Session 3: Part 2

Question 1

Why go global?

Answer 1

Competitive drivers (Competitors are expanding globally)
Cost drivers (Economies of scale)
Technology drivers (Internet and global sourcing)
Access to resources (raw materials)

Question 2

What is global marketing?

Answer 2

Marketing actives coordinated and integrated across multiple country markets.

Question 3

What does global marketing include?

Answer 3

Standarized products
Uniform packaging
Identical brand names
Synchronized product introductions
Similar advertising messages
Coordinated sales campaigns

Question 4

What is Globalization (Standardization)?

Answer 4

Brands that consumers can find under the same name in multiple countries with generally standardized and centrally coordinated marketing strategies.

Question 5

What is Localisation (Differentiation)?

Answer 5

Developed and tailored to the unique needs and desires of local markets

Question 6

What is Glocal?

Answer 6

Global + Local

Question 7

Characteristics of global brands

Answer 7

 Economies of scale and scope
 Wide availability, recognition and geographical reach
 High esteem, status, global myth
 Convenience and low risk
 Environmental and ethical responsibility
 Uniformity and standardization

Question 8

Characteristics of local brands

Answer 8

 Adaptation to local preferences and taste
 High awareness and availability in local market
 uniqueness and originality
 Pride of representing the local area and culture

Question 9

Industry that tends to have global brands

Answer 9

High-tech industry

Question 10

Categories that tend to have localized brands

Answer 10

Food
Drink
Clothing
Music

Question 11

What is a global market?

Answer 11

Markets in which buyer preferences are similar across countries.

Question 12

What is a multi domestic market?

Answer 12

Product markets in which local consumers have preferences and functional requirements which differ widely from one another.

Question 13

What are the four consumer segments?

Answer 13

Global citizens
Global enthusiasts
Pragmatics
Local activists

Question 14

What are the global citizens?

Answer 14

They rely on global success as a signal of quality and innovation but try to go get the best out of each market.
Concern about CSR (Consumer Social Responsibility)

Question 15

What are the global enthusiasts?

Answer 15

They admire global brands. Embrace the concepts of interconnectivity and multiculturalism

Question 16

What are the pragmatics?

Answer 16

They do not care about the brands social or environmental policies.
They base selection on objetive quality or price.

Question 17

What are the local activists?

Answer 17

They prefer local brands. They are willing to act in an organised way to penalice a (global) brand.

Question 18

Major country-specific advantages (CSA)

Answer 18

1. High Manufacturing Quality (Japan)
2. Technology Know-How (Germany, US)
3. Unique Resources (Brazil)
4. Low Manufacturing Cost (Asia)
5. Skilled Labor at Low Cost (India)

Question 19

Major firm-specific advantages (FSA)

Answer 19

1. Brand equity (Coca Cola, Apple)
2. Technology (Intel, BMW, Samsung)
3. Advertising (Absolut Vodka)
4. Distribution (Starbucks, Microsoft, Kelloggs)
5. Value for money (Toyota, IKEA, Dell)