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INTRODUCTION

Globalization has caused dramatic changes to business practices around the world. 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 (Engardio, Bernstein, and Kripalani, 2003). Alliances among automakers (e.g., GM-Ford- DaimlerChrysler, Ford-Mazda, and GM-Honda), petroleum manufacturers (e.g., BP-Mobil, NUPI-Chevron Texaco), and airlines (e.g., star alliances) are other examples of changes driven by this phenomenon. Therefore, this dissertation investigates the effects of globalization on business firms with a particular interest on how it affects firms from both emerging economies (i.e., Thailand), and developed economies, (i.e., the U.S). In this study, globalization refers to the process of increasing social and cultural inter-connectedness, political interdependence, and economic, financial and market integrations that are driven by advances in communication and transportation technologies, and trade liberalization (Eden and Lenway, 2001; Giddens, 1990; Molle, 2002; Orozco, 2002). The dissertation is comprised of three related studies. The first study is empirical research designed to examine the effects of globalization on the performance of exporting firms in Thailand and in the U.S. The second study examines the relationships between the effects of globalization and the degree of co-marketing alliance and international marketing performance of firms. The last study makes an empirical investigation of the effects of globalization on the degree of co-marketing alliance and international marketing performance of firms from two distinct economic contextsdeveloped and emerging economies, which are represented by American and Thai firms, respectively. Thailand and the U.S. are appropriate research settings2 since these two countries differ greatly in their degree of globalization (Foreign Policy, 2001, 2003, 2004), level of economic development, and national competitiveness (Porter, et al., 2000; Porter and Schwab, 2003).

While the U.S. is highly globalized, Thailand is considerably less globalized. According to the survey conducted by AT Kearney and EDS Company in cooperation with Foreign Policy Magazine (2004), Thailand is ranked 48th , and the U.S. is ranked 7thon the globalization index. Thailand is classified as a lower-middle-income economy, one in which the Gross National Income (GNI) per capita is between $736 and $2,935, while the U.S. is considered a highincome-economy whose GNI per capita is above $9,076 (The World Bank Group, 2003). Furthermore, the national competitiveness of these two nations differs dramatically. The U.S. is the second most competitive country in the world whereas Thailand is ranked number 40 on the national competitiveness index (Porter and Schwab, 2003). In this introduction, the phenomenon of globalization, including the effects of globalization on businesses, is first described. The purpose of the study, the major research questions, and the scope of the study are then presented. Finally, the organization of the dissertation is provided in the last section.

MEANING
The process of conceptualizing and then conveying a final product or service worldwide with the hopes of reaching the international marketing community. Proper global marketing has the ability to catapult a company to the next level, if they do it correctly. Different strategies are implemented based on the region the company is marketing to. For example, the menu at McDonald's varies based on the location of the restaurant. The company focuses on marketing popular items within the country. Global marketing is especially important to companies that provide products or services that have a universal demand such as automobiles and food.

DEFINATION
The Oxford University Press defines global marketing as marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives.

Global Marketing Is it different from regular marketing? Marketing : Series of Activities leading to an exchange Organizations efforts to satisfy customer wants and needs with products and services with competitive value Marketing Mix: Marketers primary tools Marketing is an universal discipline Global Marketing Focus on Global markets and opportunities Scope of activities is different Universal marketing guidelines should be combined with specific concepts,considerations and strategies to ensure success

MarketingAn Universal Discipline Marketing: Focusing on resources and objectives of an organization on environemental opportunities and threats Set of concepts,tools, theories,practices and procedures, and experiences Teachable and Learnable body of knowledge Marketing practice varies from country to country The Marketing Concept Shift of focus from the product to the consumer in the 60s The strategic Concept of Marketing evolved in the 1990s Knowing the customer in a context From profits to stakeholders benefits From profit maximization to managing strategic relationships Positioning the firm in the value chain The Infosys Sustainability Report 2008 Communication channels with key stakeholders Customers: Customer Satisfaction Surveys Annual Customer Leadership Meets Employees: Employee Satisfacion Surveys Inclusivity Survey Infosys Women Inclusivity Councils CEO-Employee Column Local Communities: Site Visits Interactions with NGOs Investors: Annual meets Suppliers: Vendor Surveys Government: Membership in key Government bodies Education: Global Internship Programs/Fellowships Three Principles of Marketing Customer Value Competitive or Differential Advantage Focus

