Global MarketING strategy & management

WHAT IS GLOBAL MARKETING? ..compete in global environment.

Global marketing involve the performance of activities designed to plan, price, promote and direct to flow of an organization’s offerings in more than one country for a profit.

Optimize global marketing- 3 success strategieshttp://content.lionbridge.com/optimize-global-marketing-campaigns-3-success-strategies/

The Decision to Global

Organizations choose the market their products and services outside their own country for four major reasons.

1.To Gain access to new buyers.

Expanding into foreign market offers potential for increased revenues, profits and long-term growth and becomes an especially attractive option when a company’s home country markets are mature. For example,80 percent of new Burger King restaurants opening from 2008 through 2013 were outside of North America.

2.To spread business risk across a wider market base.

A company spreads business risk by marketing in a number of different foreign countries rather than depending entirely on operations in its own country. Thus, if sales in Asia turn down for a period of time, a company’s business in North America or Europe may offset decline.

3.To capitalize on an organization’s distinctive competencies and capabilities.

A company maybe able to leverage its distinctive competencies and capabilities into a competitive advantage in foreign markets as well as its domestic market. Nokia’s competencies and capabilities in mobile phones propelled it to global market leadership in the wireless telecommunications business.

4.To achieve lower costs and enhance an organization’s competitiveness.

Many companies are driven to market their offerings in more than one country because domestic sales volume is not sufficient to fully capture operating efficiencies and thereby improve their firm’s cost-competitiveness. The relatively small size of country markets in Europe explains why companies like Unilever (Netherlands) and Nestle (Switzerland) began selling their products across Europe long ago and then entered markets in North America, Asia, Latin America and Africa.

So going global means;

Identify where profitable marketing opportunities may exist outside of their own country.

Starbucks experiencehttps://www.youtube.com/watch?v=PQAZK9o9B1A

Mc Donalds Global Market Strategyhttps://www.youtube.com/watch?v=OCG7ScRP1ws

IdentIFYING GLOBAL MARKETING OPPORTUNITIES

The process begins by establishing and prioritizing criteria for screening countries.Country Screening CriteriaIncludes;•Socio-cultural nuances that underlie business and consumer behavior •Country economic and technological infrastructure differences that affect marketing practices

• Trade regulations the govern marketing practices within countries or free trade zones such as the European Union.

• Marketing prowess and strength of local and foreign competitors within countries or free-trade zones.

Marketing Attractiveness

It depends characteristics of the organization itself.It depends organization’s strengths, weaknesses, offerings, marketing policies, practices, financial resources.

In fact organizations begin their global expansions ‘close to home’ where sociocultural, legal, economic etc.

EnterING AND COMPETING IN FOREIGN MARKETS

exportINGExporting involves producing offerings in one country and selling them in an-other country.

Exporting can be indirect or direct;•Indirect exporting, a firm sells its domestically produced goods in foreign country through an intermediary.

•Direct exporting exists when a firm sells its domestically produced goods in a foreign country without intermediaries.

LICENSINGWith licensing; a company (licensor) offers the right to a trademark, patent, trade secret etc. to another (licensee) for a royalty or a fee.

Starting with a competitive advantage!

For instance;Yoplait yogurt is licensed from Sodima, a French cooperative, by General Mills for sale in US.

JOINT VENTURE

When a foreign company and local firm invest together to create a local business, it’s called JOINT VENTURE.

For instance;Starbucks entered India in 2007 through a joint venture with New Horizons, an India- based company.

DIRECT INVESTMENTThe biggest commitment a company can make when entering the global market is direct investment which entails a domestic firm actually investing in and owning a foreign subsidiary or division.For instance;Reebok entered Russia by creating a subsidiary known as Reebok Russia.Advantages;•Cost savings•Better understanding of local market conditions

Offering & COMMUNICATION STRATEGIES

Organizations have five strategies for matching offerings and their communication efforts to global markets.

MARKETING channel and prICING STRATEGIES

Successful global marketers standardize marketing programs when-ever possible and customize them whenever necessary.

Compered with offering and communication strategies , standardization presents a unique challenge for marketing channel and pricing strategies due to country trade regulations and consumer buying preferences and practices.

Thank you