Domestic and global business environment
Domestic and global business environment
Examination and analysis of global business in its historical, theoretical, environmental, and functional dimensions. ? Focus is on understanding the growing economic interdependence of nations and its impact on managerial and corporate policy of national boundaries. ? Topics include the nature and scope of international business; the institutional, sociocultural, political, legal, ethical, and economic environments.
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Domestic marketing
A marketing restricted to the political boundaries of a country, is called "Domestic Marketing". ? A company marketing only within its national boundaries only has to consider domestic competition. ? Even if that competition includes companies from foreign markets. ? Products and services are developed for customers in the home market without thought of how the product or service could be used in other markets. ? All marketing decisions are made at
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global marketing
? When
a company becomes a global marketer . ? it views the world as one market and creates products that will only require weeks to fit into any regional market place. ? Marketing decisions are made by consulting with marketers in all the countries that will be affected. ? The goal is to sell the same thing the same way everywhere.
international marketing
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If the exporting departments are becoming successful but the costs of doing business from headquarters plus time differences, language barriers, and cultural ignorance are hindering the company’s competitiveness in the foreign market. Then offices could be built in the foreign countries. Sometimes companies buy firms in the foreign countries to take advantage of relationships, storefronts, factories, and personnel already in place. These offices still report to headquarters in the home market but most of the marketing mix decisions are made in the individual countries since that staff is the most knowledgeable about the target markets. Local product development is based on the needs of local customers. These marketers are considered polycentric because they acknowledge that each market/country has different needs.
Elements of the global marketing mix The “Four P’s” of marketing are: ?product, price, placement, and promotion are all affected as a company moves through the five evolutionary phases to become a global company. Ultimately, at the global marketing level, a company trying to speak with one voice is faced with many challenges when creating a worldwide marketing plan
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product
?A
global company is one that can create a single product and only have to weak elements for different markets. ? The product item refers to a specific product offered by a company that satisfies a specific need of a buyer ? E. g. The bulbs, tubelights, ceilingfans etc offered by crompton for electrical items.
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PRODUCT MIX examples
MANUFACTURER ? PHILIPS
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PRODUCT ? Audio systems, Colour Tv,CD players etc.
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COLGATE
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Tooth paste,Toothbrush.
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GODREJ
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Fridge, Furniture items
PRICE
? “Price
is the exchange value of goods and services in terms of money”. ? It is the amount paid for the ‘value’ and utility received by the buyers in the form of a product or service. ? Price will always vary from market to market. ? Price is affected by many variables: ? cost of product development (produced locally or imported), cost of ingredients, cost of delivery (transportation, tariffs, etc.), and much more.
Different kinds of pricing
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The different kinds of pricing are:
Odd Pricing ? Psychological Pricing ? Dual Pricing ? Monopoly Pricing ? Customary Prices ? Skimming Pricing
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placement
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How the product is distributed in also a country by country decision influenced by how the competition is being offered to the target market. How the product is distributed is also a country-by-country decision influenced by how the competition is being offered to the target market.
Ø
Ø Using Coca-Cola as an example again, not all cultures use vending machines. Ø In the United States, beverages are sold by the pallet via warehouse stores. Ø . Placement decisions must also consider the product’s position in the market place. For example, a high-end product would not want to be distributed via a “dollar store” in the United States. Conversely, a product promoted as the low-cost option in France would find limited success in a pricey boutique.
Promotion
vAfter product research development and creation,promotion(specifically advertising) is generally the largest line item in a global company’s marketing budget ?AIDA CONCEPT ? A- Attention ? I- Interest ? D- Desire ? A-Action
Advantages
Economies of scale in production and distribution ? Lower marketing costs ? Power and scope ? Consistency in brand image ? Ability to leverage good ideas quickly and efficiently ? Uniformity of marketing practices ? Helps to establish relationships outside of the "political arena" ? Helps to encourage ancillary industries to be set up to cater for the needs of the global player
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disadvantages
? ? ? ? ? ? ? ?
Differences in consumer needs, wants, and usage patterns for products Differences in consumer response to marketing mix elements Differences in brand and product development and the competitive environment Differences in the legal environment, some of which may conflict with those of the home market Differences in the institutions available, some of which may call for the creation of entirely new ones (e.g. infrastructure) Differences in administrative procedures Differences in product placement.
doc_668226703.pptx
Domestic and global business environment
Examination and analysis of global business in its historical, theoretical, environmental, and functional dimensions. ? Focus is on understanding the growing economic interdependence of nations and its impact on managerial and corporate policy of national boundaries. ? Topics include the nature and scope of international business; the institutional, sociocultural, political, legal, ethical, and economic environments.
