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General 2

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General 2

  1. 1. MARKETING MANAGEMENT CHAPTER 21– TAPPING INTO GLOBAL MARKETGuided by DR. S.V KULKARNI PRESENTED BY: URMEE DOSHI (27) NAINA HINGHER (32) SANDEEP KAUR BATH (11)
  2. 2. What is a Global Firm? A global firm is one that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages in its costs andreputation that are not available to purely domestic competitors.
  3. 3. Major Decisions in International Marketing Deciding whether to go abroad Deciding which markets to enter Deciding how to enter Deciding on the marketing program Deciding on the marketing organization
  4. 4. DECIDING WHETHER TO GO ABROAD
  5. 5. FACTORS DRAWING COMPANIES INTO INTERNATIONAL ARENA Higher profit opportunities Economies of scale Counterattack global competitors in home market Customers abroad require international service
  6. 6. RISK INVOLVED Fail to understand foreign preferences Fail to understand foreign business culture Lack manners Change in commercial laws of foreign countries
  7. 7. Four Stages of Internationalization No regular export activities Export via independent agents Establish sales subsidiaries Establish production facilities abroad
  8. 8. DECIDING WHICH MARKETS TO ENTER
  9. 9. DEVELOPED V/S DEVELOPING MARKETS Developing market have huge potential Market leaders rely on developing markets to fuel their growth UNILEVER & COLGATE generated 40% of their business in developing markets
  10. 10. Top Global Firms Based in Developing Markets America Movil  Huawei Technologies Cemex  Infosys Technologies China Mobile  Koc Holding CNOOC  Lenovo Group Embraer  MMC Norilsk Nickel Gazprom  Mahindra & Mahindra Haier Hisense
  11. 11. Regional Free Trade Zones European Union NAFTA MERCOSUL APEC ASEAN The purpose of these trade zones are not only to remove trade barriers on member nations but also to impose common external barriers on non-members. They allow free movement of labour and capital within the region.
  12. 12. Key Developing Markets Brazil Russia India China South Africa
  13. 13. Desired Country Characteristics for Market Entry Rank high on market attractiveness Rank low in market risk Possess a competitive advantage
  14. 14. DECIDING HOW TO ENTER THE MARKET
  15. 15. Five Modes of Entry into Foreign Markets Indirect exporting Direct exporting Licensing Joint ventures Direct investment
  16. 16. INDIRECT EXPORT:There is less investmentThere is less riskThus , it is the best way to get involved in international market.DIRECT EXPORT: (ways)Domestic based exportOverseas sales branchTravelling export sales representativeForeign based agentsLICENSING:It means to get permission to use a manufacturing process,trademark etc. for a fee or royaltyA company can also enter foreign market through franchising
  17. 17. JOINT VENTURES:A joint venture (often abbreviated JV) is an entity formedbetween two or more parties to undertake economic activitytogether. The parties agree to create a new entity by bothcontributing equity, and they then share in the revenues,expenses, and control of the enterprise.Eg:- Procter & Gamble, Maruti Suzuki ltd. EtcDIRECT INVESTMENT:Foreign companies buy a part or full interest in a localcompanyEg:- General Motors invested in Shanghai GM etc.
  18. 18. DECIDING ON THE MARKETING PROGRAM
  19. 19. Global Marketing Advantages Disadvantages Economies of scale  Differences in consumer Lower marketing costs needs, wants, usage Power and scope patterns Consistency in brand  Differences in consumer image response to marketing mix Ability to leverage  Differences in brand Uniformity of marketing development process practices  Differences in environment
  20. 20. What Marketing Aspects Might Be Adapted for International Marketing? Product features  Brand name Labeling  Packaging Colors  Advertising execution Materials  Prices Sales promotion  Advertising themes Advertising media
  21. 21. Cultural Dimensions Individualism vs. collectivism (self worth is rooted more in social system than individuals achievement) Masculine vs. feminine (culture dominated by assertive males vs nurturing females) High vs. low power distance (high power cultures tends to be less egalitarian) Weak vs. strong uncertainty avoidance (it shows how risk tolerant people are)
  22. 22. Commandments of Global Branding Understand similarities and differences in the global branding landscape Do not take shortcuts in brand building Establish a marketing infrastructure Embrace integrated marketing communications Establish brand partnerships
  23. 23. Commandments of Global Branding (cont.) Balance standardization and customization Balance global and local control Establish operable guidelines Implement a global brand-equity measurement system Leverage brand elements
  24. 24. Levels of Product Adaptation Production of regional product versions Production of country versions Production of city versions Production of retailer versions
  25. 25. Communications Communications adaptation Dual adaptation
  26. 26. Price Choices Set a uniform price everywhere Set a market-based price in each country Set a cost-based price in each country
  27. 27. What is a Gray Market? A gray market consists of branded products diverted from normal or authorizeddistributions channels in the country of productorigin or cross international borders; dealers in lower priced countries sell products in higher priced countries
  28. 28. Whole-Channel Concept for International Marketing Seller International headquarters Channels between nations Channels within nations Final buyers
  29. 29. DECIDING ON THE MARKETING ORGANIZATION
  30. 30. Global Organization Strategies Export department (world as a single market) International division Global organization
  31. 31. SUMMARY Companies cannot simply stay domestic; they need to internationalize their operations While deciding a company needs to define its marketing policies & objectives Then decide on the best mode of entry Decide how to adapt its marketing program Manage international marketing activity

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