1) Global Marketing

The process of conceptualizing and then conveying a final product or service worldwide with the hopes of reaching the international marketing community. Proper global marketing has the ability to catapult a company to the next level, if they do it correctly. Different strategies are implemented based on the region the company is marketing to. For example, the menu at McDonald's varies based on the location of the restaurant. The company focuses on marketing popular items within the country. Global marketing is especially important to companies that provide products or services that have a universal demand such as automobiles and food.

2) 5 reason global marketing is needed

Build more brand and shareholder value, Add revenue sources and growth markets, Reduce dependence on your home market, Leverage existing corporate technology, supply chains, know-how and intellectual property, Award more franchises in the home country by being global. 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

high level of per capita consumption. The second economic factor is the country's income distribution. people may find ways to buy products that are important to them. marketers have had to contend with changes and developments in the . income levels. Industrialized nations may have low-. Economic factors are just some of the "environmental uncontrollable" which marketers must consider when deciding to market globally. Countries with subsistence economies may consist mostly of households with very low family incomes. relatively low rates of population growth etc y y y y y y y y The international marketer must study each country's economy. and high-income households. Industrializing economies are those where manufacturing accounts10% to 20% of the country's economy. Through the legacy of mercantilism up to the current GATT Round. poorer countries may have small but wealthy segments of upper-income consumers. medium-. but poor in other ways. Industrialized economies are major exporters of manufactured goods and investment funds. Raw material exporting economies are countries that are rich in one or more natural resources. Even in low-income and developing countries. Subsistence economies are those where the vast majority of people engage in simple agriculture. The country's industrial structure shapes its product and service needs. In many cases. In essence the theory of comparative advantages says it pays for countries to engage in international trade exporting in which they are efficient and to import goods that they are relatively inefficient at producing b) An assessment of the economic infrastructure in these countries Concept of Economic Advancement Economic advancement is characterized by such factors as relatively small allocation of labour Force to agriculture: energy available in large amounts at low cost. high level of output and Income. Measures a product are cost of production not in monetary terms but in terms of for gone opportunity to produce something else.3) Economic factors a) A comparative analysis of the industrial infrastructure in different countries David Richardo pointed out that it still possible to produce profitably what one is best at even if someone else is better and this theory is well known as comparative advantages. The global economy can be traced back hundreds of years when traders from the east and west came together to exchange goods. and employment levels. Two economic factors reflect the country's attractiveness as a market: the country's industrial structure and its income distribution.

and the poor have remained poor. the poor class must count their pennies when making even the most basic purchases. It would be too easy to classify these markets as "rich" or "poor". Some organizations prepare for the launch of another brand before the fall in utility and sales is experienced. Income distribution in the still very poor. It must be noted that all the factors that are included in this list are inter-connected. clothing. Marketers must pay close attention to major trends and consumer spending patterns both across and within their world markets. You may also read demand and supply analysis.economic environment. The demand is the will and ability of consumers to purchase a particular commodity and the supply is the ability of the business to provide for the demand of consumers. the middle class has shrunk. and shelter and must try hard to save. These countries offer few market opportunities. At the other extreme are industrial economies. There is a comfortable middle class that is somewhat careful about its spending but can still afford the good life some of the time. Internal environment. At the top are upper. including the growth of regional economic blocs. The following list is however a comprehensive and integrated list of all possible economic factors that affect the working of business organizations. the satisfaction that is experienced by consumer starts decreasing. all aimed at increasing cooperation between the grouped nations. You may also read more on diminishing marginal utility. The launch of new brand ensures that the revenue trend of the business does not fall. . It so happens that after continuous and successive consumption of units of the same goods. Some countries have subsistence economies they consume most of their own agricultural and industrial output. open trade negotiations. which constitute rich markets for many different kinds of goods. Demand and Supply The demand and supply are two principal factors that affect the working of any business model. operational environment and external environment are 3 major classes of such factors. "developed" or "less developed". Marginal and Total Utility Utility is the amount of satisfaction. the rich have grown richer. although this is often done for ease of analysis. Marketers should pay attention to income distribution as well as average income. Finally. The following article is a small elaboration of the major economic factors affecting business organizations. The working class must stick close to the basics of food. or whether not to. This often results into short term or long term fall of sales. Countries show great within country differences also and marketers have to be aware in assessing market potential that they do not use general descriptions of nations as criteria of whether to.class consumers. Markets differ widely in their size and state of development worldwide. whose spending patterns are not affected by current economic events and who are a major market for luxury goods. The economic environment consists of factors that affect consumer purchasing power and spending patterns. that is derived by consumers from consumption of goods. Nations vary greatly in their levels and distribution of income. Over the past three decades. Diminishing utility is among the external factors affecting business.

