Global marketing


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Global marketing

  1. 1. GLOBAL MARKETING<br />PRESENTED BY:-<br />Shrikant S Panikar-44<br />Ankit Jain-07<br />Sanjay Sharma-40<br />Jeetendra Kumar-16<br />Neeraj Chaudhry-24<br />Amit Kumar Pathak-05<br />
  2. 2. Chapter Outline<br />Introduction to Global Marketing.<br />Deciding whether to go abroad<br />Deciding which markets to enter<br />Deciding how to enter the market<br />Deciding on the marketing program<br />Deciding on the marketing organization<br />
  3. 3. Global Marketing<br />The Oxford University Press defines global marketing as “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives .”<br />Global marketing is not a revolutionary shift, it is an evolutionary process. While the following does not apply to all companies, it does apply to most companies that begin as domestic-only companies.<br />
  4. 4. Global Marketing: What It Is and What It Isn’t<br />Single Country Marketing Strategy<br />Target market strategy<br />Marketing mix <br />Product<br />Price<br />Promotion<br />Place<br />Global Marketing Strategy<br />Global market participation<br />Marketing mix development<br />4 P’s: adapt or standardize?<br />Concentration of marketing activities<br />Coordination of marketing activities<br />Integration of competitive moves<br />
  5. 5. McDonald’s Global Marketing<br />Marketing Mix Element Standardization Localized<br />McAlooTikka potato burger (India)<br />Slang ’Macca’s (Australia)<br />MakDo (Philippines)<br />McJoymagazine, “Hawaii Surfing Hula” promotion (Japan)<br />Home delivery (India)<br />$5.21 (Switzerland)<br />$1.31(China)<br />Big Mac<br />Brand name<br />Advertising slogan “I’m Loving It”<br />Free-standing<br />Big Mac is $3.10 in U.S. and Turkey<br />Product <br />Promotion <br />Place <br />Price <br />
  6. 6. The Importance of Going Global<br />For U.S. companies, 70% of total world market for goods and services is outside the country<br />Coca-Cola earns 75% of operating income and two-thirds of profit outside of North America<br />For Japanese companies, 90% of world market is outside the country<br />94% of market potential is outside of Germany for its companies<br />
  7. 7. Major Decisions in International Marketing<br />
  8. 8. Deciding Whether To Go Abroad<br />Global firms offering better products or lower prices can attack the company’s domestic market.<br /> Example- Automobile sector<br />The company discovers that some foreign markets present higher profit opportunities than the domestic market.<br /> Example-Tata steel<br />The company wants to reduce its dependence on any one market. Example-Tata hospitality.<br />The company’s customers are going abroad and need servicing. <br />
  9. 9. Before going abroad, the company consider several risk:<br />The company might not understand foreign customer preferences, culture.<br />The company might not understand the foreign customer psychology. <br /> Hallmark cards failed when they were introduced in France. The French dislike syrupy sentiment and prefer writing their own cards<br />
  10. 10. CONTD…<br />The company might not understand that how to deal effectively with foreign nationals.<br />Philips began to earn a profit in Japan only after it had reduced the size of its coffeemakers to fit into smaller Japanese kitchens and its shavers to fit smaller Japanese hands.<br /><ul><li>The company might underestimate foreign regulations and incur unexpected costs.
  11. 11. Coca-Cola had to withdraw its two-liter bottle in Spain after discovering that few Spaniards owned refrigerators with large enough compartments to accommodate it.</li></li></ul><li>Deciding Which Markets to Enter <br />How many markets to enter<br />Ayal and Zif contend that a company should enter fewer countries when:<br />Market entry and market costs are high<br />Product and communication costs are high<br />Population and income size and growth are high in the initial countries chosen<br />Dominant foreign firms can establish high barriers to entry<br />
  12. 12. Deciding Which Markets to Enter<br />Regional free trade zones<br />The European Union<br />NAFTA<br />MERCOSUL<br />APEC<br />Evaluating potential markets<br />Psychic proximity<br />
  13. 13. Deciding How to Enter the Market <br /><ul><li>Indirect and direct export
  14. 14. Occasional exporting
  15. 15. Active exporting
  16. 16. Indirect exporting
  17. 17. Domestic-based export merchants
  18. 18. Domestic-based export agents
  19. 19. Cooperative organizations
  20. 20. Export-management companies</li></ul>Five Modes of Entry into Foreign Markets<br />
  21. 21. Deciding How to Enter the Market<br />Companies can carry on direct exporting in several ways<br />Domestic-based export department or division<br />Overseas sales branch or subsidiary<br />Traveling export sales representatives<br />Foreign-based distributors or agents<br />Licensing<br />Management contracts<br />Contract manufacturing<br />Franchising<br />
  22. 22. Deciding How to Enter the Market<br />Joint ventures<br />Direct investment<br />The Internationalization Process<br />Johanson and Wiedersheim-Paul identified four stages in the internationalization process:<br />No regular export activities<br />Export via independent representatives (agents)<br />Establishment of one or more sales subsidiaries<br />Establishment of production facilities abroad<br />
  23. 23. Deciding on the Marketing Program <br />Standardized marketing mix<br />Adapted marketing mix<br />Product<br />Straight extension<br />Product adaptation<br />Product invention<br />Backward invention<br />Forward invention<br />Promotion<br />Communication adaptation<br />Dual adaptation<br />
  24. 24. Five International Product and Promotion Strategies<br />
  25. 25. Deciding on the Marketing Program<br />Price<br />Price escalation<br />Companies have three choices<br />Set a uniform price everywhere<br />Set a market-based price in each country<br />Set a cost-based price in each country<br />Transfer price<br />Dumping<br />Arm’s-length price<br />Gray market<br />
  26. 26. Deciding on the Marketing Organization <br />Place (distribution channels)<br />Seller’s international marketing headquarters<br />Channels between nations<br />Channels within foreign nations<br />Whole-Channel Concept for International Marketing<br />
  27. 27. Deciding on the Marketing Organization <br />Export department<br />International division<br />Geographical organizations<br />World product groups<br />International subsidiaries<br />
  28. 28. Deciding on the Marketing Organization <br />Global organization<br />Bartlett and Ghoshal distinguish three organizational strategies:<br />A global strategy treats the world as a single market.<br />A multinational strategy treats the world as a portfolio of national opportunities.<br />A “glocal” strategy standardizes certain core elements and localizes other elements.<br />13-21<br />
  29. 29. Conclusion<br />?<br />
  30. 30. Any Question?<br />