face contact between buyers and
sellers
However, in some instances face-to-face
communication is preferable
One of the most dramatic developments of
the start of the new millennium was a shift
of advertising expenditures from traditional
media to the Internet 1-8
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Culturaldistance may be defined as some
measure of the extent to which cultures are
similar or different.
• Measured on a country level and cannot be
controlled by management
Psychic distance exists in the mind of the
individual
• The perceptual distance between the home country
culture and the host country culture
Measured on the individual, rather than the country, level
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4 approaches/orientations by which a firm
is managed in foreign markets
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Standardization vs. localization-adaptation
Configuration/Coordination
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Standardization vs. localization-adaptation
• Standardization benefits include
Economies of scale (more production leads to decrease cost)
Lowered costs
Uniform products
Shorter learning curve
• Localization is preferred:
Different customer preferences
Different performance requirements and standards
across countries
Different cultural perceptions
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A value chain is the sequence of activities
required to make a product or provide a
service.
Primary activities
• Inbound logistics
• Operations
• Marketing and sales
• Service
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Configuration refers to where and how
activities will be located
• Concentrated in one country or
• Dispersed throughout many countries
Coordination refers to the governance of the
activities, how they are linked together
throughout a chain which is dispersed
geographically among many countries
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4 dimensions:
• Market measures
• Consumer measure
• Measures of innovation
• Financial results
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Strategic vision
• Where a company wants to go, how it will get there,
and why it should be successful in doing so.
Global vision
• The ability to look into the future or the capacity to
visualize the image that the company is seeking to
create on a world-wide basis.
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