Sem ii-t-7-global marketing-n

GLOBAL GLOBAL MARKETINGMARKETING

WHY GLOBALWHY GLOBAL

GLOBALISATION IS HERE TO STAY GLOBALISATION IS HERE TO STAY BECAUSE ALTERNATE MODELS OF BECAUSE ALTERNATE MODELS OF BUSINESS HAVE WEAKENEDBUSINESS HAVE WEAKENED

IMPLICATIONS OF BEING GLOBALIMPLICATIONS OF BEING GLOBAL

WTO HAS 147 MEMBERSWTO HAS 147 MEMBERS

--146 COUNTRIES CAN COME TO --146 COUNTRIES CAN COME TO INDIAINDIA

INDIAN MNCs GOING ABROADINDIAN MNCs GOING ABROAD TATA TEA------------- ENERGY BRANDS INCTATA TEA------------- ENERGY BRANDS INC

Dr REDDY’S------------BETAPHARMDr REDDY’S------------BETAPHARM

SUZLON ENERGY----EVE HOLDINGSSUZLON ENERGY----EVE HOLDINGS

TATA STEEL----------- NATSTEELTATA STEEL----------- NATSTEEL

TATA TEA---------------TETLEYTATA TEA---------------TETLEY

TATA STEEL------------MILLENNIUM STEEL/CORUSTATA STEEL------------MILLENNIUM STEEL/CORUS

RANBAXY----------------TERAPIARANBAXY----------------TERAPIA

VSNL-----------------------TELEGLOBEVSNL-----------------------TELEGLOBE

TATA COFFEE-----------EIGHT O’CLOCK COFFEETATA COFFEE-----------EIGHT O’CLOCK COFFEE

RELIANCE-----------------FLAGRELIANCE-----------------FLAG

MKT STRATEGIES – GLOBAL PERSPECTIVE.MKT STRATEGIES – GLOBAL PERSPECTIVE.

NEED FOR GLOBALISATION.NEED FOR GLOBALISATION.----MORE OPPORTUNITIES IN FOREIGN MKT.MORE OPPORTUNITIES IN FOREIGN MKT.

--SLOWDOWN IN DOMESTIC MKT.--SLOWDOWN IN DOMESTIC MKT.

--CURRENT CUSTOMERS MAY MOVE ABROAD --CURRENT CUSTOMERS MAY MOVE ABROAD

MAY REQUIRE SERVICES THAT ARE AVAILABLE THERE.MAY REQUIRE SERVICES THAT ARE AVAILABLE THERE.

--LABOUR COSTS MAY BE LOW.--LABOUR COSTS MAY BE LOW.

CONSTRAINTSCONSTRAINTS..MAY NOT BE FAMILIAR WITH LOCAL CULTURESMAY NOT BE FAMILIAR WITH LOCAL CULTURES.-May not .-May not understand the choice and preference of customersunderstand the choice and preference of customers

MAY NOT UNDERSTAND FOREIGN REGULATIONSMAY NOT UNDERSTAND FOREIGN REGULATIONS-It may -It may therefore incur unexpected coststherefore incur unexpected costs

MAY BE LACKING IN INTERNATIONAL EXPERIENCE.MAY BE LACKING IN INTERNATIONAL EXPERIENCE.

As we begin to study global marketing, two facts stand out As we begin to study global marketing, two facts stand out clearly;clearly;

--Global environment is inherently very complex--Global environment is inherently very complex

--At the moment, many radical changes are taking place very --At the moment, many radical changes are taking place very fast.fast.

Global marketing is governed by different economic systems, Global marketing is governed by different economic systems, different political and legal issuesdifferent political and legal issues

Today, almost all over the world, the basic institutions, Today, almost all over the world, the basic institutions, business models, industry etc are undergoing a very rapid business models, industry etc are undergoing a very rapid change.change.

THE ECONOMIC ENVIRONMENTTHE ECONOMIC ENVIRONMENT

The Economic EnvironmentThe Economic Environment The recent years have seen a marked slowdown in the growth The recent years have seen a marked slowdown in the growth

of leading economies like the USA, Japanof leading economies like the USA, Japan

Simultaneously, economies like India, China, Russia have Simultaneously, economies like India, China, Russia have been gaining momentumbeen gaining momentum

At the same time almost a dozen countries—the US, Japan, At the same time almost a dozen countries—the US, Japan, Germany, the UK, France, Italy, Spain, Canada, Russia, Brazil Germany, the UK, France, Italy, Spain, Canada, Russia, Brazil and India have a GDP of over a trillion dollars.India joined and India have a GDP of over a trillion dollars.India joined this league in 2008.this league in 2008.

Russia has been doing quite well in recent years due to Russia has been doing quite well in recent years due to abundance of natural gas.abundance of natural gas.

A NEW GLOBAL EQUILIBRIUMA NEW GLOBAL EQUILIBRIUM The group of G-8 –comprising of USA, Germany, France, Italy, The group of G-8 –comprising of USA, Germany, France, Italy,

Russia, Japan Russia and the UK are now replaced by G-20Russia, Japan Russia and the UK are now replaced by G-20

The world economy is also being driven by the coming together of The world economy is also being driven by the coming together of Russia, China, Brazil and India—BRIC countriesRussia, China, Brazil and India—BRIC countries

The BRIC countries are likely to overtake the advanced G-6 The BRIC countries are likely to overtake the advanced G-6 countries by 2040countries by 2040

Of the four BRIC countries, India and China are to the fore.Of the four BRIC countries, India and China are to the fore. Many developing countries are liberalising and shifting from Many developing countries are liberalising and shifting from

centralised command and control economies to de-regulation.centralised command and control economies to de-regulation. Currently, in terms of purchasing power parity, the four leading Currently, in terms of purchasing power parity, the four leading

nations are the Us, Japan, China and India.nations are the Us, Japan, China and India.

