UNIT -2

Introduction to Global Marketing

BY
AISWARYA.S.MOHAN-13TM05
SANGHAVEE.R-13AM04
MANOJ.M-13TM16
MAHALINGAM .S-13TM17

Introduction

Marketing
Process of planning and
executing the
conception pricing,
promotion and
distribution of ideas,
goods and services to
create exchanges that
satisfy individual and
organization goals

Global Marketing
Focuses resources on
global market
opportunities and threats;
the main difference is the
scope of activities because
global marketing occurs
in markets outside the
organizations home
country

Reasons for Global Marketing

Growth

Access to new markets

Access to resources
Survival
Against competitors with lower costs (due to
increased access to resources)
2005 Prentice Hall

1-3

Scope

Branch / subsidiary There is scope for opening a branch/ subsidiary

abroad for processing packaging, assembly or even complete manufacturing
through direct investment
Negotiating Licensing /franchising Arrangements- By these foreign enterprises
are granted the right to use of the exporting companys know-how, viz,
patents, processes or trademarks with or without financial investment.
Joint Ventures- There is scope for establishing joint ventures in foreign
countries for manufacturing and/ or marketing.
Consultancy- There is scope for offering consultancy services and
undertaking turnkey projects abroad.
Sub contracting and countertrade- This is an impotent area of
international marketing.
Importing for Export Production- International marketing includes import
and export.

Management Orientations

Ethnocentric:
Home country is
Superior, sees
Similarities in foreign
Countries
Regiocentric:
Sees similarities and
differences in a world
Region; is ethnocentric or
polycentric in its view of
the rest of the world

Polycentric:
Each host country Is
Unique, sees differences
In foreign countries

Geocentric:
World view, sees
Similarities and
Differences in home
And host countries

Internationalization process

Levels of International Marketing

Domestic Marketing

Least
international
commitment
Domestic focus

Export Marketing

International
Marketing

Limited international Substantial

commitment
international
commitment
Involves direct or
indirect export
Focus on individual
countries or regions
Ethnocentric
Polycentric or
Regiocentric

Global
Marketing
Extensive
international
commitment
Focus on segments,
rather than countries or
regions
Geocentric

WTO
PROFILE
1ST january,1995
extension of GATT
Head office geneva
160 countries are members prensently
ROLE AND FUCTION:
To overse implementation
,administration,operation,,of WTO agreement
To provide for negotiation aog members
To provide adequate settlement mechanism
To administrate trade policy review
mechanism

TARIFF AND NON TARIFF BARRIERS

Tariff in international trade refers to the duties or taxes imposed on
the import traded goods when they cross the nationa borders
Different rate of duty for different goods
Ex:there 100% duty for importing cars and vehicles

Examples
import bans
general or product-specific quotas
rules of origin
quality conditions imposed by the importing country on the
exporting countries
sanitary and phytosanitary conditions
packaging conditions
labelling

2005 Prentice Hall

112

DUMPING
Export of goods from one country to another
at a price lower than its normal value this is
an unfair trade practise which can have a
distactive effect

2005 Prentice Hall

113

ANTI DUMPING
A measure to rectify the situation arising out of
the dumping out of goods its trade distractive
efforts to rectify the trade distractive effect of
dumping &establish fair trade

2005 Prentice Hall

114

Thank You.

2005 Prentice Hall

115