Global aspects of marketing - Unitedworld School of Business

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Global aspects of marketing - Unitedworld School of Business

  1. 1.  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.
  2. 2.  Global marketing should be motivated byindividual, organizational and societal goals. It is a marketing strategy used mainly bymultinational companies to sell goods or servicesinternationally.
  3. 3. ELEMENTS OF GLOBAL MARKETING
  4. 4. 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.
  5. 5. 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.
  6. 6. 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
  7. 7. INTERNATIONALIZATION DECISION’SDecidingwhether to goDecidingwhich marketsto enterDeciding howto enterDeciding onthe marketingprogramDeciding onthe marketingorganization
  8. 8. 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Re-internationalization is a process where thefirms that have been internationally active forsome time, but then withdrawn from one,several foreign market. Firms paid more attention to domestic marketor some other countries for a considerabletime. And then re-enter one, some or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.
  9. 9. 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.
  10. 10. PROCESS OF RE-INTERNATIONALIZATION
  11. 11. 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.
  12. 12. 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.
  13. 13. STRATEGY TO ENTER INTO INTERNATIONAL MARKET
  14. 14.  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.
  15. 15.  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.
  16. 16.  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.
  17. 17. 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
  18. 18. CHANNELMANAGEMENT ININTERNATIONALMARKETING
  19. 19. 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.
  20. 20. CHANNEL CONFIGURATIONConsumer Services
  21. 21. Consumer
  22. 22. CHANNEL DESIGNEXTERNAL INTERNAL Customer characteristics Culture competition Company objectives Character Capital Cost Coverage Control Continuity communication
  23. 23. SELECTION OF INTERMEDIARIES Types of intermediaries Agents Distributors Sources of finding intermediaries Govt. agencies Private sources Screening intermediaries Performance professionalism The distributor agreement
  24. 24. CHANNEL MANAGEMENT Factors in channel management Cultural Difference Instability in exchange rate Laws and regulations Termination of channel relationship
  25. 25. 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
  26. 26. 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.
  27. 27. 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.
  28. 28. 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.
  29. 29. 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)
  30. 30. 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
  31. 31.  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
  32. 32. Thank You

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