GLOBAL MARKETING

University of Central Punjab, Lahore

BY
Prof. AMJAD HABIB MIRZA
Business and Management
Consultant
IN
THE NAME OF
ALLAH
THE MOST
BENEFICIENT,
THE MOST
MERCIFUL
 GLOBAL MARKETING
COURSE OUTLINE
 GLOBAL MARKETING IS THE LOGICAL
OFFSHOOT OF INTERNATIONAL MARKETING
WITH A SUBBTLE DIFFERENCE GLOBAL
MARKETING USHRED FROM THE ROLE AND
APPROACH OF MNCs. HENCE GLOBAL
MARKETING NEEDS A DIFFERENT STUDY, MAY
BE WITH A LOT OF THINGS IN COMMON.
GLOBAL MARKETING IS AN APPROACH OR A
CONCEPT; HENCE WE NEED TO EXPLORE IT AS
SUCH
 TOPICAL OUTLINE
 INTRODUCTION TO GLOBAL MARKETING
 PLANNING IN GLOBAL MARKETING AND ITS SIGNIFICANCE
 STUDY OF GLOBAL ECONOMIC ENVIRONMENT
 STUDY OF GLOBAL SOCIAL AND CULTURAL ENVIRONMENT
 STUDY OF GLOBAL LEGAL AND REGULATORY
ENVIRONMENT
 STUDY OF GLOBAL FOREIGN EXCHANGE ENVIRONMENT
 SOURCING DECISIONS AND VALUE CHAIN
 GLOBAL PRODUCT DECISIONS
 GLOBAL PRICING DECISIONS
 EXPORTING AND IMPORTING
 FUTURE OF GLOBAL ENVIRONMENT
 GRADE DISTRIBUTOIN
 ASSIGNMENTS 20% (TWO ASSINGS)
 QUIZ 10% (TWO QUIZ )
 MIDTERM 30%
 END TERM 40

 TOTAL 100 %

 CLASS PROCTOR
 Will assist the Professor

 RECOMMENDED BOOK

 GLOBAL MARKETING MANAGEMENT BY

WARREN J. KEEGAN of Pace University
 1------Inaugural Lecture
 GLOBAL MAKRKETING

 INTRODUCTION TO GLOBAL MARKETING

 Following the WW II, unprecedented expansion
took place world wide. New economies came
into being—such as Japan, China, Korea,
Singapore Australia and Canada.
 Product, Labour and Consumption shifted from
place to place.
 Hence global marketing and positioning became
most important not from the success point of
view but also from the very existence of firms,
specially of those who had expansionist designs
and agenda
 NEW CONCEPTS
 From 1969 onwards the focus of business
shifted from Product to Customer. The objective
however remained Profit. We developed for 4 Ps
approach…the Product, the Price, the Placement
and the Promotion. This customer focus took us
beyond the frontiers and made us broaden our
approach horizon. The newer concepts were:
 “Search the Customer wherever and
however he is”
 “Introduce potential customer with your
product”
 “Do not be scared to encroach on cultural
domains”
 “Make international environment objective
rather than subjective”
 THREE PRONG APPROACH IN
MARKETING
 CUSTOMER VALUE AND VALUE
EQUATION
Create customer value of your customer
with your product and then make it
greater than that of competitive product
 CREATE COMPETITIVE AND
DIFFERENTIAL ADVANTAGE
Making a total product offere to the
customer and create the difference
 FOCUS
Create focus on markets as per their
environment, rather than fighting with
environment
FROM DOMESTIC MARKETING TO
GLOBAL MARKETING—A HUNDRED
YEAR JOURNEY
 Domestic Marketing
When marketing was done within a
city of province or even on national
scale. It depend on the product and
its transportation
 Export Marketing
When the product moved to places
beyond the political frontiers due to
surplus or price advantage
 MULTINATIONAL MARKETING
When the exports started to many
countries, but the focus remained on
Product and Profits
GLOBAL MARKETING
When the focus shifted from Product
to environment and product was
amended to suit the environment
=======================
FACTORS THAT LEADS TO GLOBAL
MARKETING
 MARKET NEED----beverages
 TECHNOLOGY---commercial reality
 COSTS—theory of comparative costs
 QUALITY—technological edge
 COMMUNICATION AND TRANSPORT
 GEO-POLITICAL LOCATION--geographical
RESTRAINT FACTORS
 MARKET DIFFERENCE
 CULTURAL BARRIERS
 RELIGIOUS DIVIDE
 ORGANISATIONAL CULTURE
 NATIONAL CONTROL POLICIES
 POLITICAL UPHEAVALS
 REQUIREMENTS OF GLOBAL
MARKETING PLANS
 GOBAL MARKETING PLAN REQUIRE
THREE ESSENTIAL THINGS
 KNOWLEDGE OF THE MARKET AND
MARKETING ENVIRONMENT
 KNOWLEDGE OF THE PRODUCT, PEOPLE
AND COMPETITION
 KNOWLEDGE OF THE MARKETING
FUNXTION AND PROCESS
 KINDS OF GLOBAL PLANS
 STANDARDIZED OR CENTRALISED PLANS
THE PLAN IS PREPARED AT ONE POINT
FOR THE ENTIRE GLOBE. THIS SYSTEM
HAS ADVANATAGES OF CENTRALIZED
STRATEGY AND CONTROL
 DECENTRALISED PLANS
 WHERE PLANS ARE PREPARED AT EACH
TARGET MARKET OR COUNTRY OR
TERRITORRY. IT HAS THE ADVANTAGES
OF CLOSE TO LOCAL CONDITIONS
 INTERACTIVE PLANS
 IN SUCH TYPE WE USE MISED RATIO OF
THE TWO ABOVE

