Page 250 - Foundations of Marketing

Reaching Global Markets | Chapter 8 217

Table 8.4 Multinational Firms from Around the World

Company Country Description
Royal Dutch Shell Netherlands Oil and gas

Toyota Japan Automobiles

Walmart United States Retail
Siemens Germany Engineering and electronics

Nestlé Switzerland Nutritional, snack-food, and health-related
consumer goods

Samsung South Korea Subsidiaries specializing in electronics,
electronic components, telecommunications
equipment, medical equipment, and more
Unilever United Kingdom Consumer goods including cleaning and
personal care, foods, beverages

Boeing United States Aerospace and defense

Lenovo China Computer technology
Subway United States Largest fast-food chain

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production, and management. A wholly owned foreign subsidiary may export products to the
home country, its market may serve as a test market for the firm’s global products, or it may
be a component of the firm’s globalization efforts. Some U.S. automobile manufacturers, for
example, import cars built by their foreign subsidiaries. A foreign subsidiary offers important
tax, tariff, and other operating advantages. Table 8.4 lists some well-known global corpora-
tions, most of which have operations in several different countries.

CUSTOMIZATION VERSUS LO 5 . Understand how
customization differs from
GLOBALIZATION OF INTERNATIONAL globalization.

MARKETING MIXES

Like domestic marketers, international marketers develop marketing strategies to serve specific
target markets. Traditionally, international marketing strategies have customized marketing
mixes according to cultural, regional, and national differences. Table 8.5 provides a sample of
international issues related to product, distribution, promotion, and price. For example, many
developing countries lack the infrastructure needed for expansive distribution networks, which
can make it harder to get the product to consumers. Realizing that both similarities and dif-
ferences exist across countries is a critical first step to developing the appropriate marketing
strategy effort targeted to particular international markets. Today, many firms strive to build their
marketing strategies around similarities that exist instead of customizing around differences.
For many firms, globalization of marketing is the goal. It involves developing marketing
globalization The development
strategies as though the entire world (or its major regions) were a single entity; a globalized of marketing strategies that
firm markets standardized products in the same way everywhere. Nike and Adidas shoes, treat the entire world (or its
for example, are standardized worldwide. Other examples of globalized products include major regions) as a single entity

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