MARK 3000 Chapter Notes - Chapter 6: Heinz Tomato Ketchup, Reverse Innovation, Glocalization

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Chapter 6
Choosing a Global Marketing Strategy
- like always, determine the target market and the proper marketing mix
Target Market: Segmentation, Targeting and Positioning (STP)
- more difficult to understand the cultural nuances of other cultures, must
also consider subcultures of each culture, consumers view products and their
role as consumers differently in different countries
Global Product or Service Strategies
o Sell the same product in the home and host country
Most typical method, global market standardization
Reverse innovation: when companies initially develop
products for niche or underdeveloped markets and
then expand them into their home country
Innovation Ex: Chinese Hershey’s Green Tea for local
markets
Adaptation (same product, change message):
Bicycle in US meant for fun and fitness but in
India market it as transportation
o Sell a similar product with minor adaptations
Campbell soup tried to enter China and Russia but
these countries eat soup often and demand high
quality, so Campbell entered a joint venture in China
and created broths for Russians to cook with
Glocalization: when firms standardize their products
globally but use different promotional campaigns to
sell them (adapt to local tastes and flavors)
Ex: Pringles product remains the same except
they offer specific flavors based on the country
o Sell a totally new product or service
The level of economic development and cultural tastes
also affects global product strategy because it relates
directly to consumer behavior
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