Global marketing environment and current scenario

Group membersAdilMinhaz AkhtarAftabMukeshMohd Afzal

GLOBAL MARKETINGGlobal 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.

The global marketing environment consists of four distinct elements.

GlobalizationNational business environmentsThe international business environmentInternational firm management.

The Decision to GlobalTo Gain access to new buyersTo spread business risk across a wider

market base.To capitalize on an organization’s distinctive

competencies and capabilities.To achieve lower costs and enhance an

organization’s competitiveness.

Global marketing environmentGlobal marketing environment can be broadly

divided in two.Internal environment External environment. External environment consists of

microenvironment and macroenvironment.

Internal marketing environment

value system of the foundersThe mission and objectives of the companyThe organisational structure The composition of the board of directors enjoys from lower levels and workers,

shareholders and Board of Directors. the characteristics of the human resources

like skill, quality, morale, commitment.

Micro environment

Macro Environment

Why Should Firms Engage in Global Marketing?

To Survive and GrowTo Diversify Product and Market Portfolios

and Improve competitiveness.To Operate Within a Global Marketplace.

Entering and Competing in Foreign Markets

ExportingExporting 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.

LICENSINGWith licensing; a company (licensor) offers

the right to a trademark, patent, trade secret etc. to another (licensee) for a royalty or a fee.

JOINT VENTUREWhen a foreign company and local firm invest

together to create a local business, it’s called JOINT VENTURE.

For instance;Starbucks entered India in 2007 through a

joint venture with New Horizons, an India- based company.

DIRECT INVESTMENTThe 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.

For instance;Reebok entered Russia by creating a subsidiary

known as Reebok Russia.Advantages;• Cost savings• Better understanding of local market conditions

21st century way of global marketingSocial MarketingRelationship MarketingGreen Marketing

Social MarketingSocial marketing is a umbrella term that

define the various activates that integrate technology , social interaction and the construction of word and picture. For social marketing we need to have creative idea which attract other people to the product.

What is Relationship MarketingA long term Stagey to built relationship with

individual customers. Relationship Marketing is a philosophy of

doing business, a strategic orientation that focuses on keeping and improving current customers rather than on acquiring new customer.