 PLANNING DEPENDS ON THE PRODUCT

 HITECH
 CONSUMER ITEMS
 FOOD AND AGRICUTIRAL PRODUCT
 FASHION INDUSTRY ITEMS
 ELEMENTS OF PLANNING PROCESS
ELEMENTS PCT OF STANDARDIZED

 PRODUCT CHARACTER 29%

 PACKAGING 9%
 BRAND NAME 51%
 RETAIL PRICING 20%
 ADVERTISING MESSAGE 20%
 SALES PROMOTION 33%
 ROLE OF SALES FORCE 15%
 MGT OF SALES FORCE 17%
 TYPE OF RETAIL OUTLET 52%

THE BALANCE OF THE PERCENTAGE IS DECENTRALISED WITH A

SMALL ELEMENT OF INTERACTIVE PLANNING
======================================
 ENVIRONMENTS
GLOBAL ECONOMIC ENVIRONMENT
 Capital movement, and not just
commodity movements, have become a
driving force
 Production has become ‘uncoupled’ from
employment
 The world economy is in control. The
usual macro economic factors no more
control economic environment
 Population is moving within the countries
with greater ease than before
 The so-called cold war between socialism
and capitalism is no more. Communism
has gone dead within its own weight
 Global trade has assumed the trend of a
global village. Mpvement of good and
services are no more a peril or a problem
as it was 100 years back
 MARKETS DEVELOPMENT
LOW INCOME COUNTRIES
 production is limited
 more reliance on agriculture and natural
vegetation
 low literacy and technical know-how
 heavy reliance on foreign aid
 political instability and immaturity
 LOWER INCOME –MIDDLE COUNTRIES
 expanding consumer goods market
 local production possible
 motivated labour & entrepreneurship
 UPPER INCOME COUNTRIES
 High technology
 Low number of people
 High education and technology
 High production of goods and services
 Peaceful and healthy environment
 CATEGORIES BY POPULATION
 SOUTH ASIA AND FAR EAST
 AFRICAN CONTINENT
 SOUTH AMERICAN COUNTRIES
 AUSTRALIA
 CANADA
 NORTH AMERICA
 NAFTA, GROUP OF SEVEN, LAFTA, ASEAN ETC
 Assignment –NO 1
Write a note on Global Village. What
is this concept? The write up should
be of minimum two computer pages
of font 12 size
 STUDY OF ECONOMIC ENVIRONMENT
 make a detailed study of Global Segments,
Economic Blocks and make their needs well
known
 carry out extensive survey on people and other
environmental factors
 identify products and your capability of
production
 make bi-lateral trade agreements
 develop infrastructure to boost trade and its
development
 improve means of transport and communication
 Assignment
 Suppose your is a well developed
country. What kinds of bilateral trade
agreements can you make with
countries like
 PAKISTAN, INDIA, BANGLADESH,
SRILANKA AND JAPAN
 ANALYTICAL APPROACH TO
CULTURE FACTOR
Two footwear Salesmen went to a remote
island in Pacific. The islands total
population was some 500 people. they
were not wearing any footwear. One
