Marketing and Globalization

Subtitle

Marketing
the activities that are involved in making
people aware of a company's products,
making sure that the products are available
to be bought, etc.(Merriam Webster)
the action or business of promoting and
selling products or services, including
market research and advertising (Oxford
Dictionaries)

Globalization
Globalizationis the tendency of businesses,
technologies, or philosophies to spread
throughout the world, or the process of making
this happen. The global economy is sometimes
referred to as a globality, characterized as a
totally interconnected marketplace, unhampered
by time zones or national boundaries.
(searchcio.techtarget.com/definition/globalizati
on
Globalization(orglobalisation) is the process
of international integration arising from the
interchange of world views, products, ideas and

Benefits of Going global

Additional revenue
New insights into customer behavior
Alternative distribution strategies
Advance notice of new products
A major key to achieving success in foreign
markets
Ability to adapt products to local preferences
and culture

Reasons for marketers to go global

Saturation of the target market
Strong domestic market share
Globalization of customers
New customers in emerging markets
Globalization of competitors
Reduced trade barriers
Advances in technology
Enhanced customer responsiveness

Strategies for Entering Foreign Markets

Three basic choices
Importing and exporting
Contractual agreements such as franchising, licensing, and subcontracting
International direct investment

Figure 8.3 - Levels of Involvement in

Global Marketing

Importing and Exporting

Decision to import, or bring in foreign goods to sell domestically or use
as component parts, depends on:
Ability of supplier to maintain quality
Flexibility in filling orders that vary
Response time in filling orders
Total costs

Importing and Exporting

First-time exporters can reach foreign customers through:
Export-trading companies
Export-management companies
Offset agreement

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Franchising
Contractual arrangement in which a wholesaler or retailer agrees to
meet the operating requirements of a manufacturer or other
franchiser
Benefits are risk reduction, standardized operations, and greater
recognizability
Success depends on ability to adapt to local customer preferences

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Foreign Licensing
Agreement that grants foreign marketers the right to distribute a
firms merchandise or to use its trademark, patent, or process in a
specified geographic area
Gives access to local partners marketing information and distribution
channels, and protection from legal barriers
Allows quick entry into a foreign market with a known product

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Subcontracting
Contractual agreements that assign the production of goods or
services to local or smaller firms
Can prevent mistakes involving local culture and regulations
Can provide protection from import duties

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International Direct Investment

High involvement and high risk are the major characteristics
Firms choosing this method often have a competitive advantage
Several forms
Acquisition
Joint venture

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From Multinational Corporation to Global

Marketer
Multinational corporation - Significant operations and marketing
activities outside its home country
Examples: General Electric, Siemens, Mitsubishi

Important changes since 1960

No longer exclusively U.S. based
Multinationals no longer think of their foreign operations as mere
outsourcing appendages

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From Multinational Corporation to Global

Marketer
Employ large foreign workforces relative to American staffs
Reflect interdependence of world economies, growth of international
competition, and globalization of world markets

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Developing an International Marketing

Strategy
Global marketing strategy - Standardized marketing mix with
minimal modifications that a firm uses in all of its domestic and
foreign markets
Can effectively market some goods and services to segments in many
nations that share cultures and languages
Can be highly effective for luxury products that target upscale consumers
everywhere
Major benefit is its low cost to implement

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Developing an International Marketing

Strategy
Multidomestic marketing strategy - Application of market
segmentation to foreign markets by tailoring the firms marketing mix
to match specific target markets in each nation

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Figure 8.4 - Alternative International

Product and Promotional Strategies

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International Distribution Strategy

Marketers must set up proper channels and anticipate extensive
physical distribution problems
A distribution decision involves two steps
The firm must decide on a method of entering the foreign market
It must determine how to distribute the product within the foreign market
through that entry channel

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Pricing Strategy
Competitive, economic, political, and legal factors can limit pricing
decisions
Adaptation to local markets
Emergence of commodity marketing organizations

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Countertrade
Form of exporting whereby goods and services are bartered rather
than sold for cash
May be imposed in less developed nations that lack sufficient foreign
currency to obtain goods and services they want
Way to control balance-of-trade problems

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The United States as a Target for

International Marketers
U.S. is an inviting target for foreign companies
Increasingly, foreign multinationals invest in U.S. assets as they seek
to produce goods locally and control distribution channels

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Strategic Implications of Marketing in the

21st Century
Marketers are pioneers in bringing new technologies to developing
nations
Greatest competitive advantage belongs to marketers who capitalize
on the similarities of their target markets and adapt to the differences
New and better products in developing markets will create and
maintain relationships for the future

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10 Lessons From Steve Jobs That Every Marketer Must Learn

Written byDan Lyons

1) Find good mentors.

2) Make a great product.

3) Stand for something.

4) Spend money.

5) Create experiences.

6) Keep secrets and build mystery.

7) Find an enemy.

8) Turn customers into evangelists.

9) Dont talk about products.

10) Use pictures, not words.

Nederlander
Video
http
://www.cengage.com/marketing/book_content/boone_9781133
628460/videos/ch08.html

Scripps Networks Interactive &

Food Network Video
http
://www.cengage.com/marketing/book_content/boone_97811336
28460/videos/part2.html

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THANK YOU AND GOD

BLESS!!!