POSTGRADUATE INSTITUTE OF MANAGEMENT

University of Sri Jayewardenepura

Master of Business Administration
1. Introduction to Global Marketing (Chapter 1) MBA 609 : Global Marketing
2. Global Market Participation (Chapter 8)
3. Global Market Entry Strategies (Chapter 9)
4. Global Product Strategies (Chapter 10)
5. Global Strategies for Services, Brands & Social Marketing (Chapter 11)
6. Pricing for International & Global Markets (Chapter 12)
7. Managing Global Distribution Channels (Chapter 13)
8. Global Promotion Strategies (Chapter 14)
9. Managing Global Advertising Strategies (Chapter 15)
10. Simulation Work & Revision
Understanding the Global Marketing Environment Analyzing Global Opportunities
o The Global Economy (Chapter 2) o Global Markets (Chapter 5)
o Cultural and Social Forces (Chapter 3) o Global Competitors (Chapter 6)
SELF STUDY o Global Marketing Research (Chapter 7)
o Political and Regulatory Climate (Chapter 4)
Asanga Ranasinghe
The Importance of Global Markets
• Products have been traded across borders throughout recorded civilization, extending back beyond the Silk
Road that once connected East with West from Xian (China) to Rome (Italy).
• Total world merchandise trade is expanding rapidly – the combined value of exports has exceeded $ 15
trillion annually.
• International trade has grown faster than domestic economies – increasing pace of globalization
• The scope of global marketing includes many industries & many business activities.

Engages in global marketing Operates automobile manufacturing plants in many

countries, engages in global marketing, even though a Large retail chains search for new
when it sells its aircraft to
major part of Ford’s output is sold in the country where products abroad to sell in the US as
airlines across the world
it is manufactured major global buyers

• Per capita income is an important determinant of consumer buying behavior. When the disposable income
increases, there is an increased convergent pressures on consumer buying behavior.
o People with higher incomes tend to enjoy similar educational levels, desires for material positions, ways of
spending leisure time & aspirations for the future.
• Due to global marketing, consumers have a wider, more divergent “choice set” of goods & services to
choose from based on their disposable income. Asanga Ranasinghe
Why Companies Seek Global Markets
• Some firms simply respond to orders from abroad without making any organized effort.
• Many firms enter foreign markets to increase sales & profits
• Some companies pursue opportunities aboard when their domestic market has reached maturity.
• Sometimes a domestic competitive shock provides the impetus to globalize
o FTAs between countries lead to increased domestic competition & opportunities to enter foreign markets
• Other firms launch their international marketing operations by following customers who move abroad
• For some firms, the reason to become involved in global marketing has its roots in pure economics
o Film & television show producers of US rely on international markets to cover costs & make profits due to huge
production costs
• Growing trend in on-line sopping habits around the world
o Online shopping giants are aggressive in expanding into important Asian markets such as India, China & Japan

Market leader worldwide in the soft-drinks

business, finds that on a per-capita basis, most
foreign consumers drink only a fraction of the When Japanese automobile manufacturers opened plants in
cola that Americans drink – an enormous the US, many of their component suppliers followed & built
growth potential in international markets operations nearby`
Asanga Ranasinghe
Evolution of Global Marketing
• What is marketing?

• Marketing involves the planning & execution of the conception, pricing, promotion, & distribution of
ideas, products, and services.
• Marketing involves customer satisfaction their current and future needs.
• Marketing is much more than selling & involves the entire company.
• Within marketing strategies, companies are always under competitive pressure to move forward both
reactively and proactively.
• Companies doing well at global marketing always remember that “standing still meaning getting run over”

A Japanese automobile manufacturer. Initially operated in Japan & then

started to export to US. By mid-1980s started manufacturing operations in
the US and currently exports out of US. Recently Honda announced that it
would start manufacturing its “world car” in Thailand, Brazil & China due to
lower cost & then export to other markets to compete better globally.

4
Asanga Ranasinghe
The Development of Global Marketing
Single – Country (Domestic) Marketing Dual – Country (Export) Marketing

Multi-country Marketing Global Marketing

Asanga Ranasinghe
The Development of Global Marketing
• Domestic Marketing – marketing activities aimed at a firm’s domestic market
o Deals with only one set of national customers, although the company may serve several segments in that one market

