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Global Marketing Management: Planning and Organization
McGrawHill/Irwin Copyright © 2013 by The McGrawHill Companies, Inc. All rights reserved.
Learning Objectives
LO1 How global marketing management differs from international marketing management
LO2 The need for planning to achieve company goals
LO3 The important factors for each alternative market entry strategy
LO4 The increasing importance of international
strategic alliances 122
Global Marketing Management
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Global Marketing Management
• The issue is if the global homogenization of consumer tastes allow for the global standardization of the marketing mix
• The Internet revolution of the 1990s added a new twist to the old debate • Some companies continue to believe that “global” is the way to go
• In many parts of the world, consumers have become pickier, more penny-wise, or a little more nationalistic
• They are spending more of their money on local drinks whose flavors are not part of the Coca-Cola lineup
• The trend back toward localization is because of the efficiencies of customization because of the proliferation of the Internet and flexible manufacturing processes
• The debate about standardization versus adaptation is an example of ethnocentrism in the U.S.
• As global markets homogenize and diversify simultaneously, the best companies will avoid focusing on country as the primary segmentation variable
• Other segmentation variables are often more important—for example, climate, language group, media habits, age, or income
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The Nestlé Way: Evolution Not Revolution
• The “Nestlé way” is to dominate its markets
• Its overall strategy can be summarized in four points:
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