Marketing Management

Why go GLOBAL Risks Understanding of preferences Business culture Underestimation of the requirements and Some offer higher volumes and profits Larger customer base Reduce dependence on one or a few markets Counter competitors in own markets

Global Marketing

Customers in other countries want your products and services due to excellence in quality or service

Not finding good people to manage the international business Changes in the government policies w.r.t. commercial laws, currency, political revolution

Marketing Management
Going GLOBAL has four stages; 1. 2. 3. 4. No activity so far

Global Marketing

Start exports through representatives or independent agencies Establish subsidiaries and Establish manufacturing facilities

Which and how many markets to enter Will depend upon the product and resources available to the company as the risk of losses in case of failure are higher if many markets are entered. Also control and action requires skill and skilled employees both and it may not be possible to take on more fronts simultaneously. A careful study is made before a final decision is taken to enter any market Though the world is becoming smaller due to globalisation, but evaluating the potential market is very important. The companies must therefore study the economic, political-legal and cultural environments To start it may be better with the neighboring countries as the culture may not be very different and the costs can also be controlled effectively

Marketing Management
How to enter

Global Marketing

The companies need to select the best mode to enter these markets. The broad choices are exports, licensing, joint ventures and direct investments 1. Exports may be direct or indirect. Indirect exports is to sell to the export houses who in turn sell to their clients abroad. It has benefit of lower investment and lesser risks Finding some companies or representative in foreign market for exporting directly by creating own export department or through overseas representative (a distributor or agent) 2. Licensing is the simplest way by giving the technology, process, trade mark, patent for a fee or royalty like Coke or Pepsi does. Inspite of being present, they license bottlers on business terms. Joint Ventures joining hands with a local player in the country. Examples being the insurance companies, Maruti etc. Joi nt ventures are sometimes forced decisions by the laws of the land and sometimes even a percentage of holding by the company be imposed. This is also sometimes done to get the initial expertise of the local partner Direct Investment -

3.

4.

Marketing Management
Making Marketing Programme

Global Marketing

Before starting export activity, the company must make a marketing programme & study; 1. 2. 3. 4. 5. Product a study if the product being offered can be straight away offered or an adaptation to be done. Many markets have different cultures and tastes. Communication Price Channels Perceptions by consumers

The environment has and is changing, and they must study; 1. The International trade systems the tariff and the quota systems, embargo on certain products or products from other countries i. The General Agreement on Trade & Tariff (GATT - from 1948 to 1994) and then World Trade Organisation (WTO) from January 1, 1995, consists of 153 members, which is almost 95% of the total countries in the world, who meet, discuss and decide the trade barriers and tariffs and the ways to improve the trade between the various countries Regional Free Trade Zones are formed by some countries on the regional basis so that trade across these member countries is free of any trade restrictions or tariffs

ii.

Marketing Management
Going Glocal
Mission
(Goal)

Global Marketing

GLOCAL Strategy Locus

(Geography & Control)

Resources
(Men/Machine/Money/ management

Why failures Lack of Global perspective Focused on short term No clear Missions & Goals Lack of customised delivery No fine tuning of resources Lack of localisation