PrinciplesofMarketingNineteenthEditionChapter17DigitalMarketingCopyright?2024,2021,2018PearsonEducation,Inc.AllRightsReservedLearningObjectives17.1 Definedigitalmarketinganddiscussitsrapidgrowthandbenefitstocustomersandcompanies.17.2 Discusstheconsumerandmarketresearchrequiredtodesignaneffectivedigitalmarketingcampaign.17.3 Discussthedifferentdigitalchannelsandmediaandexplainhowcompaniesemploythemtocreateanomni-channelmarketingstrategy17.4 Identifyanddiscussthepublicpolicyissuespresentedbydigitalmarketing.COCA-COLA:MakingtheBrandaPartoftheCustomer’sStoryCoca-Cola’s“RealMagic”campaignprovidesaplatformforengagingcustomersacrossabroadrangeofmoderndigitalmedia.Thenew“Hug”logovisualidentityembracesandframesmomentsofmagicacrossCoca-Cola’smultiplecommunicationsplatforms.emka74/ShutterstockTheDigitalMarketingProcessFigure17.1TheDigitalMarketingProcessLearningObjective1Definedigitalmarketinganddiscussitsrapidgrowthandbenefitstocustomersandcompanies.UnderstandingDigitalMarketing(1of4)Digitalmarketing

Theuseoftechnology-intensiveplatformssuchastheinternet,mobilenetworksanddevices,andsocialmediatoengagedirectlywithcarefullytargetedindividualconsumers,consumercommunities,andbusinesses.UnderstandingDigitalMarketing(2of4)TheNewDigitalMarketingModelDigitalmarketingservesasacompletebusinessmodel.Digitalanddirecttoconsumermarketingasabusinessmodel:OnlinetravelcompanyExpediaGrouphassuccessfullybuiltitsentireapproacharounddigitalmarketing.ItsTunitandthefamousRoamingGnomemakeiteasyforcustomersto“WanderWisely.”TravelocityUnderstandingDigitalMarketing(3of4)BenefitsofDigitalMarketingtoBuyersandSellersConvenienceBuyersbenefitfromincreasedpricecompetitionBrandengagementandcommunityInteractiveandimmediateDigitalreal-timemarketing:Fast-foodmarketerWendy’sisknownforitsskillfuluseofsocialmediatosparkanongoingreal-timedialoguewiththebrand’sfans.Deutschlandreform/Shutterstock;GaryArmstrongUnderstandingDigitalMarketing(4of4)BenefitsofDigitalMarketing—SellersTooltobuildcustomerrelationshipsLow-cost,efficient,fastalternativetoreachmarketsFlexibleAccesstobuyersnotreachablethroughotherchannelsOpportunitiesforreal-timemarketingLinkingbrandstoimportantmomentsandtrendingeventsLearningObjective2Discusstheconsumerandmarketresearchrequiredtodesignaneffectivedigitalmarketingcampaign.PreparingforaDigitalMarketingCampaign(1of3)KnowingtheDigitalConsumerDigitalconsumerpersonas—detailed,nuanced,andtangiblerepresentationsofprototypicalconsumerstobetargetedbythedigitalcampaign.Figure17.2ADigitalConsumerPersonajavi_indy/ShutterstockPreparingforaDigitalMarketingCampaign(2of3)UnderstandingConsumerOmni-ChannelNavigationBehaviorConsumeromni-channelnavigationbehavior

Theconsumer’suseofmultiplemarketingchannels,bothdigitalandnondigital,acrossstagesoftheconsumerbuyingdecisionprocess.Omni-channelnavigationbehavior:Toeffectivelymarkettoconsumerswiththerightmarketingcontentattherightplaceandtime,marketersmustunderstandwhichchannelsconsumersareusingateachstageofthecustomerjourney.Milkovasa/ShutterstockPreparingforaDigitalMarketingCampaign(3of3)UsingExperimentationtoUnderstandWhatWorksWithonlineandmobilemedia,marketerscanquicklyandeasilymanipulatetreatmentsacrosscustomergroupswithreadilymeasurableresults.Digitalmarketingisveryfriendlytoexperimentation.NetflixconstantlyusesA/Btestingtoassesstheeffectivenessofdifferentonlinepresentationformatsacrossusersegments.sitthiphong/ShutterstockLearningObjective3Discussthedifferentdigitalchannelsandmediaandexplainhowcompaniesemploythemtocreateanomni-channelmarketingstrategy.EmployingDigitalChannelsinanOmni-ChannelStrategy(1of4)OnlineMarketingOnlinemarketingismarketingviatheinternetusingcompanywebsites,onlineadsandpromotions,email,onlinevideo,andblogs.MarketingWebsitesengageconsumerstomovethemclosertoadirectpurchaseorothermarketingoutcome.BrandedCommunityWebsitespresentbrandcontentthatengagesconsumersandcreatescustomercommunityaroundabrand.EmployingDigitalChannelsinanOmni-ChannelStrategy(2of4)OnlineMarketingOnlineadvertisingisadvertisingthatappearswhileconsumersarebrowsingonlineandincludesdisplayads,search-relatedads,onlineclassifieds,andotherforms.Onlinedisplayadsaredigitaladsthatappearanywhereonaninternetormobileuser’sscreenandareoftenrelatedtotheinformationbeingviewed.Search-relatedadvertisingText-andimage-basedadsandlinksthatappearatoporalongsidesearchengineresultsonsitessuchasGoogle,Yahoo!,andBing.Emailmarketinginvolvessendinghighlytargeted,highlypersonalized,relationship-buildingmarketingmessagesviaemail.Spamisunsolicited,unwantedcommercialemailmessages.EmployingDigitalChannelsinanOmni-ChannelStrategy(3of4)OnlineMarketingOnlinevideomarketinginvolvespostingdigitalvideocontentonbrandwebsitesorsocialmediasitessuchasYouTube,Facebook,andothers.Viralmarketingisthedigitalversionofword-of-mouthmarketing:videos,ads,andothermarketingcontentthataresoinfectiousthatcustomerswillseekthemoutandpassthemalongtofriends.Viralmarketing:Manymarketersworktocreatevideos,ads,andothermarketingcontentthataresoinfectiousthatcustomerswillseekthemoutandpassthemalongtotheirfriends.Rido/ShutterstockEmployingDigitalChannelsinanOmni-ChannelStrategy(4of4)OnlineMarketingBlogsareonlinejournalswherepeopleandcompaniesposttheirthoughtsandothercontent,usuallyrelatedtonarrowlydefinedtopics.Companyblogs:Ratherthanpromotingproductsandsales,Patagonia’sblog,TheCleanestLine,sharesstoriesabouttheenvironment,tellswherethecompanystandsonkeyissues,andspreadsthebrand’s“saveourhomeplanet”message.CourtesyofPatagoniaSocialMediaMarketing(1of4)Socialmedia:Independentandcommercialonlinesocialnetworkswherepeoplecongregatetosocializeandsharemessages,opinions,pictures,videos,andothercontentSocialMediaMarketingAdvantages

TargetedandpersonalInteractiveImmediateandtimelyCosteffectiveEngagementandsocialsharingcapabilitiesJetBlueislegendaryforthespeedandqualityofitssocialmediaresponses.ItssocialmediateamactivelymonitorsTwitter,Facebook,andInstagraminteractions,usuallyrespondingwithinminutes.JetBlueSocialMediaMarketing(2of4)ImageandVideoPlatformsMessagingPlatformsBlogs/MicroblogsLocationPlatformsWikisReviewsandRatingsPlatformsLivestreamingPlatformsMetaversePlatformsUsingsocialmedia:StarbucksusescreativeInstagramStoriestoimmerseInstagrammersinbrand-relatedvideosandphotosoneverythingfrommenutips,explainingthebasicsofespresso,anditsstandonsocialissuestoteachingpeoplehowtoaskfortheirfavoritemenuitems.JaapArriens/NurPhotoviaGettyImagesSocialMediaMarketing(3of4)MetaversePlatformsThemetaverseisinitsinfancybutgrowingexplosively.Itseemslikealmosteverybigbrandisdivinginwithimmersivemetaversespacesandexperiencesthatfosterstrongengagementandasenseofcommunityamongbrandfans.Lightspring/ShutterstockSocialMediaMarketing(4of4)SocialMediaMarketingChallenges:UsercontrolledBrandsneedtoearntherighttobethereEvenaseeminglyharmlesssocialmediacampaigncanbackfireMobileMarketingMobilemarketingdeliversmessages,promotions,andothercontenttoon-the-goconsumersthroughmobilephones,smartphones,tablets,andothermobiledevices.Forconsumers,asmartphoneortabletcanbeahandyshoppingcompanion.Asaresult,mobileadvertisingspendingissurging.Mobilemarketing:TripAdvisor’smobileapp—“yourultimatetravelcompanion”—givesusersas-they-travelaccesstocrowd-sourcedinformationabouthotels,restaurants,placestogo,andthingstoseeworldwide.Andbookingoptionsarealwaysjustatapaway.BigTunaOnline/ShutterstockDiscussionQuestion(1of2)

Whyhasmobilemarketingexpanded?CreatinganIntegratedOmni-ChannelStrategy(1of2)Omni-channelmarketing:

Creatingaseamlesscross-channelbuyingexperiencethatintegratesin-store,online,andmobileshopping.Omni-channelstrategies:HomeDepotadoptedwhatitcallsa“OneHomeDepot”strategydesignedtocreate“aninterconnected,frictionlessshoppingexperiencethatenablesourcustomerstoseamlesslyblendthedigitalandphysicalworlds.”THEHOMEDEPOTnameandlogoaretrademarksofHomeDepotProductAuthority,LLC,usedunderlicense.CreatinganIntegratedOmni-ChannelStrategy(2of2)OvercomingtheChallengestoOmni-ChannelMarketingAligningOmni-ChannelMarketingandtheOverallBusinessModelAligningOrganizationalIncentivesandStructuresAligningtheMarketingMixLearningObjective4Identifyanddiscussthepublicpolicyissuespresentedbydigitalmarketing.PublicPolicyIssuesinDigitalMarketing(1of4)Irritationincludesannoyingandoffendingcustomers.Unfairnessincludestakingunfairadvantageofimpulsiveorless-sophisticatedbuyers.Deceptionincludes“heatmerchants”whodesignmailersandwritecopydesignedtomisleadconsumers.Fraudincludesidentitytheftandfinancialscams.Consumerprivacyinvolvesconcernsthatmarketersmayhavetoomuchinformationanduseittotakeunfairadvantage.PublicPolicyIssuesinDigitalMarketing(2of4)ConsumerPrivacyConsumerprivacy:Criticsworrythatmarketerswhoknowtoomuchaboutconsumers’livesmayexploitthem.ConsiderwhatGoogle,Facebook,Amazon,andothercompaniesalonelikelyknowabouttheircustomersandaccountholders.TYLim/ShutterstockPublicPolicyIssuesinDigitalMarketing(3of4)IrritationDeceptionandFraudConsumerprivacy:TheadindustryhasissuedasetofonlineandmobileadvertisingprinciplesthroughtheDigitalAdvertisingAlliancethatcallfordigitalmarketerstoprovidetransparencyandchoicetoconsumersifonlinedataarecollectedorusedfortargetinginterest-basedadvertising.Sam72/Shutterstock;EyalDayanPhotographyPublicPolicyIssuesinDigitalMarketing(4of4)DataIntegrityandSecurityAntitrustConcernsANeedforActionGeneralDataProtectionRegulation(GDPR)Children’sOnlinePrivacyProtectionAct(COPPA)DiscussionQuestion(2of2)Whataretheconcernsrelatedtodigitalmarketing?CopyrightThisworkisprotectedbyUnitedStatescopyrightlawsandisprovidedsolelyfortheuseofinstructorsinteachingtheircoursesandassessingstudentlearning.Disseminationorsaleofanypartofthiswork(includingontheWorldWideWeb)willdestroytheintegrityoftheworkandisnotpermitted.Theworkandmaterialsfromitshouldneverbemadeavailabletostudentsexceptbyinstructorsusingtheaccompanyingtextintheirclasses.Allrecipientsofthisworkareexpectedtoabidebytheserestrictionsandtohonortheintendedpedagogicalpurposesandtheneedsofotherinstructorswhorelyonthesematerials.PrinciplesofMarketingNineteenthEditionChapter18CreatingCompetitiveAdvantageCopyright?2024,2021,2018PearsonEducation,Inc.AllRightsReservedLearningObjectives18.1 