salesman reported:
“ we cant sell a piece, people are not used to
wearing footwear”. The other salesman
reported, “we have a potential to sell 1000
pairs at least, if we make them aware of
footwear”
 Culture is one of the most prominent
factors in global marketing. We can use
culture the way we want and use it
positively to our benefit
 Culture is a learned behavior of people
passed on from generation to generation
 Approach
 We should understand the wisdom that we
do not understand people even within
ourselves, not even ourselves. There is no
element of misunderstanding; there ought
to be understanding only
 Our perpetual system is extremely limited
 If we want to make ourselves effective,
then we should not make foreign culture
as a joke or a matter of bizarre. We must
learn to draw our business advantage out
of this.
 LEGAL & REGULATORY
ENVIRONMENT
 Though globally we are one and call
ourselves a global village, yet there
are laws and rules which differ. We
are all Sovereign States. There are
several kinds of laws:
 INTERNATIONAL LAWS
 NATIONAL LAWS
 LEGAL FRAMEWORK
 LOCAL AND REGULATORY LAWS
 TAX LAWS
 POLICIES AND RUGULATIONS
 INTERNATIONAL LAWS
 THESE ARE THESE LAWS AND BINDING
FORCES, IN WHICH ALL NATIONS ARE
BOUND TOGETHER. SUCH ARE
ENVIRONMENTAL LAWS, SHIPPING LAWS,
HUMAN RIGHTS LAWS, TRADE AND
COMMERCIAL PRACTICES. THESE LAWS
ARE IN THE SHAPE OF ENACTMENTS,
CONVENTIONS, COVENANTS,
AGREEMENTS ETC AND RATIFIED BY U.N.O
 NATIONAL LAWS
 THESE LAWS ARE ENACTED BY THE
GOVERNMENTS OF THESE COUNTRIES. THEY ARE
MADE UNDER THE UMBRELLA OF SOVERIGNITY
THEY ENJOY AS INDEPENDENT COUNTRIES.
PRIOR TO 1990, THESE LAWS COULD BE
DIFFERENT IN MANY RESPECTS. BUT AFTER THE
BREAKUP OF SOCIET UNION AND DOWN FALL OF
COMMUNISM, THEY CANNOT FRAME LAWS
REPUGNENT TO WORLD ORDER. THE SO-CALLED
IRON CURTAIN WAS BROKEN IN CHINA AND
SOVIET UNION.
 LAWS ARE BROADLY OF TWO KINDS:
 BRITISH ORIENTED
 AMERCIAN ORIENTED
 THESE TWO NATURES OF LAWS DIFFER IN
WORDS AND APPROACH. BUT THE SPIRIT OF
THESE LAWS ARE THE SAME. MERCANTILE LAWS
ARE ALL OVER MORE OR LESS THE SAME
 CONTRACT ACT, SALES OF GOODS ACT,
NEGOTIABLE INSTRUMENTS ACT, COMPANYS
LAW, PARTNERSHIP ACT, LAWS RELATED TO
AGENY, BROKERAGE, PAYMENTS, LOANS,
BANKING AND BANK PRACTICES,
TRANSACTIONAL LAWS ETC. THEY ARE ALL
BINDING ON LOCALS AND FOREIGNERS ALIKE.
THEN THERE ARE ARBITRATION
LAWS AND CONFLICT RESOLUTION,
LABOUR LAWS UNDER GENEVA
CONVENTIONS AND ILO OF UN
REGULATIONS
 THEN THERE ARE POLICIES
 FINANCE POLICIES
 TRADE POLICIES
 COMMERCIAL POLICIES AND LAWS
 AGRICUTLTURAL POLICIES AND LAWS
 INDUSTIRIAL POLICIES
 VALIDATION POLICIES
 FOREIGN INVESTMENT POLICIES
 THEN THERE ARE TAX LAWS
 CORPORATE TAX REGULATIONS