• Export Marketing – marketing activities undertaken when a firm sells its products abroad & when those
products are shipped from one country to another
o The focus is on country/ market selection, product modifications, running its export operations as complementary,
profitable byproduct of its domestic strategy
o Other aspects are pricing, channel management & promotions – mostly outsourced either to foreign agents or
distributors or to specialist export management companies located in the firms home country
• International Marketing – marketing activities undertaken when a company becomes significantly involved in
local marketing environments in foreign countries
o Companies need to decide how to adjust an entire marketing strategy – how they sell, advertise & distribute
products, in order to fit new market demands
o Key to success is in the understanding of different cultural, economic, political environments & navigating the
differences
When McDonalds entered in India, they did an extensive research before zeroing upon the menu on offer
for the Indian consumers. The company made sure to respect Indian culture by not serving beef or pork
recipes which on the other hand were popular ingredients in other markets. McDonalds also made sure
to create recipes with Indian spices to match the local taste.
Asanga Ranasinghe
The Development of Global Marketing
• Multidomestic Marketing – a marketing strategy pursued by a multinationals to compete by applying many
different strategies, each one tailored to a particular local market – MNCs would attempt appear “local” while
being global.
o MNCs are characterized by extensive investments in assets abroad & operates in a number of foreign countries as
though it were a local country
Global Efficiency Nestle uses transnational strategy
where some products are available
worldwide while others are only
A global strategy – where sold in select markets
minor or no modifications to
products & services are made
– is used by iconic products Heinz uses a multi domestic
such as Tabasco strategy where foods are customized
to be responsive to local tastes

Local Responsiveness
• Pan- regional Marketing – a marketing strategy that seek regional synergies in marketing operations in one
region with the aim of achieving increased efficiency – moving from multidomestic to pan-regional strategies
for economies of scale.

Regional economic & political integration among USA, Canada & Mexico through a trade pack has allowed
global marketers to adopt a more regional marketing strategy for all 3 markets.
Asanga Ranasinghe
The Development of Global Marketing
• Global Marketing – a marketing strategy that involves the creation of a single strategy for a product, service,
or company for the entire global market that nonetheless incorporates flexibility for local adaptation.
o It encompasses many countries simultaneously
o It is aimed at leveraging the commonalities across many markets
o It maintains flexibility to adapt to local market requirements where necessary as opposed to tailoring a strategy
perfectly to any individual market
o Global marketers enjoy several benefits beyond those of international marketers
 Can allow firms to offer better products & services at a lower cost, even when adapting for local market conditions using
global scale advantage
 Can use their increased profits to invest in product development, brand building or increase promotions
 Can introduce new products rapidly into man foreign markets using global connectivity
 Can fight global competitors better using global knowledge
 Can build & deploy talent using global reach

Asanga Ranasinghe
Why Study Global Marketing
• As firms become increasingly globalized competence in global marketing will become more & more important
to exploit opportunities

IKEA (a Swedish firm) is now a dominant player in the US through its new & differentiating
concept of setting up large stores where consumers could browse, buy & take furniture home
in disassembled form at the end of their visit – a novel concept to the US market.

• As global competitors enter local markets, the local companies will be forced to use global ideas &
experiences so that the best products & services can be marketed more efficiently & effectively

The liberalization of the dairy industry in India has seen a number of

multinational players like Britannia & Nestle enter the sector. Analysts
wondered whether a co-operative with limited financial means & home grown
processes could stand up to the might of these MNCs. Amul had proved its
detractors wrong with year on year market beating growth & profitability
improvement.
Asanga Ranasinghe
Why Study Global Marketing
• To compete successfully in today’s global marketplace, companies & their management must master global
competence – the ability to balance local market needs with the demands of global efficiency & the
opportunities of global synergies.

Environmental Analytical Strategic Functional Managerial

competence competence competence competence competence

• Needed to • Necessary to pull • Helps to focus on • Need to possess • Ability to

navigate the together a vast the where, why & a thorough implement
global economy array of how of global background in all programs & to
• Area of expertise information market areas of organize
o Knowledge of concerning global participation marketing, such effectively on a
the dynamics markets & as product global scale
of world competitors development,
economy
channel
o Major markets
o Political, social
management,
& cultural pricing &
environments promotion
Global Competence
Asanga Ranasinghe
Building Global Brands
• Brands today must be global, offering value across different countries & diverse cultures.
• They must be
o consistent across global markets so that consumers who travel physically or virtually won’t be confused.
o precise enough to provide clear differentiation from competition in each market
• A strong global brand must express the same core meanings regardless of the market it is in.
• If the core meanings are not stable across markets, the authenticity of the brand is threatened because the
consumers will be confused.
o In a digitally connected world, one slipup can go around the world via social media instantaneously.
• While brands must be global, products should be local – introduced with a clear consumer understanding.
• The global marketing mix has to be developed keeping the local market conditions in mind.

Asanga Ranasinghe
Conclusion
• With market & industries becoming increasingly globalized, most companies must become active
participants in global marketing
• The competitive positions of most companies, rest on their ability to succeed in global markets,
competitively & profitably.
• Similarly the economies of entire countries depend on the global marketing skills of managers to build
global brands.
• The standard of living of many people will be governed by how well industry performs in the global
marketplace
• These forces will place a premium on executive talent that is able to direct marketing operations from a
global perspective
• Clearly many business professionals will need to understand the global dimension of the marketing
function if they are to progress in their careers – need global competence.
• The foreign marketing environment is characterised by a wide range of variables not typically encountered
by domestic firms
• Despite the complexities involved, there are concepts & analytic tools that can help global marketers
succeed internationally.
Asanga Ranasinghe