Global marketing power point Andrew Creath

Global marketing power point Andrew Creath

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  Global Marketing Marketing and it’simpact on a Global Scale Andrew Creath
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  Table of Contents: 1)Globalization 2) Assessment of Global Markets: Economic analysis using metrics: general economic environment, market size and population growth, evaluating real income 3) Analysis of infrastructure 4) Analysis of Governmental Actions 5) Analysis of Sociocultural Factors 6) Global Strategies
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  Globalization • What isGlobalization? • Globalization is a process in which services, people, information, goods, and more go across from one border to another. • An example would be a family taking a vacation to Bermuda. They are taking a trip there to experience the culture of Bermuda. For that family, it is an example of globalization. • Other examples include trade, knowledge, law, media and entertainment, science, and many more. • Without globalization, countries would be closed off from the rest of the world. Organizations like the World Bank would not exist because in a closed system, there is no need for a relationship between the countries.
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  Assessing Global Markets Whenit comes to marketing on the global scale, it is important for firms to assess the potential markets they are trying to tap into. There are 4 aspects they need to assess and those are: 1. Economic Analysis using Metrics 2. Infrastructure and Technology 3. Governmental Actions 4. Sociocultural Analysis We will go into a bit more detail on each one next.
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  1. Economic Analysisusing Metrics There are 3 factors when using metrics and those are: 1. The general economic environment 2. The market size and population growth rate 3. Evaluating real income These 3 factors help a firm or company determine the amount of success they will have in that country.
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  General Economic Environment Withinthis factor is several metrics that firms use to determine market potential 1. Trade Deficit: When a country imports more goods than it exports. 2. Trade Surplus: When a country has higher exports than imports 3. Gross Domestic Product (GDP): The market value of goods and services by a country for a year. 4. Gross National Income (GNI): The net income earned from investments abroad. 5. Purchasing Power Parity (PPP): A theory that if exchange rates are in equilibrium, then the product purchased in one country will cost the same in the other country. It is important to note that these metrics are used to help marketers understand and know the wealth of a country, although it does not give a full picture of the economic health of the country.
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  Market Size andPopulation Growth Rate A. Population growth has been on the rise since the 20th century B. According to marketers, that population has not been equally dispersed. C. Distribution of a population within a particular region
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  Evaluating Real Income Whena company sends it product to another country, it needs to adjust meet the needs of that country. India, as an example, is a country where the vast majority have lower incomes and struggle to pay the prices that wealthier people can afford. To increase the consumption, companies will have to lower their prices to meet the need.
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  2. Analysis ofInfrastructure and Technology The second part of assessing any market is an analysis of the infrastructure and technology of the country. Infrastructure is the basic facilities like transportation, water and power lines, schools, prisons, and more. The 4 main elements of infrastructure they look are: 1. Transportation 2. Distribution channels 3. Communications 4. Commerce
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  3. Analysis ofGovernmental Actions An analysis of the actions of the country’s government will go a long way influencing the company’s abilities to sell goods and services. a) Tariffs b) Quotas c) Exchange Control/Exchange Rate d) Trade Agreements/ Trade Bloc
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  4. Analysis ofSociocultural Factors Understanding another country’s culture and beliefs is very crucial to the success of that company’s marketing plan. Geert Hofstede produced six dimensions to understand values and culture and those are: 1. Power Distance 2. Uncertainty Avoidance 3. Individualism 4. Masculinity 5. Time Orientation 6. Indulgence Understanding these 6 dimensions will help marketers understand their consumer’s behavior.
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  Global Strategies Finally, wearrive at the strategies for companies and they are 1) Global Entry Strategy 2) Global Marketing Strategy If companies go to another country blindly, without a plan and strategy, them their efforts will all for nothing and they will have wasted time and money that could have been put to better use elsewhere.
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  Finale As we haveseen, marketing on a global scale takes time, money, and effort to do. It’s not impossible, but it can be made difficult when a company fails to do the proper research, implement their plan, and understand the needs of that country. By following the above- mentioned steps and analysis, you too can achieve marketing on a global scale.