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 The coordinated performance of marketing
activities to create exchanges across countries
that satisfy individual organizational and
societal objectives.
 Global marketing is conducted across
countries (not domestic or foreign).
 Global marketing coordinates activities across
country markets.
 Global marketing should be motivated by
individual, organizational and societal goals.
 It is a marketing strategy used mainly by
multinational companies to sell goods or services
internationally.
ELEMENTS OF GLOBAL MARKETING
GLOBAL MARKETING
ADVANTAGES DISADVANTAGES
 Lower marketing cost
 Consistency in Brand Image.
 Power and scope
 Ability to leverage good ideas
quickly and efficiently.
 Helps to establish relationships
outside of the “political arena”.
 Differences in customer needs,
wants and usage patterns for
products.
 Differences in consumer response to
marketing mix elements.
 Differences in legal environment.
 Differences in administrative
procedures.
The process leading to identifying and
entering international markets.
The designing of a product in such a way
that it will meet the needs of users in many
countries or can be easily adapted to do so.
INTERNATIONALIZATIONS
ADVANTAGES DISADVANTAGES
 Possibility of accessing new
technologies.
 Increase in revenue.
 Brand awareness.
 New ideas can be generated.
 Cultural and language
barriers.
 Political barriers.
 Religious beliefs.
 Government interference
INTERNATIONALIZATION DECISION’S
Deciding
whether to go
Deciding
which markets
to enter
Deciding how
to enter
Deciding on
the marketing
program
Deciding on
the marketing
organization
RE-INTERNATIONALIZATION
 Re-internationalization is a process where the
firms that have been internationally active for
some time, but then withdrawn from one
,several foreign market.
 Firms paid more attention to domestic market
or some other countries for a considerable
time.
 And then re-enter one, some or all its previous
market.
CONT………..
 Firm may restart their internationalization
activity both from closest or farther market.
 They may be re-internationalization very
quickly, very slowly or in a moderate pace.
PROCESS OF RE-INTERNATIONALIZATION
CAUSE OF RE-INTERNATIONALIZATION
 Their re-internationalization may be caused
by one or more critical incident.
 When a firm takeover by another enterprise
or merge with some other firm.
 Acquisition of a company by another one
with international connection.
FACTOR INFLUENCING RE-
INTERNATIONALIZATION
 Network relationship that influence the process
of re-internationalization.
 Firms unique resources and capabilities.
 A change in management‟s global orientation.
 A re-internationalization company may use
their former knowledge of foreign market.
 Also able to revive some of their previous
network relationship on these market.
STRATEGY TO ENTER INTO INTERNATIONAL MARKET
 Exporting- It is a market entry strategy in
which a company maintains production
facilities within its home country and transfers
products for sale in foreign countries.
 Outsourcing- It means engaging in the
international division of labor so as to obtain
the cheapest sources of labor and supplies,
regardless of country.
 Licensing- A company in one country makes
certain resources available to companies in
other countries to participate in the production
and sale of its products abroad.
 Franchising- It is a form of licensing in which
a company provides its foreign franchisees
with a complete package of materials and
services.
 Joint venture- A company shares costs and
risks with another firm in a foreign country to
build a facility, develop new products, or set
up a sales and distribution network.
 Partnership- It is often the fastest, cheapest
and least risky way to get into the global game.
CHALLENGES OF INTERNATIONAL
MARKETING
 Legal-Political Environment-
o Political risk
o Tariffs, quotas and taxes
o Laws, regulation
 Economic Environment-
o Resource and Product markets
o Exchange rates
o Infrastructure
 Socio cultural Environment-
o Language
o Religion
o Social values, beliefs
CHANNEL
MANAGEMENT IN
INTERNATIONAL
MARKETING
CHANNEL STRUCTURE
 Channel configurations for the same product will vary within
industries, even within the same firm, because national markets quite
often have unique features.
 Channel structures are designed to manage multidirectional
connections for:
 Physical movement of goods and services.
 Transactional title flows.
 Information communications flows.
The essential linkage that connects producers
and consumers.
