Challenges in going global for international marketing and

All rights reserved - Ramesh
Kumar Nanjundaiya1
Challenges in Going Global for
International Marketing and
Relationship Management
By Ramesh Kumar
Nanjundaiya
November 2012

Kumar Nanjundaiya2
Presenter’s background
RAMESH KUMAR NANJUNDAIYA – MS (Belgium), MBA (US)
 Associate Partner & Head - Finance/Business set-up and Family Office of M/s. Insta
Solu Venture Consultants, LLP, Bangalore, India
 Certified as “Independent Corporate Director”, by World Council For Corporate
Governance, London, UK [License # WCFCG/IID/DCD/2011/1711] – 2011
 Visiting Guest Faculty in “International Marketing”and “Corporate Finance” course
for final year MBA students at a known institutions in Bangalore, India.
Professional overview
 An accomplished professional with over 32 years’ of experience in banking and the
financial sector with established credentials in Corporate Banking and Marketing,
Financial Management, Venture & PE Capital sourcing, setting up JVs and with forte
in Start ups to promote new commercial banks, ventures, undertaking IPO
groundwork & Listing for SMEs.
 Senior banker with working experience gained in known international banks as BNP,
SCB, Citibank, EBIL, Barclays Bank, Banque Saudi Fransi in such diverse countries
as the Middle East (GCC) region, West Europe and India.
 Trainer in Corporate Banking and Credit, International Trade and Marketing and
Business Consultation.

Kumar Nanjundaiya3
What is the great challenge
 My first day out in Brussels, Belgium at 19 years. It struck me as a bolt from blue that Cultural norms play
a large part in our lives. I had grown in the Delhi and I took my norms of behavior for granted. I do not
think about my reactions, preferences, and feelings. Out on the road, I quickly realized that nobody speaks
English. It is either French or Dutch (Flemish). Suddenly things seemed very very different. I did not know
what to do or say. I had to reinvent myself to evaluate my approach, my decisions, and actions based on
how the Belgian culture might think and react to me. My first job was to learn French.
 The greatest challenges of doing business overseas: This stem from attempting to deal with the distinctive
and often quite different nature of the cultural, business and ethical environment.
 Standard hurdles: A company looking to set up business or manufacturing facilities in a foreign country
may encounter language difficulty, cultural issues, government controls, difficulties in making an effective
transfer of core technologies, poorly trained local workers, financial restrictions and a lack of inputs and
supplies meeting the necessary quality standards. The list can go on.
 What is our objective: How do we create long term, mutually beneficial, international business
partnerships?

Kumar Nanjundaiya4
A practical approach - Doing business
across borders – first lessons
 “Change Your Mindset” - First and foremost - so that you can
appreciate the new country’s culture, their language, customs
and laws. Remember, going forward you will be regularly
working with cross cultural teams, people with diverse
nationalities face to face or virtually. the ability of the company
to achieve global localisation or ‘Glocalisation’ i.e. the ability to
be an insider or a local company and still reap the benefits of
global operations. Think global and act local is the meaning of
Glocalisation and to be successful in international marketing,
companies must have the ability to think global and act local.
 I call them “Environmental Factors”- These needs to be studied,
researched and addressed in the home country first.
 International Marketer tools - Develop global awareness and
sensitivity to view the globe as the market place to do and close
business successfully.

Kumar Nanjundaiya5
Developing global awareness – simple
steps
 OBSTACLES - Be ready to confront many types of
obstacles with a degree of optimism and willingness
to learn.
 KNOWLEDGE - Develop knowledge of the global
market specifically in terms of the changing social,
political and economic trends.
 RELATIONSHIP - As the selected International
Manager develop the habit of networking and
relationship building in other countries.