 REPATRIATION OF INVESTMENTS
AND PROFITS
 INDIVIDUAL TAXES
 LOCAL TAXES
 WHEN BUILDING GLOBAL BUSINESS,
WE HAVE TO ABIDE BY THESE
NATIONAL AND INTERNATIONAL
LAWS
 WE CALL THEM REGULATORY
FRAMEWORK
 WE MUST LEARN TO ACCEPT THEM
AS THEY ARE AND CANNOT IMPOSE
OUR LAWS
A GOOD PART OF THE WORLD IS
REGULATED BY SHARIAH AND
ISLAMIC LAWS—HENCE THESE LAWS
ARE TO BE STRICTLY ADHERED TO
REGARDLESS OF ONES BELEIF AND
DOCTRINE
 ACCORDING TO INTERNATIONAL
JURISPRUDENCE, EVERY BODY IS
UNDER THE LAW OF THE LAND AND
NOT HIS OR HER LAWS AND BELIEFS
OR CONSENT. INTERNATIONAL
LAWS ARE APPLICABLE TO ALL
NATIONS WITH OR WITHOUT
CONSENT---IT IS A PART OF UNO
CHARTER.
 SOME OF THE INTERNATIONAL
BUSINESS ISSUES
 PATENT LAW
 BRIBERY AND COMMERCIAL
CORRUPTION AND CORRUPY
PRACTICES
 LIBELLING LAWS
 FOREIGN EXCHAGE PRACTICES
 MONEY LAUNDERING
ANOTHER LECTURE
 FINANCIAL ENVIRONMENT
Finance is like a lubricant in a machine.
Without these liquid we cannot transact
trade. We are far from barter system
Finance involves:
 understanding means of exchange
 certain financial decision
 creating parity on exchange
 certain repercussions and complications
involved in rate of exchange fluctuation
 Each country has its own currency, with a
lot different back ground and policies. The
transaction cannot be made or even parity
cannot be attained unless both the
currencies are translated into gold or
another stable currency. GOLD it cannot be
as there is no assurance of gold; hence
foreign currency. In globe we have dollar
basket which is a common denominator.
 On the basis of this common denominator,
we financial agreements because US Dollar
itself fluctuates. And there is what we call
International currency market There are
spot rates---means immediate rate of
exchange and there are forward
transactions, which means exchange in
terms of dollar is fixed in advance. This
currency market is governed by the rule of
supply and demand. This establishes
Purchasing Power Parity (PPP).
 Bank of England works as a centre of
WORLD financial market
IMPLICATIONS ON BUSINESS
DUE TO EXCHANGE RATE
FLUCTUATIONS
 EXCHANGE RATE FLUCTUATIONS
 Makes import and export rate
cheaper or expensive
 EXCHANGE RATE EXPOSURE
 The company profit or loss depends
upon not only in terms of local
currency but also its ability to stand
in the world markets. That is in terms
of US Dollars
 We must learn to adjust our costs and
profits and there fore prices according to
exchange rates. We determine our prices
according to:
 FOREIGN STOCK INVESTMENTS
 REPATRIATION OF FOREIGN EXCHANGE
BY EXPATS
 IMPORT BILL
 EXPORT EARNINGS
 COSTS OF INFRASTRUCTURAL PROJECTS
 Next lecture
GLOBAL MARKET SEGMENTATION
AND TARGETING

