GLOBAL

MARKETING
 CONCEPT

 Lowering of entry barriers.

 Advancement of information and technology
 Increasing homogenization of consumption.
 Rationale for globalization

 PEST factors
 Additional revenue
 New insights into customer behavior
 Alternative distribution strategies
 Advance notice of new products
 A major key to achieving success in foreign markets
 Ability to adapt products to local preferences and culture
Across world UK

Mexico, Central America, Germany,

Western Europe
 Importance of Global
Marketing

 Demand for foreign products is increasing in fast-

growing economies

 Globalization and the Internet allow every

marketer to be an international marketer.
Firm Orientation

EPRG Framework
E= Ethnocentric
P= Polycentric
R= Regiocentricism
G= Geocentric
 Ethnocentric

 Aimsat selling the surplus of its own product in the foreign

market with minimal product adaptation.

 Most common market entry strategy is export.

 Seek overseas customers for its existing product lines.

 The issue of pricing and payment terms is also important.

 Polycentric

 When one exports not only to one market but to several

markets.
 The difference between ethnocentric and polycentric
approach lies in the number of foreign markets being served
and the degree of involvement in soliciting overseas buyers.
 Firm can expand its capacity or put up a new line for
foreign markets. Manufacturing is done in home country.
 Regiocentricism

 When a firm has focused on a specific region.

 Calls for homogenization of product according to the
requirements of a specific region.
 Market entry strategies involve Joint ventures
 Homogenization may involve making the product
environment friendly, or even develop a special feature in
product to enable it to suit local conditions.
KFC Case
 Geocentric

 Consider world as their home market, and they evolve

strategies to maximise their resources in a global manner.
Patek Philippe – World Brand
$15000-$1 million

• Exclusive
• Represents
parents deep
and forever
lasting bonds
with their
children, which
are universal
and cross-
cultural truths
 KEY DECISIONS IN GLOBAL
MARKETING
 PARAMETERS- Dimensions that go into decision making.
 Corporate Functions: Manufacturing, finance and purchase are easily standardized than
marketing.
 Products: That enjoy high economies of scale, are not culturally bound, can be
globalized more quickly. Whether to go for standardization or differentiation strategy.
Brand and headquarter country’s image in different markets.
 Marketing Communication: highly cultural specific. The theme can be standardized for
world market while implementation, both in creative and execution media will have to be
localised.
 Distribution: differs across countries in terms of availability of channels and
infrastructure.
 Countries: global firm is more likely to decentralise decision making to markets where
its affiliates are effective rather than where they are not.
 KEY DECISIONS IN GLOBAL
MARKETING

 DECISION
MAKING IN GLOBAL
MARKETING
Entry strategies
Standardization
Differentiation
 ORGANISING FOR GLOBAL
MARKETING

 Local initiative and decision making.

 Let local product managers decide on product
promotion in their respective countries.
 Striking balance between central control and local
affiliate’s autonomy is important to succeed in a
highly competitive world market.