MARKETING MANAGEMENT

Chapter 20
GLOBAL MARKETING

Chapter 20 Global Marketing

Global marketing vs. Domestic marketing

Similarities Success depends on satisfying the basic needs and wants of customers. Building good will of the customers by giving guarantees and after-sales service is important. Research and development for product improvement and adaptation are necessary. Differences Each country is a sovereign political entity and regulations differ in tariffs and customs duties, quantitative restrictions, exchange controls and local taxes. Legal systems differ from country to country. Each country has a different monetary system and different currencies. Factors of production are less mobile between nations than in the country itself. Each country is a separate market having its own market characteristics like demand pattern, channels of distribution, methods of promotion, etc. Procedures, regulations and documentation requirements differ from country to country. There is greater degree of risk involved in global marketing compared to domestic marketing due to larger volume, higher value, time element, etc.

Himalaya Publishing House

Marketing Management Dr. K. Karunakaran

Chapter 20 Global Marketing

The Role of Orientations

1. Ethnocentric The company believes that home country is superior and products which succeed locally are superior and will succeed in the other countries also, without adaptation. Differences in consumer needs and wants in global markets are ignored. Marketing management is centralized. In todays world market, this is a totally wrong policy. 2. Polycentric The company assumes or believes that each country in which it plans to operate is unique. For each country they develop unique business and marketing strategies suitable for the local conditions and consumer needs. These are described as multinational companies (MNC). Marketing management is decentralised. 3. Regiocentric The company management views regions as unique and develops an integrated regional marketing management strategy. A company that focuses its attention on Asian region or only in the Middle-East region is regiocentric. 4. Geocentric These companies see the entire world as a potential market and strive to develop integrated global market strategies.

Himalaya Publishing House

Marketing Management Dr. K. Karunakaran

Chapter 20 Global Marketing

The Forces Affecting Global Marketing

Driving Forces
Technology Trade agreements Economic Growth Transport Communication

Restraining Forces
Myopic Management Ethnocentric Management Trade barriers

Himalaya Publishing House

Marketing Management Dr. K. Karunakaran

Chapter 20 Global Marketing

Stage of Development of Countries

Himalaya Publishing House

Marketing Management Dr. K. Karunakaran

Chapter 20 Global Marketing

Global Marketing Strategy

1. 2. 3. 4. 5. 6. 7. 8. 9. Choosing the entry strategy Selecting target markets Product decisions Channel decisions Pricing strategy Global promotion Procedural formalities Organisational requirements Ethical considerations

Himalaya Publishing House

Marketing Management Dr. K. Karunakaran