 Market segmentation is one of the

most difficult task in global
marketing. It dates back to ancient
traders as well. Depending on the
nature of your product, segmentation
is done today on variety of ways and
methods
 DEMOGRAPHIC METHOD
 Means segmentation is done on age, gender,
income level, buying power, ecuation and
occupation

 PSYCHOGRAPHIC
 Segmentation si done on the basis of attitude,
lifestyles and values

 BEHAVIORIAL
 On the basis of how people use or consume
product and how do they react to it?
 Global segmentation should be done
carefully firstly to make more penetration
in the world and secondly to avoid wasting
time and take a competitive edge
 GLOBAL TARGETING
 It means focusing your attention to
specific markets and concentration
once it has been done. It means to
identifying and evaluating consumers
on a predetermined basis. There are
three methods:
 1 CONSUMER TARGETING
 This targeting is done on the size and potential growth in
the market market

2 POTENTIAL COMPETITION
 How vulnerable is this market to competitors products

3 COMPATBILITY AND FEASIBILITY

 This is how much political and cultural alliance is with the
market? Many countries may have different cultures, but
they have acceptance and response to certain kind of goods
and also their sources. For example, we have softness of
goods from UK in Pakistan
 GATT
General Agreement of Trade and Tariff
 FREE TRADE AREAS----Nafta, Lafta, ECM
 ASEAN CONTRIES
Association of South East Asian Nations
 CARICOM
Carribean Consumer and Common Market
 ADVANTAGES OF SEGMENTATION &
TARGETING
 Available Statistics
 Cultural compatibility of Information
 Open Dialogue and Relationship
 Regional Proximity
 Travel Ease. Social and Cultural
Relations
Next Lecture
GLOBAL MARKET ENTRY AND
EXPANSION
We begin with marketing now. We
discussed market segmentation and
having done that, we must plan
which market we must tner and
target and make cound planning vis-
à-vis entry and expansion
 We must establish objectives. Volume
share that we aim at,and of course
profitability
 By Entry we mean, the method we must
enter the country. There are several
methods and depending on the nature of
the product, we decide which which
method we employ/
 How should we execute market plan? The
simple decision is Direct Marketing or
through Agents or third party?
 VARIOUS METHODS OF ENTRY
EXPORTING
 It is an age old method and perhaps tadictional and old
 Exporting is to sell directly to the local parties of that
country or to consumers who use the product. We export
cotton and cotton yarn to textile manufacturing countries.
Exporting is very simple and low-caost initiative. It does not
invlolve manufacturing overhead abroad. One of the
advantages oif exporting is that it is simple affair to handle.
Take care of your importers and their deals and
commitment. But exporting has limited expansion scope.
We can always increase our exports by finding new
markets, but we can hardly do anything ins the same
market
 LICENSING
 Licensing is one step ahead of exporting. We
authorize foreign agents to manufacture under a
licence agreement under an agreed technological
input and brand image. Licensing is a very neat
and clean way of global marketing. However, it
presupposes good relations and trust on one
another. Its only overhead is policing the
conditions of licencing agreement. We have
numerous complaints of abuse of conditions and
even dissolution of agreements.
 FRANCHISING
 For the franchisor, the franchise is an
alternative to building 'chain stores'
to distribute goods and avoid
investment and liability over a chain.
The franchisor's success is the
success of the franchisees. The
franchisee is said to have a greater
incentive than a direct employee
because he or she has a direct stake
in the business.
 Businesses for which franchising
works best have the following
characteristics:
 Businesses with a good track record
of profitability.
 Businesses which are easily
duplicated.
 franchise usually lasts for a fixed time
period (broken down into shorter periods,
which each require renewal), and serves a
specific "territory" or area surrounding its
location. One franchisee may manage
several such locations. Agreements
typically last from five to thirty years, with
premature cancellations or terminations of
most contracts bearing serious
consequences for franchisees.
 JOINT VENTURES
 JVs overcome policing and is considered as
advanced method of global marketing. JVs
integrate value chain strengths—such as
manufacturing strength with international
exporting expertise
 JVs are a direct investment along with
other nations interst in business. It calls
for enhanced technological advantage
 Some of the famous JVs are:
 GM/ TOYOTA
 Texas Instrument / Kobe Steel
 AT & T / MISTSHUBISHI
JVs depend upon the product kind
time and situation world wide
 OWNERSHIP
 This is the most advanced method. It is
100 pct ownership of a project on foreign
land. The most glorious example is that of
ASWAN DAM in Egypt.
 This method entails various financial and
entrepreneurial challenges.
 USUAL PRODUCTS WHERE ABOVE
METHODS ARE EMPLOYED
 FOOD AND BEVERAGES
 APPAREL, CLOTHING AND PERSONAL CARE items
 PHARMACUETICALS
 CONSUMERS PRODUCTS
 MEDIA AND ENTERTAINMENT
 INFRA-STRUCTURAL BIG PROJECTS
 AMUSEMENT PARKS
 AUTOMOBILE AND RELATED PROJECTS
 FASHION WEAR
 COSMETICS AND CLEANSING PRODUCTS
 MARKET EXPANSION STRATEGIES
 There are two methods of expansion
 One is concentration in the same market
and diversifying
 Second is to find new markets
 Again it depends of the nature of product,
the investment involved and technological
edge
 MARKET POSITIONING
 We have to find answers to the following
questions
 is your country condition comfortable and stable?
 Are there avenues of diversification?
 Does your condition allow you to financially
expand and technically feasible?
 Will expansion strengthen your current position?
 Will expansion give you more positive or negative
exposure?
 Are your political relations likely to be good in
long run of time?
 What is each other geo-political condition?
----------------------------------------------------------
 PRODUCT DECISIONS
YOU MAY HAVE STUDIED PRODUCT
BEFORE. BUT LET US UNDERSTAND
PRODUCT OUR WAY.