cost of production and finally. paying power of people. credit. General Price Level Another very important aspect of the economy that affects the business is the general price levels of the commodities that also affect the sales of the business. Trade cycles also many a times affect the general price level. Among all the economic factors affecting business environment. as the business has to cater to the demand of an economically dynamic society. . etc. The per capita income and density of employment dictates the rate of demand. Economic Growth and Development Economic growth dictates the amount of finances that the society at large is earning and development indicates the volume of money that is being invested into channels of long term up-gradation. density of demand and also the purchasing power of the people.Money and Banking Banking facilitates monetary and fiscal policies that affect business and also the customers of the business. continuity and fall are some of the important cycles that affect the prices off all goods such as raw material. is the level of employment and rate of income. Trade Cycles Trade cycles are the fluctuating costs of goods and commodities in an economy. cost of transport are some of the important components that determine the general price level and also. Money in circulation dictates the paying power or rather the demand of the consumers and the banking facility dictates the borrowing capacity of individuals as well as the business. final goods. stability. Costs of raw materials. development is the most important one. Income and Employment Another very important aspect of the economy that affects the working of the business. Rise. the sales of the firm.

The channels of distribution are simple. The magnitude of the marketing system is greater and therefore. clothing. could achieve an adequate level of Income by prevailing social standards. but typically at a low level of development. housing. But the most important characteristic is the high degree to which their distribution and sales promotion systems are geared to influence the buyer because they must not only guide but also generate demand. most people can afford many luxury items of a good life. The marketing system in these societies show increased complexity because of the greater volume of goods handled. and the advertising and sales-promotion process develops as sellers seek to steer the discretionary buying power in one direction or another High Income Societies The United States is an excellent example for high-income societies and differs from moderate-income group of societies as the large part of societies in U.S. d) Recognition of a country s currency exchange rates . Sales promotion is practices. Hence. the volume of goods limits the marketing process. producing most of the food. different types of distribution channels appear.c) Measurement of consumer income in different countries Low Income Countries Low-income countries are those with per capita national incomes of less than $400 per year. They engage in a small amount of selling in order to buy a few manufactured goods. A large proportion of population live by subsistence farming. and other goods they need with their own labor. In high-income societies. The Moderate-Income Category The important distinction between moderate-income countries and low-income countries is that with the ability to purchase many items beyond the bare subsistence level. A marketing system exists to accomplish this exchange. The marketing in these societies is relatively simple. but the volume is small and the variety of goods involved is very limited. appreciable discretionary buying power emerges in moderate income countries.

In contrast. Besides currency limits. Sellers want to take their profits in a currency of value to them. At least four political legal factors should be considered in deciding whether to do business in a given country: attitudes toward international buying. a government may decide to respond to new popular feelings. Ideally. companies left India. government bureaucracy. political stability.4) Political factors Nations differ greatly in their political legal environments. a changing exchange rate also creates high risks for the seller. Political stability is another issue. International marketers may find it profitable to do business in an unstable country. neighboring Asian countries such as Singapore. some nations are quite receptive to foreign firms and others are quite hostile. Malaysia. and other factors that aid in doing business. India has bothered foreign businesses with import quotas. but the unstable situation will affect how they handle business and financial matters. A second factor is government bureaucracy the extent to which the host government runs an efficient system for helping foreign companies: efficient customs handling. The foreign company's property may be taken. companies must also consider a country's monetary regulations. many U. currency restrictions. Governments change hands. its currency holdings may be blocked. Finally. Thailand. the buyer can pay in the seller's currency or in other world currencies. sometimes violently. or import quotas or new duties may be set. sellers might accept a blocked currency one whose removal from the country is restricted by the buyer's government if they can buy other goods in that country that they need themselves or can sell elsewhere for a needed currency. In their attitudes toward international buying.S. good market information. and the Philippines court foreign investors and shower them with incentives and favorable operating conditions. and limits on the percentage of the management team that can be no nationals. For example. and monetary regulations. Even without a change. Short of this. A common shock to Americans is how quickly barriers to trade disappear in some countries if a suitable payment (bribe) is made to some official. As a result. .

