Unit 3

Globalisation
and
International
Marketing
(A2 Level)
Globalisatio • The growing trend towards worldwide
markets in products, capital & labour,
n unrestricted by barriers

• Accelerated in recent years :

• rapid growth of multinational
companies
• expansion of free international trade
with fewer tariffs & quotas on imports
• Free movement of capital & workers
between countries
 • Selling products in markets other than the
original domestic market
• An opportunity to profitably expand sales
• Why sell products in other countries?
• Saturated home markets
International • Profits (lower costs – EOS/high
Marketing profitability)
• Spreading risks
• Poor business conditions in the home
market
• Legal differences (advertising & labour)
 • Why International Marketing is different?
• Cultural differences
• Language, male/female, colours,
religious reference
• Economic & Social differences

Internation • Living standards, tax rates,

interest rates, age structure, role

al
of women,
• Legal differences
• Advertisement content, product
Marketing safety, labelling
• Business Practices differences
• Accounting standards, setting up
business,
tax rates, laws
International • Methods of entering foreign markets:
• Exporting

Markets • Selling products directly to

foreign customer via company
website
• Selling indirectly through an
export intermediary
• Agent or Trading company
based in the country
• International Franchising
• Foreign franchisees are used to
operate a firm’s activities abroad
International Markets

• Methods of entering foreign markets :

• Joint Venture
• McDonald’s 50-50 j/v with 2 Indian restaurant chains
• Hardcastle Restaurants
• Connaught Plaza Restaurants

- Licensing
• Business allowing another firm in the country being entered to produce its
branded goods/patented products
‘under license’
International Markets

• Methods of entering foreign markets :

• Direct investment in subsidiaries
• Setting up company-owned subsidiaries in foreign countries
• Studies show a higher success rate than taking over or merging with locally based
companies
Pan-regional/Pan- • ‘Pan-global marketing’
• Adopting a standardised product across

global marketing the globe as if the entire world were a

single market

strategies • Adopts common products, brand

messages and promotional campaigns
• Selling the same goods in the same way
everywhere
• ‘One-strategy-suits-all policy’

• Upmarket brands - international appeal

• E.g. : Rolex watches worn by film stars
are the same in other countries
• Mass-appeal brands
• E.g. : Apple, Nike
 • Adapting the marketing mix, including differentiated
products, to meet national/regional tastes and cultures

• ‘Thinking global – acting local’

Global • Differentiates most aspects of its marketing mix between

different countries & markets
Localisation • KFC Dragon Twister for consumers in China
• Price levels for different countries to reflect
different average incomes
• Advertisement containing local ‘ethnic’ people