Marketing Management I Presentation On Global Marketing

What is Global Marketing?

Global marketing is defined by the Oxford University Press as "marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives. Basically global marketing is selling your product all over the world. It is basically when a company looks at the entire world as one market. There are no differences between a local market and the market 10,000 miles away. It is the process of conceptualizing and then conveying a final product or service worldwide with the hopes of reaching the international marketing community.

Importance of Global Marketing:

Saturation of domestic markets: Domestic-market saturation in the industrialized parts of the world and marketing opportunities overseas are evident in global marketing. Global competition: Competition around the world and proliferation of the Internet are on the rise. Need for global cooperation: Global competition brings global cooperation. Internet revolution: The Internet and electronic commerce (e-commerce) are bringing major structural changes to the way companies operate worldwide. The term global epitomizes both the competitive pressure and expanding market opportunities.

Evolution of Global Marketing:

What is marketing? Marketing involves the planning and execution of the conception, pricing, promotion, and distribution of ideas, products, and services. It also involves customer satisfaction and their current and future needs. Marketing is much more than selling and involves the entire company.

Five stages in the evolution of global marketing: 1. Domestic Marketing (domestic focus; home country customers; ethnocentric orientation). 2. Export Marketing (indirect vs. direct exporting; country choice, exports; ethnocentric orientation). 3. International Marketing (markets in many countries; polycentric orientation; use of multi domestic marketing when customer needs are different across national markets). 4. Multinational Marketing (many markets; consolidation on regional basis; regiocentric orientation; standardization within regions). 5. Global Marketing (international, multinational & geocentric orientation; companys willingness to adopt a global perspective; global products with local variations).

Advantages
Economies of scale in production and distribution Lower marketing costs Power and scope Consistency in brand image Ability to leverage good ideas quickly and efficiently Uniformity of marketing practices Helps to establish relationships outside of the "political arena" Helps to encourage ancillary industries to be set up to cater for the needs of the global player Benefits of eMarketing over traditional marketing

Disadvantages
Differences in consumer needs, wants, and usage patterns for products Differences in consumer response to marketing mix elements Differences in brand and product development and the competitive environment Differences in the legal environment, some of which may conflict with those of the home market Differences in the institutions available, some of which may call for the creation of entirely new ones (e.g. infrastructure) Differences in administrative procedures Differences in product placement. Differences in the administrative procedures and product placement can occur

Why to go for Global markets?

Some international markets present higher profit opportunities than the domestic market. The company may need a larger customer base to achieve economies of scale. The company wants to reduce its dependence on any one market. The company decides to counterattack global competitors in their home markets. Customers are going abroad and require international service.

Deciding How to Enter a International Market:

Indirect Export: Companies work through independent intermediaries. Domestic based export merchants buy the manufacturers products and then sell them abroad. Direct Export: Companies may decide to handle their own exports. The investment and risk are greater but so is the potential return. Licensing: License a foreign company to use trademark, manufacturing process, trade secret, or other item for a fee or royalty. Joint Ventures: Foreign investors have often joined with local investors to create a joint venture company in which they share ownership and control. Direct Investment: Direct ownership of foreign-based assembly or manufacturing facilities. The foreign company can buy part or full interest in a local company or build its own facilities.

Deciding on the Marketing Program:

The Four Ps of marketing: product, price, placement, and promotion are all affected as a company moves through the five evolutionary phases to become a global company. Product: A global company is one that can create a single product and only have to tweak elements for different markets. Price: It is affected by many variables: cost of product development, cost of ingredients, cost of delivery, and much more. Additionally, the products position in relation to competition influences ultimate profit margin. Whether this product is considered high-end or low-cost choice it helps in determining the price point. Placement: How the product is distributed is also a country-by-country decision influenced by how the competition is being offered to the target market. Promotion: After product research, development and creation, promotion (specifically advertising) is generally the largest line item in a global companys marketing budget.

Deciding on the Marketing Organization:

Export Department: A firm normally gets into international marketing by simply shipping out its goods. International Department: Many companies engage in several international markets and ventures. Sooner or later they create international divisions to handle all their international activity. Global Organization: Several firms have truly become global organizations. Their top corporate management and staff plan worldwide manufacturing facilities, marketing policies, financial flows, and logistical systems.

Examples of Global Company:

The Nestle-Way: Nestle sells more than 8,500 products produced in 489 factories in 193 countries. Nestle is the worlds biggest marketer of infant formula, powdered milk, instant coffee, chocolate, soups, and mineral water. The Nestle Way is to dominate its markets can be summarized in four points: Think and plan long term Decentralize Stick to what you know Adapt to local tastes

Thank you!
Presented by: Sunny Arora (A-14) Aman Aggarwal(A-26)