Copyright 2007, Prentice-Hall, Inc. 15-1
Globalization by U.S. Firms
Coca-Cola has been a leader in globalization.
Marketing in Action
Copyright 2007, Prentice-Hall, Inc. 15-2
Figure 15-1Major International Marketing
Decisions
Copyright 2007, Prentice-Hall, Inc. 15-3
What types of U.S. companies would like to see higher tariffs and what types would like to see lower tariffs or no tariffs?
Why is this the case?
Let’s Talk!
GATT promotes international trade by reducing tariffs.
Copyright 2007, Prentice-Hall, Inc. 15-4
Explore the European Union!Regional free trade zones such as the European Union help to simplify the process of going global. Explore their Web site for information that could be helpful to a marketer wishing to go global.
Marketing in Action
Map of the European Union as of March, 2006
http://europa.eu.int/index_en.htm
Copyright 2007, Prentice-Hall, Inc. 15-5
The Importance of Culture
Ignoring cultural differences can result in strong consumer backlash. Nike was forced to pull these shoes from distribution after learning that the stylized shoe logo resembled “Allah” when written in Arabic.
Marketing in Action
Copyright 2007, Prentice-Hall, Inc. 15-6
Marketing to ChinaMany marketers are attracted to the Chinese market due to its substantial population size and potential for growth. Colgate’s efforts have expanded their market share from 7% to 35% in less than a decade.
Marketing in Action
Copyright 2007, Prentice-Hall, Inc. 15-7
Figure 15-2Market Entry Strategies
Copyright 2007, Prentice-Hall, Inc. 15-8
Joint Ownership
KFC entered Japan through a joint ownership agreement with Japanese conglomerate Mitsubishi.
Marketing in Action
Copyright 2007, Prentice-Hall, Inc. 15-9
Marketing Mix Adaptation
In India, McDonald’s serves chicken, fish, and veggie burgers, but no beef. Check out the Maharaja Mac!
Marketing in Action
Copyright 2007, Prentice-Hall, Inc. 15-10
Figure 15-3Global Product and Communication
Strategies
Copyright 2007, Prentice-Hall, Inc. 15-11
Global Product StrategyCoca-Cola’s virtual vendor allows the curious to learn about Coca-Cola’s global product strategy.
Marketing in Action
http://www2.coca-cola.com/
Copyright 2007, Prentice-Hall, Inc. 15-12
Promotion Adaptation
Guy Larouche uses similar ads in European and Arabian countries, but tones down the sensuality.
Marketing in Action
Copyright 2007, Prentice-Hall, Inc. 15-13
Brand Name Blunders
Other Classic Blunders
Marketing in Action
OOPS!!! Not all brand names translate well into English, or from English into a different language.
“Coke” translated into Chinese characters was interpreted by the Chinese to mean “Bite the wax tadpole.”
Chevy used the “Nova” name verbatim, only to find out that no va means “It doesn’t go” in Spanish.
Copyright 2007, Prentice-Hall, Inc. 15-14
Economic Impact of Global Pricing
The adoption of the euro as a common currency by several nations has created a “pricing transparency” that is forcing companies to harmonize their prices throughout Europe.
Marketing in Action
Copyright 2007, Prentice-Hall, Inc. 15-15
Figure 15-4Whole-Channel Concept for
International Marketing