Global marketing Global marketing strategies.strategies.

Significance of global marketing.Significance of global marketing.Domestic markets are saturatedDomestic markets are saturatedRecover the investments fasterRecover the investments fasterRapid technical growth.Rapid technical growth.Effect of globalization and reduction of Effect of globalization and reduction of boundaries.boundaries.

Selecting a potential market.Selecting a potential market.Regional Free Trade Zone.Regional Free Trade Zone.

1.1. Ensure economic growthEnsure economic growth2.2. Increase trade relationsIncrease trade relations3.3. Increase foreign capital inflowsIncrease foreign capital inflows4.4. Create economic trade blocs.Create economic trade blocs.5.5. Integrate policies of member Integrate policies of member

countries.countries.

Evaluation of Potential markets.Evaluation of Potential markets.1.1. Analyses markets on the basis Analyses markets on the basis

of macro environmental factors.of macro environmental factors.2.2. Analyzing the market size, Analyzing the market size,

product acceptability and product acceptability and customer perceptions.customer perceptions.

3.3. Analyzing micro environmental Analyzing micro environmental factors factors

4.4. Ranking the potential markets Ranking the potential markets based on profit potential, based on profit potential, market share ,investments, market share ,investments, margins sales etc.margins sales etc.

The impact of environmental forces The impact of environmental forces on global marketing.on global marketing.

Economic environment.Economic environment.Political environment.Political environment.Social and cultural environment.Social and cultural environment.Legal and regulatory environment.Legal and regulatory environment.Technological environment.Technological environment.

Methods of entering a new market.Methods of entering a new market.

Direct exportsDirect exportsIndirect exportsIndirect exportsLicensingLicensingJoint venturesJoint venturesMergersMergersStrategic alliancesStrategic alliances

Direct exportsDirect exportsCompanies sells their goods through Companies sells their goods through middle men located in foreign countries middle men located in foreign countries More control over distribution channel More control over distribution channel Open their own sales offices. Open their own sales offices. Textiles Textiles TirupurTirupurGoa –winesGoa –winesAuto partsAuto parts

Indirect exportsIndirect exportsExporting through a domestic Exporting through a domestic intermediary intermediary Brokers , export managers, agents Brokers , export managers, agents Minimum riskMinimum riskMarble stones in Rajasthan Marble stones in Rajasthan

LicensingLicensing

Form of providing access to a patent Form of providing access to a patent or trade mark to some other or trade mark to some other company by charging a fee or royaltycompany by charging a fee or royaltyCompanies with strong brand names Companies with strong brand names Pharmaceutical industriesPharmaceutical industries

Joint venturesJoint ventures

Foreign company invites a local Foreign company invites a local company to become an equity company to become an equity partner share risk partner share risk Have access to indepth knowledge of Have access to indepth knowledge of the local market the local market

Internationalization Internationalization Entry modes and timings. Entry modes and timings. Maturity stage – start exports Maturity stage – start exports More exports – technology transfer More exports – technology transfer and new products and new products More new products –threat to More new products –threat to domestic companies domestic companies Govt –protectionism Govt –protectionism Non tariff barriers Non tariff barriers

Stage of standardization – Stage of standardization – contractual agreements or FDI contractual agreements or FDI Early phase – contracts – license , Early phase – contracts – license , Franchising Franchising Later stages – FDI Later stages – FDI Company specific know how – JV Company specific know how – JV Gain experience – terminate JV and Gain experience – terminate JV and establish wholly owned subsidiary establish wholly owned subsidiary

Types of marketing organizationTypes of marketing organization

Export division- self sufficient export Export division- self sufficient export divisiondivisionInternational division-Separate International division-Separate division for international businessdivision for international businessGlobal organization-whole Global organization-whole organization handles international organization handles international business business

Developing global marketing Developing global marketing strategiesstrategies

Product strategiesProduct strategiesPromotion strategiesPromotion strategiesPricing strategiesPricing strategiesPlace strategiesPlace strategies

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