CHANNEL CONFIGURATION
Consumer Services
Consumer
CHANNEL DESIGN
EXTERNAL INTERNAL
 Customer characteristics
 Culture
 competition
 Company objectives
 Character
 Capital
 Cost
 Coverage
 Control
 Continuity
 communication
SELECTION OF INTERMEDIARIES
 Types of intermediaries
 Agents
 Distributors
 Sources of finding intermediaries
 Govt. agencies
 Private sources
 Screening intermediaries
 Performance
 professionalism
 The distributor agreement
CHANNEL MANAGEMENT
 Factors in channel management
 Cultural Difference
 Instability in exchange rate
 Laws and regulations
 Termination of channel relationship
E-COMMERCE
 E-commerce is the ability to offer goods and services over
the Web
 M-Commerce is the exchange of goods and services via
mobile devices
 Preparations for serving customers through e-commerce:
 Provide 24-hour order taking and customer service
 Regulatory and customs-handling expertise
 In-depth understanding of environments and customers
 The marketer has to be sensitive to the governmental role
in e-commerce
 Privacy issues have grown exponentially as a result of e-
business
IMPLEMENTING GLOBAL
MARKETING
 Balance and stability between local and global
concerns which will bring success .
 “Think globally, act locally” is the operative phrase
for global marketers competing in country markets.
 Product choices should consider individual markets
as well as transfer products from one region to
another.
CROSS CULTURE NEGOTIATION
 Intercultural selling through negotiation is one
of the biggest challenge in global marketing
 Learning and knowledge transfer across
borders can increase international
competitiveness
 Build awareness about how cultural
differences impact
 Motivate salespeople and managers to
„rethink‟ their behavior and attitude towards
customers.
IMPLEMENTATION OF GLOBALACCOUNTING
MANAGEMENT(GAM)
Global accounting management defined as a relationship
oriented marketing management approach focusing on dealing
with the needs of an important global customer business-to –
business market.
 Identifying the selling firm‟s global accounts;
 Analyzing the global accounts;
 Selecting suitable strategies for the global accounts;
 Developing operational level capabilities to build , grow and
maintain profitable and long lasting relationships with global
accounts.
ORGANIZATION OF GLOBAL MARKETING
ACTIVITIES
 A global marketing organization is structured is
an important determinant of its ability to exploit
effectively and efficiently the opportunities
available to it.
 Determines the capacity for responding to
problem and challenges.
 Companies operating internationally must decide
whether the organization should be structured
along functions, products, geographical areas or
combinations of the three(matrix)
LOCALIZING GLOBAL MARKETING
 Management processes
- Enhance the global transfer of
communications
- Interchange personnel to gain
experience abroad
 Headquarters should coordinate and leverage
resources
 Permit local managers to develop their own
programs within defined parameters
 Organization structures
 The shift to global account management
 Corporate culture
 The world is not one single market
 Plan and execute programs on a worldwide basis
 A global Identity favors no specific country
Thank You

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Global aspects of marketing - Unitedworld School of Business

  • 1.  The coordinated performance of marketing activities to create exchanges across countries that satisfy individual organizational and societal objectives.  Global marketing is conducted across countries (not domestic or foreign).  Global marketing coordinates activities across country markets.
  • 2.  Global marketing should be motivated by individual, organizational and societal goals.  It is a marketing strategy used mainly by multinational companies to sell goods or services internationally.
  • 3. ELEMENTS OF GLOBAL MARKETING
  • 4. GLOBAL MARKETING ADVANTAGES DISADVANTAGES  Lower marketing cost  Consistency in Brand Image.  Power and scope  Ability to leverage good ideas quickly and efficiently.  Helps to establish relationships outside of the “political arena”.  Differences in customer needs, wants and usage patterns for products.  Differences in consumer response to marketing mix elements.  Differences in legal environment.  Differences in administrative procedures.
  • 5.
  • 6. The process leading to identifying and entering international markets. The designing of a product in such a way that it will meet the needs of users in many countries or can be easily adapted to do so.
  • 7. INTERNATIONALIZATIONS ADVANTAGES DISADVANTAGES  Possibility of accessing new technologies.  Increase in revenue.  Brand awareness.  New ideas can be generated.  Cultural and language barriers.  Political barriers.  Religious beliefs.  Government interference
  • 8. INTERNATIONALIZATION DECISION’S Deciding whether to go Deciding which markets to enter Deciding how to enter Deciding on the marketing program Deciding on the marketing organization
  • 9. RE-INTERNATIONALIZATION  Re-internationalization is a process where the firms that have been internationally active for some time, but then withdrawn from one ,several foreign market.  Firms paid more attention to domestic market or some other countries for a considerable time.  And then re-enter one, some or all its previous market.
  • 10. CONT………..  Firm may restart their internationalization activity both from closest or farther market.  They may be re-internationalization very quickly, very slowly or in a moderate pace.
