Global Marketing:

◼ MajorDecisions in International
Marketing:

1. 3. 4. 5.
2.
To go How to What Decision
Which
or Not enter Marketing on the
markets
to go the Programs Marketing
to enter
Abroad market to follow Organization

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Why go global?
Better profit opportunities.
To get a larger customer base.
To reduce dependence on one
market.
Counterattack Global firms attacking
your home market.
To follow the customers.

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 Risks Associated with Going
Global:
◼ Might not understand foreign preferences.
◼ Not understand foreign country’s business
culture.
◼ Underestimation for foreign rules &
regulations
◼ Donot have managers with international
experience
◼ Threat of political revolution, devaluation
etc.
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Four stages of
internationalization process:
1. No regular export activities
2. Export via independent representatives
(agents)
3. Establishment of one or more sales
subsidies
4. Establishment of production facilities
abroad

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 Deciding which markets to
enter
◼ Two basic entry strategies
 Waterfall approach
 Sprinkler approach

◼ Developed vs. developing markets

5
Methods of Entering
in a New Market:
◼ Indirect
Export.
◼ Direct
Export.
◼ Licensing.
 Franchising

◼ Joint
Ventures.
◼ Direct
Investment. 6
Developing Global Marketing
Strategies:
◼ Standardization vs. Adaptation
◼ Product Strategies & Promotion
Strategies.
Product
Do not Adopt Develop New
change Product Product

P Do not
Straight Product
R Change
Extension Adaptation
O Product
M Invention
O Adopt Dual
T Promotion Comm.
Adaptation
I Adaptation
O
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N
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Developing Global Marketing
Strategies (Cont.):
◼ Pricing Strategies:
 Price Escalation
◼ Uniform price.
◼ Market based price.
◼ Cost based price.
 TransferPrices
 Dumping
 Gray Markets
 Counterfeit Products

◼ Global Distribution Strategies

◼ Country of Origin Effects
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