 WHAT IS PRODUCT? As in marketing

Product is defined in physical attributes—
weight, dimension, and material used. But
we go into some greater details
Color, style, shape and even contour. This
description is limited to physical attributes only.
For example we talk of a car, we say it is 17 feet
long, 7 feet wide and weighs 5000 lbs.
We apply to its functions. It fulfills many needs.
It is used for plying people to works and back. It
is used for recreation. It is a means of transport.
We then have brands of cars. BMW, Honda,
Toyota. Product converts to need or desire. We
even don’t call it car. We say, “are you mobile”.
Product is classified into variety of needs
 ON GLOBAL BASIS
 LOCAL PRODUCT
 Dimensionally, the product is developed as
a local product meant for local market.
However, technology, skills, raw material,
cost etc bring superb advantage locally, to
convert into a global market on the basis
of need
 TV for example is developed by Sony
locally. Soon Sony too strides towards
becoming a global product. How?
* technological advantage
* material advantage
* cost of production advantage
* need of good quality and lasting TV in other
countries
 Sony became soon a global product.
Another example is Locktite Corporation.
It manufactures adhesives and sealants.
90 percent of product is sold in other
countries than local and so does it profit
come from overseas. It was the need of
adhesives and sealants in other countries
which gave them simple comparative cost
and price advantage
 Some of the other Global Products
 Sony, Locktite, Walkman, CD players,
Burgers, Pizzas etc
 The major reasons behind are:
uniqueness, technological advantage,
workman ship
IN SOME COUNTRIES, REFRIGRATOR IS
A PRESTIGE ITEM
IN OTHER COUNTRIES, FROZEN FOOD IS
NOT USED, INSTEAD FRESH
VEGETABLES, THIS IS TRUE IN LOWER
INCOME COUNTRIES. IN SOME
COUNTRIES, PRESERVATION OF FOOD IS
NOT PART OF THEIR CULTURE
 HOWEVER, DURABILITY AND QUALITY OF
PRODUCT IS COMMON FACTOR, PRICE IS
ALSO CONSIDERED IMPORTANT IN SOME
PARTS. THEY BECOME SALIENT POINTS
IN SELLING AND ESTABLISHING
PRODUCT
 GLOBAL BRANDING
 Every brand has it strategic position. Some
brands have an image concept, others
vary their positioning based on local need.
Levi for example, has the image of rugged
users of levi by the cowboys in USA. We
do not have such culture in Pakistan.
Hence Levi uses fashion as its image, by
making their jeans look like rugged.
 Mcdonalds uses fast food as their symbol
of sales in foreign countries, where time is
of great significance. But in Pakistan, it is
addressed to youngsters and kids. Global
branding is done on country to country,
depends on need and desires according to
culture. Brands are established with the
help of publicity and advertisement. One
might say, we used same marketing
approach as we use in domestic marketing
SATURATION LEVEL OF PRODUCTS
 In some countries saturation level of
products have reached. Then there is
dramatic turnaround of lifestyle. For
example in Germany and France, vacuum
cleaner has gone out dated because
people no more use carpets. They have
taken to wooden floors. All vacuum
makers are now concentrating on Holland
and other countries
 PRODUCT DECISIONS
 PRODUCT MUST BE CAMPATIBLE WITH
LOCAL CULTURE, LIFESTLE AND NATURE
OF THE PEOPLE
 PRODUCT NEEDS TO BE ALTERED TO
MATCH LOCAL CONDITIONS
 COST OF THE PRODUCT MUST BE
WORKED OUT CAREFULLY
 PRODUCT SHOULD BE IN CONSISTENT
WITH THE RELIGIONS OF THE COUNTRY
 INTRODUCE MULTI-PRODUCTS SYSTEM
 =========================
 PRICING DECISIONS
THERE ARE THREE FACTORS AROUND
WHICH PRICING BOUNDARIES ARE
FIXED
1 THE PRODUCT COST, WHICH SET THE
PRICE FLOOR OR THE MINIMUM PRICE
2 THE COMPETITIVE PRICE OF
COMPARABLE PRODUCT/S
3 THE EXPECTED MARGINS FROM
OPERATION
 WE HAVE THE FOLLOWING
QUESTIONS
1 Does the price reflect the product quality?
2 Is the price competitive?
3 Should we pursue market penetration?
4 What types of discounts or allowances be
offered to international customers?
5 Should the price differ from segment to
