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TRANSCRIPT
Global Marketing Management
Global Customers
.
Keegan: Global Marketing Management Chapter 5/ 2
Overview
� Regional Market Characteristics
� Marketing in Transitional Economies & Less Developed Countries
� Global Buyers
� Global Marketing Plan
� Summary
Keegan: Global Marketing Management Chapter 5/ 3
Learning Objectives
� Become familiar with different regional markets
� Learn how transitional & developing markets differ from developed countries
� Understand the customer value & the value equation
� Discuss diffusion theory
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Western Europe
� Smaller than Australia� 32 % Global Income� 460 mill ion population� 7% World Population� 23 Countries
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Product Strategies in the EU
� Harmonization in product standards
� Common patenting & branding� Harmonization in packaging
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Pricing Strategies in the EU
� More competitive� Withdrawal of restrictions on foreign
products� Anti-monopoly measures� Widening of public procurement market
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Distribution Strategies in the EU
� Simplif ication of transit documents & procedures
� Elimination of customs formalit ies
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Promotion Strategies in the EU
� Common guidelines for TV broadcasting
� Deregulation of national monopolies
� Uniform standard for TV commercials
Keegan: Global Marketing Management Chapter 5/ 9
Eastern & Central Europe
� Balkans: Albania, Bosnia-Herzegovina, etc.
� Baltics:Lithuania, Latvia & Estonia� Commonwealth of Independent States� Poland, Hungary, etc.
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Eastern & Central EuropeBefore – After Market Economy
Before After
% World GNP 6.9% 2.5%
GNP per Capita $3,665 $2,219
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Marketing in Eastern & Central Europe
� Wide range in economic development� Young people have “unlearned” the
communist past� Needs business and distribution
infrastructure� Familiar with Western Brands
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North America - NAFTA
� $9,254 trillion GNP� 30% of Global Income� 407 million population� 7% world population
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Asia-Pacific
� $8,230 bil l ion Global Income� 25% of Global Income� 2.8 Bil l ion population� 52% World Population
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Traditional Western & Asian Marketing Values
Western•Brand segmentation; personal choice & self expression through brands•Presenters/testimonials important but more to draw attention to brands•Seeding & diffusion from leading edge•“Understatement” of wealth •Environmentalism
Asian•Popular famous brands; confidence in brand & corporate names•Imitation,emulation,use of presenters as role models •Rapid adoption of successful brands•Display of wealth and status•Confidence in technology
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JAPAN
•Home of most demanding customers
•Home market of global customers
•Home market of global competitors
•Significant market of global competitors
•Major source of industry innovation.
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China
� $1,179 Bil l ion GNP� 3.9% Global Income� 1.27 Bil l ion population� 21% world population� $930 GNP per Capita� Nearly 10% annual growth in GNP
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India: A Closer LookPer capita income $330
Per capita GDP $310
Population 950m
Literacy rate <50%
Telephones 6m
Television Sets 35m
Access to clean sanitation* 14%
Population with income>$2500 2.3%
Average household size 5.2
Growth Rate 3.5%
* One of the lowest rates of access in the world
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Latin America
� Consists of South and Central America & Caribbean
� Mexico is economically part of NAFTA
� 7% of global Income� 510 mill ion population� 9.5% world population
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Africa
� 3.5 times size of US� 3 Regions: North Africa, Sub-
Sahara and Republic of South Africa
� 1.3% Global Income� 730 mill ion population� 12% of world population� Average per capita = $536
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Transitional Economies & Less Developed Countries
� 1. Low per capita income - under $4000� 2. High inf lat ion – 10 to 30% annually� 3. Wide gap in income distr ibution� 4. High level of taxes, duties &
bureaucratic hurdles� 5. Lack of marketing awareness� 6. Fragmented communications &
distribution7. Inadequate infrastructure
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To Enter or Not to Enter?
� Look beyond per capita GNP� Consider LDCs collectively� Weigh the benefits of being first� Set realist ic deadlines
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Middle East
� 16 countries� 2% of Global Income� 260 mill ion population� 4% of world population� Predominately Muslim
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Roger’s Diffusion Theory
� Awareness� Interest� Evaluation� Trial� Adoption
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Roger’s Factors Affecting Rate of Innovation Adoption
� Relative advantage� Compatibil i ty� Complexity� Divisibil i ty� Communicabil ity
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Summary
� % Population is not related to % GNP� Major regions differ by income and
population� Diffusion of innovation varies around
world