1. MARKETING
MANAGEMENT
CHAPTER 21–
TAPPING INTO GLOBAL
MARKET
Guided by DR. S.V KULKARNI
PRESENTED BY:
URMEE DOSHI (27)
NAINA HINGHER (32)
SANDEEP KAUR BATH (11)

2. What is a Global Firm?
A global firm is one that operates in more
than one country and captures R&D,
production, logistical, marketing, and
financial advantages in its costs and
reputation that are not available to purely
domestic competitors.

3. Major Decisions in
International Marketing
 Deciding whether to go abroad
 Deciding which markets to enter
 Deciding how to enter
 Deciding on the marketing program
 Deciding on the marketing organization

4. DECIDING WHETHER TO GO
ABROAD

5. FACTORS DRAWING COMPANIES
INTO INTERNATIONAL ARENA
 Higher profit opportunities
 Economies of scale
 Counterattack global competitors in home
market
 Customers abroad require international
service

6. RISK INVOLVED
 Fail to understand foreign preferences
 Fail to understand foreign business culture
 Lack manners
 Change in commercial laws of foreign
countries

7. Four Stages of Internationalization
 No regular export activities
 Export via independent agents
 Establish sales subsidiaries
 Establish production facilities abroad

8. DECIDING WHICH MARKETS TO
ENTER

9. DEVELOPED V/S DEVELOPING
MARKETS
 Developing market have huge potential
 Market leaders rely on developing markets to
fuel their growth
 UNILEVER & COLGATE generated 40% of
their business in developing markets

10. Top Global Firms Based
in Developing Markets
 America Movil  Huawei Technologies
 Cemex  Infosys Technologies
 China Mobile  Koc Holding
 CNOOC  Lenovo Group
 Embraer  MMC Norilsk Nickel
 Gazprom  Mahindra & Mahindra
 Haier
 Hisense

11. Regional Free Trade Zones
 European Union
 NAFTA
 MERCOSUL
 APEC
 ASEAN
The purpose of these trade zones are not only
to remove trade barriers on member nations
but also to impose common external barriers
on non-members. They allow free movement
of labour and capital within the region.

12. Key Developing Markets
Brazil
Russia
India
China
South Africa

13. Desired Country
Characteristics for Market Entry
 Rank high on market attractiveness
 Rank low in market risk
 Possess a competitive advantage

14. DECIDING HOW TO ENTER THE
MARKET

15. Five Modes of Entry
into Foreign Markets
 Indirect exporting
 Direct exporting
 Licensing
 Joint ventures
 Direct investment

16. INDIRECT EXPORT:
There is less investment
There is less risk
Thus , it is the best way to get involved in international market.
DIRECT EXPORT: (ways)
Domestic based export
Overseas sales branch
Travelling export sales representative
Foreign based agents
LICENSING:
It means to get permission to use a manufacturing process,
trademark etc. for a fee or royalty
A company can also enter foreign market through franchising

17. JOINT VENTURES:
A joint venture (often abbreviated JV) is an entity formed
between two or more parties to undertake economic activity
together. The parties agree to create a new entity by both
contributing equity, and they then share in the revenues,
expenses, and control of the enterprise.
Eg:- Procter & Gamble, Maruti Suzuki ltd. Etc
DIRECT INVESTMENT:
Foreign companies buy a part or full interest in a local
company
Eg:- General Motors invested in Shanghai GM etc.

18. DECIDING ON THE MARKETING
PROGRAM

19. Global Marketing
Advantages Disadvantages
 Economies of scale  Differences in consumer
 Lower marketing costs needs, wants, usage
 Power and scope patterns
 Consistency in brand  Differences in consumer
image response to marketing mix
 Ability to leverage  Differences in brand
 Uniformity of marketing development process
practices  Differences in environment

20. What Marketing Aspects Might Be
Adapted for International
Marketing?
 Product features  Brand name
 Labeling  Packaging
 Colors  Advertising execution
 Materials  Prices
 Sales promotion  Advertising themes
 Advertising media

21. Cultural Dimensions
 Individualism vs. collectivism (self worth is rooted
more in social system than individuals achievement)
 Masculine vs. feminine (culture dominated by
assertive males vs nurturing females)
 High vs. low power distance (high power cultures
tends to be less egalitarian)
 Weak vs. strong uncertainty avoidance (it
shows how risk tolerant people are)

22. Commandments of Global
Branding
 Understand similarities and differences in the
global branding landscape
 Do not take shortcuts in brand building
 Establish a marketing infrastructure
 Embrace integrated marketing communications
 Establish brand partnerships

23. Commandments of Global
Branding (cont.)
 Balance standardization and customization
 Balance global and local control
 Establish operable guidelines
 Implement a global brand-equity measurement
system
 Leverage brand elements

24. Levels of Product Adaptation
 Production of regional product versions
 Production of country versions
 Production of city versions
 Production of retailer versions

25. Communications
 Communications adaptation
 Dual adaptation

26. Price Choices
 Set a uniform price everywhere
 Set a market-based price in each country
 Set a cost-based price in each country

27. What is a Gray Market?
A gray market consists of branded products
diverted from normal or authorized
distributions channels in the country of product
origin or cross international borders; dealers in
lower priced countries sell products in higher
priced countries

28. Whole-Channel Concept for
International Marketing
 Seller
 International headquarters
 Channels between nations
 Channels within nations
 Final buyers

29. DECIDING ON THE MARKETING
ORGANIZATION

30. Global Organization Strategies
 Export department (world as a single market)
 International division
 Global organization

31. SUMMARY
 Companies cannot simply stay domestic;
they need to internationalize their operations
 While deciding a company needs to define its
marketing policies & objectives
 Then decide on the best mode of entry
 Decide how to adapt its marketing program
 Manage international marketing activity