Globalisation and International Marketing Strategy: Key Factors and Case Studies

1. L2 International marketing strategy: globalisation

2. 1 Overview 1 Introduction: examples of global companies and those at different . stages of globalisation. 2 Comparison of international with global marketing 3 Stages in globalisation 4 Key factors for success for companies wishing to globalise

3. 2 Global marketing origins Introduction : Early work by Robert Buzzell proclaimed . the advantages of standardisation [1968 ] Seminal article by Theodore Levitt[ 1983] in which he said world markets were growing more and more homogeneous. Examples of American and Japanese and European global companies include K.F.C., Sony,Swatch , Mercedes- Benz

4. 3 Key concepts of global marketing A comparison of Global v International marketing A global marketing company seeks to market globally/ to the world. Towards this end it will seek out one of its products and launch it globally. Its marketing activities will therefore be global/ the same for all countries. It assumes that markets are driven to a converging commonality Cateora &Hess An international marketing company seeks to tailor fit its marketing strategy to a particular country / market environment .It adapts to particular markets Cateora &Hess

5. 3 Key concepts of global marketing [continued ] A further definition provides another insight this time about segmentation / buyer preferences Global markets are defined as those markets in which buye r preferences are similar across countries . Within each country, several segments with differing preferences may exist, but the country borders are not important segment limits. In some cases the global market is more like a regional market encompassing a trade area such as EC, NAFTA or Mercosur J. Johansson 2006

6. 3 Key concepts of global marketing [continued] Customers consumers analysed by common requirements world wide - business customers seen as having global networks . with centralised purchasing Countries - national boundaries disappear in favour of a supra national trading blocs Competitors- appear as same world- class players in every national market

7. 3 Key concepts of global marketing [continued] Global products : these are standardised products. They offer higher quality , better value and more advanced features than alternative products in those countries. They are able to do this via combined production runs from several markets Global brands: these are brands that are available, well known and highly regarded throughout the worlds markets Global advertising: uses standardized campaigns where possible. Or, standard filmed footage with different voice- overs in each language.

8. 4 Stages in Globalisation 1st stage: export orientated company. This is where the company sells to overseas customers.Usually due to success with at least one of its products.Also in response to requests from overseas customers [ order takers] 2nd stage: overseas branch [s] are set up looking after marketing and sales plus after- sales service 3rd stage: the production base is relocated overseas e.g.Mulberry announced in Dec2006 that it would produce in China. 4th stage: other business functions transfer such as engineering, R&D ,finance, personnel.[Complete insiderisation is when all business functions have transferred]. 5 th stage: coagulate functions sending some back to the centre e.g. corporate R&D. All members now feel part of a global family.All use local management.All are free to act locallye.g Levi Strauss.

9. Sources Kotabe &Helsen 2011 Hollensen 2007 Peng 2009 Johansson 2006 Keegan&Green 2008