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Global marketing: assessing potential markets overseas

Case: toyota has a vehicle for every market

Each market has unique cultural characteristics and contextual circumstances that must be considered. For example, in the United States roads tend to be wide; highways can accommodate a broad array of vehicles with a high number of lanes, and people demand a mix of cars based on their needs. Conversely, in Europe roads tend to be narrow, and the market demands smaller, more fuel-efficient vehicles. Therefore, while a Toyota 4Runner tends to sell extremely well in the United States, it would not be a very popular model in Europe for these very reasons. As a result, Toyota invests billions of dollars every year into market research and market development to make sure they meet the needs and wants of its customers, in each specific country that they sell their vehicles in. This has led to Toyota’s success in the US automotive market, as our earlier case suggested. With their #1 selling sedan, Toyota Camry, a wide array of hybrid models, trucks and SUVs to meet the United States constantly-changing expectations, Toyota is, arguably, the strongest player in the automotive industry.

What is global marketing?

One of the inevitable questions that surfaces concerning global marketing is: how does global marketing truly differ from domestic marketing, if at all? There has historically been much discussion over commonalities and differences between global and domestic marketing, but the three most common points of view upon which scholars agree are the following. First, all marketing is about the formulation and implementation of the basic policies known as the 4 P’s: Product, Price, Place, and Promotion. Second, international marketing, unlike domestic marketing, is understood to be carried out “across borders”. Third, international marketing is not synonymous with international trade (Perry, 1990). Perhaps the best way to distinguish between the two is simply to focus on the textbook definition of international marketing. One comprehensive definition states that, “international marketing means identifying needs and wants of customers in different markets and cultures, providing products, services, technologies, and ideas to give the firm a competitive marketing advantage, communicating information about these products and services and distributing and exchanging them internationally through one or a combination of foreign market entry modes (Bradley, 2005)”.

The 4 p’s of the marketing mix (netmba, 2008)

Price, place, product, and promotion in a venn diagram. The full intersection of the four Ps is labeled Target Market. Outside the venn diagram are constraints.
The 4 P’s: Product, Price, Place and Promotion are aspects of the marketing mix that are generally controllable

As the following table demonstrates, many decisions affect the marketing mix (NetMBA, 2008):

All of these issues must be reconsidered in each market. The marketing mix will appropriately vary as different circumstances dictate.
Product Decisions
Brand Name
Functionality
Styling
Quality
Safety
Packaging
Repairs and Support
Warranty
Accessories and services
Price Decisions
Pricing strategy (price skimming, price penetration, etc.)
Volume discounting and wholesale pricing
Seasonal pricing
Bundling
Price flexibility
Price discrimination
Place Decisions
Distribution Channels
Market coverage (inclusive, selective, or exclusive distribution)
Inventory Management
Warehousing
Order processing
Reverse logistics
Promotions Decisions
Push, Pull Strategies
Advertising
Personal Selling
Sales Promotions
Public Relations and Publicity

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Source:  OpenStax, Business fundamentals. OpenStax CNX. Oct 08, 2010 Download for free at http://cnx.org/content/col11227/1.4
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