CHAPTER 1

Introduction and Nature of

Global Marketing

Prepared by: Prof. Yalong

 Introduction
Marketing products and services around
the world, transcending national and
political boundaries, is a fascinating
phenomenon. The phenomenon, however,
is not entirely new. Products have been
traded across borders throughout recorded
civilization.

Prepared by: Prof. Yalong

 Global Marketing
Refers to a strategy for achieving
globalization benefits such as cost
reduction, improved quality of products
and programs, enhanced customer
preference, and increased competitive
advantage on a global basis.

Prepared by: Prof. Yalong

Evolution of Global Marketing
Evolution of Global Marketing
Evolution of Global Marketing
Evolution of Global Marketing
Evolution of Global Marketing
 Evolution of Global Marketing
 Domestic Marketing(Ethnocentric) –
before entry into international
markets, many firms focus solely on
their domestic market.
 Export Marketing (Ethnocentric) – it
begins with unsolicited orders from
foreign customers.

Prepared by: Prof. Yalong

 Evolution of Global Marketing
 International Marketing (Polycentric)
– once export marketing becomes an
integral part of the company’s
marketing activity, it will begin to seek
new direction for growth and
expansion and it call this stage
international marketing.

Prepared by: Prof. Yalong

 Evolution of Global Marketing
 Multinational Marketing (Regiocentric) –
at this stage, company markets into
product in many regions around the
world.
 Global Marketing (Geocentric) – the
international & multinational orientation,
while enabling the consolidation of
operations within countries or regions.
Prepared by: Prof. Yalong
Imperatives of Global Marketing
 Saturation of Domestic Markets – the
saturation of domestics markets forced
many companies to look for marketing
opportunities beyond their national
boundaries.
 Emerging Markets – as the traditional
developed markets have become
increasing competitive, such emerging
markets promise to offer better growth
opportunities to many firms
Imperatives of Global Marketing
 Global Competition – we believe
something profound has indeed
happened in our view of competition
around the world.
 Global Cooperation – Global
competition also bring about global
cooperation

Prepared by: Prof. Yalong

Imperatives of Global Marketing
 Internet Revolution – the
proliferation of the Internet and E-
Commerce is wide reaching. Compared
to business-to-consumer (B2C) e-
commerce, business-to-business (B2B)
e-commerce is larger, growing faster,
and has less unequal geographical
distribution globally.
Benefits of Global Marketing
 Survival & Growth – for companies to
survive, they need to grow in terms of
market size, resources, & opportunities
 Sales & Profits – foreign markets
constitute a large share of the total
business of many firms that have wisely
cultivated markets abroad.

Prepared by: Prof. Yalong

Benefits of Global Marketing
 Diversification – one way to diversify a
company’s risk is to consider foreign
markets as a solution to variable
demand and providing outlets for
excess production capacity.

Prepared by: Prof. Yalong

Benefits of Global Marketing
 Inflation & Price Moderation – the
benefits of exports are readily self-
evident. Imports can also be highly
beneficial to a country because they
constitute reserve capacity for the local
economy

Prepared by: Prof. Yalong

Benefits of Global Marketing
 Employment – some employers may
also have to move certain jobs overseas
so as to reduce costs.
 Standard of Living – trade affords
countries, and their citizen higher
standards of living than otherwise
possible. A diffusion of innovations
across national boundaries
Prepared by: Prof. Yalong