01 Concept IM-1

MARKETING
IN
THE GLOBALISED ERA
Dr. Rakesh Mohan Joshi

www.rakeshmohanjoshi.com
Lecture Objectives:
•To discuss the impact of globalization on marketing
•To explain the concept of international marketing
•To distinguish between domestic and international

marketing decisions
•To identify the reasons for entering international

markets
•To understand the evolutionary process of global

marketing.
The global economic environment across
the world has witnessed unprecedented
changes in the last few decades that have
metamorphosed the very approach to
conducting business.

Globalisation:
“A process of economic integration of the entire world

through the removal of barriers to free trade and
capital mobility, as well as through the diffusion of
knowledge and information”.

Impact of Globalization on Present Day Marketing
• Breaking-down of Marketing Boundaries
• Intensifying Competition:
• Greater Economic Instability and Market Volatility
• Ever-Increasing Customer Sophistication
• Growing Fragmentation of Markets
• Increased Product Diversification
• Shortening of Product Life Cycles
• Proliferation of Global Brands
• Growing Pervasiveness of e-Marketing

Concept of International Marketing

The Export Imperative
You can no longer rely on your home

market because your home market is
now an export market for everybody
else.

International Marketing
“Marketing carried on across national
boundaries”

International Marketing:
The performance of business activities designed to

plan, price, promote and direct the flow of a
company’s goods and services to consumers or
users in more than one nation for profit.

International Marketing may be
defined as identifying and satisfying
needs of global customers, better than
the competition and coordinating
marketing activities within the
constraints of the global environment.
Objectives:
Finding global Customer Needs
Corresponding Action:
Carrying out international marketing research and analyzing

market segments; seeking to understand similarities and
differences in customer groups across countries.

Objectives:
Satisfying Global Customers.
Adapting products, services, and elements of the
marketing mix to satisfy different customer needs
across countries and regions.
Including in manufacturing and technology decisions
the implications of costs and prices, development of
global customer information databases, and
distribution channel and logistics information.

Objectives:
Being Better than the Competition
Assessing, monitoring, and responding to global competition
by offering better value; developing superior brand image and
product positioning; broader product range; low prices, high
quality; good performance, and superior distribution,
advertising, and service.
Recognizing that competitors can include state-owned
enterprises, other multinationals, and domestic firms, with
different goals, such as market share over profits.
Objectives:
Coordinating Marketing Activities
Coordinating and integrating marketing strategies and
implementing them across countries, regions, and the global
market, which involves centralisation, delegation,
standardisation, and local responsiveness..

Objectives:
Recognising the constraints of the global environment
Recognising that the global environment includes:
•Complex variation due to governmental,
protectionist, and industrial policies.
•Cultural and economic differences
•Marketing infrastructure differences.
•Financial constraints due to exchange-rate variation
and differences in inflation rates.
Domestic vs International Marketing Challenges
Overseas Environmental Challenges

(Uncontrollables)
Domestic Environmental Political

Challenges (Uncontrollables)
Marketing
Challenges in
Economic Legal
country Y Competition
Economic (Controllables)
Product
Marketing
Challenges in
country X
Place Consumer Price
Political Socio
Cultural
Promotion Legal
Competition Infrastructural
Marketing
Challenges in Logistics
country Z Geography
Reasons for Entering International Market
• Growth
•Profitability
•Achieving Economies of Scale
•Risk Spread
•Access to Imported Inputs
•Uniqueness of Product or Service
•Marketing Opportunities due to Life Cycles
•Spreading R&D Costs

Evolutionary Process of Global Marketing
 Domestic Marketing
 Export Marketing
 International Marketing
 Multinational Marketing
 Global Marketing
EPRG Concept
• Ethnocentric
• Polycentric
• Regiocentric
• Geocentric

Adaptation:
the Critical Success Factor in
International Markets

• Self Reference Criteria (SRC):
Represents viewing rest of the world from the
perspective of home market.

Cross Cultural Analysis to Isolate
the SRC Influences
Step 1: Define the business problem or goal in home-
country cultural traits, habits, or norms.
Step 2: Define the business problem or goal in foreign-

country cultural traits, habits, or norms. Make no value
judgements.
Step 3: Isolate the SRC Influence in the problem and

examine it carefully to see how it complicates the problem.
Step 4: Redefine the problem without the SRC influence and

solve for the optimum business goal situation.

“In the environment of twenty first century,
globalization must be taken for granted.
There will be only one standard for corporate
success: international market share. The
winning corporations will win by finding
markets all over the world.”
Jack Welch, CEO, GE

THANKS

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MARKETING

THE GLOBALISED ERA

Dr. Rakesh Mohan Joshi

•To explain the concept of international marketing

•To distinguish between domestic and international

•To identify the reasons for entering international

•To understand the evolutionary process of global

Dr. Rakesh Mohan Joshi

“A process of economic integration of the entire world

Dr. Rakesh Mohan Joshi

• Greater Economic Instability and Market Volatility

• Ever-Increasing Customer Sophistication

• Growing Fragmentation of Markets

• Increased Product Diversification

• Shortening of Product Life Cycles

• Proliferation of Global Brands

• Growing Pervasiveness of e-Marketing

Dr. Rakesh Mohan Joshi

Dr. Rakesh Mohan Joshi

You can no longer rely on your home

Dr. Rakesh Mohan Joshi

“Marketing carried on across national

Dr. Rakesh Mohan Joshi

The performance of business activities designed to

Dr. Rakesh Mohan Joshi

Carrying out international marketing research and analyzing

Dr. Rakesh Mohan Joshi

Dr. Rakesh Mohan Joshi

Dr. Rakesh Mohan Joshi

Overseas Environmental Challenges

Domestic Environmental Political

•Achieving Economies of Scale

•Access to Imported Inputs

•Uniqueness of Product or Service

•Marketing Opportunities due to Life Cycles

•Spreading R&D Costs

Dr. Rakesh Mohan Joshi

Dr. Rakesh Mohan Joshi

Represents viewing rest of the world from the

perspective of home market.

Dr. Rakesh Mohan Joshi

Step 2: Define the business problem or goal in foreign-

Step 3: Isolate the SRC Influence in the problem and

Step 4: Redefine the problem without the SRC influence and

Dr. Rakesh Mohan Joshi

Jack Welch, CEO, GE

Dr. Rakesh Mohan Joshi

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