WHAT IS GLOBAL MARKETING?
..compete in global environment.
Global marketing involve the performance of activities
designed to plan, price, promote and direct to flow of an
organization’s offerings in more than one country for a profit.
Optimize global marketing- 3 success strategies
The Decision to Global
Organizations choose the market their products and services
outside their own country for four major reasons.
1.To Gain access to new buyers.
Expanding into foreign market offers potential for increased
revenues, profits and long-term growth and becomes an
especially attractive option when a company’s home country
markets are mature. For example,80 percent of new Burger
King restaurants opening from 2008 through 2013 were
outside of North America.
2.To spread business risk across a wider market base.
A company spreads business risk by marketing in a number
of different foreign countries rather than depending entirely
on operations in its own country. Thus, if sales in Asia turn
down for a period of time, a company’s business in North
America or Europe may offset decline.
3.To capitalize on an organization’s distinctive competencies and
A company maybe able to leverage its distinctive competencies
and capabilities into a competitive advantage in foreign markets
as well as its domestic market. Nokia’s competencies and
capabilities in mobile phones propelled it to global market
leadership in the wireless telecommunications business.
4.To achieve lower costs and enhance an organization’s
Many companies are driven to market their offerings in more
than one country because domestic sales volume is not
sufficient to fully capture operating efficiencies and thereby
improve their firm’s cost-competitiveness.
The relatively small size of country markets in Europe
explains why companies like Unilever (Netherlands) and
Nestle (Switzerland) began selling their products across
Europe long ago and then entered markets in North America,
Asia, Latin America and Africa.
So going global means;
Identify where profitable marketing opportunities may exist
outside of their own country.
Mc Donalds Global Market Strategy
IdentIFYING GLOBAL MARKETING
The process begins by establishing and
prioritizing criteria for screening countries.
Country Screening Criteria
•Socio-cultural nuances that underlie business
and consumer behavior
•Country economic and technological
infrastructure differences that affect marketing
• Trade regulations the govern marketing practices within
countries or free trade zones such as the European Union.
• Marketing prowess and strength of local and foreign
competitors within countries or free-trade zones.
It depends characteristics of the organization itself.
It depends organization’s strengths, weaknesses, offerings,
marketing policies, practices, financial resources.
In fact organizations begin their global expansions
‘close to home’ where sociocultural, legal, economic etc.
Exporting involves producing offerings in one country and
selling them in an-other country.
Exporting can be indirect or direct;
•Indirect exporting, a firm sells its domestically produced
goods in foreign country through an intermediary.
•Direct exporting exists when a firm sells its domestically
produced goods in a foreign country without intermediaries.
With licensing; a company (licensor) offers the right to a
trademark, patent, trade secret etc. to another (licensee) for a
royalty or a fee.
Starting with a competitive advantage!
Yoplait yogurt is licensed from Sodima, a French
cooperative, by General Mills for sale in US.
When a foreign company and local firm invest together to
create a local business, it’s called JOINT VENTURE.
Starbucks entered India in 2007 through a joint venture with
New Horizons, an India- based company.
The biggest commitment a company can make when entering
the global market is direct investment which entails a
domestic firm actually investing in and owning a foreign
subsidiary or division.
Reebok entered Russia by creating a subsidiary known as
•Better understanding of local market conditions
Offering & COMMUNICATION
Organizations have five strategies for matching offerings and
their communication efforts to global markets.
MARKETING channel and prICING
Successful global marketers standardize marketing
programs when-ever possible and customize them whenever
Compered with offering and communication strategies ,
standardization presents a unique challenge for marketing
channel and pricing strategies due to country trade
regulations and consumer buying preferences and practices.