Customer Value Value(V)= B(Benefits)/P(Price) Task is to create better customer value than competitors Cos with cost advatage: Price competitive weapon Knowledge of Customer+ Innovation & Creativiity can lead to offerings of superior customer value SAP empowers midisized cos deliver superior CV SAP Business All-in-One Solution adds new CRM functionality Delivers key CRM capabilties to marketing sales and services with ability to analyze results Enables companies to generate more sales leads,close more deals and provide better service and support

Competitive or Differential Advantage CA: Total offer that is is more attractive to customers vis--vis competitors Could come from any element of the offer Product Price Promotion Distribution Designa competitive advantage Unicorn Industrial Sewing Machines Company in China Makes Sewing Machines for Consumers and Industrial Users Design..a competitive advantage Industrial sewing machines can have over 1000 precision parts and assemblies Uses Autodesk Invention software to make product desgn more efficient and reduce design cycle time and potential errors Makes it possible even for new engineers to design in a third of the time Focus Required to succeed in the task of creating Customer Value at a competitive advantage Concentrating resources or efforts on consumer needs and wants How to deliver a product that will meet those needs and wants Global Marketing: What it is and what it is not? Markets and customers are different from country to country Marketing practices must vary Experiences not directly applicable from country to country Kellogg Breakfast cereals The Global Marketing Controversy Prof. Theodore Levitt in HBR 1983 Globalization of Markets Homogenous Global Village High Quality, world products Market around world using standardized advetising,pricing and distribution Major failures Coca Cola.A major global Marketing Success Success not based on standardization of marketing mix elements Global Localization Think Global, Act Local Combination of standard(actual product itself) and nonstandard( distribution or packaging)
Group DanoneA truly Global company Revenues of Euro 15.22 Billion in 2008 Worlds No. 1 in Fresh Dairy Products Worlds No. 2 in Bottled Water Worlds No. 2 in Biscuits Group Danone Presence in 120 countries 40% Revenues from outside Europe Key to Danones success: extensive knowledge of local market Focus: Innovation and local market autonomy Groups Identity Worldwide business with local presence Group Danone Priority: Develop a strong brand that reflect consumer needs in that market as closely as possible Danone: seen as French in France Spanish in Spain Mexican in Mexico Dannon in America In Argentina, fresh dairy brand Le Serenissiree 65% market share Group Danone Most new product ideas come from specific needs in a country Usually tested in the country Drinking yoghurt Actimel first tested in Belgium Juice brand Dano first tested in France If product works,local office takes and adapts it Role of HQ: For each pdt, the pureness of the concept Group Danone Local office: can adapt to individual markets,encouraged to Some change advertising,some change name Some opt for sweeter tasting yoghurt,some will have simpler packagings

Global Marketing No imposition of a standardised approach Does not mean entering every market in the world Means widening business horizons to encompass the world when scanning for opportunities and threats Decision to enter markets will depend on several factors like resources,managerial mindset and nature of opportunities and threats Nokia-A Global marketing success Worlds largest handset manufacturer In 2005, Nokia was loosing market share and share price was dipping Missed the mobile-as-fashion statement trend Slow to take advantage of this trend in developed world Concentrated on building business in developing world(India,China,Indonesia) Different requirement:Basic,reliable hardware Nokia-A Global Marketing Success Global Market share jumped to 40% in 2007 China market share: 35% Trusted,but not trendy in the USA US Cellphone market difficult to grow Driven by cell-service carriers,like Verizon,AT & T Phones sold at subsidized rates,works only with their service Nokia-A Global Marketing success Europe: Nokia leader USA leaders: Samsung, Motorola and Palm USA: consumers driven by emerging technology No right products Corrected by launch of two new products: E Series and N Series E Series: corporate E-mail users N Series: Multimedia capabilties Nokia E 90: closer to laptop Some models: Big and Untrendy in USA but seen as strength in some markets Old,Flat brick phones:Out of fashion in USA,status symbol in Jakarta Trend laggard,but enormous level of trust from consumers in Asia and Europe Wide View of the World LVMH Moet Hennessey Louis Vouitton-A Global Marketing Success Worlds largest luxury products manufacturer LVMH Enduring status symbol around the world Major threats: Counterfeiting Brand Dilution Growth Markets: China and India China: set up in 92 Todat,LVMH Chinas leading luxury brand 4 stores: Nanjing,Beijing,Tiajin and Shenyang 3 Stores in India: 2 in Delhi and 1 in Mumbai 31. LVMH in Japan Japanese customer: great eye for detail Powerful appeal of French quality and savoir faire Respect tradition yet future facing 54 Stores in Japan Store Architecture integral part of brand identity Instore experience as important as the product 32. LVMH in Japan-the Omotendo Building in Tokyo 33. LVMH in Japanthe Omotendo Building 34. The Importance of Global Markets Largest Market in the world: USA: 25% Second largest Market: Japan: 15% Largest European Market: Germany: 8% Rise of the global corporation Inefficient companies will disappear 35. The Worlds largest companies 22,345 205,514 China Sinopec 9. Netherlands ING Group 8. 20,102 259,171 France Total SA 6. 35,235 367,053 UK BP 4. 51,340 453,500 Netherlands Royal Dutch Shell 1. -4,560 203,260 Japan Toyota Motors 10. -16,998 230,764 USA Conoco Philips 7.

