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TRANSCRIPT
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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