#11 Global Marketing

Question 1

What is a global firm/global brand?

Answer 1

Global firm: Firm that operates in one or more countries in order to capture logistical, marketing and functional advantages that may not be available to the domestic country.

Global Brand: products that are produced, packaged and positioned in the same way regardless of country (consistency)

Question 2

Challenges of going global

Answer 2

U FET CAT

• Unstable government
• Foreign exchange issues
• Foreign government entry requirements
• Tariffs and other barriers
• Corruption
• High cost of adaptation
• Technical piracy

Question 3

4 Key Decisions of Going Global

Answer 3

1. Whether to go abroad or not
2. Which markets to enter
3. How to enter markets
4. Marketing strategy

Question 4

1. Whether to go abroad or not

Answer 4

• Higher profit opportunity
• Reduce dependency on any one market
• Consumers going abroad
• Preempt threat from foreign firms

Question 5

2. Deciding which markets to enter

Answer 5

• Determine the company’s objectives
• How many firms to enter?
• Type of countries

Question 6

3. How to enter markets?

Answer 6

• Export (direct/indirect)
• Licensing
• Joint Venture (manufacturing contract, contractual management, joint ownership)
• Direct investment

Question 7

4. Marketing Strategy

Answer 7

4Ps

1. Products
   - Hybrid?
   - Standardise or adapt
   - Internal product/promotion strategies (straight extension, product adaptation, communication adaptation, dual adaptation, product invention)
2. Promotion
3. Price
   - Uniform
   - Market
   - Cost-based
4. Distribution/Place