global marketing

Global Marketin

g

PRESENTED BY:B.SAI KIRAN

(12NA1E0036)

The coordinated performance of marketing activities to create exchanges across countries that satisfy individual, organizational , and societal objectives

Global marketing is conducted across countries (not domestic or foreign)

Global marketing coordinates activities across different country markets

Global marketing should be motivated by individual, organizational and societal goals

Global Marketing

Core Business Strategy

CountryA

CountryB

CountryC

CountryD

Develop CoreBusiness Strategy

Internationalizethe Strategy

Globalizethe Strategy

Global Marketing Evolution

What is Internationalization ?• As the process of increasing involvement in international

operations.

Why consider going international ?

• To increase overall customer base.• To offset seasonal fluctuations in local markets• To minimize risk of losing market share to clients who themselves use internet to find goods / services in overseas markets• To offset increasing costs of doing business at home• To gain prestige with customers at home .

Internationalization

Advantage • Spreading business risk• Opportunity to exploit an existing

competitive edge in new markets• Expansion of brand awareness to

new audiences• Increased revenue generation• Possibility of accessing new

technologies / information• Business can be conducted via the

internet thus shortening the communication channels between customers and markets

Disadvantage • cultural and language

barriers• exchange rate fluctuations• religious beliefs• government regulations /

policy on profit repatriation• political instability• economic downturn.

Major International Marketing Decisions

Strategy to enter into International Market.

• Export• Involves using domestic plants as a production base for exporting to

foreign markets.

• Licensing• Has valuable technical know-how or a patented product but does not have

international capabilities or resources to enter foreign markets

• Franchise• Often is better suited to global expansion efforts of service and retailing

enterprise by establishing franchise in particular country.

• Strategic alliance• Through strategic alliance you can enter into international market.

• Global strategy• Pursue basic strategy world wide.• Sell the same products under the same brand• Production plants located local efficiencies • Best suppliers from anywhere• Coordinated marketing and distribution worldwide

• Multi country strategy• Production plants in each country

– Producing products for that country– Using local suppliers where possible

• Strategic alliance• Through strategic alliance you can enter into international market.

• Global strategy• Pursue basic strategy world wide.• Sell the same products under the same brand• Production plants located local efficiencies • Best suppliers from anywhere• Coordinated marketing and distribution worldwide

• Multi country strategy• Production plants in each country

– Producing products for that country– Using local suppliers where possible

CHALLENGES to enter International market

While choosing new markets, MNCs need to consider several factors:

1) Micro factor

2) Macro factor

Micro factor

• Political/regulatory environment.Tariff barriers - taxes on imports paid to customs officials - include Nontariff barriers• Financial/economic environment.Exchange rate - price of one currency in relation to

anotherFiscal policiesMonetary policy• Socio cultural issues and technological infrastructure.Understanding the local culture is the most profitable way

of marketing product and services.

Macro factor• Competitive considerations.

• Local infrastructure such as transportation & logistics network.

• Availability of mass media for advertising is important.

Implementing Global Marketing

Success will come from a balance between local and regional / global concerns.

“Think globally, act locally” is the operative phrase for global marketers competing in country markets.

Product choices should consider individual markets as well as transfer products from one region to another.

Localizing Global Marketing Management processes - Enhance the global transfer of communications - Interchange personnel to gain experience abroad Headquarters should coordinate and leverage

resources Permit local managers to develop their own

programs within defined parameters

CONCLUSION: I conclude that when firm goes to

globalization it has a lot of growth & development which leads always in good profit motive.