Introduction to Global Marketing

By
Dr. Amir: 15 , Sep, 2023

12-1
12-2
 What is Marketing?
 Marketing is the process of planning and
executing the conception, pricing
promotion, and distribution of ideas,
goods, and services to create exchanges
that satisfy individual and organizational
objectives. (AMA)
 Marketing is the art of creating and
satisfying customers at a profit

12-3
 What is Marketing?
The management process through which goods and
services move from producer or seller to the
customer. It includes the coordination of four
elements called the 4 P's of marketing:
 (1) identification, selection and development of a
product,
 (2) determination of its price,
 (3) selection of a distribution channel to reach the
customer's place, and
 (4) development and implementation of a
promotional strategy.
12-4
 Key ideas in the definition

Process involving strategy and tactics

4 Ps
More than goods
Exchange is central
Satisfy consumer and organizational
needs

12-5
 What do marketers do?

Identify needs and wants

Choose which/whose needs to focus on
Create and manage products
Communicate about products
Price products
Distribute products
Follow up

12-6
 The ‘eras’ of business

Production era
Sales era
Marketing era
Relationship era

12-7
The production era/concept
“Consumers will buy whatever we
produce.”
Often feasible with excess demand (a
seller’s market)

12-8
 The sales era/concept
“We need to work at selling what we
produce.”
Often motivated by excess supply (a
buyer’s market)
String

12-9
 The marketing era/concept
“We need to understand consumers
needs and wants in order to decide what
to produce.”
Focus externally: on the market
Company wide orientation

12-10
 The marketing relationship
era/concept
Movement away from the single
transaction as the cornerstone of
marketing
A focus on building long-term relationships
with customers
Why?
cost of getting a new customer
cost of keeping an old customer
Activities that build long-term relationships
12-11
 Selling vs. Marketing

 The seller’s aim is to sell what they can

make, and the marketer’s aim is to
make what they can sell.

 The aim of good marketing is to make

sales superfluous.

12-12
Why you want the global marketing

 Global marketing allows you to sell more

products, attract more customers and
enlarge your market share in different
countries.
 Your brand influence will increase.
Building a well-known brand's reputation
gives you a powerful competitive
advantage in local markets of different
countries.

12-13
 Global Marketing?

“Global marketing refers to marketing

activities coordinated and integrated across
multiple country markets in order to meet
global objectives".
 Global marketing focuses on global market
opportunities and threats.
– the main difference between the regular marketing
and global marketing is the scope of activities
because global marketing occurs in markets outside
the organization’s home country.
12-14
Difference between Domestic Marketing and
International Marketing
S. No. DOMESTIC MARKETING INTERNATIONAL MARKETING

01.
Domestic marketing refers to carrying out International marketing refers to carrying out marketing
marketing activities within the national boundaries. activities outside the national boundaries also.

02.
It refers to doing marketing in local market and it’s It refers to doing marketing in global market and it’s
scope is limited. scope is wide.

There is one nation, same language and one

03. There are many nations, many languages and culture.
culture.

04. In domestic marketing only one currency is used. In international marketing different currencies are used.

05.
Controlling domestic marketing activities is easy Controlling international marketing is difficult as
as compared to international marketing. compared to domestic marketing.

06. Well familiarity with domestic or local market. Lack of familiarity with global or foreign market.

07.
Low risk factors are associated with domestic Where as more risk factors are associated with
marketing. international marketing.

08.
Domestic marketing requires less investment as International marketing requires more investment as
compared to international marketing. compared to domestic marketing.
12-15
Difference between Domestic Marketing and
International Marketing
9. Mostly there is stable business environment. Mostly there is unstable business environment.

10. It relatively deals with homogeneous market. It relatively deals with diverse market.

In domestic marketing competitors behavior is easy In international marketing competitors behavior is difficult
11.
to predict. to predict.

12. It has less capital requirement. It has huge capital requirement.

High level of research is required because of the involved

13. Research is required, but not to a great extent.
overseas markets.

Limited opportunities for growth because of local

14. Several opportunities are available because of vast scope.
scope.

Government intervention is to a greater extent because of

15. Less government intervention.
the laws and policies vary from country to country.

The same policies and tactics can be opted by the The company requires different tactics and policies for
16.
company in domestic marketing. advertising the products to their customers.

17. Greater control over domestic marketing operations. Less control over international marketing operations.

12-16
 Where in the World?

How does a company decide which

markets to enter?
 Company resources.
 Managerial mind-set.
 Nature of opportunities and threats in
that market.

12-17
The Importance of Going Global

• For U.S. companies, 75% of total world

market for goods and services is outside the
country.

• For Japanese companies, 90% of world

market is outside the country.

• 94% of market potential is outside of

Germany for its companies even though it is
the largest EU market.

12-18
 Reasons for Global Marketing

 Growth
 Access to new markets
 Access to resources
 Survival
 Against competitors with lower costs (due to
increased access to resources).
• Create value for customers:
– Improve the product
– Find new distribution channels
– Create better communications
12-19
 Benefits of Global Marketing

 Economies of scale in production and

marketing can be important competitive
advantages for global companies
 Unifying product development, purchasing,
and supply activities across several countries it
can save costs
 Transfer of experience and know-how across
countries through improved coordination and
integration of marketing activities
 Diversity of markets by spreading the portfolio
of markets served brings an important stability
of revenues and operations to many global
firms
12-20
What is global marketing in international
marketing?

 Global marketing is also a field of study in

general business management that
markets products, solutions and services to
customers locally, nationally, and
internationally. International marketing is
the application of marketing principles in
more than one country, by companies
overseas or across national borders.

12-21
How Big Is The Global Market?

12-22
 Examples of Global Marketers

 Coca-Cola  USA
 Philip Morris  USA
 Daimler-Chrysler  Germany
 McDonald’s  USA
 Toyota  Japan
 Ford  USA
 Unilever  UK/ Netherlands
 Gillette  USA
 IBM  USA
12-23