Marketing in the
Global Firm
What is Marketing ?
From a customer's perspective:
The spectacle through which your customers perceive your
products & services
From an organization's perspective:
Finding the right opportunities to either sell or promote it's
goods & services by identifying the latent needs of their
customers
Why a Global Marketing
Strategy?
A way of communicating with your customers abroad
Helps in identifying, measuring & responding to market
opportunities in foreign markets
Should be in line with the cultural, social, political, legal &
regulatory environments of the foreign markets
Understanding Market Segmentation
Dividing the customer base
into clusters with similar
characteristics
Characteristics could be
income level, lifestyle,
demographic profile &
desired benefits.
Global Market
Segmentation
Targeting a group of customers across many
national markets with using a relatively uniform
marketing strategy and marketing programs
To create a unique position in the minds of such
customers
Global Market Segmentation – Positioning
Positioning is a strategy to invoke a distinct impression in the customer’s mind,
emphasizing it’s differences than it’s competitors
It might invoke certain attributers customer might associate themselves with
Global Market
Segmentation –
Positioning
Framework for Marketing in International
Firm
Standardization and Adaptation
of
International Marketing
ORGANIZING FRAMEWORK FOR MARKETING IN
INTERNATIONAL FIRM
STANDARDIZATION & ADAPTATION IS A BALANCING
ACT
GLOBAL BRANDING
AND PRODUCT
DEVELOPMENT
Global Marketing
Strategies
Global Branding
Global Positioning Strategy Global Brand
Global Brand
EFFICIENCY & LOYALTY PREMIUM PRICING LEVERAGING COMPETITVE
EFFECTIVENESS PARTNER ADVANTAGE
RELATIONS
Visibility Status symbol
Brand Equity
Identification
Appeal
with country
Global Product Development
Modular Architecture Global New-Product Planning
Core components Corporate level + Local
adaptation
Multi-country potential
Marketing testing
Best practices
Specialized knowledge
International
Pricing
Factors That Affect International Pricing
Nature of the Nature of the product Type of distribution Location of the
market or industry system production facility
Framework for Setting International Prices
(1) (2) (3) (4)
Estimate Estimate Estimate Assess
“Landed” price Importer/distributor price Customer target price Company sales potential
(5) (6) (7)
Select Check Implement
Suitable pricing strategy consistency with current pricing strategy and tactics
prices
Transfer Pricing
The practice of pricing intermediate or finished products
exchanged among the subsidiaries and affiliates of the same
corporate family located in different countries
Cost: $50
Sells to Sells to
B: $30 Public: $100
Subsidiary Subsidiary
(A) (B)
Grey Market Country A
(Production Centre)
Activity / Parallel
Imports
Authorized Authorized
Exports Exports
The legal importation of genuine
products into a country by
intermediaries who are not
authorized distributors. Country B Grey Country C
(High Price Country) Imports (Low Price Country)
Product available at high price Product available at low price
from authorized dealer from authorized dealer
International
Marketing
Communications
INTERNATIONAL MARKETING COMMUNICATIONS
Cultural Aspects of
Communications
Adaptation V/S Standardization
Cultural insensitivity has been highlighted in the Ad image
to the right (LeBron James in a Nike Ad in China
Standardization has been used successful
United Colors of Benetton
Levi Strauss & Co.
MNEs employ
Advertising Agencies to
create promotional
content and select
media in foreign
markets
International
Distribution
Types of International
Distribution
Process of getting the product/service
from the origin to the customer
Two most common approaches for
International Distribution are:
• Exporting Firms
• FDI-based approach (more expensive
than exporting)
Types of International
Distribution
Direct marketing is another form of distribution which
involves selling to the end user
Uses the Internet to provide detailed product information
and the means for foreigners to buy offerings. Amazon.com
uses this strategy
Channel Length
Channel length refers to the number of distributors/intermediaries it takes to get the
product/service from the manufacturer to the market
The longer the channel, the more costlier it is
High channel costs leads to international price escalation, creating a competitive
disadvantage for the firm.
Global Account Management
Global Account Management (GAM) means serving a key
customer in a consistent and standardized manner,
regardless of where in the world it operates.
For example - Walmart is a key global account for
Proctor & Gamble
• Walmart expects consistent services & prices globally,
regardless of where in the world it is delivered.
Team Members
Akshay Singh
Tanjeet Singh
Prem Bhatia
Michelle Samuel
Krishnendu Bannerjee
Simran Bhatia
