Global

Marketing
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 AMA’s Definition :
Planning
and Marketing
Executing
To create exchanges
Conception that satisfy individual
and organizational
Pricing Objectives
Promotion

Distribution of Ideas,
goods and Services
 Global Marketing

 The coordinated performance of marketing activities to

create exchanges across countries that satisfy individual,
organizational , and societal objectives
 Global marketing coordinates activities across different
country markets

 Global marketing is conducted across countries (not

domestic or foreign)

 Global marketing should be motivated by individual,

organizational and societal goals
 Global Marketing Evolution

Develop Core
Business Strategy
Core Business Strategy

Internationalize
the Strategy

Globalize Country Country Country Country

the Strategy A B C D
 What is Internationalization ?
• As the process of increasing involvement in international
operations.

Why consider going international ?

• To increase overall customer base.

• To offset seasonal fluctuations in local markets
• To minimize risk of losing market share to clients who
themselves use internet to find goods / services in
overseas markets
• To offset increasing costs of doing business at home
• To gain prestige with customers at home .
 Internationalization
Advantage Disadvantage
• Spreading business risk • cultural and language
• Opportunity to exploit an existing barriers
competitive edge in new markets
• exchange rate fluctuations
• Expansion of brand awareness to
new audiences • religious beliefs
• Increased revenue generation • government regulations /
• Possibility of accessing new policy on profit repatriation
technologies / information • political instability
• Business can be conducted via the
internet thus shortening the
• economic downturn.
communication channels between
customers and markets
Major International Marketing Decisions
 RE-INTERNATIONALIZATION
 Why Internationalization fail.

 What is Re-Internationalization.
- Network relation
- Unique resource and capability
- Change in management global.

 Three main set which driven the

Re-Internationalization.
 Strategy to enter into International Market.

• Export
• Involves using domestic plants as a production base for exporting to
foreign markets.

• Licensing
• Has valuable technical know-how or a patented product but does not have
international capabilities or resources to enter foreign markets

• Franchise
• Often is better suited to global expansion efforts of service and retailing
enterprise by establishing franchise in particular country.
• Strategic alliance
• Through strategic alliance you can enter into international market.

• Global strategy
• Pursue basic strategy world wide.
• Sell the same products under the same brand
• Production plants located local efficiencies
• Best suppliers from anywhere
• Coordinated marketing and distribution worldwide

• Multi country strategy

• Production plants in each country
– Producing products for that country
– Using local suppliers where possible
 CHALLENGES to enter International
market
 While choosing new markets, MNCs
need to consider several factors:

1) Micro factor

2) Macro factor
 Micro factor
• Political/regulatory environment.
Tariff barriers - taxes on imports paid
to customs officials - include
Nontariff barriers
• Financial/economic environment.
Exchange rate - price of one currency in relation to another
Fiscal policies
Monetary policy
• Socio cultural issues and technological infrastructure.
Understanding the local culture is the most profitable way of
marketing product and services.
 Macro factor
• Competitive considerations.

• Local infrastructure such as

transportation & logistics network.

• Availability of mass media for

advertising is important.
Implementing Global Marketing
 Success will come from a balance between local and
regional / global concerns.

 “Think globally, act locally” is the operative phrase

for global marketers competing in country markets.

 Product choices should consider individual markets

as well as transfer products from one region to
another.
 Localizing Global Marketing
 Management processes
- Enhance the global transfer of communications
- Interchange personnel to gain experience
abroad
 Headquarters should coordinate and leverage resources
 Permit local managers to develop their own programs
within defined parameters
 Organization structures
- The shift to global account management
 Corporate culture
- The world is not one single market
- Plan and execute programs on a worldwide
basis
- A global Identity favors no specific country