CHAPTER6
MARKETING IN GLOBAL MARKETS
LEARNINGOBJECTIVES
Asyou readthroughthischapter,you shoulddevelopanunderstand-
ingofthefollowing keypointsrelatedto global marketingactivities:
Globalmarketingisverybroadin scope.- Therearemanyreasonswhyfirmschoseto engagein global
marketing. - Theelementsoftheenvironmentofg lobalmarketingarediffer-
entthanthosefordomesticmarkets. - Firmscanenterforeign marketsthroughavarietyofstrategies,
eachofwhich hasadvantagesanddisadvantages. - Inplanning marketingmixstrategies,firmscannotsimplycopy
domesti cmarketingmixstrategies.
GOODLUCKGETTINGINTO CHINA
It'sa wetmorninginOldShanghai, andDellsalesmanPeterChanis sellinghard.As
theYangtzeRiverflowsbythel3unddistricta fewfloorsbelow,Chanisgettingintoa
flowofhisown. Hissubject:computersandtheuniquebenefitsofDell's direct-selling
model.Hiscustomer:XiaoJianYi,deputygeneralManagerofChinaPacificInsurance,
a fast-growingstate-ownedinsurancecompany.Theaudience:threeofXiao's
subordinates.
Dell'saggressivenessis beginningtopayoff. NotonlydidDellreelin theChina
Pacificaccount,bUlit is alsobecomingamajorplayerinChina.In 1998 , 36-year-old
billionaire..MichaelDellopenedthefourthDeliPCfactoryintheworldinZiamen, a
windsweptcityhalfwaybetweenHongKongandShanghaiinChina'ssoutheastern
coast.ThepointofDell'spushintoChinaseemssoobviousastobeacliche:Chinais
becomingtoobiga PCmarketforDell,oranyone,toignore."Ifwe'renotinwhatwill
soonbethesecondbiggestPCmarketintheworld,"asksJohnLegere,presidentofDell
Asia-Pacific,"thenhowcanDellpossiblybea globalplayer')"
Thoughthecompetitionis intense,Dellisconfidentit hasa strategythatwillpay
off.First, it hasdecidednottotargetretailbuyers,whoaccountforonlyaoout10%of
Dell'sChinasales.ThatwayDellavoids goinghead-to-headagainstentre:lchedlocal
marketleaders likeLegend. "Ittakesnearlytwoyearsofa person's savingstobuy a PC
inChina," notesMaryMa,thechieffinancialofficerofLegend."Andwhentwoyearsof
savingsisat stake,thewholefamilywantstocomeouttoa storetotouchandtrythe
machine."Delljustisn'tsetuptomakethatkindofsaleyet.126