1. Amity Business School
AMITY SCHOOL OF BUSINESS BBA, II Sem PRINCIPLES OF MARKETING II Ruchika Jeswal

2. What is Globalization
Globalization (or globalization) is the process of international integration arising from the interchange of world views, products, ideas and other aspects of culture.
It involves the firms in making one or more marketing mix decisions across national borders.
Companies like Coca cola, GE, IBM, Siemens, Ford, Boeing, Toyota, Sony and several other firms have made the world their market.

3. Features Cross Border activities Degree of Risk Credit Oriented
Regulated by rules and regulations
Level of competition
Complexity
Scope

4. Major International Marketing Decisions
Looking at the global marketing environment.
Deciding whether to go global.
Deciding which markets to enter.
Deciding how to enter the market.
Deciding on the global marketing program.
Deciding on the global marketing organization.

5. Deciding whether to go global
Global competitors might attack the company’s home market by offering better products or lower prices.
Counterattack these competitors in their home markets to tie up their resources.
Co’s customer might be expanding abroad and require international servicing.
Co’s home market might be stagnating and foreign markets may present additional sales and profit opportunities.

6. Deciding which markets to enter
Company should define its international marketing objectives and policies.
Volume of foreign sales it wants.
How many countries it wishes to market.
Must decide on types of countries to enter.
The international markets must then be evaluated.

7. Deciding how to enter the market
Exporting- Entering a foreign market by selling goods produced in the company’s home country, often with little modification.
Indirect Exporting- working through independent international marketing intermediaries. Less investment and less risk
Direct Exporting- where they handle their own exports. Investment and risk is greater and so is the potential return.

8. Joint Venturing- Entering foreign markets by joining with foreign companies to produce or market a product or service. Contracting, JV is of four types:
licensing
contract manufacturing
management contracting
joint ownership.
Direct Investment-

9. Direct Investment- Entering a foreign market by developing foreign-based assembly or manufacturing activities.
Assembly facilities
Manufacturing facilities

10. Challenges of Globalisation
Exchange of Currencies
Transport
Time lag
Language
Lack of Direct Contact
Unstable governments
Restrictive government policies and regulations.

11. Deciding on the Global Marketing Program
Co’s operating in one or more foreign markets must decide how much to adapt their marketing strategies and programs to local conditions
Standardized global marketing- using largely the same marketing strategy approaches and marketing mix worldwide.
Adapted Global Marketing- The producer adjusts the marketing strategy and mix elements to each target market, bearing more costs but hoping for a larger market share and return.

12. PRODUCT
Straight Product Extension- Marketing a product in a foreign market without any change. e.g. Kellogg cereals, Gillette razor.
Product Adaptation- Adapting a product to meet local conditions or wants in foreign markets.
Product invention- Creating new products or services for foreign markets.

13. PROMOTION
Companies can either adopt the same communication strategy they use in the home market or change it for each local market.
Communication adaptation- A global communication strategy of fully adapting advertising messages to local markets.

14. PRICE
companies may face many consideration in setting their international prices.
Foreign prices will be higher than their domestic prices for comparable products.
When selling to less affluent consumers in developing countries, many cos make smaller versions of their products that can be sold at lower prices.
Dumping- when a company either charges less than its costs or less than it charges in its home market.

15. Distribution channels
Whole channel view- Designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network.
Two major links between the seller and the final buyer-
Channels between nations- moves co. products from points of production to the borders of countries within which they are sold.
Channels within nations- moves the products from their market entry points to the final consumers.
The whole channel view takes in to account the entire global supply chain and marketing channel. It recognizes that to compete well internationally, the company must effectively design and manage an entire global value delivery network.