Global Marketing Strategies. Marketing Strategies for Going Abroad
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1 Global Marketing Strategies Marketing Strategies for Going Abroad
2 What You Will Learn 3 marketing strategies when selling abroad: 1. Globalization 2. Adaptation 3. Customization Risks and challenges of each strategy Examples of successful strategies Failures
3 Review What does PEST stand for? Political, Economic, Socio-cultural, Technology What is a PEST analysis used for? Gain a better understanding of potential opportunities or threats to a company
4 Global Marketing Strategies When selling abroad: Consider the 4 P s Conduct a PEST analysis Explore the 3 global marketing strategies
5 3 Global Marketing Strategies: Global Marketing Strategies Globalization Adaptation Customization
6 Globalization Globalization: Selling the same product and using the same promotion methods in all countries Mass marketing on a global scale Very few products will succeed-why?
7 Globalization Benefits & Challenges Benefits: Global brand recognition Reduced marketing costs Design one logo Design one ad campaign Challenges: Difficult to translate words and phrases Meanings are perceived wrong
8 Successful Globalization Examples Microsoft: Basic applications are the same Offer in different languages Internet search engines Google = Google everywhere!
9 Adaptation Adaptation: Make changes to an existing product or promotion to suit the characteristics of a country or region Two types of adaptation: 1. Product Adaptation 2. Promotion Adaptation
10 Types of Adaptation Product Adaptation: *Change name, brand or ingredients Promotion Adaptation: *Change advertising message *Meets specific needs or cultural differences *Reflect values, familiar images, cultural differences, or government regulations
11 Adaptation Benefits & Challenges Benefits: Addresses specific cultural tastes and interests Products are more accepted Challenges: Increase in marketing costs Increase in research and development
12 Product Adaptation Example Unilever s Sunsilk hair products: Called Seda (means silk) in Latin America Ingredients are formulated to match hair types and styles in different countries
13 Promotion Adaptation Example McDonalds: Must use adults in its advertising in Sweden Advertising to children is prohibited
14 Customization Customization: Creating specifically designed products or promotions for certain countries or regions Each geographical area is a unique market segment
15 Customization Benefits & Challenges Benefits: Reach a specific market with new products and promotions Creates excitement and interest Challenges: Increased costs Time (research and development) Risky
16 Customization Example Coca Cola: Creates drinks solely for the Chinese market Yuan Ye Original Leaf Ready-to-drink tea Incorporate herbs used in Chinese medicine
17 International McDonald s Menu Link to Examples
18 Summary Must consider the following before going abroad: 4P s PEST analysis Marketing strategies 3 global marketing strategies: Globalization Adaptation Customization
19 Failures Rotate and read the scenario you were given and write your group s answers to the questions on the sheet. You will share momentarily with the class.
20 Global Examples Research & find 3 more examples of products that have been marketed globally. Include the following information: 1. Company & Product Name 2. Describe how the product has been modified 1. Customization? Adaptation (Product or Promotion)? 3. Has this been successful? Why or why not?
21 Resources Links: Google Images Textbook (Teacher-Edition): Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2012). Marketing essentials. Columbus, OH: The McGraw-Hill Companies.
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