1、,Unit 10,Text CExercises,Text C,Global Marketing Strategies,1 In the early phases of development, global marketing strategies were assumed to be of one type only. Typically, these first types of global strategies were associated with offering the same marketing strategy across the globe. The debate
2、centered on whether a company could gain anything from this and what the preconditions for this type of strategy would be. As marketers,gained more experience, many other types of global marketing strategies became apparent. Some of those were much less complicated and exposed a smaller aspect of a
3、marketing strategy to globalization. In this passage, we explore some of the generic types of global marketing strategies and indicate the conditions under which they may best succeed.,Integrated Global Marketing Strategy2 When a company pursues an integrated global marketing strategy, all aspects o
4、f the marketing strategy have been globalized. Globalization includes not only the product but also the communications strategy, pricing, and distribution, as well as such strategic elements as segmentation and positioning.,Such a strategy may be advisable for companies that face completely globaliz
5、ed customers along the lines defined earlier. It also assumes that the way a given industry works is highly similar everywhere, thus allowing a company to unfold its strategy along similar paths in each country.,3 One company that fits the description of an integrated global marketing strategy to a
6、large degree is Coca-Cola. That company has achieved a coherent, consistent, and integrated global marketing strategy that covers almost all elements of its marketing program, from segmentation to positioning, branding, distribution, bottling, and more. This globally,integrated marketing strategy is
7、 also aided by a constant and intensive global logic faced by Coca-Cola from both its customers and the industry, as evidence by the relentless competitive struggle with its archrival PepsiCo.,4 Reality shows that such situations are uncommon, and complete integrated global marketing strategies will
8、 continue to be the exception. However, there are many other types of global marketing strategies; each may be tailored to specific industry and competitive circumstances.,Global Product Category Strategy5 Possibly the least involved type of global marketing strategy is the pursuit of the global cat
9、egory. Leverage is gained from competing in the same category country after country and may come in the form of product technology or development costs. Selecting the form of global product category implies that the company, while staying within that category, will consider targeting different segme
10、nts in each category, or varying the product, advertising, and,branding according to local market requirements. Companies competing in the multidomestic way are frequently applying the global category strategy and leveraging knowledge across markets without pursuing standardization. That strategy wo
11、rks best if there are significant differences across markets and when few segments are present in market after market.,6 Several traditional multinational players who had for decades pursued a multidomestic marketing approachtailoring marketing strategies to local market conditions and assigning man
12、agement to local management teamshave been moving toward the global category strategy. Among them are Nestl, Unilever, and Procter & Gamble, three large international consumer goods companies doing business in food and household goods.,7 Nestl, for decades relying on regional executives who supervis
13、ed many local companies, has adopted a series of strategic business units (SBUs) along product categories, such as for beverage, confectionery, or milk products. Senior executives at the head office took on responsibility for those categories. Previously, the same categories existed, but without pro
14、fit and loss responsibility. A similar move has been made by,Procter & Gamble, the U.S.-based producer of consumer goods. For several of its categories, such as disposable baby diapers, senior head-office executives now carry out the function of coordinating and sharing information across one catego
15、ry on a global basis. Unilever, the Dutch-British company in similar businesses as Nestl and Procter & Gamble, is focusing its business on some fourteen main categories.,Global Segment Strategy8 A company that decides to pursue the same segment in many countries is following a global segment strateg
16、y. The company may develop an understanding of its customer base and leverage that experience around the world. In both consumer and industrial industries, significant knowledge is accumulated when a company gains in-depth understanding of a niche or segment. A pure global,segment strategy will even
17、 allow for different products, brands, or advertising, although some standardization is expected. The choices may consist of competing always in the upper or middle segment of a given consumer market or for a particular technical application in an industrial segment.,9 Segment strategies are relativ
18、ely new to global marketing. Industrial firms in particular have begun to adopt them. ICI Nobel Explosives, a world leader in explosives for use in various types of mining, has adopted a global segmentation strategy according to key mining segments, such as deep mining, surface, and so on. Since the
19、 mining companies are increasingly pursuing global strategies themselves, it has begun to make sense for ICI to coordinate its strategies by segments and to leverage products, experience, and sales activities around the world.,DSM of the Netherlands, a lead European chemicals firm, has adopted an au
20、tomotive strategy coordinating its various businesses in the automotive segment. While this segment still spans several independent product lines, it nevertheless is a first step toward a different type of global marketing strategy.,Global Marketing Mix Element Strategy10 These strategies pursue glo
21、balization along individual marketing mix elements such as pricing, distribution, communications, or product. They are partially globalized strategies that allow a company to customize other aspects of its marketing strategy. Although various types of strategies may apply, the most important ones ar
22、e global product strategies, global advertising strategies, and global branding strategies.,Global Product Strategy11 Pursuing a global product strategy implies that a company has largely globalized its product offering. Although the product may not need to be completely standardized worldwide, key
23、aspects or components may in fact be globalized. The company may elect to add a global product strategy if the product or services offered fit the description of global products discussed earlier. Global product strategies require,that product use conditions, expected features, and required product
