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Marketing Management

Why go GLOBAL • • • • • Risks • • • • • Understanding of preferences Business culture Underestimation of the requirements and Some offer higher volumes and profits Larger customer base Reduce dependence on one or a few markets Counter competitors in own markets

Global Marketing

Customers in other countries want your products and services due to excellence in quality or service

Not finding good people to manage the international business Changes in the government policies w.r.t. commercial laws, currency, political revolution

Marketing Management Going GLOBAL has four stages. Also control and action requires skill and skilled employees both and it may not be possible to take on more fronts simultaneously. The companies must therefore study the economic. No activity so far Global Marketing Start exports through representatives or independent agencies Establish subsidiaries and Establish manufacturing facilities Which and how many markets to enter Will depend upon the product and resources available to the company as the risk of losses in case of failure are higher if many markets are entered. political-legal and cultural environments To start it may be better with the neighboring countries as the culture may not be very different and the costs can also be controlled effectively . 1. 4. 2. 3. A careful study is made before a final decision is taken to enter any market Though the world is becoming smaller due to globalisation. but evaluating the potential market is very important.

This is also sometimes done to get the initial expertise of the local partner Direct Investment - 3. trade mark. licensing. Licensing is the simplest way by giving the technology.Marketing Management How to enter Global Marketing The companies need to select the best mode to enter these markets. . Joint Ventures – joining hands with a local player in the country. Maruti etc. they license bottlers on business terms. It has benefit of lower investment and lesser risks Finding some companies or representative in foreign market for exporting directly by creating own export department or through overseas representative (a distributor or agent) 2. Exports may be direct or indirect. Inspite of being present. The broad choices are exports. patent for a fee or royalty like Coke or Pepsi does. Examples being the insurance companies. Indirect exports is to sell to the export houses who in turn sell to their clients abroad. Joi nt ventures are sometimes forced decisions by the laws of the land and sometimes even a percentage of holding by the company be imposed. joint ventures and direct investments 1. process. 4.

3. which is almost 95% of the total countries in the world. 1995. . The International trade systems – the tariff and the quota systems. Product – a study if the product being offered can be straight away offered or an adaptation to be done. 2. The General Agreement on Trade & Tariff (GATT .from 1948 to 1994) and then World Trade Organisation (WTO) from January 1. Many markets have different cultures and tastes. discuss and decide the trade barriers and tariffs and the ways to improve the trade between the various countries Regional Free Trade Zones – are formed by some countries on the regional basis so that trade across these member countries is free of any trade restrictions or tariffs ii. embargo on certain products or products from other countries i. Communication Price Channels Perceptions by consumers The environment has and is changing. who meet. the company must make a marketing programme & study. 1.Marketing Management Making Marketing Programme Global Marketing Before starting export activity. 4. 1. 5. and they must study. consists of 153 members.

Marketing Management Going Glocal Mission (Goal) Global Marketing GLOCAL Strategy Locus (Geography & Control) Resources (Men/Machine/Money/ management Why failures •Lack of Global perspective •Focused on short term •No clear Missions & Goals •Lack of customised delivery •No fine tuning of resources •Lack of localisation .