Global Marketing Strategies Marketing Strategies for Going Abroad

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

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

Global Marketing Strategies

� When selling abroad: ◦ Consider the 4 P’s ◦ Conduct a PEST analysis ◦  Explore the 3 global marketing strategies

3 Global Marketing Strategies:

Global Marketing Strategies

Globalization Adaptation Customization

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?

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

Successful Globalization Examples

�  Microsoft: ◦  Basic applications are the same ◦ Offer in different languages

�  Internet search engines ◦ Google = Google everywhere!

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

Types of Adaptation

Product Adaptation: *Change name, brand or ingredients *Meets specific needs or cultural differences

Promotion Adaptation: *Change advertising message *Reflect values, familiar images, cultural differences, or government regulations

Adaptation Benefits & Challenges

�  Benefits: ◦  Addresses specific cultural tastes and

interests ◦  Products are more accepted

�  Challenges: ◦  Increase in marketing costs ◦  Increase in research and development

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

Promotion Adaptation Example �  McDonalds: ◦ Must use adults in its advertising in Sweden ◦ Advertising to children is prohibited

Customization �  Customization: Creating specifically designed

products or promotions for certain countries or regions

�  Each geographical area is a unique market

segment

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

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

International McDonald’s Menu

� Link to Examples

Summary �  Must consider the following before going

abroad: ◦  4P’s ◦  PEST analysis ◦ Marketing strategies

�  3 global marketing strategies: ◦ Globalization ◦ Adaptation ◦ Customization

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.

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?

Resources �  Links: ◦  http://www.businessweek.com/stories/2006-05-07/brand-magic-in-india ◦  http://www.minyanville.com/businessmarkets/articles/wendys-google-japan-

economy-apple-citigroup/12/14/2009/id/25893

◦  http://marketingfailure.blogspot.com/2007/09/funny-marketing-fiascos.html �  Google Images �  Textbook (Teacher-Edition): Farese, L.S., Kimbrell, G., & Woloszyk,

C.A. (2012). Marketing essentials. Columbus, OH: The McGraw-Hill Companies.