International & Global International & Global MarketingMarketing

Marketing on a worldwide scale. involves recognising that people all

over the world have different needs Must understand regional

differences – ie: currency, language, customs, interests, values, etc

Global MarketingGlobal Marketing

Some foreign markets have higher profit opportunities

Poor success in domestic markets means company needs a larger or new customer base

Reduces dependency on a single market especially if your product is in maturity or decline stage. For example, Starbucks, Coke and Blackberry etc…

More success!

Why Go Global?Why Go Global?

Understanding the Political/Legal Environment:

• Government bureaucracy & attitudes• Political (in)stability • Monetary regulations • Trade regulations/tariffs – extra costs • Product food and safety – rules around

different materials coming into the country

Understanding the Global Understanding the Global EnvironmentEnvironment

Economic Environment:

Developed countries (Canada/US/EU/Japan) •Private and public sectors are huge •Many different markets/competition Developing countries •Process of moving from agriculture to industrial Third World countries: Term developed after the Cold War but often used to

describe the developing countries of Africa, Asia, Latin America and Oceania. Many poorer nations adopted the term to describe themselves.

Cultural Environment: • Sellers must examine the ways consumers in

different countries think about and use products and tailor their marketing activities toward those consumer preferences

• Norms and cultural symbols vary from country to country (ex. Scotch-Brite; Tiffany & Co.)

• Companies that understand cultural differences can position their products to an international market

Ie: KFC offers poutine in Canada – this is known as Global Marketing Adaptation

Language, customs, religion, body language, beliefs and attitudes.

Culture is learned

What is Canadian culture?Hockey, beer, maple leaf, beaver, French Canada

What is Culture?What is Culture?

BUSINESS ETIQUETTE TIPS

Japan:Do not open a gift in front of a Japanese counterpart unless asked and do not expect the Japanese to open your gift.Avoid ribbons and bows as part of gift wrapping. Bows as we know them are considered unattractive.

Europe:Avoid red roses and white flowers, even numbers, and the number 13. Do not wrap flowers in paper.Do not risk the impression of bribery by spending too much on a gift.

Latin America:Gifts should be given during social encounters, not in the course of business. Avoid the colors black and purple, both are associated with the Catholic lent season.

Product Is the product use or design offensive to the culture? Do the colours of the packaging and product communicate the same

message? Is the product used in the country?

Place Where is this type of product/service sold in the country? What kind of transportation is available to move product?

Price What currency does the country use? What is the exchange rate? Is the domestic price of the item reasonable for the foreign country

when converted to the foreign currency or does it need to be adjusted?

Promotion Is the domestic marketing message offensive to the culture? What kind of translation do we need to do? What type of media is available for advertising? What is most

effective?

The 4 P’s in International The 4 P’s in International MarketingMarketing

Cross Cultural Research Cross Cultural Research ActivityActivity

•Research two world cultures. •Explain where they are in the world, something unique about the culture and identify some ‘do’s and taboo’s’ – •what should you do or NOT do as a traveller (or if travelling on business) and why?•We stopped here today. Tomorrow we will start from next slide.

Two Cultures, Two Barbies

The Barbie Doll didn't do very well in Japan, until Mattel gave the manufacturing license to Takara, a Japanese toy and doll specialist. Takara did some marketing research and found that most Japanese disliked Barbie. Her breasts were far too big, her legs were exaggeratedly long.So Takara made the appropriate modifications to Barbie's anatomy, converted her blue eyes to brown as well, and found instant success in the market.

In India it was a totally different story.In India it was a totally different story. India loves this little doll just as she is, golden

blonde, blue eyed and leggy, if a bit plastic. This Barbie is a precise copy of her American This Barbie is a precise copy of her American

incarnation, right down to the design of her incarnation, right down to the design of her miniskirt, her lounger and end table set, her miniskirt, her lounger and end table set, her diary, and antique telephone.diary, and antique telephone.

BUT…There is no place for a Ken doll in the market. The concept of a boyfriend may be too advanced in The concept of a boyfriend may be too advanced in

India where premarital relationships are frowned India where premarital relationships are frowned on and many wedding couples don't meet until their on and many wedding couples don't meet until their wedding day.wedding day.

What sells in America does not What sells in America does not necessarily sell in Japannecessarily sell in Japan

VIDEOVIDEOMeetings and cultural importance http://www.youtube.com/watch?v=JK_NinOmFWw&NR=1

Traveling http://www.youtube.com/watch?v=v1vvLQd53Ps

Gift givinghttp://www.youtube.com/watch?

v=8jrbu0lCWjk&feature=relatedPersonal spacehttp://www.youtube.com/watch?

v=sLLTQgQHClI

Product/Promotion StrategyProduct/Promotion Strategy

Straight Extension

Product Adaptation

Communication Adaptation

Dual Adaptation

Same

Same

PRODUCT

Different

Different

PROMOTION

Luxury products High-tech products Mass appeal products Favorable country image products

Products Suitable for Products Suitable for Standardized AdvertisingStandardized Advertising

Basic approach• Specific communication strategy• Specific Audience

Local adjustments• Words and the lyrics are translated• Basic adjustments made to the

copy• Visual adjustments made to the

copy

Coca-Cola: “Pattern Coca-Cola: “Pattern Advertising”Advertising”

Tailoring Global Tailoring Global CampaignsCampaignsCoca-Cola

A thousand children singing the praises of Coca-Cola

21 localized versions witha youngster from the local

market

Tailoring Global Tailoring Global CampaignsCampaignsCoca-Cola

A thousand children singing the praises of Coca-Cola

21 localized versions witha youngster from the local

market

Working in a group, you will be assigned a country and given a country profile.

American Eagle Outfitters wants to open stores in the country you have been assigned.

Read through the profile and outline what AE should do for each of the 4 P’s of marketing in that country.

You may change the style of products, advertising message etc. to suit the country’s culture.

TaskTask

http://www.youtube.com/watch?v=pxoB6MhmbIg

Body LanguageBody Language