most Indians believe in working. People in a given society hold many beliefs and values. and behaviors. children learn basic values. preferences. Their core beliefs and values have a high degree of persistence. y y y y The cultural environment is made up of institutions and other forces that affect a society s basic values. and being honest. churches. For example. companies must understand how culture affects consumer reactions in each of its world markets." These critics contend that exposure to American values and products erode other cultures and westernize the world. People grow up in a particular society that shapes their basic beliefs and values. These beliefs shape more-specific attitudes and behaviors found in everyday life. Some critics argue that "globalization" really means "Americanization. perception and wants from the family and other important groups. Core beliefs and values are passed on from parents to children and are reinforced by schools. percept ions. When designing global strategies. In turn. Growing up. getting married. The seller must examine the ways consumers in different countries think about and use certain products before planning a marketing campaign. . They absorb a world view that defines their relationships with others. giving to charity. and government. they must also understand how their strategies affect local cultures. Business norms and behaviors vary from country to country. business. Marketing are always trying to spot cultural shifts which might point to new products that might be wanted by customers or to increased demand. the cultural shift towards greater concern about health and fitness has created opportunities (and now industries) servicing customers who wish to buy: Low calorie foods Health club memberships Exercise equipment Activity or health-related holidays etc. Cultural factors have a significant impact on customer behavior. For example.5) Cultural factors y Each country has its own folk-ways. norms. ready meals and direct marketing service businesses such as telephone banking and insurance. Culture is the most basic cause of a person s wants and behavior. Similarly the increased desire for leisure time has resulted in increased demand for convenience products and services such as microwave ovens. and taboos.

social class is not just determined by income. Think about the consequences of a group of consumers who feel ignored by your message. freedom. For instance. Doing so is made easier by thinking about the influences of buyer behavior . It is imperative that marketing messages strike a chord with their intended targets. As a child grows up the culture in which he lives impresses his mind with a general set of values and preferences. Sub-cultures can include nationalities. differences in social class can create customer groups. Subculture Each culture consists of smaller subcultures that include nationality. if you intend to attract and keep clients of the highest quality. humanitarianism. and social class affects buying decisions. This is known as diversity marketing. and psychology.where children spend a majority of their waking hours. Culture Culture is the single largest factor in shaping desires and thus behavior.culture. subcultures. This is a general example. the message will fall on deaf ears. the cultural influence is the strongest.Each culture contains sub-cultures groups of people with share values. individuality. In the UK s socioeconomic classification scheme. activity. According to Leon Schiffman and Leslie Kanuk in their book Consumer Behavior. and has proven to be an effective marketing strategy. For example. When they enter their subculture (in this case their general neighborhood) and compare their quality of life to the quality of life in the local nursing home. The subculture often reinforces the values instilled by the culture at large. income. that youthfulness is a higher value than old age. . When subcultures gain power and wealth. you will benefit from understanding how cultures. individualism. external comfort. religion. the value of youthfulness is reinforced. American children receive the following values: achievement and success. but if your campaign ignores the subculture they identify themselves with. efficiency and practicality. religions. companies customize marketing messages and campaigns to serve them. the youth culture or club culture has quite distinct values and buying characteristics from the much older gray generation Similarly.both public and private . material comfort. and geographic regions. I am only making the point that Americans clearly value youthfulness. either deliberately or covertly. wealth and other variables. Sometimes a sub-culture will create a substantial and distinctive market segment of its own. Of these four influencers. children are taught in the culture. society. the official six social classes in the UK are widely used to profile and predict different customer behavior. In fact. I am not using it to make a statement of any kind against nursing homes. progress. It is measured as a combination of occupation. education. racial groups. They may fit your definition of a dream client. or groups of people sharing the same geographical location. and youthfulness. Much of these values are taught in the American school system .

Americans experience a class system. Your communication needs to be tailored to your target market at least to some extent. education. and values. The application for marketers and salespeople is that your target market demands some sort of customization in your marketing message. from lower to upper class and all the levels in between. Each class is defined by a shared set of values and behavior. Americans may move up and down class systems throughout the course of their lifetime. so carefully select the images and verbiage of your marketing materials and your sales presentations to have the maximum impact within your market.Social Class Almost all societies have a social class system. The clearest example of this is in the Indian caste system where members of different castes are brought up and trained for specific roles within society. Other factors include occupation. Budget demands will always limit the amount of customization any company can afford. . Class is not defined solely by wealth. Unlike in India.

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