A company must make several key decisions when tapping into global markets, including whether to go abroad, which markets to enter, and how to enter those markets. It must also decide how to adapt its marketing program, such as product features and communications, for different cultures and countries. Proper management of the international marketing organization and whole distribution channel is also important for success in global markets.
Global firms plan, operate and coordinate their activities on a worldwide basis.The firm will price its products appropriately worldwide, nationally and locally, and promote, deliver access and information to its customers in the most cost-effective way.,
The firm will price its products appropriately worldwide, nationally and locally, and promote, deliver access and information to its customers in the most cost-effective way.,
It operates in more than one country and captures R & D, production, logistical, marketing, and financial advantages not available to purely domestic competitors.
Analyzing Consumer Markets
What Influences Consumer Behavior?
What is Culture?
Subcultures
Fast Facts About American Culture
Social Classes
Characteristics of Social Classes
Reference Groups
Roles and Status
Personal Factors
The Family Life Cycle
Lifestyle Influences
Model of Consumer Behavior
Motivation
Maslow’s Hierarchy of Needs
Consumer Buying Process
Problem Recognition
Global firms plan, operate and coordinate their activities on a worldwide basis.The firm will price its products appropriately worldwide, nationally and locally, and promote, deliver access and information to its customers in the most cost-effective way.,
The firm will price its products appropriately worldwide, nationally and locally, and promote, deliver access and information to its customers in the most cost-effective way.,
It operates in more than one country and captures R & D, production, logistical, marketing, and financial advantages not available to purely domestic competitors.
Analyzing Consumer Markets
What Influences Consumer Behavior?
What is Culture?
Subcultures
Fast Facts About American Culture
Social Classes
Characteristics of Social Classes
Reference Groups
Roles and Status
Personal Factors
The Family Life Cycle
Lifestyle Influences
Model of Consumer Behavior
Motivation
Maslow’s Hierarchy of Needs
Consumer Buying Process
Problem Recognition
A Not-for-Profit Medical Research Center
Project Objective
Project Assumptions
Technical requirements
Activities to Complete
Project Timelines
Project Priority Matrix
Work Breakdown Structure
Responsibility matrix
Plans are only good intentions, unless they immediately degenerate into Hard work
Chapter 2 Developing Marketing Strategies and PlansNishant Agrawal
Developing Marketing Strategies and Plans
Value Delivery Process
What is the Value Chain?
Core Business Processes
Core Competencies
What is Holistic Marketing?
Levels of a Marketing Plan
Corporate Headquarters Planning Activities
This is a lecture I gave some time ago highlighting some of the key aspects to be considered if planning to develop international markets. I hope you find it of interest.
International Marketing Mix
Chapter 2
1
Universal Products for Universal Needs?
“Most people everywhere, from Argentina to Zanzibar, want a better way of life for themselves and for their family…The desire to be beautiful is universal. Such appeals as ‘mother and child,’ ‘freedom from pain,’ and the ‘glow of health,’ know no boundaries.”
Arthur Fatt
Founder of Grey Advertising
1967
2
International Marketing Mix:
Standardization
Lower production and marketing costs
Universal needs
Build a uniform worldwide corporate image
3
Product Standardization
Product categories
Industrial products vs. consumer products
Target consumers
Global Consumer Segments?
Business travelers
Rich upper class
Teenagers
International Marketing Mix:
Localization
Government and regulatory demands
Differing consumer behavior patterns
Product Adaptation
Mandatory
Economic and technology development
Discretionary
Different consumption patterns
Product Invention
A Successful Global Brand is…
Positioned the same way in every market
May convey different brand meanings
Often use adapted marketing mix
9
Place (Distribution)
Different distribution system and customs
(Global) E-Commerce
Product Distribution in Japan
A severe lack of space
Shrinking labor pool
Highly urbanized
Pedestrian traffic is highly centralized
Global Distribution
Export
Most common
Least complicated
Least risky
Distribution
Licensing & Franchising
Quick & easy
Little capital investment
Negate tariff, import quotas, & transportation costs
Distribution
Licensing & Franchising
Less profitable: ______% sales
Creating potential competitors
Contract Manufacturing
Outsourcing manufacturing
Control distribution & marketing
Cheaper labor
Problem?