One of the most powerful and significant change that has taken place is the emergence One of the most powerful and significant change that has taken place is the emergence of China as a formidable economic power.of China as a formidable economic power.

In fact China has re-defined capitalism by recording steep growth rates under state In fact China has re-defined capitalism by recording steep growth rates under state apparatus.apparatus.

By 2015 the world economy is expected to be transformed from a uni-polar economy By 2015 the world economy is expected to be transformed from a uni-polar economy to a bi-polar economy dominated by China and the USA.to a bi-polar economy dominated by China and the USA.

By 2035, the world is expected to become tri-polar with the USA, India and China By 2035, the world is expected to become tri-polar with the USA, India and China dominating the world economy.dominating the world economy.

By 2050, the USA, the UK, France, China, Japan, Germany France and South Korea are By 2050, the USA, the UK, France, China, Japan, Germany France and South Korea are expected to be the eight leading economies.expected to be the eight leading economies.

The present slowdown and the recovery being led by fast growth in India and China The present slowdown and the recovery being led by fast growth in India and China may accelerate the process of shifting economic center of gravity towards India and may accelerate the process of shifting economic center of gravity towards India and China.China.

ssss

THE CONSUMER ENVIRONMENTTHE CONSUMER ENVIRONMENT By 2050 the world population is likely to increase by 40 % to 9.2 billionBy 2050 the world population is likely to increase by 40 % to 9.2 billion..

In USA the population is graying and couples with double income growing.In USA the population is graying and couples with double income growing.

The population of India is likely to overtake China by 2030.The population of India is likely to overtake China by 2030.

Presently, the age mix is heavily in India’s favour. Presently, almost 70% of Presently, the age mix is heavily in India’s favour. Presently, almost 70% of Indians are below 35 yrs of age.Indians are below 35 yrs of age.

In the western countries there is a danger of proportion of older people rising In the western countries there is a danger of proportion of older people rising and the proportion of younger people shrinking. From where are they likely and the proportion of younger people shrinking. From where are they likely to get their work force?to get their work force?

Growth in geographic population and immigration are significant factors of Growth in geographic population and immigration are significant factors of demography.demography.

THE COMPETITION ENVIRONMENTTHE COMPETITION ENVIRONMENT The traditional notion of competition has given way to a totally The traditional notion of competition has given way to a totally

new meaning to competition.new meaning to competition.

This has occurred due to discontinuities of various kinds and This has occurred due to discontinuities of various kinds and blurring of industry and product boundaries.blurring of industry and product boundaries.

Some of the discontinuities are Some of the discontinuities are Globalisation, ubiquitous connectivity, de-regulation technology Globalisation, ubiquitous connectivity, de-regulation technology

convergence etcconvergence etc

The PC has transformed itself from a computing device to a an The PC has transformed itself from a computing device to a an entertainment device and is giving stiff competition to consumer entertainment device and is giving stiff competition to consumer electronics. electronics.

THE COMPETITIVE ENVIRONMENTTHE COMPETITIVE ENVIRONMENT-contd/--contd/-

Cheap Labour not enoughCheap Labour not enough In times to come cos that rely on cheap labour for competitive In times to come cos that rely on cheap labour for competitive

advantage will not be able to go far as the competitive advantage advantage will not be able to go far as the competitive advantage may shift very fast to another country.may shift very fast to another country.

They will have to rely on innovation & technology.They will have to rely on innovation & technology.

Globalisation has meant that even the resources are being sought on Globalisation has meant that even the resources are being sought on a global scale.a global scale.

Global gives way to “glocal”Global gives way to “glocal”

IT SWEEP/SPREAD OF e-COMMERCEIT SWEEP/SPREAD OF e-COMMERCE While the world felt the impact of IT some time ago, today it has While the world felt the impact of IT some time ago, today it has

been transformed into a sweep.been transformed into a sweep.

Banking and commerce is now all about moving bits and bytesBanking and commerce is now all about moving bits and bytes

There are 1 billion PCs around today and almost 200 million are There are 1 billion PCs around today and almost 200 million are being added annually.being added annually.

Researchers have found that people who use computers for five Researchers have found that people who use computers for five years tend to be more pro-active.years tend to be more pro-active.

Online marketing/e-commerce have changed the basic paradigm Online marketing/e-commerce have changed the basic paradigm of business to-day.of business to-day.

KNOWLEDGE ECONOMYKNOWLEDGE ECONOMY Knowledge Economy is understood asKnowledge Economy is understood as ---Reference to high tech sectors like IT, telecom, biotech, ---Reference to high tech sectors like IT, telecom, biotech,

communication, entertainmentcommunication, entertainment

---Some sectors within new economy which are knowledge ---Some sectors within new economy which are knowledge intensiveintensive

---Some use it for referring to the emerging economy as a ---Some use it for referring to the emerging economy as a whole.whole.

The fact remains that knowledge is becoming a value in all The fact remains that knowledge is becoming a value in all industries.industries.

KNOWLEDE IS PEOPLE CENTRICKNOWLEDE IS PEOPLE CENTRIC