Global Marketing: Strategies, Research, and Cultural Factors

Posted on Sep 28, 2024 in Economy

Globalization and International Business

Effects of Globalization

  • Technological innovation
  • Foreign direct investment
  • Inequitable distribution
  • Threat to sovereignty
  • Interdependence
  • Economies of scale

Benefits of Globalization

  • Cost reduction
  • Improved product and program quality
  • Enhanced customer preference
  • Increased global competitive advantage

Driving Forces of Globalization

  • Increased application of technology
  • Liberalization of cross-border trade
  • Development of supporting services
  • Growth of consumer pressures
  • Increased global competition
  • Changes in political situations and government policies
  • Expansion of cross-national cooperation

Costs of Globalization

  • Diminished national sovereignty
  • Environmental damage
  • Increased income inequality and personal stress

Why Companies Engage in International Business

  • Expanding sales
  • Acquiring resources
  • Reducing risk
  • Saturated domestic markets
  • Attractive foreign markets

Modes of Operation in International Business

  • Import and export of goods and services
  • Direct and portfolio investments
  • Collaboration agreements
  • Asset use (licensing agreements)

Types of Foreign Investment

  • Foreign direct investment (FDI)
  • Joint ventures

Differences Between International and Domestic Business

  • Physical factors (geography, demography)
  • Social factors (politics, law, culture, economy)
  • Competitive factors (suppliers, customers, rivals)

Competitive Environment and Strategies

Concepts

  • Convergence: Increasing homogeneity among nations and organizations.
  • Crossvergence: Blending of different cultural values.
  • Standardization: Offering the same products and marketing mix globally.
  • Adaptation: Adjusting products and marketing mix to local needs.

Strategies

  • Global Strategy: Standardized product for the entire world.
  • Transnational Strategy: Balancing low costs and differentiation.
  • International Strategy: Transferring products and abilities to foreign markets.
  • Multidomestic Strategy: Adapting products and marketing to each country.

Challenges in International Business

  • Unstable governments
  • Foreign exchange fluctuations
  • Foreign entry and bureaucracy
  • Trade barriers
  • Corruption
  • Technological piracy

Global Marketing and Cultural Factors

Forces in Global Integration

Driving Forces

  • Technology
  • Culture
  • Market needs
  • Costs
  • Free markets
  • Economic integration
  • Peace

Restraining Forces

  • Culture
  • Market differences
  • Costs
  • National controls
  • Nationalism

Advantages of Global Marketing

  • Greater selection, availability, quality, and reliability at lower prices
  • Economies of scale
  • Lower marketing and advertising costs
  • Global exploitation of best ideas

Why Global Marketing is Imperative

  • Saturation of domestic markets
  • Emerging markets
  • Global competition and cooperation
  • Internet revolution

Culture and Its Role

  • Culture: Shared beliefs, values, and behaviors within a group.
  • Cultural Change: By choice or imposition.
  • Elements of Culture: Values, beliefs, attitudes, social structure, language, communication, religion, ethical systems.

Market Research in Global Marketing

Purpose of Market Research

  • Understanding consumer needs
  • Analyzing the marketing environment
  • Assessing competition

Uses of Market Research

  • Measuring consumer satisfaction
  • Understanding purchase behavior
  • Assessing 4P strategy efficiency
  • Quantifying market potential and share

Marketing Research Process

  1. Define the research problem (exploratory, descriptive, causal)
  2. Develop the research plan (information needed, contact methods, sampling plan, instruments)
  3. Collect the information (primary and secondary data)
  4. Analyze the information
  5. Present the findings

Challenges in Global Marketing Research

  • Complexity of design
  • Lack of accurate secondary information
  • Time and cost constraints
  • Coordination among countries
  • Difficulty in comparing countries

Web-Based Marketing Research

Advantages

  • Large, quick samples
  • Global access
  • Lower costs

Disadvantages

  • Limited internet access
  • Non-representative samples
  • Download times
  • Incorrect addresses