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MRKT 301: Advanced Marketing

Study Notes

Global Marketing

Global marketing is nothing but marketing done on national and

international level and which involves understanding the similarities,

dissimilarities and taking advantage of the opportunities to attain the

goal. Concentrating on global marketing is as important as concentrating

on domestic marketing if a company is aiming to increase sales.

The domestic market has become saturated in most categories of products

and services, in all industrialized countries and hence, they started to

deal with other countries to increase their sales. Usually in such case,

goods that are too expensive for the domestic customers to buy are

exported to other well-off countries.

When a company does marketing within the boundaries of a specific county,

it has to compete with other domestic companies as well as international

companies who are a part of the market. The marketing steps taken by the

professionals are based on the taste of a specific audience. The product

might not suit the taste of customers at a higher level. The other

domestic companies that plan to go global hinder the growth of such

companies. They become invisible at the international level as they are

unable to cope with the growing competition and might not be aware of

potential competitors. The product development is dependant on the need

of the local residents. Such kinds of businesses are ethnocentric and are

only bothered about their performance in the domestic marketplace.

Companies planning to go global should start with export to a foreign

client first. The returns wouldn’t be satisfying in the beginning. The

export department can be introduced at the headquarters that deals with

all the laws. There can be a possibility of becoming secondary exporters

by bringing export management company into the picture, who will deal

with the language problem, time difference, paperwork and customers. If

managing the exports without any help, the export department can be

started at an office located abroad. This office works in collaboration

with the regional headquarters. But the respective offshore offices take

the marketing decisions, as they will have best knowledge about the

particular market they are operating in.

Multinational marketing involves marketing in many countries. The

marketing is based on the requirements of different countries and the

returns are rewarding. Each region should be studied individually based

on development, production and marketing. Such kinds of markets are known

as region centric. Global marketing involves the whole globe. The entire

world is summarized as a single market and the products that are released

in the market should fit the needs of any regional marketplace. Marketers

all over the world make the marketing decisions. Such a kind of market is

known as geocentric.

Automotive industry is one such market that saw a global boost in sales

during the last fifty years. Earlier only the local companies like Ford

and General Motors used to produce cars in America, but today other

international competitors like Toyota and Honda are operating in the same

market and have out done the local companies. Another key factor to the

global marketing is the Internet, which introduced e-commerce. Businesses

went going online and global. This encouraged the sales of the company

and the figures are only increasing because of ever increasing Internet