Download International Marketing

Global Marketing
What is global marketing?
It is the process of focusing the
resources and objectives of a
company on global marketing
opportunities. Companies engage in
global marketing to take advantage
of marketing opportunities, and to
survive.
Decisions in Global Marketing
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Why go abroad?
Which markets to enter?
How to enter?
What marketing program?
What marketing organization?
Why go abroad?
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Higher profit opportunities
Achieving economies of scale
Reducing vulnerabilities
Countering competition
Higher customer expectations in terms of
service and products
• Competitive advantage
Risks involved
• Knowledge of the new market and
preferences of customers
• Culture of foreign markets
• In-house availability of personnel able to
operate in foreign markets
• Environmental constraints that could affect
business eg. laws, regulations, political
turmoil, etc
World View of Personnel
• An ethnocentric person believes that his way
of life is the best and therefore finds other
ways of life as odd.
• A geocentric person sees similarities and
differences in the way of life in different
nations
• A polycentric person sees each and every
nation as unique and differently
• A regiocentric person sees similarities within
the region and differences across the rest of
the world
Companies feel their way into new
foreign markets
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Limited exports through an agent
Having their own office
Establishing subsidiaries
Having your own production unit
Which markets to enter?
• What kind of business you are in?
• What kind of potentials exist ?
• Waterfall approach – entering countries in
sequence
• Sprinkler approach – entering countries
simultaneously
Nomenclature of global markets
• Developed
• Developing
• BRIC, NAFTA, SAFTA,EU, APEC,
ASEAN, etc.
• WTO
How to enter?
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Domestic based export department
Overseas subsidiary
International sales organization
Foreign based agents
Licensing
JVs
Direct investment
Global Marketing Programs
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Standardized marketing mix
‘Think global, act local’
‘Think local, act global’
‘Glocalised’ marketing mix
Leveraging Country-of -origin
• Japan – automobiles, consumer
electronics
• USA – soft drinks, jeans, high-tech
gadgets
• Germany – engineering, beer,
• France – perfumes, wines
• Italy – clothes, fashion
• Switzerland – chocolates, banking
• India – spices, gems and jewellery