Top Banner
Global Marketi ng
25
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Global marketing

Global Marketin

g

Page 2: Global marketing

In Hong Kong, a German businessperson is

driving a Lexus; he’s wearing Bruno Magli shoes,

Irish cashmere socks, an Armani suit, with a

Gucci belt. He has a Mont Blanc pen, in his

Italian shirt. He’s going to meet an American

investor at a KFC restaurant, for a Coke. After

lunch, they stop for a Baskin-Robbins (actually a

foreign firm) ice cream sundae. --- OK, that’s a

stretch. When he gets home, sitting on an ottoman,

he has an Absolut vodka nightcap, while listening

to American country western music.

Page 3: Global marketing

AMA’s Definition :

Conception

Pricing

Promotion

Distribution of Ideas, goods and Services

MarketingPlanning

and

Executing

To create exchanges that satisfy individual and organizational Objectives

Page 4: Global marketing

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 different country markets

Global marketing should be motivated by individual, organizational and societal goals

Global Marketing

Page 5: Global marketing

Core Business Strategy

CountryA

CountryB

CountryC

CountryD

Develop CoreBusiness Strategy

Internationalizethe Strategy

Globalizethe Strategy

Global Marketing Evolution

Page 6: Global marketing

What is Internationalization ?• As the process of increasing involvement in international

operations.

Why consider going international ?

• To increase overall customer base.• To offset seasonal fluctuations in local markets• To minimize risk of losing market share to clients who themselves use internet to find goods / services in overseas markets• To offset increasing costs of doing business at home• To gain prestige with customers at home .

Page 7: Global marketing

Internationalization

Advantage • Spreading business risk• Opportunity to exploit an existing

competitive edge in new markets• Expansion of brand awareness to

new audiences• Increased revenue generation• Possibility of accessing new

technologies / information• Business can be conducted via the

internet thus shortening the communication channels between customers and markets

Disadvantage • cultural and language

barriers• exchange rate fluctuations• religious beliefs• government regulations /

policy on profit repatriation• political instability• economic downturn.

Page 8: Global marketing

Major International Marketing Decisions

Page 9: Global marketing

RE-INTERNATIONALIZATION Why Internationalization fail.

What is Re-Internationalization. - Network relation - Unique resource and capability - Change in management global.

Three main set which driven the Re-Internationalization.

Page 10: Global marketing

Strategy to enter into International Market.

• Export• Involves using domestic plants as a production base for exporting to

foreign markets.

• Licensing• Has valuable technical know-how or a patented product but does not have

international capabilities or resources to enter foreign markets

• Franchise• Often is better suited to global expansion efforts of service and retailing

enterprise by establishing franchise in particular country.

Page 11: Global marketing

• Strategic alliance• Through strategic alliance you can enter into international market.

• Global strategy• Pursue basic strategy world wide.• Sell the same products under the same brand• Production plants located local efficiencies • Best suppliers from anywhere• Coordinated marketing and distribution worldwide

• Multi country strategy• Production plants in each country

– Producing products for that country– Using local suppliers where possible

Page 12: Global marketing

• Strategic alliance• Through strategic alliance you can enter into international market.

• Global strategy• Pursue basic strategy world wide.• Sell the same products under the same brand• Production plants located local efficiencies • Best suppliers from anywhere• Coordinated marketing and distribution worldwide

• Multi country strategy• Production plants in each country

– Producing products for that country– Using local suppliers where possible

Page 13: Global marketing

CHALLENGES to enter International market

While choosing new markets, MNCs need to consider several factors:

1) Micro factor

2) Macro factor

Page 14: Global marketing

Micro factor

• Political/regulatory environment.Tariff barriers - taxes on imports paid to customs officials - include Nontariff barriers• Financial/economic environment.Exchange rate - price of one currency in relation to

anotherFiscal policiesMonetary policy• Socio cultural issues and technological infrastructure.Understanding the local culture is the most profitable way

of marketing product and services.

Page 15: Global marketing

Macro factor• Competitive considerations.

• Local infrastructure such as transportation & logistics network.

• Availability of mass media for advertising is important.

Page 16: Global marketing

What

is

Channel Management ?

Page 17: Global marketing

CHANNEL MANAGEMENT involves the strategy; development and alignment of channels or customer inter faces, across your marketing, sales and services.

It is term that business or supplier of products uses various marketing techniques and sales strategy to reach the widest possible customer base.

Page 18: Global marketing

It creates the formulized programs for selling

servicing the customers within specific channels

can really impact your business. Customized a

channel management program which includes-

Goals

Policies

Products

Sales and marketing programs

Page 19: Global marketing

No longer can a business rely simply on good Customer relations or word of mouth to maintain or improve revenue.

Possibilities for marketing a product or service grow seemingly each day, and keeping track of all of these disparate marketing avenues is not an easy chore.

That is why the concept of channel management has become so prevalent in marketing.

- Restaurant marketing - Business start up tips

Page 20: Global marketing

Optimal channel management drives growth and profit- This program addresses the needs of consumer goods and services companies selling through wholesalers and retailers;

Business-to-business firms working through independent distributors and sales representative firms;

Retailers seeking to improve efficiency in an increasingly competitive marketplace; and

Intermediaries seeking to preserve their role in an increasingly fluid channel structure.

Page 21: Global marketing

Reduce cost

Improve customer relations

Increase revenue

Building the high performing

sales force

Page 22: Global marketing

Implementing Global Marketing

Success will come from a balance between local and regional / global concerns.

“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.

Page 23: Global marketing

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

Page 24: Global marketing

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

Page 25: Global marketing