GLOBAL MARKETING

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

--Global environment is inherently very complex

--At the moment, many radical changes are taking place very fast. Global marketing is governed by different economic systems, different political and legal issues Today, almost all over the world, the basic institutions, business models, industry etc are undergoing a very rapid change.

THE ECONOMIC ENVIRONMENT

The Economic Environment The recent years have seen a marked slowdown in the growth of leading economies like the USA, Japan Simultaneously, economies like India, China, Russia have been gaining momentum At the same time almost a dozen countriesthe US, Japan, Germany, the UK, France, Italy, Spain, Canada, Russia, Brazil and India have a GDP of over a trillion dollars.India joined this league in 2008. Russia has been doing quite well in recent years due to abundance of natural gas.

A NEW GLOBAL EQUILIBRIUM

The group of G-8 comprising of USA, Germany, France, Italy, Russia, Japan Russia and the UK are now replaced by G-20 The world economy is also being driven by the coming together of Russia, China, Brazil and IndiaBRIC countries

The BRIC countries are likely to overtake the advanced G-6 countries by 2040 Of the four BRIC countries, India and China are to the fore. Many developing countries are liberalising and shifting from centralised command and control economies to de-regulation. Currently, in terms of purchasing power parity, the four leading nations are the Us, Japan, China and India.

One of the most powerful and significant change that has taken place is the emergence of China as a formidable economic power.
In fact China has re-defined capitalism by recording steep growth rates under state apparatus. By 2015 the world economy is expected to be transformed from a unipolar economy 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 dominating the world economy. By 2050, the USA, the UK, France, China, Japan, Germany France and South Korea are expected to be the eight leading economies.

THE CONSUMER ENVIRONMENT

By 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. The population of India is likely to overtake China by 2030.
Presently, the age mix is heavily in Indias favour. Presently, almost 70% of Indians are below 35 yrs of age. 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 to get their work force?

THE COMPETITION ENVIRONMENT

The traditional notion of competition has given way to a totally new meaning to competition. This has occurred due to discontinuities of various kinds and blurring of industry and product boundaries. Some of the discontinuities are Globalisation, ubiquitous connectivity, de-regulation technology convergence etc The PC has transformed itself from a computing device to a an entertainment device and is giving stiff competition to consumer electronics.

THE COMPETITIVE ENVIRONMENT-contd/

Cheap Labour not enough In times to come cos that rely on cheap labour for competitive advantage will not be able to go far as the competitive advantage may shift very fast to another country. They will have to rely on innovation & technology. Globalisation has meant that even the resources are being sought on a global scale. Global gives way to glocal

IT SWEEP/SPREAD OF e-COMMERCE

While the world felt the impact of IT some time ago, today it has been transformed into a sweep. Banking and commerce is now all about moving bits and bytes There are 1 billion PCs around today and almost 200 million are being added annually. Researchers have found that people who use computers for five years tend to be more pro-active. Online marketing/e-commerce have changed the basic paradigm of business to-day.

KNOWLEDGE ECONOMY

Knowledge Economy is understood as ---Reference to high tech sectors like IT, telecom, biotech, communication, entertainment ---Some sectors within new economy which are knowledge intensive ---Some use it for referring to the emerging economy as a whole. The fact remains that knowledge is becoming a value in all industries. KNOWLEDE IS PEOPLE CENTRIC

CAN REVERSE GLOBALISATION TAKE PLACE?

RANBAXY TCS UB-KINGFISHER ADITYA BIRLA GROUP TATA MOTORS M&M SAHARA

IMPLICATIONS OF BEING GLOBAL

WTO HAS 166 MEMBERS --165 COUNTRIES CAN COME TO INDIA

GLOBAL ORGANISATION

EVENTUALLY, WHEN COS BECOME GLOBAL VENTURES--PEPSI,COKE,P&G, GE ETCTHEY THINK ABOUT THE ENTIRE WORLD AS THEIR MARKET AND THE ENTIRE POPULATION AS THEIR CUSTOMERS THE CHALLENGES FACED BY GLOBAL COS ARE FAR MORE COMPLEX AS THEY INVOLVE DIVERSE CULTURES,DIFFERENT NATIONALITIES,INCOMPATIBLE POLITICAL SETUPS ETC

GLOBAL STRATEGIES THAT SEEM TO HAVE WORKED ARE:

GLOBAL STRATEGIES-CONSIDERS THE WORLD AS ONE MKT GENERALLY WORKS WHEN GLOBAL FORCES-FINANCE.INTEGRATED PRODUCTION,HOMOGENOUS DEMAND ARE STRONG AND THE LOCAL FORCES--LOCAL PREFERENCES,TRADE BARRIERS ETC-- ARE WEAK.EG ELECTRONIC GOODS. WHITE GOODS

MULTINATIONAL STRATEGY

JUST THE OPPOSITE OF GLOBAL STRATEGY. WHEN NATIONAL PRESSURES ARE STRONG ENOUGH TO COMPETE AGAINST GLOBAL PARAMETERS THEN THE COS WILL HAVE A DIFFERENT STRATEGY FOR EACH COUNTRY---FOOD,COSMETICS,DETERGENTS

GLOCAL STRATEGY

A JUDICIOUS MIX OF BOTH. BALANCES LOCAL CONDITIONS WITH THE GLOBAL PRACTICES