23,931 263,159 USA Chevron 5. 13,400 405,607 USA Wal-Mart 3. 45,220 442,851 USA Exxon-Mobil 2. Profit($ mill) Revenues($ mill) Country Company Rank

36. Management Orientations Cos responses depends on managements assumption or beliefs Ethnocentric Polycentric Regiocentric Geocentric 37. Ethnocentric Orientation Home country is superior Sees similarities in foreign countries Assumption is: successful products in home countries can be sold anywhere without adaptation Foreign operations viewed as secondary or subordinate Assumption is HQ knowledge and capabilties applicable anywhere For mfg cos, foreign markets means of disposal of surplus 38. Ethnocentric Orientation No systematic marketing research outside home country No major modification in product Differerences in consumer needs ignored Ethnocentrism big internal threat 39. Polycentric Orientation Belief that each country is unique Each subsidiary develops its unique business and marketing strategies Called a Multinational Company 40. GE in Korea GE Capital,financing arm Started with fully owned subsidiary in Korea For six years,tried to market auto,personal loans and leasing of office equipments Negligible market share Folded ops of its two subsidiaries in 2004 into two subsidiaries of Hyundai Motors-Hyundai Capital(car financing arm) and Hyundai Card(credit card arm) 41. GE in Korea Since 2004, invested $ 3 billion in these two subsidiaries Owns 43% of the shares GEs biggest minority investments in the world Now, among GEs most profitable investments Model for GEs marketing and branding strategies worldwide Before Hyundai, GE strongly preferrred management control in JVs 42. GE in Korea GE success in Korea led to similar decisions25.4% of Bank of Ayudha in Thailand Hyundai had 75% of the Korean auto market Korean operations provide 5.1% of GEs worldwide profits of the consumer fianncing business GE: moving from ethnocentricity to polycentricity 43. Regiocentric Orientation Regions as Unique Intergrated Regional Strategy US company focusing on the NAFTA countries European company focusing on EU or Europe 44. Geocentric Orientation Entire world as potential market Integrated world marketing strategy Worldview: similarities and differences in markets and countries Global strategy fully responsive to local needs and wants 45. Ford and the World car Modelled after the BMW world car the 3 Series Sports Sedan 46. Ford and the World Car Ford planning the world car Simple premise Building one product for multiple markets Basic belief: To make money on smalll cars, development and other costs to be spread over one huge global

market First test: the subcompact Fiesta Fiesta selling well in Europe and Asia, to debut in the USA early 2010

