Group 6

19066 AMAN KUMAR

19078 EMANI NAGI REDDY
19085 KAUSHAL GOWDA M K
19088 LIKITH R.
19099 PRIYA PANDEY

Global Marketing Management

 Agenda

The Globalization of Markets Distribution Strategy

Market segmentation in foreign

Pricing strategy
countries

Product attributes for different Importance of International Market

countries Research

Barriers to International Effects of globalization on new

communication product development
  Coordinated performance of marketing activities
to create exchanges across countries
 Direct to flow of an organization’s offerings in
Global more than one country for a profit
 Process of adjusting the marketing strategy
Marketing  Uniformity of marketing practices
 Increase in profit margins
 Huge demographic coverage
 • New technology has proletarianized
communication, travel,etc

Levitt’s • Global Corporation Vs. Multinational

corporation
Argument • The cultural differences are getting more and
more “homogenized”
• Wish for modernity
• Exception rather than a rule

Ex:https://www.youtube.com/watch?v=pMLrVP_E-jA
 • Improves effectiveness products and services

Why do we • Cost Reduction and Savings

• Customer Awareness
need global • Creates a stronger competitive advantage

marketing • Increases the awareness of brand

• Economies of scale in production and distribution
strategy?
 • Identifying distinct groups of consumers
Market • Can be segmented in numerous ways

segmentatio • Segmentation of people

• To evaluate the success of market segmentation
n in foreign • Marketing mix options
countries • E.g. Toyota
 • A product attribute is a characteristic
that defines a particular product and
will affect a consumer's purchase
decision
Product • For example, the attributes that make
up a car include power, design, quality,
attributes performance, fuel consumption, and
comfort
• Consumer needs vary from country to
country, depending on culture and the
level of economic development
Cultural
differences
• Countries differ along a whole
range of dimensions, including
social structure, language,
religion, and education
• The most important aspect of
cultural differences is probably
the impact of tradition.
• Some evidence of the trends
Levitt talked about
Economic
Development
• Consumer behaviour is influenced by the
level of economic development of a country
• In highly developed countries like US they
put extra attributes into their products
which is not the case in less developed
nations
• Product reliability is a more important
feature in less developed nation
• Consumers in developed nation are willing
to pay more for products that have
additional features
• Average buying price of car in USA is nearly
4 times that of India
 • Communicating the attributes of the product to
prospective customers
• Communication channels are available to a
Communicatio firm, including direct selling, sales promotion,
n Strategy direct marketing, and advertising
• Barriers to International communication
o Cultural Barriers
o Source and Country of Origin Effects
o Noise Levels
Advertising and
Promotional strategies
• Push vs Pull strategies
• Push-Pull Mix
• Global advertising
o For Standardized advertising
o Against Standardized advertising
Distribution Strategy
Manufacturer Manufacturer
Inside the Outside the
Country Country
Import Agent

Wholesale
Distributor

Retail
Distributor

Final
Customer
Differences between Countries

Retail Concentration

Channel Length

Channel Exclusivity

Channel Quality
Retail  Concentrated Retail system and Fragmented
Retail system.
Concentration  Tendency for greater retail concentration in
developed countries and fragmented
system in developing countries.

 It refers to the number of intermediaries

Channel Length between the producer and the consumer.
 The most important determinant is the
degree to which the retail system is
fragmented.
  An exclusive distribution channel is one that
is difficult for outsiders to access.
Channel Exclusivity  Japan’s system is an example of a very
exclusive system.

 It refers to the expertise, competencies, and

Channel Quality skills of established retailers in a nation.
 If the channel quality is poor, an
international business may have to devote
considerable attention to upgrading the
channel.
Choosing a distribution strategy

The optimal strategy is There is a critical link The firm would prefer to
determined by the relative among channel length, the use a shorter channel ,
costs and benefits of each final selling price, and the because it wouldn’t let its
alternative. firm’s profit margin. profit margins get
squeezed.
PRICING STRATEGY
First, we examine price discrimination, charging different prices for the
same product in different countries.

Second, we look at what might be called strategic pricing.

Third, we review regulatory factors, such as government- mandated

price controls etc.
 • The firm must be able to keep its national
market separate
For Profitable Price • Different price elasticities of demand in
discrimination : different countries
• Income level and competitive conditions
are the two most important factors
responsible for elasticity of demand in a
given country.
• STRATEGY PRICING
The concept of strategic pricing has three aspects, we refer to as:

 Predatory Pricing
 Multipoint Pricing Strategy
 Experience Curve Pricing

• REGULATORY INFLUENCES ON PRICES

A firm’s freedom to set its own prices is constrained by :

 Antidumping Regulations
 Competition Policy
 • Identifying problem and opportunities in
Importance of the market
• Formulating market strategies
International • Determining consumer needs and wants
Market • To revitalize brands

Research • Managerial decision-making

• Questionnaires and reports
 • Cultural and environmental differences
• Prominent Market research companies
Continued • Country and potential market segments
• Forecast customer demands
• Marketing mix decisions
Propelling India Towards Global Marketing
Leadership in E-commerce
Summary of the Article
• India - aspirational consumer market
• Potentially overtake the US
• As more people join the Internet economy internet penetration is
expected to almost double
• Expected to grow into a 100 billion USD market by 2022
• Number of E-commerce consumers will soon hit 175-200 Mn
Findings of Global Marketing Strategies
• Ad campaigns
• Creating localized and translated landing pages
• Multiple Shopping options
• Offer only limited products to international markets
• Use local marketplaces & Work with local distributors
• Offering customer-friendly options for payment
• Targeting and investing huge sum
• Hurdles in marketing e-commerce globally
 Effects of
globalization •
•
Cultural issues
Lack of pricing strategy
on new • Technology related issues
• International policies
product
development
• Tax policies
• Political Instability
• Marketing strategies
• Work habbits
• Supply chain management issues
• Different climatic conditions
• Consumer behaviour
• Local competition
References
• International Business: Competing in the Global Marketplace by
Charles W.L. Hill
• International Business by Justin Paul
• https://hbr.org/2015/09/the-most-common-mistakes-companies-mak
e-with-global-marketing
• https://globalmarketingprofessor.com/the-marketing-mix/
• https://ceopedia.org/index.php/International_marketing_mix_strateg
y
• https://hbr.org/1986/05/customizing-global-marketing
• https://hbr.org/2018/10/how-netflix-expanded-to-190-countries-in-7-
years
• https://hbr.org/2019/02/how-global-brands-can-respond-to-local-co
mpetitors
Thank You!!