segment?
6 Is the price welcome in host country?
7 What ingresients can we use locally to matter
our coist and therefore prices?
 PRICING STRATEGIES
1 Determine the Elasticity of Demand in
the host country. Inelasticity will assist in
setting higher prices
2 Evaluate fixed and variable costs
3 Identify and associate all costs related to
marketing process, depending on entry
strategy
========================
 CHANNEL DISTRIRIBUTION
DECISION
 AMA defines Channel Distributions as
“oganized network of agencies and
institutions, which, in combination, with
each otherslink between the producers
and consumers and complete the task of
marketing”
 Distributions channels highly differ from
country to country. We must establish
distinct characteristics of product and
customers. The income level, their
lifestyles, shopping habits,and reaction to
various marketing methods. Similarly, the
product nature, the standardization, the
presihability of the product etc all
determine the channel decisions
 TERMINOLOGY
1 HYPER MARKETS---selling store of
averaging 2,00,000 sq ft
2 DISCOUNT STORES. Selling stores of
avergaing 70,000 sq ft
3 SUPER MARKETS– Selling stores with an
average of 30 to 40,000 sq ft
4 SUPERRTES. Small shops of 1000 to 4000
sq ft
 CHANNELS IN LDCS
 LOTS OF PEOPLE ARE ENGAGED IN
PROCESS
 TOO MANY INTERMEDIARIES
 SMALL STORES USUALLY
 LESS NUMBER OF LAWS REGULATING
 LESS SPECIALIZATION
 CHANNEL DECISIONS
 Introduce Innovations and stress on
training
 Introduce direct marketing retailing
 Avoid change of hands too many
 Set your own standards
========================
 EXPORTS AND IMPORTS
THE CRUX OF GLOBAL MARKETING
 Exports and Imports are two sides of the same
coin. By export we mean saending good out of
your frontiers and importing means to bring
them in. as we have learnt globe is unequal in
products and natural resources. Hence this
exchange takes place to equate the situation.
Saudia Arabia has abundant of oil but little or no
agriculture. Hence has ti import even cooking oil
and fresh vegetables to make human life
possible.
 DIFFERENCE BETWEEN SELLING
AND MARKETING IN EXPORTS
 Export selling does not involve tailaoring of product, it
price, or its promotion and advertising. Export marketing
involves all three. Export marketing includes:
 1 understanding of environment
 2 the application of all conceptual and analytical tools of
marketing
 3 the use of marketing research and identification of
potential market
 4 product design decisions and advertising and
promotional tools
 5 it involves organizational set up and controls
THIS IS GLOBAL
MARKETING
GLOBAL MARKETING ACTIVITIES
 Global marketing has assumed unprecedented
proportion. Japan is thw world leader with over
1500 billion US $ surplus to wards USA alone
and with nearly 750 billion US $s from the rest
of the world. Surplus is when exports are more
than imports and Japan does not have a litre of
oil reserve or bauxite, or steel or zinc, the basic
ingredient of manufacturing. They even ‘import
their breakfast’
 Governments regulate exports and imports
through a commercial policy, declared
annually. Imports are regulated through
cess, import duty, custom duty and excise.
While exports are encouraged to enhance
productivity and employment through
incentive schemes. There are tariff and
non-tarriff barriers. These are permits and
grants to importers and exporter following
the Protectionist Policy
 EXPORT DECISIONS
 SIGMA m. c. p1, p2, p3, p4
then exporting
TR-cost
M stands for potential market
C for competitive offerings
P1 for product
P2 for price
P3 for advertising and promotion
P4 distribution

TR FOR TOTAL REVENUE

 QUESTIONS
 WHO BUYS OUR PRODUCT?
 WHO DOES NOT BUY OUR PRODUCT AND
WHY?
 WHAT NEEDS OUR PRODUCT SERVE?
 WHAT PROBLEMS OUR PRODUCT SOLVE?
 WHAT IS CUSTOMER CURRENTLY USING?
 WHAT PRICE ARE THEY BUYING AT?
 WHERE AND WHY IS OUR PRODUCT
PURCHASED?
 The
END

 ALHAMDOLILLAH
 THIS IS THE CONCLUSION OF GLBAL
MARKETING COURSE

 THANKS FOR YOUR PERSISTENCE

 THE BEGINNING HAS JUST BEGUN