Importance of Global Marketing

Importance of Global Marketing

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  DEMAND FOR FOREIGNPRODUCTS • Thinking globally is important as the demand increases for foreign products in the fast- growing economies of the Pacific Rim and other Asian nations.
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  WORLD’S TEN LARGESTPUBLIC COMPANIES
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  GLOBAL MARKETING • Byusing global marketing a company can expand its market which allows growth and makes them less dependent on their own country’s economy for success. • Global trade provides a source of needed raw materials and other products not available domestically. • Companies find that global marketing and international trade can help them meet customer demand, reduce certain costs, provide information on markets around the world, and increase employment.
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  GLOBAL MARKETERS COMPETING EFFECTIVELY •Companies can learn from their foreign markets. Those who set up foreign offices and production facilities may come upon new products, new approaches to distribution, or even new promotions that they may apply successfully in their domestic market or in other international markets. • A major key to achieving success in foreign markets is the ability to adapt products to local preferences and culture.
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  INTERNATIONAL MARKETING ENVIRONMENT •A company’s Global Marketing Strategy is developed around these key factors: • Economic • Social–cultural • Political–legal • Technological • Competitive influences
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  The Economic Factor •The International economic environment is the nation’s size, per-capita income, and stage of economic development. This information determines its prospects as a host for international business expansion. • Infrastructure- Its important for marketing that the country has adequate infrastructure which includes transportation, communications, banking, utilities, and public services. An inadequate infrastructure may hinder the manufacturing, promotions, and distribution of goods and services in a particular country. • Exchange Rate- Fluctuations in exchange rates can make a nation’s currency more or less valuable compared with those of other nations.
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  The Social-Cultural Factor •Before a company enters into a foreign country it is important the culture of that country is thoroughly reviewed. This includes: language, education, religious attitudes, and social values. • Marketing mistakes can easily happen if you don’t review the cultural barriers. What might mean something in the home market doesn’t mean it will convey the same message in the foreign market. • English is ranked 3rd in the world’s most frequently spoken languages according to www.infoplease.com
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  The Political–legal Factor •Just like in the home country, a business needs to be aware of the following in the foreign market: • Foreign laws and trade regulations • Labor conditions, labor laws and employee rights • Trade regulations, tax laws, import and export requirements • Protectionism through tariffs and quotas • Political Risk Assessment (PRA) • Companies wanting to enter the global market will perform PRA’s to evaluate the political risks of the marketplaces in which they operate or plan to operate in.
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  The Technological Factor •Internet – • Helps firms of all sizes connect around the world • Helps companies add more channels to their business • Helps developing nations compete with industrialized nations • Asia, Europe, and North America together account for about 76 percent of the world’s total Internet usage • Latin America and the Caribbean follow with more than 10 percent • Africa accounts for 9 percent, the Middle East 4 percent, and Oceania/Australia 1 percent
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  The Competitiveness InfluenceFactor • The marketing decisions of each company can influence consumer responses in the marketplace as well as affect the marketing strategies of competitors. • Marketers must continually monitor their competitors’ marketing activities. This includes: their products, distribution channels, prices, and promotional efforts. • Competition can be direct, indirect or time-based • Firms must develop a competitive strategy • Should we compete? • What marketing should we compete? • How should we compete?