?
Domestic marketing
A marketing restricted to the political boundaries of a country, is called "Domestic Marketing". ? A company marketing only within its national boundaries only has to consider domestic competition. ? Even if that competition includes companies from foreign markets. ? Products and services are developed for customers in the home market without thought of how the product or service could be used in other markets. ? All marketing decisions are made at
?
global marketing
? When
a company becomes a global marketer . ? it views the world as one market and creates products that will only require weeks to fit into any regional market place. ? Marketing decisions are made by consulting with marketers in all the countries that will be affected. ? The goal is to sell the same thing the same way everywhere.
international marketing
?
?
?
? ?
If the exporting departments are becoming successful but the costs of doing business from headquarters plus time differences, language barriers, and cultural ignorance are hindering the company’s competitiveness in the foreign market. Then offices could be built in the foreign countries. Sometimes companies buy firms in the foreign countries to take advantage of relationships, storefronts, factories, and personnel already in place. These offices still report to headquarters in the home market but most of the marketing mix decisions are made in the individual countries since that staff is the most knowledgeable about the target markets. Local product development is based on the needs of local customers. These marketers are considered polycentric because they acknowledge that each market/country has different needs.
Elements of the global marketing mix The “Four P’s” of marketing are: ?product, price, placement, and promotion are all affected as a company moves through the five evolutionary phases to become a global company. Ultimately, at the global marketing level, a company trying to speak with one voice is faced with many challenges when creating a worldwide marketing plan
?
product
?A
global company is one that can create a single product and only have to weak elements for different markets. ? The product item refers to a specific product offered by a company that satisfies a specific need of a buyer ? E. g. The bulbs, tubelights, ceilingfans etc offered by crompton for electrical items.
?
PRODUCT MIX examples
MANUFACTURER ? PHILIPS
?
? ?
PRODUCT ? Audio systems, Colour Tv,CD players etc.
?
?
?
COLGATE
?
? ?
?
Tooth paste,Toothbrush.
?
GODREJ
?
?
Fridge, Furniture items
PRICE
? “Price
is the exchange value of goods and services in terms of money”. ? It is the amount paid for the ‘value’ and utility received by the buyers in the form of a product or service. ? Price will always vary from market to market. ? Price is affected by many variables: ? cost of product development (produced locally or imported), cost of ingredients, cost of delivery (transportation, tariffs, etc.), and much more.
Different kinds of pricing
?
The different kinds of pricing are:
Odd Pricing ? Psychological Pricing ? Dual Pricing ? Monopoly Pricing ? Customary Prices ? Skimming Pricing
?
?
placement
?
How the product is distributed in also a country by country decision influenced by how the competition is being offered to the target market. How the product is distributed is also a country-by-country decision influenced by how the competition is being offered to the target market.
Ø
Ø Using Coca-Cola as an example again, not all cultures use vending machines. Ø In the United States, beverages are sold by the pallet via warehouse stores. Ø . Placement decisions must also consider the product’s position in the market place. For example, a high-end product would not want to be distributed via a “dollar store” in the United States. Conversely, a product promoted as the low-cost option in France would find limited success in a pricey boutique.
Promotion
vAfter product research development and creation,promotion(specifically advertising) is generally the largest line item in a global company’s marketing budget ?AIDA CONCEPT ? A- Attention ? I- Interest ? D- Desire ? A-Action
Advantages
Economies of scale in production and distribution ? Lower marketing costs ? Power and scope ? Consistency in brand image ? Ability to leverage good ideas quickly and efficiently ? Uniformity of marketing practices ? Helps to establish relationships outside of the "political arena" ? Helps to encourage ancillary industries to be set up to cater for the needs of the global player
?
disadvantages
? ? ? ? ? ? ? ?
Differences in consumer needs, wants, and usage patterns for products Differences in consumer response to marketing mix elements Differences in brand and product development and the competitive environment Differences in the legal environment, some of which may conflict with those of the home market Differences in the institutions available, some of which may call for the creation of entirely new ones (e.g. infrastructure) Differences in administrative procedures Differences in product placement.
doc_668226703.pptx