role of government in global marketing

NOMAN GHALIB

“Doing business in different state is like

doing business in 30 countries”

Segmentation

Targeting

positioning

product

Both the physical and chemical aspects

of a product are affected by laws

seeking to protect consumers. Such

laws may prescribe standards for

purity, safety and performance.

price

Prices are also affected by taxes such

as sales tax, value added tax, import tax

and port tax.

place

There are laws in most countries

covering the physical distribution

promotion

• Prohibitions on advertising certain products

• Prohibitions on using certain words and expressions

• Limitation on extent of promotional expenditure

• Content and style of advertisement

• Other promotional elements

For any business, the policies of govt can

have deciding implications

Licensing

Regulations

Formalities

taxes

Government should protect

and impose policies

Ownership extent restriction

Clear guidelines for investors

Encourage transfer of managerial

skills, intellectual property and

technology (licensing)

A firm will favor investment over

exporting when transportation costs and

trade barriers are high

tariffs

Quota(volume)

mostly imposed to reduce imports and

enhance local production

Should restrict import of inputs for a

manufacturing firm

e.g. can import 30% of its input

FDI should be allowed except

Atomic energy

Agriculture

Gambling

plantation

advantages

Increase in exports

Increase in tax revenues

Development of human capital resources

Promotion of competition

Employment generation

BOP effect

A better accelerator for economic development

Should…

Provide tax breaks to local investors

Subsidies

Restrict foreign investors into the sector

where you are good

Provide physical protection

Provide copy write protection

Tax breaks

Should not compromise on soverenity

Should be careful about national defense