2. Global trade versus Globalization
The subtle differences
It is about the business entity and it’s global presence
• Global trade, also known as international trade, is simply the
exchange of goods and services across international
boundaries. Global trade involves the export and import of
goods and services between international borders
• Globalization is the impact of integration of international
markets leading to what is popularly termed as the “flattening
of the world” leading to creation of new markets as well as
new competitive pressures
• Globalization is fueled by advances in communications
technologies and transportation
3. So what is Globalization?
Globalization (or globalisation) is the process of
international integration arising from the interchange of
world views, products, ideas, and other aspects of culture
Advances in transportation and telecommunications
infrastructure, including the rise of the telegraph and its
posterity the Internet, are major factors in globalization,
generating further interdependence of economic and
cultural activities
Source: Wikipedia
4. The role of communications (internet) in
Globalization
“The Internet will create the
winner and bury the laggards”
- Philip Kotler
6. Key drivers for going Global
Driving growth
Availability of Natural resources / Raw materials
Value addition – manufacturing, design, finishing
Economies of scale - specialization
Balancing of Demand / Supply
Specific skill sets
Government regulations, SOPs – e.g. pollution
7. Potential barriers to going Global
Competition
Tariffs
Subsidies
Regulations, Laws
Language
Climate
Resources
8. Advantages of going Global
For businesses and consumers
Access to new markets
Achieving volume – economies of scale
Lowering production costs
Global product & service availability
Potentially better quality products & services
Development of Nations & Goodwill
Dealing with natural calamities – famine, draught
Ability to earn Foreign exchange
9. Disadvantages of going Global
The underbelly
Monopolistic behavior
Competition for smaller local businesses
Uneven wealth distribution
Unemployment in certain areas
Economic depression in a particular area leading to instability
Loss of local culture
Environment impact – polluting industries
Spread of diseases – human and agricultural
10. Switching gears - to the Global marketing
context
Source: Philip Kotler, Marketing Management
“We are living in a world that is no longer
facing a shortage of goods but a shortage of
customers”
"The most important thing is to forecast
where customers are moving and be in front
of them.“
11. Key elements to becoming a successful
global marketer
“Being a successful global marketer means more
than just translating content”
• Target audience
• Groups and forums
• Social networks and endorsements
• User generated content
• Optimize for mobile
• Well targeted campaigns
• Language
• Time of day
• Video
• Discounts & contests
• Frequency
Source: Hubspot
12. Glocalization – success stories abound
Glocalization = Global advantages, local relevance:
Think Global & Act Local
• Airbnb – localized application
• Coca cola – CSR – support my school
• Expedia – localized holiday destinations
• McDonalds – local food sentiments
• Pepsi – localization of food
• TCS – b2b success model
• WWF – World Earth Hour
13. Think Global, Act Glocal
— Distributed Marketing Model
Can your brand assets be leveraged globally?
Can services be reused across regions?
How many global agency partners do you have?
How many do you need?
How complex is your channel ecosystem?
What channels do you use in specific countries?
Can you leverage assets across channels?
What are the regulatory considerations you face in the various countries
in which you operate?
Source: TCS blogs
14. Distributed marketing model
Distributed Marketing Control provides organizations with:
• A global framework and governance charter that is usable across all of
their regions
• The ability to plan global strategies and maturity models and
implement locally
• A global platform that is extensible to regions
• Production capability that is able to deliver services to all regions in a
uniform fashion
• The ability to re-use assets and services
• The ability to report metrics–campaign ROI, deep customer insights
based on analysis of structured and unstructured data, demand
forecasts, and more–both globally and by region
Source: TCS blogs