AMA’s Definition :ConceptionPricingPromotionDistribution of Ideas,goods and ServicesMarketingPlanningandExecutingTo create exchangesthat satisfy individualand organizationalObjectives
The coordinated performance of marketing activities tocreate exchanges across countries that satisfy individual,organizational , and societal objectives Global marketing is conducted across countries (notdomestic or foreign) Global marketing coordinates activities across differentcountry markets Global marketing should be motivated by individual,organizational and societal goalsGlobal Marketing
Core Business StrategyCountryACountryBCountryCCountryDDevelop CoreBusiness StrategyInternationalizethe StrategyGlobalizethe StrategyGlobal Marketing Evolution
What is Internationalization ?• As the process of increasing involvement ininternational operations.Why consider going international ?• To increase overall customer base.• To offset seasonal fluctuations in local markets• To minimize risk of losing market share to clients whothemselves use internet to find goods / services inoverseas markets• To offset increasing costs of doing business at home• To gain prestige with customers at home .
Advantage• Spreading business risk• Opportunity to exploit an existingcompetitive edge in new markets• Expansion of brand awareness tonew audiences• Increased revenue generation• Possibility of accessing newtechnologies / information• Business can be conducted via theinternet thus shortening thecommunication channels betweencustomers and marketsDisadvantage• cultural and languagebarriers• exchange rate fluctuations• religious beliefs• government regulations /policy on profit repatriation• political instability• economic downturn.
RE-INTERNATIONALIZATION Why Internationalization fail. What is Re-Internationalization.- Network relation- Unique resource and capability- Change in management global. Three main set which driven theRe-Internationalization.
Strategy to enter into International Market.• Export• Involves using domestic plants as a production base for exporting toforeign markets.• Licensing• Has valuable technical know-how or a patented product but does not haveinternational capabilities or resources to enter foreign markets• Franchise• Often is better suited to global expansion efforts of service and retailingenterprise by establishing franchise in particular country.
• Strategic alliance• Through strategic alliance you can enter into international market.• Global strategy• Pursue basic strategy world wide.• Sell the same products under the same brand• Production plants located local efficiencies• Best suppliers from anywhere• Coordinated marketing and distribution worldwide• Multi country strategy• Production plants in each country– Producing products for that country– Using local suppliers where possible
to enter Internationalmarket While choosing new markets, MNCsneed to consider several factors:1)2)
• Political/regulatory environment.Tariff barriers - taxes on imports paidto customs officials - includeNontariff barriers• Financial/economic environment.Exchange rate - price of one currency in relation toanotherFiscal policiesMonetary policy• Socio cultural issues and technological infrastructure.Understanding the local culture is the most profitable wayof marketing product and services.
• Competitive considerations.• Local infrastructure such astransportation & logistics network.• Availability of mass media foradvertising is important.
CHANNEL MANAGEMENT involvesthe strategy; development andalignment of channels or customerinter faces, across your marketing,sales and services. It is term that business or supplier ofproducts uses various marketingtechniques and sales strategy to reachthe widest possible customer base.
It creates the formulized programs for sellingservicing the customers within specific channelscan really impact your business. Customized achannel management program which includes- Goals Policies Products Sales and marketing programs
No longer can a business rely simply ongood Customer relations or word of mouthto maintain or improve revenue. Possibilities for marketing a product orservice grow seemingly each day, andkeeping track of all of these disparatemarketing avenues is not an easy chore. That is why the conceptof channel management has become soprevalent in marketing.- Restaurant marketing- Business start up tips
Optimal channel management drives growth and profit- Thisprogram addresses the needs of consumer goods and servicescompanies selling through wholesalers and retailers; Business-to-business firms working through independentdistributors and sales representative firms; Retailers seeking to improve efficiency in an increasinglycompetitive marketplace; and Intermediaries seeking to preserve their role in an increasinglyfluid channel structure.
Reduce cost Improve customer relations Increase revenue Building the high performingsales force