Kumar Nanjundaiya6
What have been the past stages
 1970s – “standardization versus adaptation”
 1980s – “global integration versus local responsiveness”
 1990s – “global integration versus local responsiveness”
 2000s - The trend back toward localization is caused by
the new efficiencies of customization made possible by
the Internet and increasingly flexible manufacturing
processes.
 Scenario Today - From the marketing perspective
customization is always best. As global markets continue
to homogenize and diversify simultaneously, the best
companies will avoid the trap of focusing on country as
the primary segmentation variable.

Kumar Nanjundaiya7
What is Global Market Orientation
 A Global company that is successful is due to the
fact that they have be able to develop marketing
plans that strives for standardisation wherever it is
cost and culturally effective. Eg: McDonald’s.
 To become a successful global player, study the
common consumer characteristics and behaviour.
 Then apply key segmentation variables across
countries and regions.

Kumar Nanjundaiya8
Stages to start the process
 Phase 1: Preliminary Analysis and Screening
– Matching Company and Country Needs.
 Phase 2: Adapting the Marketing Mix to
Target Markets.
 Phase 3: Developing the Marketing Plan
 Phase 4: Implementation and Control

Kumar Nanjundaiya9
Good trade opportunities and
protectionism
 International trade is good for both developed and
developing countries across the globe.
 Free international markets help underdeveloped
countries become self-sufficient , that there is a lot of
talk about free trade without barriers.
 Have we succeeded in this – No, but it possible with
controlled and equitable reduction in trade barriers
so that the consumer (end user) should benefit.

Kumar Nanjundaiya10
Importance of culture in global
marketing
 Culture is the single most important aspect
that a foreign marketer should consider
before thinking of entering a new country and
start preparing marketing plans and
strategies.
 Your marketing plans and strategies does
not fully cover or address the country’s
business customs, political situation and
changing legal requirements.

Kumar Nanjundaiya11
Global challenge – change your
management style
 Information and competition or relationship building
and transaction cost reduction.
 What about environmental consideration which can
significantly affect the attitudes, behavior and out
look of the foreign businessman.
 An outsider is always an outsider and his business is
always going to be foreign. Motivation and
adaptation is the key to success in a foreign soil.


Kumar Nanjundaiya12
Is political environment a concern
 Very much so. The foreign firm must strive to make
its activities politically acceptable or it may be
subject to a variety of politically managed
harassment.
 Try selling a toothpaste made in Israel in any of the
Middle East Arab countries. Very simple, you will pay
with your like.
 How to lessen political vulnerability: JV’s, Increasing
investor base, planned domestication, etc.

Kumar Nanjundaiya13
International marketer to address legal
issues in the host country
 The varying legal system of the world and their effect on
business setup and transactions can be a minefield.
 Protection of intellectual property rights, enforcement of
antitrust legislation.
 New to the legal debacle is the internet which actually creates a
new set of legal entanglements which needs to be addressed
on an ongoing manner.
 Solution - To run a successful marketing and business in an
overseas market, one need to be equipped with a group of
competent counsel from home and the host country.

Kumar Nanjundaiya14
Is Market research important
 Please remember that in a foreign market, seeking information
about customer attitudes is culturally very different and
conditioned.
 While seeking information, the international marketer needs to
ensure that the respondent’s privacy is not offended.
 Gathering information – Many foreign markets have inadequate
and/or unreliable bases of secondary date which is going to be
a challenge.
 Solution – Use multiple methods, triangulation, include decision
makers to interact with customers in foreign land.

Kumar Nanjundaiya15
Which markets to tap –
developed/developing countries?
 A big challenge today - In today’s ever expanding world trade
with varying needs and wants one needs to grab the
opportunity at the earliest.
 As an International Marketer you must be able to react to
market changes rapidly and to anticipate new trends within
constantly evolving market segments that may not have existed
in the recent past. As they say – smell an opportunity.
 Marketers must focus on devising marketing plans designed to
respond fully to each level of economic development. In this
regard, it is best to seek new business opportunities in the so
called emerging markets.

