Introduction to GLOBAL MARKET

INTRODUCTION TO GLOBAL MARKET.

MODULE- 5.

AGENDA.

MAJOR DECISIONS IN GLOBAL MARKETING.

MARKET-PRODUCT GROWTH STRATEGIES.

SIX INDICATORS OF MARKET POTENTIAL.

Major decisions in global marketing.

Deciding Whether to go International

Deciding Which market to Enter

Deciding How to enter the

market

Deciding the Global

Marketing Program and Organization

Market-product growth strategies.

MarketPenetration

ProductDevelopment

DiversificationMarket

Development

ExistingProducts

NewProducts

ExistingMarkets

NewMarkets

Six indicators of market potential.

GEOGRAPHIC. DEMOGRAPHIC. ECONOMIC. TECHNOLOGICAL. SOCIOCULTURAL. POLITICAL.

ALSO, FACTORS

GOVERNING ENTRY INTO

FOREIGN MARKET

Geographic.

Physical size of the country.

Topological characteristics.Climatic conditions.

Demographic.

Size of the population. Rate of population growth. Degree of urbanization. Population density. Age and composition of the

population.

Economic.

GNP per capita. Income distribution.Rate of growth of GNP.Rate of investment to GNP.

*(Gross national product is the market value of all the products and services produced in one year by labor and property supplied by the residents of a country.)

Technological.

Level of technological skill.Existing production technology.Existing consumption

technology.Educational levels.

Sociocultural.

Dominant values.Lifestyle patterns.Ethnic groups.Linguistic fragmentation.

Political.

Laws & regulations.Industry priorities.Infrastructure.Investment plans.

Trends in international marketing

The marketing environment consists of all factors external to an organization that can affect the organization’s marketing activities

Marketing Environment

Identifying Market Opportunities and Threats

The various trends that affect market:

The Social Environment : The social environment includes all factors and trends related to groups of people, including their number, characteristics, behavior, and growth projections

The Demographic Environment : A global perspective requires that marketers be familiar with important demographic trends around the world as well as within the United States

• The cultural environment: It refers to factors and trends related to how people live and behave.

• Changing Roles : for example As more women enter the workforce and household compositions change, typical household roles are altered. Tremendous market opportunities exist for firms that can develop effective strategies for appealing to these changing roles.

• The Economic Environment : The economic environment includes factors and trends related to income levels and the production of goods and services.

• The technological environment: includes factors and trends related to innovations that affect the development of new products or the marketing process. • The Competitive Environment: consists of all the organizations that attempt to serve similar customers.• The institutional environment :consists of all the organizations involved in marketing products and services. • The Political/Legal Environment: international political events greatly affect marketing activities

Product

Product range New product devl Rate of acceptance Packaging after sales

Price

Global pricing:simple fair removes grey market

Not responsive to global market

Local pricing:maximimze revenuemarket response

Grey market

Promotion

Legal factor Socio econimc factor Legal factors How global is the brand Coorporate strategy Uniformity of product

Advantages of standardisation of promotion:

Economies of scale spread of good idea use of global media

Dis Culture linguistic legal not from here

thoughts

Handling each area:global marketing mix strategy

Ideal global marjeting strategy

Ideal nATional strategy

hybrid

hybrid