Introduction to Global

Marketing

Domestic Vs Global Marketing

Defining Global Marketing

“It is the process of focusing Resources,

[people, money and physical assets]
and Objectives of an organization on
Global Market Opportunities and
threats.”
Introduction Global Marketing
 No Global Marketing Concept 30 years back
Now must for:
Realization of full potential of business
Rather for survival of business
 Companies who will not go Global
 Loose Domestic Mkt due to cost
 Competitors will thrive [being Global]
 Rich Experience, better product,
i.e more value for money
Intro- Global Marketing
 Companies not going Global will
Ultimately be:

 Absorbed by Competitors or

 Disappear against dynamic competitors

Three Principles of Marketing
1-Customer Value and Value Equation
 Create Customer Value > Value Created by

Competitor
 Value = Benefits/ Price

 Sustainable Competitive Advantage (to keep

cost low) must for Low Price Policy

 Product Improvement through Customer’s

Knowledge and Innovation

 No need to be Low Priced-if benefits are strong
Three Principals of Marketing
 2- Competitive or differential advantage
 Advantage can be in Marketing Mix
Competitive Advantage
 with Low price & equal quality &
 If Customer trusts the quality
 3- Focus
 The concentration of attention (Nestle not in bicycle
industry)
 To Create customer value
 For Competitive Edge
Transition in Marketing
from domestic to global

 Domestic Mktg.
 Target-Home Country Mkt
 Consciously or without
 Export Mktg
 Target outside of home Country
 Relying on Domestic Production
 Promoting only Domestic
Products/services/experiences in
 Few exporters modify product on customers need in
each country
Transition in Marketing
International Marketing
 Focus on Mkg environment of Customer Country
 Sources of Product-may find outside Home
Country
 Less Reliance on Intermediaries-Direct
Representation
 Opens a subsidiary company in customer
Country
 Uses Advertising Campaigns developed in Home
Country
Transition in Marketing
 Multi National Marketing
 International Company adapts to unique
needs and wants of host country
 Qingqi Motor Cycle to Rickshaw
 Unique Communication Prorgam-for
Customer Country
 Pepsi Pepsi – Pakistan
 Khaney ko mangey aur-Coke
 Transition in Marketing
Global Transnational Marketing
 Does not imply entering every country
 Leveraging Globally
 Company’s assets, products and experiences
 Adapting to unique differences in each country
 Recognizing Cultural and Marketing Differences
 Understanding
 global commonalities
 Country specific unique Differences
 Decision to Enter any country depends upon:
 Company Resources
 Opportunities
 Threats
Domestic Vs Global Marketing
 Basic Marketing Concepts apply fully to
both
 Must analyze Customers and
Competitors while entering a new
country
 Companies often overlook to analyze,
which they do for domestic market
Economic Activities and
Development Stage
 Primary Agriculture, mining, Forestry
Excavation of minerals, Oil,
Raw materials (under
developed Countries)
 Secondary Manufacturing, Industrialization
(developing Countries)
 Tertiary Services, Consultations, advisory
Services, Travel, Tourism,
Hospitals, Hospitality etc.
(developed Countries)
Theory of Comparative
Advantage
 A society, a region or a nation is in a
better position to produce a product more
efficiently, i. e at low cost and better
quality, while others can not do the same
with the same input of materials, human
resource and time. On the other hand
another nation may produce some other
product more efficiently.
Comparative Advantage-
Simplified Version
 Pakistan Bangladesh
 Cotton+ Jute = Value Cotton + Jute =Value

 2000 0 2,00,000 0 4,000 3,60,000

 1500 300 1,77,000 300 3000 3,00,000

 1000 600 1,54,000 600 2,000 2,40,000

 500 900 1,31,000 900 1,000 1,80,000

 0 1200 1,08,000 1200 0 1,20,000

Driving Forces
Contributing to growth of Global Marketing

 Market Needs
 Creating needs-developing markets
 Mineral water by Nestle
 How about Salt in Africa,
 Rock Salt in Europe and America,
 Promoting Khewra taste in foods
 Chilies in Middle East, Europe etc.
 Creating need for Mehndi amongst girls in Europe on Valentine
day
 Choorria’n (Bangles)
Driving Forces
Contributing to growth of Global Marketing

 Regional Economic Agreements

 NAFTA ( US, Canada, Mexico)
 GATT General Agreement on Tariffs and
Trade Ratified by 120 nations – WTO
 EU
 SAARC
Driving Forces
 Technology
 Universal
 Uniform - Experience in home, suitable for all
countries
 Readily available for all
 Every one wants every thing immediately
 No cultural boundaries-limiting acceptance
Driving Forces
 Cost
 Economy of Scale possible
 Recovering huge research cost easy
 Pakistan Film Industry can make use of Indian
and Chinese huge markets
 Quality
 Greater Volume, Greater Revenue, more
margins to be used for improving quality
Driving Forces
 Communication and Transportation
 Information Revolution
 Transportation
Leverage
 Experience Transfers
 Systems Transfers
 Resource Utilization
 Economy of Scale
 Global Strategy
Restraining Forces
 Market Differences
 History
 Management Myopia
 Organizational Culture
 National Controls/Barriers to Entry
 Opposition to Globalization