Joint Venture
Joint with a foreign company to create a new entity
Local expertise with joint partner
Not allowed for certain industries
Direct Investment
Greatest commitment and greatest rewards
Develop or acquire foreign-based manufacturing facilities
Full control and avoid conflicts
Cheap labor or consumers’ preferences for locally made products
Not allowed for certain industries or in certain countries
Risk Levels for Global Entry
Low risk
Low return
High risk
High return
Risk
Return
Export
Licensing
Contract
Manu-
facturing
Joint
Venture
Direct
Invest-
ment
4
19
Pri.
Main International Marketing Takeaways:
International marketing refers to any marketing activity that occurs across borders.
Types of international marketing include export, licensing, franchising, joint venture, and foreign direct investment.
Global marketing aims to satisfy the needs of global customers.
International marketing enables the effective utilization of surplus production.
International marketing can help create bigger and better opportunities for business expansion.
Along with a broader customer base, global marketing also protects against potential economic downturns.
Cultural restrictions between the home and host countries could hinder international marketing strategies.
Other downsides of international marketing include high competition, government restrictions, and war situations.
International marketing is now a viable option for businesses, thanks to advancements in communication, transportation, and financial flow. According to the World Trade Organization, the volume of international merchandise trade increased 33 times between 1951 and 2010.International marketing, also known as global marketing, involves marketing products to people across the world. In other words, it’s any marketing activity that occurs across borders. According to the American Marketing Association, international marketing is a multinational process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create an exchange that satisfies individual and organizational objectives.
It’s somewhat similar to export management. However, export management only involves managing the flow of goods and services from the host country to the guest country.
International marketing, on the other hand, covers production, finance, and personnel activities. It also entails several post-sales activities.
What are the Characteristics of International Marketing?
All the features of modern marketing apply to international marketing. However, the latter aims to satisfy the needs of global customers. So, it takes place across borders.
As a result, international marketing has specific characteristics, such as:
It involves two or more countries
Unique marketing strategies for specific countries
It enables exchange between a company and foreign customers
Decisions are taken with reference to the global business environment
As you may have guessed, global marketing offers attractive opportunities to companies that are successful at it. However, it also comes with several threats and challenges.
Before we consider the benefits and challenges of international marketing, let’s address an equally important question.International businesses looking to sell their products or service in a new country usually start with export or licensing. Besides these options, other international marketing types include contract manufacturing, joint venture, and foreign direct investment (FID).
Let’s delve a little deeper.
1. Export
Exp
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involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
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General 2
1. MARKETING
MANAGEMENT
CHAPTER 21–
TAPPING INTO GLOBAL
MARKET
Guided by DR. S.V KULKARNI
PRESENTED BY:
URMEE DOSHI (27)
NAINA HINGHER (32)
SANDEEP KAUR BATH (11)
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 and
reputation that are not available to purely
domestic competitors.
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
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. RISK INVOLVED
Fail to understand foreign preferences
Fail to understand foreign business culture
Lack manners
Change in commercial laws of foreign
countries
7. Four Stages of Internationalization
No regular export activities
Export via independent agents
Establish sales subsidiaries
Establish production facilities abroad
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. 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. 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.
15. Five Modes of Entry
into Foreign Markets
Indirect exporting
Direct exporting
Licensing
Joint ventures
Direct investment
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 agents
LICENSING:
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. JOINT VENTURES:
A joint venture (often abbreviated JV) is an entity formed
between two or more parties to undertake economic activity
together. The parties agree to create a new entity by both
contributing equity, and they then share in the revenues,
expenses, and control of the enterprise.
Eg:- Procter & Gamble, Maruti Suzuki ltd. Etc
DIRECT INVESTMENT:
Foreign companies buy a part or full interest in a local
company
Eg:- General Motors invested in Shanghai GM etc.
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. 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. 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. 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. 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. Levels of Product Adaptation
Production of regional product versions
Production of country versions
Production of city versions
Production of retailer versions
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. What is a Gray Market?
A gray market consists of branded products
diverted from normal or authorized
distributions channels in the country of product
origin or cross international borders; dealers in
lower priced countries sell products in higher
priced countries
28. Whole-Channel Concept for
International Marketing
Seller
International headquarters
Channels between nations
Channels within nations
Final buyers
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