47. Ford and the World Car Risky strategy, failures earlier Potential for huge profits Regional divisions disagreement CEO has organized the company around the world car Global version of other models planned 48. Ford and the World Car Potential savings: upto $ 700 million per model Plus factor: European and US tastes seem to be converging Midsize sedans earlier much smaller in EU than USA,now almost comparable Tastes to a degree is globalizing 49. The Inspirationthe BMW 3 Series Sports Sedan Virtually the same in every market Secret of success Show consumers what the next big thing is,not relect what they know now Ubiquity engenders trust while design creates inspiration 50. The Research Ford researched small car buyersowners of VW in EU,Honda in USA and Toyota in China Consumer: Aged 20-30 Limited funds Big apetite for fashion and design Imaginary Global archetype customer: Isabella Recent college graduate living near Milan Creative,thinking about pursuing journalism 51. Isabella.. Modest earner,likes city living Fashionable,very much in social media Customer Clinics conducted all around the world Isabells personality traits,aspirations and sensibilties and what she wants resonated around the world What worked for BMW, will it work for Ford??????? 52. Factors driving Global Integration and Marketing Technology Truly stateless No cultural boundaries Soon available everywhere in the world 53. Regional Economic Agreements NAFTA(North Atlantic Free Trade Agreement) WTO (World Trade Organization) EU (European Union) 54. Market Needs and Wants Cultural universals and differences Common elements in human nature: Basis for creating global markets Converging consumer needs and wants Top global brands built on fulfilling universal needs..basic appeal are global 55. The Top Global Brands 56. Transportation and Communication Improvements Time and cost barriers with distance has fallen dramatically Physical distribution costs and time has reduced 57. Product Development Costs New products: Major investments and long periods of development time Pfizer R&D Budget: $ 7 Billion Annually 58. Product Development costs High Product Development costs must be recovered in global marketplace No single national market likely to be large enough 59. Quality Global Marketing Strategies generates greater revenue,greater margins and larger investments in product design and quality Global

companies raise the bar Uniformity drives down research,engg,design and production cost

60. World Economic Trends Economic Growth resulted in market opportunities India: Fertile Ground for long-term sustainable growth India: A guaranteed- to-happen success story: Between 92-93 to 2005-2006, average growth rate: 6.2% India : Young People,virgin market: 400 Million people below 21 and 20 Million new babies every year 61. World Economic Trends Reduced resistance to entry of foreign firms Worldwide movement towards deregulation and privatization 62. Leverages....Experience transfer Can leverage its experience in any market in the world: Management Practices Strategies Products Advertising Appeals Sales Ideas Promotional Ideas 63. Leverages..Scale Economies Advantage of greater manufacturing volumes to obtain economies of scale Finished products can be produced by combining components manufactured by scale-sufficient plants in different countries 64. Scale Economies Buying.Levers Global procurement Officer Manufacturing Marketing Research & Development Logistics 65. Resource Utilization Ability to scan the world to identify people.money and raw materials that will enable it to compete efficiently in world markets Indiabulls real Estate raised $ 533 million from FIIs(Fidelity,HSBC,TPG and Moor Capital) in May 2009 66. Global Strategy Greatest single advantage Based on info system that scans the whole world to identify opportunities,trends,threats and resources Once opportunities are identified,leverages its skills and focuses its resources to create superior customer value and achieve competitive advantage Design to create winning effort on a global scale 67. The Global/Transnational Corporation Any Business Enterprise that pursues global business objectives by linking world resources to world market opportunities Within the international financial framework Under the umbrella of global peace Advantage of expanding communication technologies Serve needs and wants on global scale 68. Restraining Forces Management Myopia and Organizational Culture Essential to combine global vision and perspective with local market initiative and input 69. National Controls and Barriers Protectionist forces Control over market acess and entry Control over advertising Nontariff Barriers Only solution: Become insiders in every country

Worldwide competition

One of the product categories in which global competition has been easy to track in U.S.is automotive sales. The increasing intensity of competition in global markets is a challenge facing companies at all stages of involvement in international markets. As markets open up, and become more integrated, the pace of change accelerates, technology shrinks distances between markets and reduces the scale advantages of large firms, new sources of competition emerge, and competitive pressures mount at all levels of the organization. Also, the threat of competition from companies in countries such as India, China, Malaysia, and Brazil is on the rise, as their own domestic markets are opening up to foreign competition, stimulating greater awareness of international market opportunities and of the need to be internationally competitive. Companies which previously focused on protected domestic markets are entering into markets in other countries, creating new sources of competition, often targeted to pricesensitive market segments. Not only is competition intensifying for all firms regardless of their degree of global market involvement, but the basis for competition is changing. Competition continues to be market-based and ultimately relies on delivering superior value to consumers. However, success in global markets depends on knowledge accumulation and deployment.[1] tiwana. [edit]Evolution to global marketing Global marketing is not a revolutionary shift, it is an evolutionary process. While the following does not apply to all companies, it does apply to most companies that begin as domestic-only companies. [edit]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, it still only has to focus on the competition that exists in its home market. 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 headquarters. The biggest obstacle these marketers face is being blindsided by emerging global marketers. Because domestic marketers do not generally focus on the changes in the global marketplace, they may not be aware of a potential competitor who is a market leader on three continents until they simultaneously open 20 stores in the Northeastern U.S. These marketers can be considered ethnocentric as they are most concerned with how they are perceived in their home country. [edit]International marketing International marketing is the export, franchising, joint venture or full direct entry of a marketing organization into another country. This can be achieved by exporting a company's product into another location, entry through a joint venture with another firm in the target country, or foreign direct invesetment into the target country. The development of the marketing mix for that country is then required - international marketing. It can be as straightforward as using existing marketing strategies, mix and tools for export on the one side, to a highly complex relationship
strategy including localization, local product offerings, pricing, production and distribution with customized promotions, offers, website, social media and leadership. Internationalization and international marekting meets the needs of selected foreign countries where a company's value can be exported and there is interfirm and firm learning, optimization and efficiency in economies of scale and scope. the firm does not need to export or enter all world markets to be considered an international marketer. [edit]Global Marketing

