Introduction to Global Marketing (polycopié 1)
fidéliser les clients : to build customer loyalty
un ensemble de : a set of
Définition d'un marché :
A market is a set of actual and potential customers.
Actual customer is the customer that the company already have.
One product is design for one market.
One product is design for a set of customers.
Market are customers.
The marketing process :
1 – Analysis
=> SWOT analysis
- company strenghs & weaknesses (internal analysis)
- market opportunities & threats (external analysis)
2 – Planification
=> setting goals
=> designing strategies
3 – Implementation
=> ...view middle of the document...
T engineers are highly skilled (les entreprises américaines sont motivées pour going global en Inde)
an other motivation for going global : getting closer to local customers
eg : European & American carmakers have set up joint ventures (2 entreprises qui s'associent pour un projet commun) with Chinese firms in China.
B) Global firm : which vision of the world do you have ?
The most critical issue in global marketing is :
- Should we standardize or adapt our strategies ?
The following management orientations highlight alternative strategies
STANDARDISATION vs ADAPTATION
1- Ethnocentric orientation
home-country oriented : focused on its own country & culture
Assumes (suppose) home country is superior to the rest of the world
eg : French wine growers (viticulteurs) think french wine is the best in the world
=> standardization (for the whole world)
Conditions that are necessary for STANDARDIZATION in global markets
1 => Similar customer needs worldwide
2 => absence of socio-cultural & other barriers
Management focus is to do in host countries what is done in the home country
Limits to standardization : lack of (manque de) adaptation => the firm may lose market share
2 – Polycentric orientation
Management operates under the assumption that every country is different
Every country is different => the company develops different products for different countries
eg : Chevrolet => large models in the US, smaller cars in Europe
Ferreiro Group (1960s) Kinder => German market
Mon cheri => French market
Nutella => Italian market
TODAY : the 3 brands are available in many different countries
the company develops country-specific
Limit to adaptation : hight costs
3 – Geocentric orientation
A mixture of standardization + adaptation
eg : Mc donalds => Big mac in many countries (standardization)
Mc arabia in Morocco (adaptation)
Mc Baguette in France (adaptation)
Today most global firms have a geocentric orientation.
With the geocentric approach, firms are able to achieve economies of scale when they standardize their products but they are able to gain more customers when they adapt their products to local market.
For September 19th, case study : does Trend Micro have an ethnocentric, polycentric or geocentric approach ? Back up your answers
Trend Micro uses a geocentric approach.
Standardization => Anti-viruses are developed for the whole worldwide
I – Analysis the global environment : the economic environment (polycopié 2)
The global environment
Global marketers need to identify which environmental factors have the strongest impact on their strategies
a) The economic environment
b) The socio-cultural environment
c) The political/legal environment