3 Key Benefits of a Global Approach

1. Cost Reductions-Greater economies of scale through the pooling of production and other activies
2. Improved Quality of Products and Programs-Concentrating now on a smaller # of products and programs
3. Enhanced Customer Preference-Greater global availability, serviceability, and precognition

4 Key Drawbacks of a Global Approach

1. A product that does not entirely satisfy any customer
2. Uniform marketing can reduce adaptation to local customer or competitor behavior
3. High intial investments may be needed to develop standardized products, to create new organization unit, to establish coordination processes, etc.
4. Immediate firm position and performance my suffer as the organization switches to a more global approach; more long-term rewards

4 Market Drivers which Favor a more Global Approach

1. Homogeneous customer needs-Will people want the same type of product or service?
2. Global customers-Are there parties who will buy and use your product world-wide?
3. Global channels-Like global customers, are there middlemen who might buy on a global basis?
4. Transferrable Marketing-Will brand names and advertising require little adaption?

3 Key Cost Drivers that Favor a Global Approach

1. Economies of scale and scope-Can you concentrate your value-chain activities and save?
2. Sourcing efficiencies-Is there significant cost savings from centralized purchasing?
3. Product development costs-Can costs be reduced by developing only a few global or regional practices? 

3 Government Drivers that Favor a Global Approach

1. Favorable trade policies-Are regulations for import/export, tech. transfer, and capital flor restrictions favorable?
2. Compatible technical/regulatory standards-Can your product be used worldwide?
3. Common marketing regulations-Can uniform global marketing approaches be used?

What is this?

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One of the first domesticate rabbits. It is an angora rabbit!

1 Competitive Drive that Favors a Global Approach

1. Globalized competitors-Are your competitors introducing standardized products and using uniform marketing programs?

What does Levitt say about market segments around the world?

• Commonality of preference leads inescapably to the standardization of products, manufacturing, and institutions of trade and commerce
• Strategy of standardization does not only respond to worldwide homogenized markets, but also expands most markets with aggresive low pricing

What is Levitt's arguement with regard to fixed local preferences?

• MNC believes preferences are fixed because of ridgid habits of thinking
• Marketing doesn't mean giving the customer what he says he wants rather it is trying to undetstand exactly what he'd like
• Concentrating on what everyone wants rather than worrying about the details of what everyone thinks they might want

What are the implications of Hoover's proposal?

• Customer said they wanted certain features, but their behavior demonstrated they'd take other features provided the price and promotion were right
• Two things clearly influenced customers to buy: 1. Low price regardless of feature preferences and 2. heavy promotion regardless of price
• the absence of any kind of marketing imagination let MNC attitudes survive when customers actually want the benefits of globalization

5 Pitfalls of Global Marketing

1. Insufficient research-Many global programs have been kicked off without the benefit of a reality test
2. Overstandardization-Local inventiveness and experimentation close to the markets dry up due to having too many standards
3. Poor follow-up-Lost momentum after intial kick-off. Post-launch programs can make or break a product
4. Narrow vision-Only a single perspective is represented
5. Rigid implementation-Force adoption:Outcome of a tendency to ignore local unit's reservations about implementing a standardized marketing program. Automatic piloting:Symptomatic of inflexible program management in the face of changing market conditions

What are the 5 recommendations or solutions offered by Kashani with regard to global marketing?

1. Market Research-1)Help influence decisions to more accurately reflect the commonalities 2)Help win support for the program in local organizations
2. Local Intiative and decision making are often the keys to a program's long-term success
3. Effective follow-up
4. The process for formulating a program may be driven centrally by program mgt., decisions on its context are best left to the subsidiaries or country organizations
5. Flexibility should be built into a global program's implementation