Global marketing is a firm's ability to market to almost all countries on the planet. With extensive reach, the need for a firm's product or services is established. The global firm retains the capability, reach, knowledge, staff, skills, insights, and expertise to deliver value to customers worldwide. The firm understands the requirement to service customers locally with global standard solutions or products, and localizes that product as required to maintain an optimal balance of cost, efficiency, customization and localization in a control-customization continuum to best meet local, national and global requirements to position itself against or with competitors, partners, alliances, substitutes and defend against new global and local markket entrants per country, region or city. The firm will price its products appropriately worldwide, nationally and locally, and promote, deliver access and information to its customers im the most cost-effective way. The firm also needs to understand, research, measure and develop loyalty for its brand and global brand equity (stay on brand) for the long term. At this level, global marketing and global branding are integrated. Branding involves a structure process of analyzing "soft" assets and "hard" assets of a firm's resources. The strategic analysis and development of a brand includes customer analysis (trends, motivation, unmet needs, segmentation), competitive analysis (brand image/identity, strengths, strategies, vulnerabilities), and self-analysis (existing brand image, brand heritage, strengths/capabilities, organizational values)[2] Further, Global brand identity development is the process establishing brands of products, the firm, and services tlocally and worldiwde with consideration for scope, product attributes, quality/value, uses, users and country of origin; organizational attributes (local vs. global); personality attributes (genuine, energetic, rugged, elegant) and brand customer relationships (friend, advisor, influencer, trusted source); and importantly symbols, trademarks metaphors, imagery, mood, photography and the company's brand heritage. In establishing a global brand, the brand propisition (functional benefits, emotional benefits and self-expressive benefits are identified, localized and streamlined to be consistent with a local, national, international and global point of view. The brand developed needs to be credible. A global marketing and branding implementation system distributes marketing assets (website, social media, google PPC, PDFs, sales collateral, press junkets, kits, product samples, news releases, local minisites, flyers, posters, alliance and partner materials, affiliate programs and materials, internal communications, newsletters, investor materials, event promotions and tradeshows to deliver an integrated, comprehensive and focused communication, access and value to the customers, that can be tracked to build loyalty, case studies and further establish the company's global marketing and brand footprint. [edit]Global marketing specialization Global marketing is a field of study in general business management to provide valuable products, solutions and services to customers locally, nationally, internationally and worldwide. [edit]Elements of the global marketing Not only do standard marketing approaches, strategies, tactics and processes apply, global marketing requires an understanding of global finance, global operations and distribution, government relations, global human capital management and resource allocation, distributed technology development and management, global business logic, interfirm and global competitiveness, exporting, joint ventures, foreign direct investments and global risk management.

