GLOBAL MARKETING UNIT-3 Global Marketing Decisions

GLOBAL MARKETING DECISIONS

Meaning and Definition of Global Marketing:
Global Marketing is marketing on a worldwide scale reconciling or taking
commercial advantage of global operational differences, similarities and
opportunities In order to meet global objectives.
Global marketing refers to marketing activities coordinated and integrated
across multiple country markets.
Characteristics of Global Marketing:
1. Large scale operations.
2. Dominance of Multinationals.
3. International Restrictions and Trading blocs.
4. Sensitive character.
5. Marketing research.
6. Importance of advanced technology.
7. Keen and acute competition.
8. Specialized institutions.
9. Long term planning.
10.Develops cultural relations and maintains world peace.
Functions in Global Marketing:
1. Choosing the basic route.
2. Market selection and product
selection.
3. Selection
of
distribution
channels.

4. Pricing.
5. Marketing communications.
6. Mastering
the
procedural
complexities.
7. Organizational adaptations.
8. Handling business ethics.

9. Global marketing decisions:

10.
Global
Marketin
11.
g
Decision
12.
13.
14.

Market
Selection
Decision

Market
Entry
Decision

Marketing
Mix
Decision4ps

Marketing
Organizati
on
Decision

Information Base marketing Environmental Factors - Social, Cultural,

Commercial, Legal, Political, Economic

15.
Global Market Research Forecasting

16.
17.

18.Difference between Global and Domestic Marketing:

19.
S.

20.Basis of
Difference

21.Domestic
Marketing

24.Operating
Conditions

25.One nation,
same
language
and culture

27.
2

28.Transportation
Cost

29.Transport
cost is a
major
marketing
expenses

31.
3

32.Currency

23.
1

35.
4

39.
5

36.Political
environment

40.Nature of
market

33.One
currency

37.Political
environmen
t and
factors are
the same
41.Market is
relatively

22.Global
Marketing
26.Many
nations,
many
languages
and cultures
30.Transport
cost
influences
only to
some extent
34.Different
currencies
of different
countries
38.Different
political
environmen
ts and
factors in
different
countries
are vital.
42.Markets are
diverse and

homogenou
s

43.
6

47.
7

44.Change
control and
tariffs

48.Data
availability

51.
8

52.Government
interference

55.
9

56.Environmental
effects

59.
1

63.
1

60.Business
environment

64.Climate

45.No
problems of
exchange
control and
tariffs
49.Data
available,
usually
accurate
and
relatively
easily
collected at
less cost
53.Relative
freedom
from
government
interference
57.Individual
company
has little
effect on
environmen
t
61.Relatively
stable
business
environmen
t

65.Uniform
financial
climate

highly
heterogene
ous.
46.There are
problems of
exchange
controls and
tariffs and
they act as
obstacles.
50.Data
collection a
formidable
task
requiring
significantly
higher
budgets.
54.Government
influences
business
decisions
58.Gravitationa
l distortion
by large
companies
62.Multiple
environmen
ts, many of
which are
highly
unstable
66.Variety of
financial
climates
ranging
from over
conservativ
e to widely
inflationary

67.
1

68.Nature of the
business

69.Business
rules of the
game
mature and
understood

70.Rules
diverse,
changeable
and unclear.

71.
72.
73.
74.
75.PRODUCT POLICY & PLANNING
76.Meaning and Definition of Product:
77.

Product is a cluster of psychological satisfaction ---------------- George

Fisk.

78.

A product is a bundle of utilities consisting of various features and

accompanying service

79.Features of Product:
1.
2.
3.
4.
5.

Tangibility
Associated attributes
Intangible attributes
Exchange value
Consumer satisfaction

80.Components and levels of Product:

1.
2.
3.
4.
5.

Core benefit
Basic product
Expected product
Augmented product
Potential product

81.Product Policy:
1.
2.
3.
4.
5.

Production Orientation
Sales Orientation
Customer Orientation
Strategic marketing Orientation
Societal marketing Orientation

82.Types of Products in Global Marketing Scenario:

1. Local Products

2. National Products
3. International Products
4. Global products
83.Product Decision in Global Marketing:
1.
2.
3.
4.
5.
6.
7.
8.

Identification of Products for international markets.

Developing products for International Markets.
Market segment Decision.
Product Mix Decision.
Product specifications
Positioning and communications decisions.
Product eliminations
Product diversification.

84.Product Planning & Product Design:

85.Few tips for Global product Planning:
1.
2.
3.
4.
5.

Start with global thinking rather than global sales

Embed both domestic and international standards into products and services
Standardize the core product.
Identify the appropriate level of adaptation required
Anticipate Global competition

86.Types of Product Design Strategy:

1. Product adaptation.
2. Product standardization
87.Considerations in Product Design:
1.
2.
3.
4.
5.
6.
7.

Climatic, infrastructure and use conditions.

Cultural preferences.
Cost.
Performance and quality standards.
Preferences.
Laws and regulations.
Compatibility.

88.Product development:
89.

