AFM333 Lecture Notes - Lecture 6: Global Marketing, Sales Promotion, Direct Marketing
7 Aug 2019
School
Department
Course
Professor
Chapter 18- Marketing in the Global Firm
The Famous 4 P’s of Marketing
• Product
o Products are the goods and services that your business provides for sale to your target market. When
developing a product you should consider quality, design, features, packaging, customer service and
any subsequent after-sales service
o There are three levels of a product
o You have the core product which is the “benefit”
o You have the actual product which is the quality, features, packaging, styling and color
o Then you have the augmented product which is the customer support, warranty, delivery, installation,
favorable credit terms
• Price
o Price concerns the amount of money that customers must pay in order to purchase your products
o There are a number of considerations in relation to price including price setting, discounting, credit
and cash purchases as well as credit collection
• Place
o Place is in regards to the distribution, location and methods of getting the product to the customer
o Includes the location of your business, shop front, distributors, logistics, and the potential use of the
internet to sell products directly to consumers
• Promotion
o Promotion refers to the act of communicating the benefits and value of our product to consumers
o It then involves persuading general consumers to become customers of your business using methods
such as advertising, direct marketing, personal selling and sales promotion
Global Marketing Strategy
• Global marketing strategy- a plan of action that guides the firm in how to position itself and its offerings in
foreign markets and which customer segments to target and the degree to which its marketing program
elements should be standardized and adapted
• Global marketing strategy also articulates the degree to which the firms marketing program should vary
across foreign markets
o Global branding and product development
o International pricing
o International marketing communications
o International distribution
• The key challenges is how to resolve the tradeoff between standardizing the firms market program elements
and adapting them for individual international markets
• The issue of how best to coordinate international marketing activities across multiple markets also arises
Global Positioning Strategy
• Internationalizing firms aim for a global positioning strategy -> one in which the offering is positioned
similarly in the minds of buyers worldwide
o Ex. Apple, Google, Coca-Cola -> consumers around the world view these strong brands in the same way
• Global positioning strategy is beneficial because it reduces international marketing costs by minimizing the
extent to which management must adapt elements of the market program for individual markets
****Standardization and Adaptation of International Marketing ****
• Adaptation- Firms efforts to modify one or more elements of its international marketing program to
accommodate specific customer requirements in a particular market
• Standardization- refers to efforts to make the marketing program elements uniform, with a view to targeting
entire regions of countries, or even the global marketplace, with a similar product or service
• Achieving a balance between adaptation and standardization is part of a broader corporate strategy that has
the firm debating its position between global integration and local responsiveness
