Global marketing

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Global marketing

  1. 1. Global Marketing
  2. 2.  The coordinated performance of marketing activities to create exchanges across countries that satisfy individual, organizational , and societal objectives  Global marketing is conducted across countries (not domestic or foreign)  Global marketing coordinates activities across different country markets  Global marketing should be motivated by individual, organizational and societal goals Global Marketing
  3. 3. Core Business Strategy Country A Country B Country C Country D Develop Core Business Strategy Internationalize the Strategy Globalize the Strategy Global Marketing Evolution
  4. 4. What is Internationalization ? • As the process of increasing involvement in international 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 who themselves use internet to find goods / services in overseas markets • To offset increasing costs of doing business at home • To gain prestige with customers at home .
  5. 5. Internationalization Advantage • Spreading business risk • Opportunity to exploit an existing competitive edge in new markets • Expansion of brand awareness to new audiences • Increased revenue generation • Possibility of accessing new technologies / information • Business can be conducted via the internet thus shortening the communication channels between customers and markets Disadvantage • cultural and language barriers • exchange rate fluctuations • religious beliefs • government regulations / policy on profit repatriation • political instability • economic downturn.
  6. 6. Major International Marketing Decisions
  7. 7. Strategy to enter into International Market. • Export • Involves using domestic plants as a production base for exporting to foreign markets. • Licensing • Has valuable technical know-how or a patented product but does not have international capabilities or resources to enter foreign markets • Franchise • Often is better suited to global expansion efforts of service and retailing enterprise by establishing franchise in particular country.
  8. 8. • 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
  9. 9. • 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
  10. 10. CHALLENGES to enter International market  While choosing new markets, MNCs need to consider several factors: 1) Micro factor 2) Macro factor
  11. 11. Micro factor • Political/regulatory environment. Tariff barriers - taxes on imports paid to customs officials - include Nontariff barriers • Financial/economic environment. Exchange rate - price of one currency in relation to another Fiscal policies Monetary policy • Socio cultural issues and technological infrastructure. Understanding the local culture is the most profitable way of marketing product and services.
  12. 12. Macro factor • Competitive considerations. • Local infrastructure such as transportation & logistics network. • Availability of mass media for advertising is important.
  13. 13. Implementing Global Marketing  Success will come from a balance between local and regional / global concerns.  “Think globally, act locally” is the operative phrase for global marketers competing in country markets.  Product choices should consider individual markets as well as transfer products from one region to another.
  14. 14. Localizing Global Marketing  Management processes - Enhance the global transfer of communications - Interchange personnel to gain experience abroad  Headquarters should coordinate and leverage resources  Permit local managers to develop their own programs within defined parameters
  15. 15.  CONCLUSION:  I conclude that when firm goes to globalization it has a lot of growth & development which leads always in good profit motive.

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