Significance of global marketing.Domestic markets are saturatedRecover the investments fasterRapid technical growth.Effect of globalization and reduction ofboundaries.
Selecting a potential market. Regional Free Trade Zone. Ensure economic growth Increase trade relations Increase foreign capital inflows Create economic trade blocs. Integrate policies of member countries.
Evaluation of Potential markets. Analyses markets on the basis of macro environmental factors. Analyzing the market size, product acceptability and customer perceptions. Analyzing micro environmental factors Ranking the potential markets based on profit potential, market share ,investments, margins sales etc.
The impact of environmental forces on global marketing. Economic environment. Political environment. Social and cultural environment. Legal and regulatory environment. Technological environment.
Methods of entering a new market.Direct exportsIndirect exportsLicensingJoint venturesMergersStrategic alliances
Direct exportsCompanies sells their goods throughmiddle men located in foreign countriesMore control over distribution channelOpen their own sales offices.TextilesTirupurGoa –winesAuto parts
Indirect exportsExporting through a domesticintermediaryBrokers , export managers, agentsMinimum riskMarble stones in Rajasthan
LicensingForm of providing access to a patentor trade mark to some othercompany by charging a fee or royaltyCompanies with strong brand namesPharmaceutical industries
Joint venturesForeign company invites a localcompany to become an equitypartner share riskHave access to indepth knowledge ofthe local market
InternationalizationEntry modes and timings.Maturity stage – start exportsMore exports – technology transferand new productsMore new products –threat todomestic companiesGovt –protectionismNon tariff barriers
Stage of standardization –contractual agreements or FDIEarly phase – contracts – license ,FranchisingLater stages – FDICompany specific know how – JVGain experience – terminate JV andestablish wholly owned subsidiary
Types of marketing organizationExport division- self sufficient exportdivisionInternational division-Separatedivision for international businessGlobal organization-wholeorganization handles internationalbusiness
Developing global marketing strategiesProduct strategiesPromotion strategiesPricing strategiesPlace strategies