Kumar Nanjundaiya16
Is Emerging Markets an answer
 It is a well known fact seen since the last 15 years that fast
developing markets (BRICS) are experiencing rapid
industralisation and a fast growing consumer market (The
Indian Middle Class).
 These markets present excellent new opportunities for foreign
investment. Wal Mart is very strong in China with 50 units
across the country. Procter & Gamble – present all over the
globe. Nestle – present in about 90 countries, Coca Cola, etc
 Assessing Business potential - The International Marketer must
be in a position to make an assessment of the existing level of
market development and receptiveness within the chosen
country.

Kumar Nanjundaiya17
Global Marketing Management
 Golden Rule – Expanding market
opportunities come in with increased
competition for all level of global marketing.
 To maintain a viable position, we need to
have a global perspective.
 It essentially requires quality products
designed to meet the ever changing
customer needs and rapidly advancing
technology.

Kumar Nanjundaiya18
How to organise the company to face
international competition
 Because organizations need to reflect a wide range of
company-specific characteristics, devising a standard
organizational structure is difficult.
 Companies are usually structured around one of three
alternatives:
– Global product divisions responsible for product sales
throughout the world
– Geographical divisions responsible for all products and
functions within a given geographical area
– A matrix organization consisting of either of these
arrangements with centralized sales and marketing run by a
centralized functional staff, or a combination of area
operations and global product management

Kumar Nanjundaiya19
Goals for an International Marketer
 International Marketers - Your goal is to find the just
market for your organisation. You need to address
cost containment, customer satisfaction, facing
competition. This means that you need to refine your
company’s international business practices.
 How – By relooking at company goals, undertaking
collaborative relationships, establishing strategic
international business alliances, assist your
company management in their strategic planning
with your inputs.

Kumar Nanjundaiya20
To achieve success in International
Marketing
 Identify alternate market entry strategies
 The growing globalisation of markets that
gives rise to standardisation must be
balanced and adapted for successful
acceptance in a new marketplace.
 Adaptation – key mantra

Kumar Nanjundaiya21
Global marketing – Relationship
Management and adaptation
 Communication - Today as we know global
communication and socializing forces have
actually fostered a homogenization of values,
needs and tastes in a significant section of
the population across all cultures.
 How do you view a product: Today each
product must be viewed in light of how it is
perceived by each culture group which it
come in contact with.

Kumar Nanjundaiya22
Understanding a product – prime
important
 Remember - What is acceptable and
comfortable within one group may be
resisted within other group.
 As established product in one culture/country
may be an innovation in an other culture in
developing products for foreign markets.
 The end result is “adaptation” to the needs of
the consumer in a new market.

Kumar Nanjundaiya23
Is International Marketing a good
profession to enter
YES - Today it is the most sought after assignment:
Advantages:
1. Excellent pay, perks and promotions
2. Opportunity to travel globally at company expense
3. NRI - Social recognisition
4. Able to develop new friends/business contacts globally
5. Makes you a “Global Coverage Expert”
6. Allows you to learn a foreign language
7. New Job opportunities - Much sought by Multinationals globally.
8. Allows you to deal with people of diverse nationality and cultures
9. Brings new business and opens new markets to the employer
thereby helping the company grow globally, increase profiling and
shareholder value.

Kumar Nanjundaiya24
Global Expansion Challenges – quick summary
 Language, culture and regulations are often difficult barriers.
 Leadership must invest significant time and energy.
 Note: success factors in one country may not translate globally.
How to overcome them initially:
 Leverage existing customer relationships and networking.
 Build on your existing intellectual property (IP).
 Link up with trusted local partners. Ensure to align business
objectives, incentives, expectations and ensure to create
transparency and visibility between both partners.

Kumar Nanjundaiya25
Challenges – Interesting, doable and
outcome will be successful.
 We have covered a lot of different avenues and road
blocks while initiating international marketing.
 With good planning, strategy and hard work, you can
explore new marketing for business.
 There is a lot of business out there for grabs.
 Go and get it. Rest assured, it will be a very
rewarding and satisfying experience.
Good Luck

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