Marketing Management – I Presentation

7/31/2019 Marketing Management I Presentation

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Marketing ManagementI

Presentation

OnGlobal Marketing


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What is Global Marketing?

Global marketing is defined by the Oxford UniversityPress as "marketing on a worldwide scale reconciling ortaking commercial advantage of global operationaldifferences, similarities and opportunities in order to

meet global objectives. Basically global marketingis selling your product all over the world.

It is basically when a company looks at the entire worldas 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 ofreaching the international marketing community.


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Importance of Global Marketing:

Saturation of domestic markets: Domestic-marketsaturation in the industrialized parts of the world andmarketing opportunities overseas are evident in globalmarketing.

Global competition: Competition around the world andproliferation of the Internet are on the rise.

Need for global cooperation: Global competition bringsglobal cooperation.

Internet revolution: The Internet and electronic commerce

(e-commerce) are bringing major structural changes to theway companies operate worldwide.

The term global epitomizes both the competitivepressure and expanding market opportunities.


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Evolution of Global Marketing:

What is marketing? Marketing involves the planning and execution of theconception, pricing, promotion, and distribution of ideas, products, and services. Italso 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; ethnocentricorientation).

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 acrossnational 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 localvariations).


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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


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Disadvantages

Differences in consumer needs, wants, and usage patterns forproducts

Differences in consumer response to marketing mix elements

Differences in brand and product development andthe competitive environment

Differences in the legal environment, some of which may conflictwith those of the home market

Differences in the institutions available, some of which may call forthe 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


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Why to go for Global markets?

Some international markets present higher profitopportunities than the domestic market.

The company may need a larger customer base toachieve economies of scale.

The company wants to reduce its dependence onany one market.

The company decides to counterattack globalcompetitors in their home markets.

Customers are going abroad and requireinternational service.


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Deciding How to Enter a International

Market:

Indirect Export: Companies work through independentintermediaries. Domestic based export merchants buy themanufacturers 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 orroyalty.

Joint Ventures: Foreign investors have often joined with localinvestors to create a joint venture company in which they shareownership and control.

Direct Investment: Direct ownership of foreign-based assembly ormanufacturing facilities. The foreign company can buy part or fullinterest in a local company or build its own facilities.


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Deciding on the Marketing Program:

The Four Ps of marketing: product, price, placement, and promotion areall affected as a company moves through the five evolutionary phases tobecome a global company.

Product: A global company is one that can create a single product and onlyhave to tweak elements for different markets.

Price: It is affected by many variables: cost of product development, costof ingredients, cost of delivery, and much more. Additionally, the productsposition in relation to competition influences ultimate profit margin.Whether this product is considered high-end or low-cost choice it helps indetermining the price point.

Placement: How the product is distributed is also a country-by-countrydecision 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 globalcompanys marketing budget.

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Deciding on the Marketing

Organization:

Export Department: A firm normally gets intointernational marketing by simply shipping out itsgoods.

International Department: Many companies engage in

several international markets and ventures. Sooner orlater they create international divisions to handle alltheir international activity.

Global Organization: Several firms have truly becomeglobal organizations. Their top corporate management

and staff plan worldwide manufacturing facilities,marketing policies, financial flows, and logisticalsystems.


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Examples of Global Company:

The Nestle-Way:

Nestle sells more than 8,500 products producedin 489 factories in 193 countries. Nestle is theworlds biggest marketer of infant formula,powdered milk, instant coffee, chocolate, soups,and mineral water. The Nestle Way is to dominateits markets can be summarized in four points:

Think and plan long term

Decentralize

Stick to what you know

Adapt to local tastes


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Thank you!

Presented by:Sunny Arora (A-14)

Aman Aggarwal(A-26)

Documents

Marketing Management – I Presentation