  • 12. CAUSE OF RE-INTERNATIONALIZATION  Their re-internationalization may be caused by one or more critical incident.  When a firm takeover by another enterprise or merge with some other firm.  Acquisition of a company by another one with international connection.
  • 13. FACTOR INFLUENCING RE- INTERNATIONALIZATION  Network relationship that influence the process of re-internationalization.  Firms unique resources and capabilities.  A change in management‟s global orientation.  A re-internationalization company may use their former knowledge of foreign market.  Also able to revive some of their previous network relationship on these market.
  • 14. STRATEGY TO ENTER INTO INTERNATIONAL MARKET
  • 15.  Exporting- It is a market entry strategy in which a company maintains production facilities within its home country and transfers products for sale in foreign countries.  Outsourcing- It means engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies, regardless of country.
  • 16.  Licensing- A company in one country makes certain resources available to companies in other countries to participate in the production and sale of its products abroad.  Franchising- It is a form of licensing in which a company provides its foreign franchisees with a complete package of materials and services.
  • 17.  Joint venture- A company shares costs and risks with another firm in a foreign country to build a facility, develop new products, or set up a sales and distribution network.  Partnership- It is often the fastest, cheapest and least risky way to get into the global game.
  • 18. CHALLENGES OF INTERNATIONAL MARKETING  Legal-Political Environment- o Political risk o Tariffs, quotas and taxes o Laws, regulation  Economic Environment- o Resource and Product markets o Exchange rates o Infrastructure  Socio cultural Environment- o Language o Religion o Social values, beliefs
  • 20. CHANNEL STRUCTURE  Channel configurations for the same product will vary within industries, even within the same firm, because national markets quite often have unique features.  Channel structures are designed to manage multidirectional connections for:  Physical movement of goods and services.  Transactional title flows.  Information communications flows. The essential linkage that connects producers and consumers.
  • 23. CHANNEL DESIGN EXTERNAL INTERNAL  Customer characteristics  Culture  competition  Company objectives  Character  Capital  Cost  Coverage  Control  Continuity  communication
  • 24. SELECTION OF INTERMEDIARIES  Types of intermediaries  Agents  Distributors  Sources of finding intermediaries  Govt. agencies  Private sources  Screening intermediaries  Performance  professionalism  The distributor agreement
  • 25. CHANNEL MANAGEMENT  Factors in channel management  Cultural Difference  Instability in exchange rate  Laws and regulations  Termination of channel relationship
  • 26. E-COMMERCE  E-commerce is the ability to offer goods and services over the Web  M-Commerce is the exchange of goods and services via mobile devices  Preparations for serving customers through e-commerce:  Provide 24-hour order taking and customer service  Regulatory and customs-handling expertise  In-depth understanding of environments and customers  The marketer has to be sensitive to the governmental role in e-commerce  Privacy issues have grown exponentially as a result of e- business
  • 27. IMPLEMENTING GLOBAL MARKETING  Balance and stability between local and global concerns which will bring success .  “Think globally, act locally” is the operative phrase for global marketers competing in country markets.  Product choices should consider individual markets as well as transfer products from one region to another.
  • 28. CROSS CULTURE NEGOTIATION  Intercultural selling through negotiation is one of the biggest challenge in global marketing  Learning and knowledge transfer across borders can increase international competitiveness  Build awareness about how cultural differences impact  Motivate salespeople and managers to „rethink‟ their behavior and attitude towards customers.
  • 29. IMPLEMENTATION OF GLOBALACCOUNTING MANAGEMENT(GAM) Global accounting management defined as a relationship oriented marketing management approach focusing on dealing with the needs of an important global customer business-to – business market.  Identifying the selling firm‟s global accounts;  Analyzing the global accounts;  Selecting suitable strategies for the global accounts;  Developing operational level capabilities to build , grow and maintain profitable and long lasting relationships with global accounts.
  • 30. ORGANIZATION OF GLOBAL MARKETING ACTIVITIES  A global marketing organization is structured is an important determinant of its ability to exploit effectively and efficiently the opportunities available to it.  Determines the capacity for responding to problem and challenges.  Companies operating internationally must decide whether the organization should be structured along functions, products, geographical areas or combinations of the three(matrix)
  • 31. LOCALIZING GLOBAL MARKETING  Management processes - Enhance the global transfer of communications - Interchange personnel to gain experience abroad  Headquarters should coordinate and leverage resources  Permit local managers to develop their own programs within defined parameters
  • 32.  Organization structures  The shift to global account management  Corporate culture  The world is not one single market  Plan and execute programs on a worldwide basis  A global Identity favors no specific country