The document discusses key considerations for developing a global vision in marketing, including market selection, environmental analysis, and entry methods. It outlines the importance of understanding social, economic, political, technological, and competitive environments when entering international markets. Various entry strategies such as direct ownership, joint ventures, licensing, and exporting are examined, along with the need for product adaptation and distribution strategies to succeed in diverse markets.

1. DEVELOPING
A
GLOBAL VISION
Prof. Rajendra Sharma
rajsharma03@yahoo.co.in

2. Developing a global Vision
• Deciding whether to enter International Markets
• Environmental Analysis Issues in Global Markets
• Deciding Which Markets to Enter
• Ways of entering global marketplace
• The Global Marketing Mix

3. External Environment Facing
Global Marketers

4. External Environment: Social
Culture: Set of values shared by group that
determine what is socially acceptable,
including
 social structure
 assumptions and attitudes
 personal beliefs and assumptions
 interpersonal relationships

5. Economic Environment
• Stages of Development
– Traditional Society
– Pre-Industrial Society
– Takeoff Economy
– Industrializing/Developing
– Fully Industrialized Society
• Buying Power
– Gross National Product- total value of
goods and services produced in a
particular country
– Per capita income- income per person
in a particular country
• Currency
– Exchange rate-price of currency in
terms of another country

6. Other Environments
• Political and Legal Environment:
– How much control exerted over private organizations?
– Attitude toward foreign business?
– Political Stability?
• Technological Environment
– Levels of Technological Development
– Available Infrastructure

7. Other Environments
• Competitive Environment
– Government involvement in competition
– Ownership of competitors: local, foreign, government
• Natural Environment
– Resources Available

8. Deciding Which Markets to
Enter
• Need to first define international marketing
objectives and policies
• Generally, company should enter fewer
countries with a deeper commitment and
penetration in each when
– market entry & control costs high
– product & communication adaptation costs high
– population, income size & growth high in initial countries chosen
– Dominant foreign firms establish high barriers to entry.

9. More about deciding which
markets to enter
• Some groups of countries to consider
– Triad Markets: United States, Western Europe and Far
East
– Regional Free Trade Zones
» European Union--offers trade opportunities for US
and other non-European nations
» NAFTA--includes US, Canada and Mexico, but will
likely expand to include South American countries

10. More about deciding which
markets to enter: Consider
• Markets that have psychic proximity
• Markets that are
– high on market attractiveness
– low in market risk
– in which company possesses competitive advantage

11. Methods of Entry and Risk
Levels for global Marketing
Direct
Ownership
Joint
Ventures
Licensing
Exporting
High Control/High Risk/ High Return
Little Control/Low Risk/ Low Return

12. Methods of Entering the Global
Marketplace - Export
+ simple
+ minimal financial risk
- may be less profitable than other mechanisms

13. • Licensing: Licensor agrees to let another firm
use its manufacturing
+ minimal capital outlay
+ useful for serving countries with export restrictions
- difficult to control licensee
- when licensing agreement ends, licensee may become competitor so licensor
usually supplies some proprietary ingredients or components
- may give up profits
Methods of Entering the Global
Marketplace: Licensing

14. Methods of Entering the Global
Marketplace: Joint Venture
• Joint Venturing: Domestic firm buys or joins with a foreign company to
create a new entity
+ risk limited to organizations share in venture
+ foreign partner contributes expertise the organization lacks
+ useful when host country limits foreign ownership
- share control with venture partner; may disagree
- partner may learn technology or secrets
– can prevent a multinational company from carrying out specific manufacturing and marketing policies
on a world wide basis

15. Methods of Entering the Global
Marketplace: Direct Ownership
+ maximum control over foreign operations
+assures company of access to market in case host country
insists purchased goods have domestic content
+ are close to customers
- expensive to set up
- requires extensive knowledge of foreign markets and contacts
overseas

16. The Global Marketing Mix
• To succeed, must begin with market research
about foreign markets

17. Product & Promotion
• One Product, One message (global marketing standardization)
• Product Invention: developing new or drastically changing old product
• Message Adaption: maintain basic product, but change promotion
• Product Adaption--slightly alter product

18. Pricing
• Level:uniform,market based,cost based
• Dumping--the sale of an exported product at a
price lower than that charged for the same or
a like product in the “home” market of the
exporter
• Countertrade: form of trade in which all or
parts of the payment for goods or services is
in the form of other goods or services

19. Distribution
• Cross country differences in where people go
to buy products
• differences in retail outlets
• Physical infrastructure may be inadequate