Globalization is the increasing integration of economies and societies globally through trade and cultural exchange. It has led businesses to operate internationally and markets to become more interconnected. Key factors driving globalization include improved communication, transportation, trade agreements, and the growth of multinational corporations. While globalization creates new market opportunities, it also presents threats from increased competition and requires adaptation of marketing strategies to different cultural and economic environments around the world.

2. Globalization
Globalization is the process of increasing social,
cultural, political, and economic interdependence
that has resulted in several changes in business
environment.
It is basically integration of national economies in to
international economy with the help of following:
Trade , FDI, capital flow, spread of technology etc.

3.  International trade system.
 Political legal environment.
 Cultural environment.
 Economic environment.
Factors that influence global
market environment

4. Causes of Globalization
 Improved communication.
 Improved transportation.
 Free trade agreements.
 The growth of multinational company

5. Effects of Globalization
 Effects of globalization are classified into two
broad Categories:
 Global market opportunities .
 Global market threats.

6. Global Marketing
 Selling a product internationally.
 It includes the whole process of planning, producing,
placing, and promoting a company’s products in a
worldwide market.
 Global marketing involves a variety of different products
and opportunities.
 Marketing activities that are coordinated and integrated
across multiple markets.
– Integration may includes Standardized products,
Identical Brand names, Uniform packaging and
similar advertising messages etc.

7.  When marketing products go globally, companies
must recognize that a marketing mix that works in the
domestic market may not have the same success in
another market. Differences in local competition may
require a different pricing strategy etc.
 Product
 Price
 Placement
 Promotion
How is a global marketing
campaign developed

8. Conti….
 Basically the 4 P's of Marketing, product, price, place
and promotion become greater challenges when
applied to global marketing.
 If company's marketing efforts are constrained or
motivated by keeping domestic and international
marketing messages the same, the challenge of
branding, pricing in international currency, foreign
distribution channels and promotional advertising
may not translate well or in better way.

9.  Before deciding on specific marketing
activities, organizations must better
understand their global strategy.
Better Understanding is necessary
for companies in order to adopt
globalization Strategy

10. Conti….
 In order to develop a marketing plan and
engage in the International planning process,
there are some conceptualizations that can
be developed by marketers to see if and how
global marketing efforts should be made.

11. 1) Global Industry
 In order to understand
the global industry,
marketers should
determine the degree
of globalization of their
industry. As this
diagram displays the four
major forces that drive
globalization potential
of an industry.

12. This conceptualization is
used to understand the
nature of global strategy,
and explains the
dimensions
that make up the
competitive
industry structure.
2) Competitive Industry Structure

13. 3) Competitive Advantage
 To better understand the business on a
global scale, competitive advantage must be
realized in one of two ways as
 Cost leadership .
 Differentiation.

14. Different marketing constituents
 There are some different marketing
constituents that need to be considered if
one analyzes the extent of the globalization
of marketing:
 The Consumer.
 Brands.
 The community of marketers.

15. Different Market entry Strategies
 Exporting( direct and indirect)
 Licensing and Franchising
 Mergers and Acquisition
 Contract Manufacturing
 Strategic Alliance
 Joint venture
 Direct Investment

16. Deciding on global Marketing
Program
 Standardized Marketing Mix.
 Adapted Marketing Mix.
 Market Mix Adaptation
In India, McDonald’s
serves chicken, fish, and
veggie burgers, but no beef.
Check out the
Maharaja Mac!

17. Global Product Strategies
 Global product strategies are as follows:
 Straight Product Extension.
 Product Adaptation.
 Product Invention.

18. Conti….
 Global Pricing Strategies
 Companies face many problems in setting their
international prices.
Standard pricing methods such as uniform pricing,
standard markup of costs everywhere, or charging
what the market will bear ignores cost differentials
and local market conditions
Global Pricing Challenges
 Companies may become guilty of dumping. when a
foreign subsidiary charges less than its costs or less
than it charges in its home market.

19.  Red Bull
 Nike
 McDonalds
 Coca Cola
 Dunkin Donuts
 Star bucks
Example of some companies with
brilliant global marketing

20.  Companies such as IBM, Intel, Microsoft, and
Philips have started to outsource specialists
from various parts of the world, causing job
shifts and changes in companies’ structures.
Globalization has caused dramatic
changes to business practices around
the world

21.  For the success of every business it is necessary to
know about the consumer behavior as consumers
are first priority of every business.
 Various factors that influence consumer behavior.
 Access.
 Buying behavior.
 Consumption characteristics.
 Disposal.
Importance of Consumer behavior

22. Globalization effects the buying
behavior of consumers but not
every country is affected the same.
 Every market has relatively central or
relatively peripheral consumption contexts.
Because one and the same product can be
in one country in the relatively central context
but, because of cultural differences, in the
other country in relatively peripheral
consumption contexts.

23. Importance of Culture
 Different countries have different cultures. So
it stands to reason that what is acceptable in
one country is not acceptable everywhere.
Business norms and behavior vary from
country to country.
 Companies that understand cultural nuances
can use them to advantage when positioning
products internationally.

24.  Detroit auto-maker, Chevrolet. They were launching
the Chevy Nova in Mexico. They spent millions on
marketing the car to disappointing results. The
reason was simple: the name.
 In Spanish, “no va” means “no go”…hardly the
message you want for your car. This cautionary tale
sets up the concept that you must know your
audience. And this is true if you are talking about
Paris, Texas, or Paris, France.
Culture and language may vary
from country to country

25. Does global marketing work
 Products that succeed in one culture may fail
in another if marketers fail to understand the
differences among consumers in each place.
 Kellogg, for example, discovered that in Brazil
people don't typically eat a big breakfast as
they are more likely to eat cereal as a dry
snack.

26. Why go global
 To increase sales and raise profitability.
 Generate economies of scale in production.
 Insulate seasonal domestic sales by finding new
foreign markets.
 Create jobs, productivity growth and wealth.
 Encourage the exchange of views, ideas and
information.
 Economic Interdependence among different nations
can build improved political and social links.

27. Why go global (cont.)
 Globalization will give you a larger market.
 Consumers also profit from globalization. Product
become cheapers and you can get new goods more
quickly
 Ability to leverage good ideas quickly and efficiently
 Helps to encourage ancillary industries to set up for
cater for the need of global player.
 Benefits of eMarketing over traditional marketing

28.  Cheap imports from developing nations could lead to
unemployment in developed countries where the cost
of production is high.
 Choosing to specialize in certain products may lead
to unemployment in other sectors which are not
prioritized
 Increased competition for infant industry.
Some Drawbacks of globalization

29.  ‘Dumping’ of goods by certain countries at below cost
price may harm industries in other countries.
 Globalization may lead to more enviromental
problems (a company may want to build factories in
other countries because of enviromental laws are not
strict, exp : China)
Some Drawbacks of globalization
(cont.)
Some Drawbacks of globalization
(cont.)