Textbook Notes (367,912)
Canada (161,493)
GMS 522 (43)
Chapter

GMS522 Reading Notes.docx

8 Pages
137 Views
Unlock Document

Department
Global Management Studies
Course
GMS 522
Professor
Helene Moore
Semester
Winter

Description
GMS522 Reading Notes 1/24/2013 9:52:00 AM January 17 , 2013 Chapter 1: The Global Marketing Imperative  Global marketing combines art/science with: o Economics o Anthropology o Cultural studies o Geography o History o Languages o Jurisprudence o Stats o Demographics  Global marketing refers to the planning, coordination, and integration of marketing activities across multiple country markets  The “liability of foreigness” adds an additional layer of complexity and risk to the firm’s marketing decisions  Research has shown that large firms generate most of their sales in their home region  Coordination/integration may be in terms of the sale of a standardized product with the same brand name in every country o Or, the company may choose to introduce this standardized product with a uniform advertising campaign that uses similar advertising appeal in all country markets o Pricing strategies across national markets may be harmonized o Timing of product introductions may be coordinated  Coordination and integration of marketing strategy with an emphasis on standardization are central tenets of global marketing  Global marketing retains basic mkt principle of satisfaction and exchange  To achieve in art of global marketing, it is necessary to be firmly grounded with its scientific aspects Evolution of the Concept  Term global marketing popularized by Theodore Levitt in 1980s  Economies of scale – when firms expand its output, cost per unit will decline, allowing firm to be more price competitive in the markets that it serves  Growing recognition that markets are different from home markets led to companies adopting a country-by-country or multi-domestic strategy  “Think global, act local”  importance of culture and local market conditions gave rise to the concept of “glocal marketing”, which reflects the need for balance between global marketing, with its focus on standardization, and local marketing, with its focus on adaptation to county differences  Global marketing and international marketing differ o International – older term, focuses on issues surrounding foreign market entry and local marketing Globalization  Refers to the increased integration of the world’s economies  First recognized during the worldwide oil crisis of 1970  For example: o A drought in Brazil and its effects on coffee production and prices are felt in Canada and indeed around the world o Sudden decline of Mexican pesos reverberated throughout Poland, hungary, and the Czech Republic o The “Asian Meltdown” of 1990s spawned uncertainty and affected businesses in every continent  Intergration has also become more apparent on an individual level o Communications has built new international bridges, be it through music or TV (CNN)  Globalization has also resulted in a re-orientation of corporate processes o Now easy to gather, manipulate, analyze, and disseminate information  Ongong global technological innovation in marketing has direct effects on the efficiency and effectiveness of all business activities o Products can be produced more quickly, obtained less expensively from sources around the world, distributed at lower costs, and customized to meet diverse customer needs  Advances in Internet technology also allow firms to separate their activities by content and context o Firms can operate in a “marketplace”, where buyers and sellers transact online, rather than a traditional marketplace o Research suggests that Canada and US exporters have not fully embraced Internet technology for transactions across national borders  Globalization has spawned significant increase in investment o Investment at an unprecedented high, and these shifts in financial flows have had major effects o These flows have resulted in buildup of international debt by governments, affected the international value of currency, provided foreign capital for firms, and triggered major foreign
More Less

Related notes for GMS 522

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit