THE GLOBAL MARKETPLACE

“Marketing”
“Evolution”
 Advantages
 Economies of scale in production and
distribution
 Lower marketing costs
 Power and scope
 Consistency in brand image
 Helps to establish relationships outside of the
political arena
 Disadvantages
 Differences in consumer needs,
wants and usage patterns for products
 Differences in consumer response to marketing
mix elements
 Differences in brand and product development
and competitive environment
 Differences in administrative procedures
 Differences in product placements
 Managing a global market

place
Identify your customer’s
partners
 Make sure your ads and
literature reach a global
audience
 Learn the local customs
 If possible hire local people
in a local office
 Try to learn key phrases of
the language
 Opportunities
 Import / Export
 Produce / Invest /
License a product on
behalf of a foreign firm
 Partner with an existing
firm
 Invest directly in a
foreign branch with
domestic and foreign
management
 Economic trends
 Service sector – 41% in
developing countries
and 58% in developed.
 Industry- slight declines
in Africa
and America and recent
increases in Asia and
Oceania.
 Agriculture – 11% of
economic activity in
developing countries
and 2% in developed.
 Poverty
Global marketing
planning
GLOBAL MARKETING IN THE
21st CENTURY
 MAJOR DECISIONS IN
INTERNATIONAL MARKETING
Looking at the Deciding whether Deciding which
global to go markets to
marketing international enter
environment

Deciding how
to enter the
market

Deciding on the
global marketing
program
Deciding on the
global
marketing
organization
 (1) LOOKING AT THE
GLOBAL MARKETING
ENVIRONMENT
 The international trade system
 Global firm – operates more than in one
country, gains R & D, P/M/F advantages in
its cost and goodwill.
 Tariff – tax levied by the govt.
against certain imported items.
 Quota – limit on the amount of
certain product categories that
an importing country will accept.
 Embargo – ban on some kind of import
items.
 Exchange controls – limit on the amount of
foreign exchange and the exchange rate
against other currencies.
 Non-tariff trade barriers – barriers to
foreign products such as bias against a
foreign company bids or
product standards that
go against a foreign
company product
features.
 Cultural Dimensions
 Directness Vs indirectness
 Comparison
 Humor
 Gender roles
 Explicitness
 Sophistication
 Popular Vs Traditional
culture
 Information content Vs
fluff
 (2) Deciding whether to go
international
 It’snot always important to venture into
international market for survival.
 The decision depends on operations,
country’s language and laws.
 Strategic position/global
position/compete on the worldwide
basis to succeed.
 Global competitors attack on domestic
market.
 Ability to operate globally?
 Can the company learn to understand the
preferences and the buyer behavior?
 Can it offer competitively attractive products?
 Will it adapt to other countries’ business culture?
 Do the company managers’ have the necessary
international experience?
 Impact of regulations and political environment of
the other country?
(3) Deciding which markets
to enter
 Defining international marketing
objectives and policies.
 Deciding upon how many/types of
countries to market in.
 Indicators of potential market to enter:
Demographic, geographic, economic,
socio-cultural, political and legal factors.
(4) Deciding how to enter
the market

Exporting Joint Venturing Direct investment

- Licensing -Assembly
Direct/Indirec - Contract facilities
t manufacturing - Manufacturing
- Management facilities
contracting
- Joint ownership

Amount of commitment, risk, control and profit potential

 (5) Deciding on the global
marketing program
 Standardized marketing mix –
strategy used basically for the same
product advertising, distribution and
other elements in marketing mix.
 Adapted marketing mix – strategy for
adjusting the marketing mix elements
to each international target market.
E.g McDonalds serves their food with
onions, pickles to suit Indian taste.
 Don’t Adapt Develop new
change product product
product
Don’t Straight Product
change Extension Adaptation
promotio
n Product
invention
Communication Dual
Adapt
adaptation Adaptation
promotio
n
 (6) Deciding on the global
marketing organization
 Companies manage the international
marketing activities through three ways:
(1) Organize export department
(2) Create international division
(3) Finally become a global organization
E.G – for international distribution, distribution
channels vary from nation to nation.
 G-5 STRATEGIES
GLOBAL NETWORK
STRATEGY

GLOBAL PLATFORM GLOBAL INTERMEDIARY

STRATEGY STRATEGY

GLOBAL INVESTMENT GLOBAL ENTREPRENEUR

STRATEGY STRATEGY
 Trade Barriers
TRANSACTION TARIFF AND
COSTS NON-TARIFF COSTS

THE FOUR T’S

TRANSPORTATION
COSTS TIME COSTS
 Globalization of Markets and
Competition
 Technological
improvements
 Improved
transportation
 Communication
opportunities
 Global agreements
with trade
organizations such
WTO, NAFTA,EU.
 Star Analysis for
competitive advantage

HOME
COUNTRY

SUPPLIER CUSTOME
COUNTRY INTERNTIONA
R
LBUSINESS
COUNTRY

PARTNE COMPETITO
R R COUNTRY
COUNTR
Y
 Constraints on Global
communication strategies
 Trends
 Insight and innovation key
 Customers are top of the
list
 Green marketing and
global warming lose
importance
 Marketers sick of web
 Most opportunity in china
and among boomers
 India as a Global power – The
Forbes coverage
 Foreign investment in
more than 1000 Indian
companies.
 100 corporations with a
market value exceeding
$1 billion.
 India’s average growth
rate jumped to 7.5% from
the earlier 6%.
 Cries for a level playing
field are becoming louder.
 Important pre-requisite is
land acquisition for any
investment
in India.
 Brand “YOU” and the Global
market place
 Ideas such as ‘life
time employment’
and ‘job for life’ are
slowly becoming
obsolete.
 We are becoming
the ‘free agents’ of
sorts.
Made by: Chandni kundel
Anupamjeet kaur (Msc)
sim)