Introduction to Global Marketing
Hello and WELCOME to module 1 where we will explore the international marketing environment.
Our aim is to To introduce the global marketing concept and discuss major changes in the world that will lead to more opportunities
Our objectives are to study the Macro overview of the international marketing environment, then to look at the Internationalization process, and we will end this session by observing a sample brief about a global opportunity
The world is changing rapidly. The geo-economical landscape will look quite different in 2020
This will have a profound impact on where the new market opportunities will be
Some NOTABLE predictions include that CHINA may become the biggest single economy in the world, with the US remaining prominent at second position – and countries like India, Russia and Brazil experiencing unprecedented growth.
As a result of the shift in growth patterns, It is expected that the APAC region will become the largest consumer market in the world, followed by Europe and the North America.
In recent years, MANY new cities that never existed were built in China. The country now has more than 100 NEW tier 2 cities which will have more than 1 million people each.
In support of the rising might of the APAC reason, it is predicted that Amongst the G20 and OECD countries, India and China will account for 40% of all young people with a University degree.
The ageing demographic in the EU, USA and China will create an urge for greater and unfettered access to new markets through globalization – and the competition between these three regions has already caused global tension, however the OPPORTUNITY should not be underestimated.
In recent years, Global trade has been improved through Economic Integration. Examples of how this has been ACHIEVED, includes
Foreign trade zones , known as FTZ’s, such as Dubai and Hong Kong
Cross-National Agreements such as NAFTA and MERCOSUR
It also includes Common Markets like the EU and USA
As well as Monetary Unions where a single currency is used, such as the EU and USA.
As marketers, when we require MACRO overview of any country or region, one of the most effective ways to achieve this is by carrying out a PESTEL analysis. This course will include a report that demonstrates the use of a PESTEL analysis, for now all we need to know is that PESTEL stands for:
Political intentions and policy making
Economic structure, indicators and policy making
Societal (culture, attitudes and reference groups)
Technological developments (current and future)
Ecological and natural environmental influences
Legal frameworks and the imposition of new laws
The sources of information that we use in a Pestel Analysis should be accurate and reliable. Good sources often include industry reports and governmental sources.
Next we will define the internationalization process, which is a methodical approach that any company should follow if it aims to expand internationally.
Firstly, A decision must be made on wheter OR NOT to enter a new country;
Secondly, We will SELECT countries that are viable to enter;
Thirdly we will decide WHICH entry strategy is the safest and the best;
Which enables us to move to the fourth phase, which is to FORM a MARKETING PLAN.
Our final step, will be to EXECUTE the marketing plan and review it dynamically.
Companies that expand internationally would usually do so through two approaches: Either through LOCALISATION, or GLOBALIZATION. When Nestle created local versions of the KIT-KAT chocolate bar, it chose to localise it’s product. When APPLE chose to provide ONE standard version of the iPAD, it followed the GLOBALIZATION model instead.
A good marketer will always try to be GLOCAL: Which is GLOBAL AND LOCAL
The global vision of the company can be structured in four ways:
Ethnocentric – home country superior centralized
Polycentric – each country has unique adaptation to local markets
Regiocentric – coordination within regions
Geocentric / “Glocal”– think global, act local
We would like to conclude this session with a brief. Imagine you are an international marketing consultant. The Italian owner of a luxury manufacturer similar to Prada consults your advice on entering the Chinese market: His questions to you are as follows:
Does a suitable opportunity exist?
How can they best enter the market?
How should the marketing plan be adapted for China?