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    GLOBAL

    MARKETING

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    As we begin to study global marketing, two facts stand out

    clearly;

    --Global environment is inherently very complex

    --At the moment, many radical changes are taking place very

    fast.

    Global marketing is governed by different economic systems,different political and legal issues

    Today, almost all over the world, the basic institutions,

    business models, industry etc are undergoing a very rapidchange.

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    THE ECONOMIC ENVIRONMENT

    The Economic Envir onment

    The recent years have seen a marked slowdown in the growthof leading economies like the USA, Japan

    Simultaneously, economies like India, China, Russia havebeen gaining momentum

    At the same time almost a dozen countriesthe US, Japan,Germany, the UK, France, Italy, Spain, Canada, Russia, Braziland India have a GDP of over a trillion dollars.India joinedthis league in 2008.

    Russia has been doing quite well in recent years due toabundance of natural gas.

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    A NEW GLOBAL EQUILIBRIUM

    The group of G-8comprising of USA, Germany, France, Italy,

    Russia, Japan Russia and the UK are now replaced by G-20

    The world economy is also being driven by the coming together of

    Russia, China, Brazil and IndiaBRIC countries

    The BRIC countries are likely to overtake the advanced G-6

    countries by 2040

    Of the four BRIC countries, India and China are to the fore.

    Many developing countries are liberalising and shifting from

    centralised command and control economies to de-regulation.

    Currently, in terms of purchasing power parity, the four leading

    nations are the Us, Japan, China and India.

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    One of the most powerful and significant change that has taken place

    is the emergence of China as a formidable economic power.

    In fact China has re-defined capitalism by recording steep growth

    rates under state apparatus.

    By 2015 the world economy is expected to be transformed from a uni-polar economy to a bi-polar economy dominated by China and the

    USA.

    By 2035, the world is expected to become tri-polar with the USA,India and China dominating the world economy.

    By 2050, the USA, the UK, France, China, Japan, Germany France and

    South Korea are expected to be the eight leading economies.

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    THE CONSUMER ENVIRONMENT

    By 2050 the world population is likely to increase by 40 % to 9.2

    billion.

    In USA the population is graying and couples with double income

    growing.

    The population of India is likely to overtake China by 2030.

    Presently, the age mix is heavily in Indias favour. Presently, almost

    70% of Indians are below 35 yrs of age.

    In the western countries there is a danger of proportion of older people

    rising and the proportion of younger people shrinking. From where

    are they likely to get their work force?

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    THE COMPETITION ENVIRONMENT

    The traditional notion of competition has given way to a totally newmeaning to competition.

    This has occurred due to discontinuities of various kinds and

    blurring of industry and product boundaries.

    Some of the discontinuities are

    Globalisation, ubiquitous connectivity, de-regulation technology

    convergence etc

    The PC has transformed itself from a computing device to a an

    entertainment device and is giving stiff competition to consumer

    electronics.

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    THE COMPETITIVE ENVIRONMENT-contd/-

    Cheap Labour not enough

    In times to come cos that rely on cheap labour for competitive

    advantage will not be able to go far as the competitive advantage

    may shift very fast to another country.

    They will have to rely on innovation & technology.

    Globalisation has meant that even the resources are being sought on

    a global scale.

    Global gives way to glocal

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    IT SWEEP/SPREAD OF e-COMMERCE

    While the world felt the impact of IT some time ago, today it has

    been transformed into a sweep.

    Banking and commerce is now all about moving bits and bytes

    There are 1 billion PCs around today and almost 200 million are

    being added annually.

    Researchers have found that people who use computers for fiveyears tend to be more pro-active.

    Online marketing/e-commerce have changed the basic paradigm

    of business to-day.

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    KNOWLEDGE ECONOMY

    Knowledge Economy is understood as

    ---Reference to high tech sectors like IT, telecom, biotech,

    communication, entertainment

    ---Some sectors within new economy which are knowledge

    intensive

    ---Some use it for referring to the emerging economy as a

    whole.

    The fact remains that knowledge is becoming a value in all

    industries.

    KNOWLEDE IS PEOPLE CENTRIC

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    CAN REVERSE GLOBALISATION TAKEPLACE?

    RANBAXY

    TCS

    UB-KINGFISHERADITYA BIRLA GROUP

    TATA MOTORS

    M&M SAHARA

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    IMPLICATIONS OF BEING GLOBAL

    WTO HAS 166 MEMBERS

    --165 COUNTRIES CAN COME TO

    INDIA

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    GLOBAL ORGANISATION EVENTUALLY, WHEN COS BECOME GLOBAL VENTURES--PEPSI,COKE,P&G,

    GE ETC

    THEY THINK ABOUT THE ENTIRE WORLD AS THEIR MARKET ANDTHE ENTIRE POPULATION AS THEIR CUSTOMERS

    THE CHALLENGES FACED BY GLOBAL COS ARE FAR MORE COMPLEX ASTHEY INVOLVE DIVERSE CULTURES,DIFFERENTNATIONALITIES,INCOMPATIBLE POLITICAL SETUPS ETC

    GLOBAL STRATEGIES THAT SEEM TO HAVE WORKED ARE:

    GLOBAL STRATEGIES-CONSIDERS THE WORLD AS ONE MKT

    GENERALLY WORKS WHEN GLOBAL FORCES-FINANCE.INTEGRATEDPRODUCTION,HOMOGENOUS DEMAND

    ARE STRONG AND THE LOCAL

    FORCES--LOCAL PREFERENCES,TRADE BARRIERS ETC-- ARE WEAK.EGELECTRONIC GOODS. WHITE GOODS

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    MULTINATIONAL STRATEGY

    JUST THE OPPOSITE OF GLOBAL STRATEGY. WHEN NATIONALPRESSURES ARE STRONG ENOUGH TO COMPETE AGAINST GLOBAL

    PARAMETERS THEN THE COS WILL HAVE A DIFFERENT STRATEGY

    FOR EACH COUNTRY---FOOD,COSMETICS,DETERGENTS

    GLOCAL STRATEGY A JUDICIOUS MIX OF BOTH. BALANCES LOCAL CONDITIONS WITH

    THE GLOBAL PRACTICES