Global aspects of marketing - Unitedworld School of Business
The coordinated performance of marketingactivities to create exchanges across countriesthat satisfy individual organizational andsocietal objectives. Global marketing is conducted acrosscountries (not domestic or foreign). Global marketing coordinates activities acrosscountry markets.
Global marketing should be motivated byindividual, organizational and societal goals. It is a marketing strategy used mainly bymultinational companies to sell goods or servicesinternationally.
GLOBAL MARKETINGADVANTAGES DISADVANTAGES Lower marketing cost Consistency in Brand Image. Power and scope Ability to leverage good ideasquickly and efficiently. Helps to establish relationshipsoutside of the “political arena”. Differences in customer needs,wants and usage patterns forproducts. Differences in consumer response tomarketing mix elements. Differences in legal environment. Differences in administrativeprocedures.
The process leading to identifying andentering international markets.The designing of a product in such a waythat it will meet the needs of users in manycountries or can be easily adapted to do so.
INTERNATIONALIZATIONSADVANTAGES DISADVANTAGES Possibility of accessing newtechnologies. Increase in revenue. Brand awareness. New ideas can be generated. Cultural and languagebarriers. Political barriers. Religious beliefs. Government interference
RE-INTERNATIONALIZATION Re-internationalization is a process where thefirms that have been internationally active forsome time, but then withdrawn from one,several foreign market. Firms paid more attention to domestic marketor some other countries for a considerabletime. And then re-enter one, some or all its previousmarket.
CONT……….. Firm may restart their internationalizationactivity both from closest or farther market. They may be re-internationalization veryquickly, very slowly or in a moderate pace.
CAUSE OF RE-INTERNATIONALIZATION Their re-internationalization may be causedby one or more critical incident. When a firm takeover by another enterpriseor merge with some other firm. Acquisition of a company by another onewith international connection.
FACTOR INFLUENCING RE-INTERNATIONALIZATION Network relationship that influence the processof re-internationalization. Firms unique resources and capabilities. A change in management‟s global orientation. A re-internationalization company may usetheir former knowledge of foreign market. Also able to revive some of their previousnetwork relationship on these market.
Exporting- It is a market entry strategy inwhich a company maintains productionfacilities within its home country and transfersproducts for sale in foreign countries. Outsourcing- It means engaging in theinternational division of labor so as to obtainthe cheapest sources of labor and supplies,regardless of country.
Licensing- A company in one country makescertain resources available to companies inother countries to participate in the productionand sale of its products abroad. Franchising- It is a form of licensing in whicha company provides its foreign franchiseeswith a complete package of materials andservices.
Joint venture- A company shares costs andrisks with another firm in a foreign country tobuild a facility, develop new products, or setup a sales and distribution network. Partnership- It is often the fastest, cheapestand least risky way to get into the global game.
CHALLENGES OF INTERNATIONALMARKETING Legal-Political Environment-o Political risko Tariffs, quotas and taxeso Laws, regulation Economic Environment-o Resource and Product marketso Exchange rateso Infrastructure Socio cultural Environment-o Languageo Religiono Social values, beliefs
CHANNEL STRUCTURE Channel configurations for the same product will vary withinindustries, even within the same firm, because national markets quiteoften have unique features. Channel structures are designed to manage multidirectionalconnections for: Physical movement of goods and services. Transactional title flows. Information communications flows.The essential linkage that connects producersand consumers.
CHANNEL DESIGNEXTERNAL INTERNAL Customer characteristics Culture competition Company objectives Character Capital Cost Coverage Control Continuity communication
SELECTION OF INTERMEDIARIES Types of intermediaries Agents Distributors Sources of finding intermediaries Govt. agencies Private sources Screening intermediaries Performance professionalism The distributor agreement
CHANNEL MANAGEMENT Factors in channel management Cultural Difference Instability in exchange rate Laws and regulations Termination of channel relationship
E-COMMERCE E-commerce is the ability to offer goods and services overthe Web M-Commerce is the exchange of goods and services viamobile devices Preparations for serving customers through e-commerce: Provide 24-hour order taking and customer service Regulatory and customs-handling expertise In-depth understanding of environments and customers The marketer has to be sensitive to the governmental rolein e-commerce Privacy issues have grown exponentially as a result of e-business
IMPLEMENTING GLOBALMARKETING Balance and stability between local and globalconcerns which will bring success . “Think globally, act locally” is the operative phrasefor global marketers competing in country markets. Product choices should consider individual marketsas well as transfer products from one region toanother.
CROSS CULTURE NEGOTIATION Intercultural selling through negotiation is oneof the biggest challenge in global marketing Learning and knowledge transfer acrossborders can increase internationalcompetitiveness Build awareness about how culturaldifferences impact Motivate salespeople and managers to„rethink‟ their behavior and attitude towardscustomers.
IMPLEMENTATION OF GLOBALACCOUNTINGMANAGEMENT(GAM)Global accounting management defined as a relationshiporiented marketing management approach focusing on dealingwith the needs of an important global customer business-to –business market. Identifying the selling firm‟s global accounts; Analyzing the global accounts; Selecting suitable strategies for the global accounts; Developing operational level capabilities to build , grow andmaintain profitable and long lasting relationships with globalaccounts.
ORGANIZATION OF GLOBAL MARKETINGACTIVITIES A global marketing organization is structured isan important determinant of its ability to exploiteffectively and efficiently the opportunitiesavailable to it. Determines the capacity for responding toproblem and challenges. Companies operating internationally must decidewhether the organization should be structuredalong functions, products, geographical areas orcombinations of the three(matrix)
LOCALIZING GLOBAL MARKETING Management processes- Enhance the global transfer ofcommunications- Interchange personnel to gainexperience abroad Headquarters should coordinate and leverageresources Permit local managers to develop their ownprograms within defined parameters
Organization structures The shift to global account management Corporate culture The world is not one single market Plan and execute programs on a worldwide basis A global Identity favors no specific country