The standard Four Ps of marketing: 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. Unless a company holds the same position against its competition in all markets (market leader, low cost, etc.) it is impossible to launch identical marketing plans worldwide. Nisant Chakram(Marketing Management) [edit]Product A global company is one that can create a single product and only have to tweak elements for different markets. For example, Coca-Cola uses two formulas (one with sugar, one with corn syrup) for all markets. The product packaging in every country incorporates the contour bottle design and the dynamic ribbon in some way, shape, or form. However, the bottle can also include the countrys native language and is the same size as other beverage bottles or cans in that same country. [edit]Price 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. Additionally, the products position in relation to the competition influences the ultimate profit margin. Whether this product is considered the highend, expensive choice, the economical, low-cost choice, or something in-between helps determine the price point. [edit]Placement How the product is distributed is also a country-by-country decision influenced by how the competition is being offered to the target market. Using Coca-Cola as an example again, not all cultures use vending machines. In the United States, beverages are sold by the pallet via warehouse stores. In India, this is not an option. Placement decisions must also consider the products 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 lowcost option in France would find limited success in a pricey boutique. [edit]Promotion After product research, development and creation, promotion (specifically advertising) is generally the largest line item in a global companys marketing budget. At this stage of a companys development, integrated marketing is the goal. The global corporation seeks to reduce costs, minimize redundancies in personnel and work, maximize speed of implementation, and to speak with one voice. If the goal of a global company is to send the same message worldwide, then delivering that message in a relevant, engaging, and costeffective way is the challenge. Effective global advertising techniques do exist. The key is testing advertising ideas using a marketing research system proven to provide results that can be compared across countries. The ability to identify which elements or moments of an ad are contributing to that success is how economies of scale are maximized. Market research measures such as Flow of Attention, Flow of Emotion and branding moments provide insights into what is working in an ad in any country because the measures are based on visual, not verbal, elements of the ad. Global Marketing Effects

Since the 1980s, we have witnessed dramatic changes in the international and global marketplace. Liberalization of world trade and capital markets led by globalization has created a new and challenging competitive arena for all firms (Nolan and Zhang, 2003). With the trend18 towards more interdependence among nations, several changes in the business environment have emerged. There has been an emergence of global markets for goods, services, labor and financial capital (Deardorff and Stern, 2002; Hansen, 2002). Consumers demands around the world have converged (Fram and Ajami, 1994; Levitt, 1983; Ohmae, 1989a). Increasing trade and investment liberalization evoked by advances in transportation and communication technologies has resulted in larger volumes of international business transactions (Deardorff and Stern, 2002; Fawcett, Calantone, and Smith, 1997; Fawcett and Closs, 1993) These aforementioned trends have brought about two key effects of globalization, global market opportunities and global market threats (Contractor and Lorange, 1988; Fawcett and Closs, 1993; Hitt, Keats, and DeMarie, 1998; Molle, 2002; Perlmutter and Heenan, 1986; Sanchez, 1997). It is obvious that globalization not only presents more opportunities to firms, but also higher levels of threats (DAveni, 1994; Eng, 2001; Jones, 2002; Oxley and Yeung, 1998; Shocker, Srivastava, and Ruekert, 1994). While opportunities can arise from globalization, competition and uncertainty are inevitable. Although frequently mentioned in past literature, empirical studies relating these effects to firm performance are still scarce. This calls for a need to study globalization-performance relationships. These two dimensions along with our theoretical framework and hypotheses are discussed next

Advantages and Disadvantages Advantages The advantages of global market we can introduce our product by using advertising:

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 Benefits of eMarketing over traditional marketing Reach The nature of the internet means businesses now have a truly global reach. While traditional media costs limit this kind of reach to huge multinationals, eMarketing opens up new avenues for smaller businesses, on a much smaller budget, to access potential consumers from all over the world. Scope Internet marketing allows the marketer to reach consumers in a wide range of ways and enables them to offer a wide range of products and services. eMarketing includes, among other things, information management, public relations, customer service and sales. With the range of new technologies becoming available all the time, this scope can only grow. Interactivity Whereas traditional marketing is largely about getting a brands message out there, eMarketing facilitates conversations between companies and consumers. With a two way communication channel, companies can feed off of the responses of their consumers, making them more dynamic and adaptive. Immediacy Internet marketing is able to, in ways never before imagined, provide an immediate impact. Imagine youre reading your favorite magazine. You see a double-page advert for some new product or service, maybe BMWs latest luxury sedan or Apples latest iPod offering. With this kind of traditional media, its not that easy for you, the consumer, to take the step from hearing about a product to actual acquisition. With eMarketing, its easy to make that step as simple as possible, meaning that within a few short clicks you could have booked a test drive or ordered the iPod. And all of this can happen regardless of normal office hours. Effectively, Internet marketing makes business hours 24 hours per day, 7 days per week for every week of the year. By closing the gap between providing information and eliciting a consumer reaction, the consumers buying cycle is speeded up and advertising spend can go much further in creating immediate leads. Demographics and targeting Generally speaking, the demographics of the Internet are a marketers dream. Internet users, considered as a group, have greater buying power and could perhaps be considered as a population group skewed towards the middle-classes. Buying power is not all though. The nature of the Internet is such that its users will tend to organize themselves into far more focused groupings. Savvy marketers who know where to look can quite easily find access to the niche markets they wish to target. Marketing messages are most effective when they are presented directly to the audience most likely to be interested. The Internet creates the perfect environment for niche marketing to targeted groups.

