globalization and introduction to international marketing
Introduction to International Marketing
By Anubhav Singh
Lovely Professional University
Integration of Economies
• The increasing reliance of
economies on each other
• The opportunities to be able to
buy and sell in any country in
• The opportunities for labour and
capital to locate anywhere in the
• The growth of global markets in
Stock Markets are now accessible
from anywhere in the world!
Copyright: edrod, stock.xchng
• Globalization is the increasing interdependence, integration & interaction
among people and corporation in various locations around the world.
• Interdependence is a dynamics of being mutually responsible to and sharing
common ET of principles with others.
•Globalization refers to rapid increase in the share of economic activity
taking place across national borders.
•It goes beyond the international trade includes the way in which goods/
services are produced /created, delivered &sold & movement of capital.
• Globalization refers to rapid increase in the share of economic activity
taking place across national borders.
• It goes beyond the international trade includes the way in which goods/
services are produced /created, delivered &sold & movement of capital
Threat or opportunity...
Globalization can be a force for good. It has the potential to
generate wealth and improve living standards. But it isn't
doing that well at the moment.
The benefits from increased trade, investment, and
technological innovation are not fairly distributed.
The experience of the international trade union movement
suggests that the reality for the majority of the world's
population is that things are getting worse.
Globalization as we know it is increasing the gap between rich
and poor. This is because the policies that drive the
globalization process are largely focused on the needs of
Multinational firms which carry out business across the
The World Trade Organization (WTO) THROUGH WHICH
INTERNATIONAL TRAD E AGREEMENTS ARE
NEGOTIATED & ENFORCED
The World Bank & International Monetary Fund (IMF) are
means to assist Govt .in achieving development aims through
the provision of loans, technical assistance.
STAGES IN GLOBALISATION
• Domestic company links with dealer & distributor.
• Company does the activities on its own. Company begins to carryout its own
manufacturing , marketing & sales in the foreign markets.
• Company starts full fledged operations including business systems and R&D.
At this stage the managers are expected to perform the tasks which they were
doing in domestic markets to replicate them in foreign markets.
Conditions for globalization
• Business Freedom-No unnecessary Government restrictions like restriction, restrictions on
sourcing of funds and other factors from abroad. Hence the liberalization is the 1st
• Facilitators-Infrastructure facilitation available at home country an help entrepreneurs go
• Government support –Government support available in the form of policy & procedure
reform encourage globalization
• Resources-Resources is an important factor which decides the ability of affirm to globalize.
They include finance ,technology, brand image, company’s image, managerial expertise etc.
• Competitors- This is an important factor which company’s success in global market bank on.
The factors like low costs& price, product quality, product differentiation, technological
superiority. After sales service, market strengths etc are few to name.
Firm operate internationally for a number of reasons:
• They may be seeking to secure better sources of raw materials &
• They may want to obtain access to low cost factors of production
such as labour.
• They may be attracted to certain countries because of subsidies
those countries provide.
• They may be seeking new markets for their products.
• Domestic markets may no longer be able to absorb production at
minimum efficient scale.
Entering global markets:
• There are a number of steps that need to be taken before you
decide to enter international markets.
• Analyze the international marketing environment. A
PEST/STEP analysis needs to be conducted on the market you
enter, to assess whether it is worthwhile or not.
Reasons For Globalization
Various options to go overseas
The organization produces their product in
their home market and then sells them to
The organizations sell their product to a
third party who then sells it on within the
Less risky market entry method is licensing.
Here the Licensor will grant an organization
in the foreign market a license to produce
the product, use the brand name etc in
return that they will receive a royalty
Eg. Software company etc.
Franchising is another form of licensing.
Here the organization puts together a
package of the ‘successful’ ingredients that
made them a success in their home market.
The Franchise holder may help out by
providing training and marketing the
services or product. Eg Macd, Ccd etc.
Various options to go overseas cont..
The manufacturer of the product will
contract out the production of the product to
another organization to produce the product
on their behalf.
The ultimate decision to sell abroad is the
decision to establish a manufacturing plant
in the host country. The government of the
host country may give the organization
some form of tax advantage because they
wish to attract inward investment to help
create employment for their economy.
To share the risk of market entry into a
foreign market, two organizations may
come together to form a company to operate
in the host country. The two companies may
share knowledge and expertise to assist
them in the development of company; of
course profits will have to be shared.
Eg. Sony-Ericsson, Nokia- Siemens
Merger & Acquisitions
Corporate finances, management and
strategy dealing with purchasing and/or
joining with other companies. In a merger,
two organizations join forces to become a
new business, usually with a new name.
Eg-, TCS- CMC
one business buys a second and generally
smaller company which may be absorbed
into the parent organization or run as a
• In simple words International Marketing is the application of marketing
principles to across national boundaries.
• However, there is a crossover between what is commonly expressed as
international marketing and global marketing, which is a similar term.
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