1. Strategic Marketing Management

2. Changes in the Marketing Environment
Since a last decade or 2, significant changes in the marketing environment have been observed in the marketplace.
These significant changes could be categorized as: supply v/s demand environment, rising expectations, innovation in technologies, globalization, increasing focus on service, fashionisation of markets, erosion of brands, micro markets, commoditization & other constraints. 

3. Changes in the Marketing Environment (continued…)
Previously, many companies do not bother to even think about Customer needs & wants. They only concentrated on their production & specialization side. However, over time marketing managers realized the fact that understanding Customer needs, behaviors & wants are crucial for Customer satisfaction which ensures the continuity of an organization in the market. Now, every other business is trying to achieve Customer satisfaction, meet Customer expectations &...

4. Commoditization
A process by which good that have economic value & are distinguishable in terms of attributes (uniqueness or brand) end up becoming simple commodities in the eyes of the market or consumers.
Happens when a product or service becomes so common that consumers no longer differentiate between brands. Consumers buy the cheapest products. Ex, wheat, butter, eggs, milk & milk products.
It is the movement of a market from differentiated to undifferentiated price competition & from monopolistic to perfect competition. The ultimate winner is the Consumer.

5. Fashionization
Millennium consumers or Gen Y, has more buying power than parents. So the products & brands are fashionized or associated with Gen Y to capture the attention of this influential generation.
Ex: Jaguar’s latest campaign which features the singer Lana Del Ray. The campaign is part of a major push from the company to regain its attraction among the young, ability to afford, spend elite.
Bill Gates endorsing DUBAI for Expo 2020.
Paris Hilton advt to be a DJ for an event.

6. Definition Global Firm
A firm that, by operating in more than 1 country, gains R&D, production, marketing & financial advantages in its costs & reputation that are not available to purely domestic competitors.

7. Globalization
It describes the process by which regional economies, societies & cultures have become integrated through communication, transportation & trade.
The process by which different parts of the world interact economically, politically & culturally.

8. 3 mechanisms for society’s integration
In each society the 3 mechanisms exist, but 1 of them dominates!
Culture
An integrated pattern of human knowledge, belief & behavior that depends upon the capacity for symbolic thought & social learning
Religion
System of
values, practices
& norms,
related to the
idea of God.
A composition of
attitudes
between
God & man.
Ideology
System of ideas, which serve the politics, recommend
public &
political
structure of the society & the
type of relations
between man &
authorities

9. Globalization Effect Research approach Factors
Systematic result of the influence of
the globalization on the other factors
& forces of development
Globalization
Effect
Research
approach
To consider the effect of other
development factors
To consider the accumulated result
Factors
economic
non economic
Manifest on
2 levels
General historical
Formative level
(social system)

10. Conclusions for Global Marketing
factors
tendencies
contradictions
GLOBALIZATION EFFECT
globalization
Global shaping of
economics
regionalism
Conclusions for Global Marketing

11. Global Marketing in the 21st Century
International trade is booming
Many U.S. firms are successful international marketers
Global competition is intensifying
Global companies face several problems
Companies face 6 major decisions in international marketing

12. 6 Major decisions in International Marketing

13. Looking at the Global Marketing Environment
The International Trade System
Tariffs, quotas, embargos, exchange controls, nontariff trade barriers
WTO & GATT
Regional free trade zones EU
NAFTA
Other free trade areas

14. Looking at the Global Marketing Environment (continued…)
Economic Environment
Industrial structure
Subsistence economies
Raw material exporting economies
Industrializing economies
Industrial economies
Income distribution

15. Looking at the Global Marketing Environment (continued…)
Cultural Environment
Impact of Culture on Marketing Strategy
Cultural traditions, preferences, behavior
Impact of Marketing Strategy on Cultures
Globalization vs. Americanization

16. Overlooking cultural differences can result in embarrassing mistakes
Overlooking cultural differences can result in embarrassing mistakes. Nike found that this stylized “Air” logo resembled “Allah” in Arabic script

17. Deciding Whether to Go International
Not all companies need an international presence
Globalization may be triggered by several factors
Risk & the ability to operate globally must be carefully assessed

18. Deciding Which Markets to Enter
Define international marketing polices & objectives & sales volume goals
Decide how many countries to target
Decide on the types of countries to enter

19. Deciding Which Markets to Enter (continued…)
Screen & rank each of the possible international markets using several criteria
Market size, market growth, cost of doing business, competitive advantage, risk level

20. Market Entry Strategies

21. Tokyo Disneyland is owned & operated by a Japanese development company under license from Walt Disney Co.

22. Deciding How to Enter the Market
Exporting
Direct vs. indirect
Joint Venturing
Licensing, contract manufacturing, management contracting, joint ownership
Direct Investment
Assembly facilities, manufacturing facilities

23. Deciding on the Global Marketing Program
Standardized Marketing Mix
Same basic product, advertising, distribution & other elements of the marketing mix are used in all international markets.

24. Discussion Question
What adjustments might need to be made to the pricing, promotion, or product itself if Cracker Jack were marketed in Japan, England & Egypt?

25. Deciding on the Global Marketing Program
Adapted Marketing Mix
The marketing mix elements are adjusted for each international target market.

26. Deciding on the Global Marketing Program (continued…)
Global Market Product Strategies
Straight product expansion
Marketing the product with no changes
Product adaptation
Altering the product to meet local conditions or the wants of the foreign market
Product invention
Creating new products or services for foreign markets

27. Deciding on the Global Marketing Program (continued…)
Global Promotion Strategies
Standardized global communication
Advertising themes are standardized from country to country with slight modifications
Communication adaptation
Advertising messages are fully adapted to local markets

28. Guy Laroche standardizes global advertising but adapts to meet cultural differences. The Arabian version is less sensual.
European
Arabian

29. Whole-Channel Concept for International Marketing

30. Marketing Strategy Standardization (Global Integration Pressures)
Efficiencies through integrated R&D, production, marketing
Control implications
Adaptation (Local Responsiveness Pressures)
Buyer behavior (cultural, economic influence, brand perception--country of origin idea)
Laws, regulations
Local environment needs
Responsiveness to local condition shifts