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 Why go abroad? Which markets to enter? How to enter? What marketing program? What marketing organization?

Why go abroad? 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 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? Domestic based export department Overseas subsidiary International sales organization Foreign based agents Licensing JVs Direct investment

Global Marketing Programs 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