Product development encompasses the technical activities of product

research, engineering and design.

90.International product opportunities:

1.
2.
3.
4.

New product
Improved product
Existing product with a new use
Existing product sold in a new market

91.Process of New Product Development:

1.
2.
3.
4.
5.
6.
7.
8.

Idea generation
Idea screening
Concept development
Business analysis
Market analysis
Product development
Test-marketing
Commercialization/real market.

92.Adoption and Diffusion of New products

93.Factors contributing to product development
1.
2.
3.
4.

Changing customer preferences.

Technological changes.
International laws and government policy.
Product life cycle.

94.Branding decisions in Global market:

95.Characteristics of successful brands at Global level:
1.
2.
3.
4.
5.

Superior product quality.

Additional services.
Differentiation from competition.
Pioneers in a way.
Long-term communications strategy

96.Purpose of Branding in Global Markets:

1.
2.
3.
4.
5.

Brand
Brand
Brand
Brand
Brand

is
is
is
is
is

a massive asset.
a promotion.
a weapon to protect market.
antidote for middlemens survival.
a means of identification for customers.

97.Global brand Types:

1. Single-product brands or Mono-brands.
2. Range brands or line brands.
3. Umbrella brands or corporate brands.
98.Global Brand Strategies:
1.
2.
3.
4.
5.

Cultivate established local brands.

Global concept, local adaptations.
Create new brands.
Purchase local brands and internationalize.
Develop brand extensions

6. Employ a multi-local strategy.

99.Branding problems in global marketing:
1.
2.
3.
4.
5.
6.

Cultural conflict
Counterfeiting.
Passing off.
Reverse engineering
Outright piracy
Huge expense required for brand promotion.

100.

GLOBAL PRICING:

101.
Pricing is a managerial task that involves establishing pricing
objectives, identifying the factors governing the price, ascertaining their
relevance and significance, determining the product value in monetary terms
and formulation of price policies and the strategies implementing them and
controlling them for the best results.
102.

Pricing Objectives:

1. Market penetration.
2. Market share,
3. Market skimming.
4. Fighting competition.
5. Preventing new entry.
6. Shorten payback period.
7. Early cash recovery.
8. Meeting export obligation
9. Disposal of surplus.
10.Optimum capacity utilization.
11.Return on investment
12.Profit maximization.
103.

Global pricing Policy alternatives

1. Ethnocentric approach.
2. Polycentric approach
3. Geocentric approach
104.
1.
2.
3.
4.
5.
6.

Importance of Pricing:

Product differentiation getting blunted

Mature products and markets
Inflation in the economy
Inter-firm rivalry
Customers value perception
Firm now finds itself in a dilemma.

105.

Global Pricing strategies:

1.
2.
3.
4.
5.

Skimming strategies
Differential pricing strategies
Penetration pricing strategies
Geographic pricing strategies
Product line pricing strategies.

106.

Global pricing Methods:

1. Cost oriented:
a) Mark-up/cost plus pricing
b) Full cost/absorption pricing
c) Marginal/incremental pricing
d) Rate on return/target pricing
2. Customer demand oriented:
a) What the traffic can bear pricing
b) Skimming pricing
c) Penetration pricing
3. Competition Oriented:
a) Parity/going rate
b) Discount pricing
c) Premium pricing
4. Other pricing methods:
a) Price bundling
b) Sealed bid
c) BEP pricing
d) Value based
e) Affordability pricing
f) Prestige pricing
107.

Factors influencing Global marketing Decision:

1. Internal Factors:
a) Organizational factors
b) Marketing mix
c) Product differentiation
d) Cost of the product
e) Objectives of the firm
2. External factors:
a) Demand and supply
b) Elasticity of demand
c) Competition
d) Suppliers
e) Economic conditions
f) Buyers
g) Government.
108.

Major Aspects considered in Global Pricing Decisions:

1. Price standardization Vs differentiation

2. Price distortion
3. Transfer pricing

4.
5.
6.
7.

Dumping
Export pricing
Leasing
Price quotations.

109.
1.
2.
3.
4.
5.
6.

Global Pricing Issues:

Governmental interventions.
Greater market diversity
Price escalation in exporting
Currency value and price changes
Fixed versus variable pricing
Company to company pricing.

110.

Global channels of distribution:

111.

Functions of distribution Marketing channel:

1. Information provider.
2. Price stability
3. Promotion
4. Financing
5. Title
6. Help in production function
7. Matching demand and supply
8. Pricing
9. Standardizing transactions
10.Matching buyers and sellers
112.

Global Logistics management

113.

Components of Global Logistics Management

1.
2.
3.
4.
5.
6.
7.
8.

International transportation
International insurance
Packaging needs
International means of payment
Terms of trade
The crossing of borders
Inventory
Environment of international logistics

114.
1.
2.
3.
4.
5.
6.
7.

Decisions in Global Logistics:

Warehouse management
Inventory management
Information systems
Insurance
Packaging
Material handling
Transportation

8.
115.
116.
117.
118.