Discusstheneedtounderstandcompetitorsaswellascustomersthroughcompetitoranalysis.18.2 Explainthefundamentalsofcompetitivemarketingstrategiesbasedoncreatingvalueforcustomers.18.3 Illustratetheneedforbalancingcustomerandcompetitororientationsinbecomingatrulymarket-centeredorganization.MICROSOFT:ANewCompetitiveMarketingStrategyfortheDigitallyConnectedWorldInthefast-changingdigitalenvironment,Microsofthastransformeditselfintoabrandthatconsumerscan’tlivewithoutinthepost-PC,cloud-drivenworld.imageBROKER/AlamyStockPhotoLearningObjective1Discusstheneedtounderstandcompetitorsaswellascustomersthroughcompetitoranalysis.CreatingCompetitiveAdvantageCompetitiveadvantagesrequiredeliveringmorevalueandsatisfactiontotargetconsumersthancompetitors.Competitoranalysisistheprocessofidentifying,assessing,andselectingkeycompetitors.Competitivemarketingstrategiesarehowcompaniesanalyzetheircompetitorsanddevelopvalue-basedstrategiesforprofitablecustomerrelationships.CompetitorAnalysis(1of8)Figure18.1StepsinAnalyzingCompetitorsCompetitorAnalysis(2of8)IdentifyingCompetitorsCompetitorscaninclude:AllfirmsmakingthesameproductorclassofproductsAllfirmsmakingproductsthatsupplythesameserviceAllfirmscompetingforthesameconsumerdollarsMarket-basedcompetitivedefinition:Fromamarketview,Amazoncompeteswithmorethanjustotheronlineretailers.Itcompeteswithabroadrangeoftechnologycompaniesofferingdigitalexperiences,includingthelikesofAlphabet(Google),Meta(Facebook),Apple,andMicrosoft.GKImages/AlamyStockPhotoCompetitorAnalysis(3of8)AssessingCompetitorsCompetitors’objectivesProfitabilityMarketsharegrowthCashflowTechnologicalleadershipServiceleadershipCompetitors’strategiesStrategicgroupoffersthestrongestcompetitionCompetitorAnalysis(4of8)AssessingCompetitorsCompetitors’strengthsandweaknessesWhatcanourcompetitorsdo?BenchmarkingEstimatingcompetitors’reactionsWhatwillourcompetitorsdo?Competitormyopia:Itwasn’tcompetingfilmmakersthatbroughtKodakdown.ItwasthecompetitorKodakdidn’tseesoonenough—digitalphotographyandcamerasthatusednofilmatall.FinnbarrWebster/AlamyStockPhotoCompetitorAnalysis(5of8)SelectingCompetitorstoAttackandAvoidCustomervalueanalysisdeterminesthebenefitsthattargetcustomers’valueandhowcustomersratetherelativevalueofvariouscompetitors’offers.IdentificationofmajorattributesthatcustomersvalueandtheimportanceofthesevaluesAssessmentofthecompany’sandcompetitors’performanceonthevaluedattributesCompetitorAnalysis(6of8)SelectingCompetitorstoAttackandAvoidCloseordistantcompetitorsGoodorbadcompetitorsGoodcompetition:RatherthanspellingtroubleforelectriccarpioneerTesla,themorethatmajorcompetitorslikeVolkswagenbuyintoelectriccars,thebetteritisforTesla.Kyodo/APImagesCompetitorAnalysis(7of8)SelectingCompetitorstoAttackandAvoidFindingUncontestedMarketSpacesBlue-oceanstrategy:Netflixhasforgedacontinuallyevolvingvalueinnovationstrategy,startingwithsubscription-basedDVDrentalsbymail,thenmovingtoonlinecontentstreaming,followedbydevelopingandstreamingitsownoriginalvideocontent.DanielAvram/ShutterstockCompetitorAnalysis(8of8)DesigningaCompetitiveIntelligenceSystemIdentifiescompetitiveinformationandthebestsourcesofthisinformationContinuallycollectsinformationChecksinformationforvalidityandreliabilityInterpretsinformationOrganizesinformationSendskeyinformationtorelevantdecisionmakersRespondstoinquiriesaboutcompetitorsDiscussionQuestion(1of2)Whatdoescompetitoranalysisinvolve?LearningObjective2Explainthefundamentalsofcompetitivemarketingstrategiesbasedoncreatingvalueforcustomers.CompetitorStrategies(1of18)ApproachestoMarketingStrategyEntrepreneurialmarketinginvolvesvisualizinganopportunityandconstructingandimplementingflexiblestrategies.Formulatedmarketinginvolvesdevelopingformalmarketingstrategiesandfollowingthemclosely.Intrapreneurialmarketinginvolvestheattempttoreestablishaninternalentrepreneurialspiritandrefreshmarketingstrategiesandapproaches.Entrepreneurialmarketing:BostonBeerCompanyfounderJimKochfirstmarketedhisSamuelAdamsbeerbycarryingbottlesinasuitcasefrombartobar,tellinghisstory,educatingconsumers,gettingpeopletotastethebeer,andpersuadingbartenderstocarryit.ThecompanyisnowoneofAmerica’sleadingcraftbreweries.KelvinMa/BloombergviaGettyImagesCompetitorStrategies(2of18)MichaelPorter’sFourBasicCompetitivePositioningStrategiesOverallcostleadershipDifferentiationFocusMiddleoftheroadCompetitorStrategies(3of18)BasicCompetitiveStrategiesOverallcostleadershipstrategy:

Acompanyachievesthelowestproductionanddistributioncostsandallowsittoloweritspricesandgainmarketshare.CompetitorStrategies(4of18)BasicCompetitiveStrategiesDifferentiationstrategy:

Acompanyconcentratesoncreatingahighlydifferentiatedproductlineandmarketingprogramsoitcomesacrossasanindustryclassleader.Focusstrategy:

Acompanyfocusesitseffortonservingfewmarketsegmentswellratherthangoingafterthewholemarket.CompetitorStrategies(5of18)BasicCompetitiveStrategiesAcompanythatpursuesaclearstrategywillachievesuperiorperformance.Acompanywithoutaclearstrategy,“a

middle-of-the-roader,”willnotsucceed.CompetitorStrategies(6of18)BasicCompetitiveStrategiesMichaelTreacyandFredWiersemasuggestcompaniescangainleadershippositionsbydeliveringsuperiorvaluetotheircustomersinthreestrategiesor“valuedisciplines.”O(jiān)perationalexcellenceCustomerintimacyProductleadershipCompetitorStrategies(7of18)BasicCompetitiveStrategiesOperationalexcellencereferstoacompanyprovidingvaluebyleadingitsindustryinpriceandconveniencebyreducingcostsandcreatingaleanandefficientvaluedeliverysystem.Operationalexcellence:Throughoperationalexcellence,no-frillsgroceryretailerLidlpullsofftwoseeminglycontradictorycoreprinciples—“Customersatisfactionisourhighestpriority.”and“Unbelievablylowpricesdetermineourpositioninthemarket.”NetPhotos/AlamyStockPhotoCompetitorStrategies(8of18)BasicCompetitiveStrategiesCustomerintimacyreferstoacompanyprovidingsuperiorvaluebysegmentingmarketsandtailoringproductsorservicestomatchtheneedsofthetargetedcustomers.CompetitorStrategies(9of18)BasicCompetitiveStrategiesProductleadershipreferstoacompanyprovidingsuperiorvaluebyofferingacontinuousstreamofleading-edgeproductsorservices.Productleadersareopentonewideasandsolutionsandbringthemquicklytothemarket.CompetitorStrategies(10of18)CompetitivePositionsMarketleaderstrategiesMarketchallengerstrategiesMarketfollowerstrategiesMarketnicherstrategiesCompetitorStrategies(11of18)Figure18.2CompetitiveMarketPositionsandRolesCompetitorStrategies(12of18)Table18.1StrategiesforMarketLeaders,Challengers,Followers,andNichersMarketLeaderStrategiesMarketChallengerStrategiesMarketFollowerStrategiesMarketNicherStrategiesExpandtotalmarketFullfrontalattackFollowcloselyBycustomer,market,quality,price,serviceProtectmarketshareIndirectattackFollowatadistanceMultiplenichingExpandmarketshareBlankBlankBlankCompetitorStrategies(13of18)MarketLeaderStrategiesExpandtotalmarketdemandbydeveloping:NewusersNewusesMoreusagePromotingnewuses:WD-40Company’sknackforfindingnewuseshasmadetheproductoneofthetrulyessentialsurvivalitemsinhomesaroundtheworld.2022WD-40ManufacturingCompany.AllTrademarksarethepropertyofWD-40ManufacturingCompany.Allrightsreserved.CompetitorStrategies(14of18)MarketLeaderStrategiesProtectcurrentmarketby:FixingorpreventingweaknessesthatprovideopportunitiestocompetitorsMaintainingconsistentpricesthatprovidevalueKeepingstrongcustomerrelationshipsPromotingcontinuousinnovationProtectingmarketshare:P&G’sresearcherspushtheboundariesofscienceandstyletokeepatechnologicaledgeoverdisposablediaperchallengers.Thankstorelentlessinnovationandbrandbuilding,P&Gmaintainsacommandingmarketsharelead.LukeSharrett/Bloomberg/GettyImagesCompetitorStrategies(15of18)MarketLeaderStrategiesExpandmarketshareby:IncreasingprofitabilitywithincreasingmarketshareinservedmarketsProducinghigh-qualityproductsCreatinggoodserviceexperiencesBuildingcloserelationshipsCompetitorStrategies(16of18)MarketChallengerStrategiesChallengetheleaderwithanaggressivebidformoremarketshare.Secondmoveradvantage:Challengerobserveswhathasmadetheleadersuccessfulandimprovesonit.Marketchallengerstrategies:WhenitenteredtheU.S.market,ratherthanattackingmarketleadersCoca-ColaandPepsidirectly,RedBullusedindirect,unconventionalmarketingapproaches.zefart/ShutterstockCompetitorStrategies(17of18)MarketFollowerStrategiesPlayalongwithcompetitorsandnotrocktheboatCopyorimproveonleader’sproductsandprogramswithlessinvestmentBringdistinctiveadvantagesKeepcostsandpricesloworqualityandserviceshighCompetitorStrategies(18of18)MarketNicherStrategiesAnidealmarketnicheisbigenoughtobeprofitablewithhighgrowthpotentialandhaslittleinterestfromcompetitors.Thekeytomarketnichingisspecialization:MarketCustomerProductMarketingmixNichemarketing:DuckDuckGothrivesintheshadowsofgiantsearchenginecompetitorsbyprovidingsomethingtheGooglesoftheworldcan’tmimic—realprivacy.Ascannio/ShutterstockDiscussionQuestion(2of2)Whatisamarketnicher?LearningObjective3Illustratetheneedforbalancingcustomerandcompetitororientationsinbecomingatrulymarket-centeredorganization.BalancingCustomerandCompetitorOrientations(1of5)Companiesneedtocontinuouslyadaptstrategiestochangesinthecompetitiveenvironment.Competitor-centeredcompanyCustomer-centeredcompanyMarket-centeredcompanyBalancingCustomerandCompetitorOrientations(2of5)Figure18.3EvolvingCompanyOrientationsBalancingCustomerandCompetitorOrientations(3of5)Acompetitor-centeredcompanyspendsmostofitstimetrackingcompetitors’movesandmarketsharesandtryingtofindwaystocounterthem.Anadvantageisthatthecompanyisafighter.Adisadvantageisthatthecompanyisreactive.BalancingCustomerandCompetitorOrientations(4of5)Acustomer-centeredcompanyspendsmostofitstimefocusingoncustomerdevelopmentsindesigningstrategies.Providesabetterpositionthancompetitor-centeredcompanytoidentifyopportunitiesandbuildcustomerrelationships.BalancingCustomerandCompetitorOrientations(5of5)Amarket-centeredcompanyspendsmostofitstimefocusingonbothcompetitorandcustomerdevelopmentsindesigningstrategies.CopyrightThisworkisprotectedbyUnitedStatescopyrightlawsandisprovidedsolelyfortheuseofinstructorsinteachingtheircoursesandassessingstudentlearning.Disseminationorsaleofanypartofthiswork(includingontheWorldWideWeb)willdestroytheintegrityoftheworkandisnotpermitted.Theworkandmaterialsfromitshouldneverbemadeavailabletostudentsexceptbyinstructorsusingtheaccompanyingtextintheirclasses.Allrecipientsofthisworkareexpectedtoabidebytheserestrictionsandtohonortheintendedpedagogicalpurposesandtheneedsofotherinstructorswhorelyonthesematerials.PrinciplesofMarketingNineteenthEditionChapter19TheGlobalMarketplaceCopyright?2024,2021,2018PearsonEducation,Inc.AllRightsReservedLearningObjectives19.1 Defineglobalmarketingandthequestionscompaniesmustaskindecidingwhetherandhowtogoglobal.19.2. Understandhowglobalpolitical,economic,sociocultural,technological,legal,andenvironmentalfactorsaffectacompany’sglobalmarketingdecisions.19.3 Discusshowcompaniesdecidewhethertogoglobaland,ifso,whichmarketstoenter.19.4 Describethreekeyapproachestoenteringglobalmarkets.19.5 Explainhowcompaniesadapttheirmarketingstrategiesandmarketingmixesforglobalmarkets.19.6 Identifythethreemajorformsofglobalmarketingorganization.7-Eleven:MakingLifeaLittleEasierforPeoplearoundtheGlobeAtfirstglance,a7-EleveninTokyolooksprettymuchlikeoneinTeaneck,NewJersey.However,7-Elevenskillfullyadaptsitsglobaloperationsandofferingsmarketbymarkettomatchlocalneedsandwants.SakarinSawasdinaka/ShutterstockLearningObjective1Defineglobalmarketingandthequestionscompaniesmustaskindecidingwhetherandhowtogoglobal.GlobalMarketingToday(1of3)Aglobalcompany:operatesinmorethanonecountrygainsmarketing,production,R&D,andfinancialadvantagesnotavailabletopurelydomesticcompetitorsseestheworldasapotentialmarketManyAmericancompanieshavenowmadetheworldtheirmarket.KFC’sColonelSandersisalmostasfamiliarinShanghai,China(above),orTokyo,Japan,asheisinBoise,Idaho.GaryArmstrongGlobalMarketingToday(2of3)Globalfirmsaskanumberofbasicquestions:Whatmarketpositionshouldwetrytoestablishinourowncountry,inoureconomicregion,andglobally?Whowillourglobalcompetitorsbe,andwhataretheirstrategiesandresources?Whereshouldweproduceorsourceourproduct?Whatstrategicalliancesshouldweformwithotherfirmsaroundtheworld?GlobalMarketingToday(3of3)Figure19.1TheFive-StepGlobalMarketingProcessLearningObjective2Understandhowtheinternationaltradesystemandtheeconomic,political-legal,andculturalenvironmentsaffectacompany’sinternationalmarketingdecisions.UnderstandingtheGlobalMarketingContext(1of10)PoliticalcontextEconomiccontextSocioculturalcontextTechnologicalcontextLegalandinstitutionalcontextEnvironmentalandecologicalcontextUnderstandingtheGlobalMarketingContext(2of10)ElementsoftheGlobalMarketingEnvironmentPoliticalEnvironmentCountry’sattitudetowardinternationalbuyingGovernmentbureaucracyPoliticalstabilityMonetaryregulationsUnderstandingtheglobalpoliticalcontext:BritishtelecomcompanyVodafone’sfortunesinIndiaseemtoriseandfallwiththesometimes-unpredictablepoliciesoftheIndiangovernment.PeterHorree/AlamyStockPhotoUnderstandingtheGlobalMarketingContext(3of10)EconomicEnvironmentIndustrialStructure:Subsistenceecon