24、functions be largely identical so that few variations or changes are needed. Companies pursuing a global product strategy are interested in leveraging the fact that all investments for producing and developing a given product have already been made. Global strategies will yield more volume, which wi
25、ll make the original investment easier to justify.,12 Ford Motor Company is currently in the process of adopting a global product strategy. Previously organized as regional profit centers, the company is reorganizing around global model, or product. At the same time, Ford is working on a new “world
26、car” program to develop a replacement for the older Escort models. Escorts, although,marketed in both the United States and in Europe, were developed separately for each market. Code-named CW170, Fords new model is to be developed and launched by the European competency center for small and medium-s
27、ized cars, one of five such centers within Ford.,13 Other companies with relatively homogeneous products have already achieved global product status. For example, in the mobile phone handset industry, the products are largely standardized phone with the exception of fitting to different local teleco
28、mmunications standards.,Global Branding Strategy14 Global branding strategies consist of using the same brand name or logo worldwide. Companies want to leverage the creation of such brand names across many markets, because the launching of new brands requires a considerable marketing investment. Glo
29、bal branding strategies tend to be advisable if the target customers travel across country borders and will be exposed to products elsewhere.,15 Spending some $140 million on its brand name, U.S.-based athletic shoe manufacturer Reebok has embarked on a global branding strategy, consolidating all of
30、 its advertising under the Leo Burnett advertising agency. The company wants to become the number one sports and fitness brand in the athletic shoe market, estimated at $12 billion, and in the process achieve a 30 percent world market share.,16 Global branding strategies also become important if tar
31、get customers are exposed to advertising worldwide. This is often the case for industrial marketing customers, who may read industry and trade journals from other countries. Increasingly, global branding has become important also for consumer products, where cross-border advertising through internat
32、ional TV channels has become common. Even in some markets such as,eastern Europe, many consumers had become aware of brands offered in western Europe before the liberalization of the economies in the early 1990s. Global branding allows a company to take advantage of such existing goodwill. Companies
33、 purposing global branding strategies may include luxury product marketers, who typically face a large fixed investment for the worldwide promotion of a product.,Global Advertising Strategy17 Globalized advertising is generally associated with the use of the same brand name across the world. However
34、, a company may want to use different brand names, partly for historic purposes. Many global firms have made acquisitions in other countries resulting in a number of local brands. These local brands have their own distinctive market, and a company may find it counterproductive to change those names.
35、,Instead, the company may want to leverage a certain theme or advertising approach that may have been developed as a result of some global customer research. Global advertising themes are most advisable where a firm may market to customers seeking similar benefits sought across the world. Once the p
36、urchasing reason has been determined as similar, a common theme may be created to address it.,Exercises of Text C Part One Mark each statement below True or False based on your understanding of Text C.,1._Coca-Cola is a typical example of global product category strategy. 2._A company with a global
37、product category strategy targets the same segment or varies the product, advertising and branding according to local market requirements.,F,F,3._A global product company requires that a company completely standardize its product. 4._A multidomestic marketing approach tries to tailor marketing strat
38、egies to local market condition. 5._A company with a global segment strategy is pursuing different segments in many countries.,F,T,F,6._Global marketing mix element strategy includes global product strategies, global advertising strategies and global branding strategies. 7._From the passage we know
39、that Ford Motors Company is currently switching from a regional profit centre to a global product strategy. 8._One purpose of a global branding strategy is to reduce the cost of marketing investment on advertising.,T,T,T,9._Global branding strategy is not good for companies whose target customers tr
40、avel across country borders and will be exposed to products elsewhere. 10._Globalized advertising strategy is not necessarily required to use the same brand name across the world.,F,T,Part Two Give short answers to the following questions based on your comprehension of Text C.,1. What types of globa
41、l marketing strategies are mentioned in the passage? 2. Under what circumstance does global product category strategy work best? 3. Which kind of company is liable to use the global category strategy?,4. Why have some famous brands, such as Nestle, Unilever and P&, been moving towards the global cat
42、egory strategy?5. How can we give an exact definition of integrated global marketing strategy? 6. How effective is global product strategy to companies?,7. Whats the function of globalized advertising? 8. Why should many global companies have a number of local brands instead of the same brand name?,
43、The End,1. Integrated global marketing strategy, global product category strategy, global segment strategy and global marketing mix element strategy.,2. The strategy works best if there are significant differences across markets and when few segments are present in market after market.,3. Companies
44、competing in the multidomestic way are frequently applying the global category strategy.,4. Previously, the same categories existed but without profit and loss responsibility.,An integrated global strategy is one in which all aspects of marketing strategy have been globalized, including the product,
45、 the communications strategy, pricing and distribution, as well as segmentation and positioning.,6.Global product strategy will yield more volume, which will make the original investment easier to justify.,7.Global advertising themes are most advisable where a firm may market to customers seeking ismilar benefits sought across the world.,8. Partly for historical purposes. Some local brands have their distinctive markets and companies find it counterproductive to change those local names.,
