INTERNATIONAL MARKETING.

BENEFITS AND RISK OF GLOBAL E-MARKETING.

ROHAN KUMAR
BBA 4B
A45806418101
WHAT IS GLOBAL MARKETING?
-As per Prof M.V. Kulkarni “Global marketing involves identifying needs,
wants and demand of global customers and making the products/services
available to them either through own manufacturing or outsourcing and
distributing the product/service at the places convenient for consuming.”

-Global Marketing is the process of conceptualizing and then conveying a

final product or service worldwide with the hopes of reaching the
international marketing community. Proper global marketing has the
ability to catapult a company to the next level, if they do it correctly.
Different strategies are implemented based on the region the company is
marketing to. Global marketing is especially important to companies that
provide products or services that have a universal demand such as
automobiles and food.
  BENEFITS.
1. You can reach more customers.
-It’s a simple practice of supply and demand. If you are able to connect with
customers globally instead of locally, then you are able to reach more
people. As long as you have some level of demand for what you have, global
marketing can allow you to target communities anywhere in the world so
that you can make a sell.
2. It can be the inspiration of new ideas.
When you make a push for global marketing, you’re exposing yourself to
new ideas because you are involved in new cultures. This can inspire
innovation that can take your business to new levels while you’re able to
reach out with your existing portfolio to generate revenues. It really can be
a win/win situation for everyone involved.

3. It increases the visibility of your brand.

Global marketing is all about branding. When you are able to reach new
markets with your brand, then your visibility increases along with it. This
makes it a lot easier to take advantage of future opportunities because you’ll
have established a cornerstone within global markets. Each new campaign
makes it easier to expand upon these opportunities as well.

4. There’s the potential for higher revenues.

If you have a 2% conversion rate and an average sale of $10, then you’ll get
two customers out of every 100 prospects with revenues of $20. If you
target local customers and reach 1,000 people, that’s potential revenues of
$200. If you can target global customers at the level of 1 million people…
let’s just say the revenue math gets a whole lot better, doesn’t it?
5. Believe it or not, global marketing reduces your competition.
It’s all about reputation. Customers want the best possible product with the
best value proposition from the brand with the most expertise. These three
factors will trump local loyalty and transfer the customer to your business.
Now if the local business can match just one of those three factors, your
brand could lose out to local business, so clear communication within your
global marketing strategy is absolutely essential for ongoing success.
6. You can create new relationships that make the process easy to
complete.
There are people with local experience around the world which can help
your business be able to target specific demographics with ease. Thanks to
video calling from Skype or Face Time, Instant Messaging, e-mail services,
and other communication platforms, you can work with delegates from
around the world instantly to move in real-time with potential customers so
that the global marketing process becomes quite simple.

7. It offers greater stability to a business.

Trends in every industry are constantly evolving. What was popular 5 years
ago might not be popular today, but every local market is unique. Today’s
treasure in North America might be tomorrow’s treasure in Asia, allowing
you to create new products for the evolving market while maintaining the
value proposition of the older product for the new market.
 DISADVANTAGES.
1. It can be difficult to determine if there is an available market.
Different cultures and local societies have different needs which need to be
met. Although many products perform well globally if they are able to
perform well locally, that isn’t always the case for niche products.

2. There will always be risk.

The costs of marketing globally are dramatically reduced from what they
once were, but they still exist. There is also a time investment involved with
marketing that keeps getting larger as you target more potential customers.
The risk here is that you can make these time and money investments and
wind up not receiving anything in return.

3. There may be different laws and standards which need to be met.

Different countries have different product or service requirements that
businesses must meet in order to finalize a sale. Some markets can run up
against some very stiff regulations that all but prevent an international
business presence. Without due diligence being performed by a business
owner before attempting global marketing, unintentionally violating these
laws or regulations could bring potentially severe consequences.

4. It can create numerous barriers to entry.

From cultural customs to language differences, there are a number of
barriers to entry that must be addressed when creating a global marketing
campaign. Programs like Google Translate are helping to reduce the
number of barriers which exist, but there will always be obstacles standing
in the way, especially for small-to-medium-sized businesses.

5. International politics and market conditions can eliminate profits.

The Brexit vote in 2016 proved that billions of dollars in wealth can be
eliminated overnight. Political changes and changing market conditions can
cause an immediate elimination of profits, especially for small businesses
that are not well diversified. Even something as simple as a strengthening
of a currency can make it difficult for a global marketing effort to succeed.
6. It creates a need for international product delivery.
When a business goes global, then it creates a need for international
shipping structures. Although you can mail virtually anything to anyone in
the world today, there are taxes and tariffs which must be considered.
These may apply to the business or the business customer. There are also
customs delays, payment guarantees, and other processes that can break
down and cause a delay in delivery, canceled orders, and lost revenues.

7. There will still be competition in the market.

You might have the best product in the world and be effective with a global
marketing strategy, but eliminating local competition doesn’t mean you’ll
eliminate international competition. You might be competing for a target
market in China with a business down the block from you. By
understanding the markets, you’ll be able to adapt to what the competition
is marketing so that you can remain on-point with your message.

THANK YOU ….. !!