what is globalization globalization vs internationalization Dimensions of globalization conditions for globalization Growth factors for globalization reasons for globalization Effects on Marketing global Marketing strategy economic environment hyper-competition technology Political Challenges Decreasing geographic distances etc.

1. GLOBALIZATION AND ITS EFFECTS
ON MARKETING
Presented by
Joydeep Singh 191103

2. WHAT IS GLOBALIZATION
• Globalization is the process of international
integration arising from the interchange of world
views, products, ideas, and other aspects of culture.
• Globalization means rapid increase in the share of
interconnected activities taking place across national
borders.

3. DEFINITION
• IMF - the growing economic interdependence of
countries worldwide through increasing volume and
variety of cross-border transactions in goods and
services, free international capital flows, and more
rapid and widespread diffusion of technology.

4. GLOBALIZATION
VS
INTERNATIONALIZATION
Globalization is the end result
Globalization is the process of integration
Globalization is more related to the nations and their
economies
Elimination of Visa Obligations, removing trade barriers,
liberalizing investment-related obligations, etc.
internationalization is one of the
tools/processes to achieve them.
Internationalization is an improvisation process
internationalization is more related to the
individual, firm and corporations.
producing or delivering services from one or
more countries, setting up of the branches and
subsidiaries etc.
Result/Task
Process
Scope
Example

5. DIMENSIONS OF GLOBALIZATION
• ECONOMIC GLOBALIZATION
• CULTURAL GLOBALIZATION
• POLITICAL GLOBALIZATION
• TECHNOLOGICAL GLOBALIZATION
• IDEOLOGICAL GLOBALIZATION

6. CONDITIONS FOR GLOBALIZATION
• Business Freedom - the liberalization is the 1st step
towards facilitating globalization.
• Facilitators - Infrastructure facilitation available at
home country an help entrepreneurs go globally.
• Government support – Government support
available in the form of policy & procedure reform
encourage globalization.

7. CONDITIONS FOR GLOBALIZATION
• Resources - They include finance ,technology, brand
image, company’s image, managerial expertise etc.
• Competitors - The factors like low costs & price,
product quality, product differentiation, technological
superiority. After sales service, market strengths etc.
are few to name.

8. GROWTH FACTORS FOR GLOBALIZATION
• Technology
• Communication
• Transportation
• Growth of economic cooperation
• Movement to free trade

9. REASONS FOR GLOBALIZATION
Better resources
Low cost of production
Dilution of the local market
Operating internationally
Market expansion
Increased profit

10. EFFECTS ON MARKETING

11. GLOBAL MARKETING STRATEGY
strategy that encompasses countries from several
different regions in the world and aims at coordinating
a company’s marketing efforts in markets in these
countries.
GMS include not only product but also the
communication strategy, pricing, distribution.

14. ECONOMIC ENVIRONMENT
Global Trade & Economic development
FDI
Financial Technological Advancement - Banking,
Financial Institutions
Ease of doing business, Increased consumer spending
& expansion of markets

15. HYPER-COMPETITION
competition can be related to product and service cost
and price, target market, technological adaptation,
quick response, quick production by companies etc.

20. The Hindu took the banter to another level
by posting a matrimonial advertisement on
TOI’s Mumbai Mirror’s Matrimonial
classifieds.

21. SOCIO-CULTURAL EFFECTS
Cultural distance - the degree to which cultural values
in one country differ from those in another country
Challenges for foreign firms with opposite or different
culture
Consumer preference, Education, Social strata
Religion, education, biases, stereotyping,
Barriers in communication (linguistics, semantics)

22. TECHNOLOGY
Globalization has increased the speed of technology
transfer and technological improvement.
Innovation leading to affordability and better products.
Internet and e-commerce
Personalization and customization
Experiential marketing, Interactive marketing, Digital
marketing

23. Experiential
marketing
Virtual Reality in
marketing

24. Gucci AR app

26. POLITICAL CHALLENGES
Governmental interference & Judiciary independence
Corruption and ease of doing business
Legal environment, Regulations and policies

27. DECREASING GEOGRAPHIC DISTANCES
Faster as well as multiple modes of transportation and
communication.
Better distribution and delivery systems.
transportation, communication, and operational costs
have undergone a phenomenal reduction which
enables firms to lower prices for final consumers on
foreign markets.

29. ORIGIN BASED MARKETING
Origin-based marketing refers to the consistent use of
geographic cues in communication and promotion
activities.
Origin-based marketing can be seen as a solution to
overcome geographic, cultural, and psychic distance.

31. EMPOWERED AND AWARE CUSTOMERS
Increased firm-customer interaction
Voice to customers
More information to customers and customer
awareness
Social media marketing
Influencers and fan groups
Feedback and reviews

32. Brand loyalty and
brand evangelism
Negative reviews

33. CONSUMER BEHAVIOR
Consumers are becoming exposed to the products,
lifestyles and behavior patterns of consumers in other
countries.
Consumer behavior is becoming increasingly
heterogeneous due to the changing culture patterns
and effects of globalization.
Rise of consumerism
Changes in consumer expectations

34. CAUSE RELATED MARKETING
marketing a product, service, brand, or company
through a mutually beneficial relationship with a
nonprofit or social cause organization
Initiatives supporting causes
Philanthropy, Public relations, Responsible practices

35. Tiktok India donates ₹100 crore, 400,000 hazmat suits
and 200,000 masks to fight Covid-19
Samsung India to donate Rs 20 crore in the
fight against COVID-19

36. REVERSE INNOVATION
Reverse innovation is the process whereby goods
developed as inexpensive models to meet the needs of
countries with limited infrastructure, are then
repackaged as low-cost innovative goods for Western
buyers.
Example – GE Mac 400 ECG machine

37. Mac 400 ECG was designed as a
lightweight, compact electro-
cardiograph for 60 percent of its
wholesale cost (~800 USD in India, as
opposed to 2000–10,000 USD in US
hospitals).
It was first intended to be used for
India’s predominantly rural
population.
the Mac 400 ECG is now used across
India and the rest of the world.

38. THANK YOU