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GLOBALIZATION

:
Thought Process

GLOBALIZATION
Thought Process
• Global marketplace
• Wide marketing opportunities
• Social and economic welfare
• Diversity and cross-culture focus

15-Dec-2006

International Marketing by Rajagopal
(Chapter 1: GLOBALIZATION: Thought Process)

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DETERMINANTS OF GLOBAL MARKETING • • • • • • • • • • • • Market access Market opportunities Industry standards Technology. research and development Resource management–internal and external Products and services Customer pre-requisites and needs Competition Business alliances and cooperation Distribution and logistics Communication Strategy implementation and control process 15-Dec-2006 International Marketing by Rajagopal (Chapter 1: GLOBALIZATION: Thought Process) 2 .

LEVEL OF FOREIGN INVOLVEMENT • Operate in a Single Country • Export Regionally • Export Globally • International Operations • International to Global • Global 15-Dec-2006 International Marketing by Rajagopal (Chapter 1: GLOBALIZATION: Thought Process) 3 .

FACTORS FOR COMPETING GLOBALLY • Global configurations of marketing activities • Global coordination of marketing activities • Linkage of marketing activities with other activities 15-Dec-2006 International Marketing by Rajagopal (Chapter 1: GLOBALIZATION: Thought Process) 4 .

RATIONALE FOR INTERNATIONAL BUSINESS • Theory of comparative advantage • International product life cycle • Production sharing • Internalization process 15-Dec-2006 International Marketing by Rajagopal (Chapter 1: GLOBALIZATION: Thought Process) 5 .

INTERNALIZATION OF FIRMS • Extension of direct operation of the firm • Common ownership • Control the activities of the market • The companies have global horizon • The firms choose a location of minimum cost for each functional activity • Benefit-cost equilibrium • Focuses on motives and decision process 15-Dec-2006 International Marketing by Rajagopal (Chapter 1: GLOBALIZATION: Thought Process) 6 .

synchronized product positioning. commonality in communication strategies or well-coordinated sales campaigns across the markets of different countries. The process of such integration may involve product standardization. Contd … 15-Dec-2006 International Marketing by Rajagopal (Chapter 1: GLOBALIZATION: Thought Process) 7 .THE GLOBAL MARKETPLACE • The global marketplace may be described as a spatial network of markets across different countries comprising homogenous and customized segments. identical brand names. • The various marketing functions coordinated and integrated across the different markets may be referred to as global marketing. homogeneity in brand architecture. uniform packaging. and the functional requirements therein may widely differ from other markets. • Multi-domestic markets may be defined as the product markets that serve the preferences of local customers.

status of service provider or the manufacturer and marketer of products and services. and cross-market capacity to leverage learning on a global basis. resources and people into operating units globally. • In transnational organizations. national level responsibilities and operational flexibility. They aim at developing the strategic capabilities towards global scaling and competitiveness. the ownership of the operations is less clear in terms of manufacturing locations.THE GLOBAL MARKETPLACE • Transnational companies have flexible management processes and networks that integrate diverse assets. 15-Dec-2006 International Marketing by Rajagopal (Chapter 1: GLOBALIZATION: Thought Process) 8 .

global channels and transferable marketing. manufacturing and marketing of consumer and industrial products. The government drivers for globalization include diplomatic trade relations. tariffs and taxes and costs associated with the basic and advanced marketing functions. diffusion and adaptation of technology.DRIVERS OF GLOBAL MARKETING • • • • • The market drivers comprise the needs of common customers. global customers. The existence of many global competitors indicate that an industry is mature for international business operations. 15-Dec-2006 International Marketing by Rajagopal (Chapter 1: GLOBALIZATION: Thought Process) 9 . The government drivers add favourable trade policies. customs unions or common markets. cost of outsourcing. The cost drivers are largely based on the economies of scale that involve the cost of production functions in large and complex industries. The global expansion of multinational companies has been highly stimulated by technological advancements in the designing. foreign investment regulations. The competitive drivers support the companies for matching their strategies appropriately with their moves in the market. The technology drivers play a significant role in global business. bilateral or regional trade treaties and common market regulations.