Adaptivity and closed loop marketing Closed Loop Marketing requires the constant measurement and analysis of the results of marketing initiatives. By continuously tracking the response and effectiveness of a campaign, the marketer can be far more dynamic in adapting to consumers wants and needs. With eMarketing, responses can be analyzed in real-time and campaigns can be tweaked continuously. Combined with the immediacy of the Internet as a medium, this means that theres minimal advertising spend wasted on less than effective campaigns. Maximum marketing efficiency from eMarketing creates new opportunities to seize strategic competitive advantages. The combination of all these factors results in an improved ROI and ultimately, more customers, happier customers and an improved bottom line. 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. Differences in the administrative procedures and product placement can occur

Global marketing segmentation

1. Global Marketing Decision Elements Presentation by MVS.SRINIVASA RAO, ASOCIATE PROFESSOR, MRPG COLLEGE, VIZIANAGARAM 8 2. Patterns of Globalizing Marketing Operations Opportunistic Global Market Development Following Customers Abroad Pursuing Geographic Diversification Exploiting Different Economic Growth Rates Exploiting Product Life Cycle Differences Pursuing Potential Abroad Globalizing for Defensive Reasons Pursuing a Global Logic or Imperative 8 -

3. Pathways to Global Expansion Domestic Marketing Strategies Regional and Multiregional Marketing Strategies Asset Globalization Versus Market Globalization 8 4. Figure 8.2: Market Coverage vs. Asset Distribution 8 5. Pathways to Global Expansion (contd) Idea Sourcing: The Third Dimension Stages of Market Development Pathways 8 6. Figure 8.3: Sequencing Internationalization Strategies 8 7. Geographic Market Choices Emphasizing Developed Economies Emphasizing Emerging Markets Expanding in Eastern Europe 8 8. Geographic Market Choices (contd) Country Selection Analyzing the Investment Climate Determining Market Attractiveness Targeting Lead Markets 8 9. Regional Marketing Strategies 8 10. Multidomestic Marketing Strategies (contd) Global Marketing Strategies 8 11. Level of Global Marketing Strategy Integration 8 12. Multidomestic Marketing Strategies (contd) Integrated Global Marketing Strategy Global Product Category Strategy Global Segment Strategy Global Marketing Mix Element Strategies Global Product Strategy Global Branding Strategies Global Advertising Strategy Hybrid Global Marketing Strategy 8 13. Multidomestic Marketing Strategies Integrated Global Business Strategies Formulating Global Focus Strategies Creating Global Business Units 8 14. Global Business Strategies 8 15. Competitive Global Marketing Strategies Global Firm vs. Global Firm Local Company vs. Global Firm.

Globalization and marketing cooperation Among the various types of cooperative arrangements mentioned above, co-marketing alliances are the focus of this dissertation since they are considered a specific type of strategic alliances

whose scope is limited to marketing activities (Varadarajan and Cunningham, 1995). They involve the coordination of one or more aspects of marketingranging from research and development to production (Bucklin and Sengupta, 1993)which are central to most types of strategic alliances. Coordinating marketing activities to achieve superior marketing performance in terms of sales, market share and profitability is the fundamental task of most interfirm cooperation. Moreover, co-marketing alliances are quite common in many industries in which staying at the forefront or markets that require huge investments in R&D is difficult to attain (Bucklin and Sengupta, 1993). This problem of continually maintaining cutting-edge positions in the markets becomes even more serious given the fast pace of technological changes in the phase of globalization such as is found in todays business environment (Ohmae, 1989b). As a result, there has been an increasing trend towards more marketing cooperation among competitors in this business era (Hoskisson, Hitt, and Ireland, 2004; Webster, 1992). Nonetheless, limited research attention has been given to these specific types of strategic alliances (Bucklin and Sengupta, 1993; Sheth and Sisodia, 1999). Hence, an investigation of the degree of cooperation in co-marketing alliances should provide more insights on how globalization drives cooperation in international marketing activities, and how such cooperation, in turn, affects the firms international marketing performance. Despite our knowledge of the presence of globalization, inadequate attempts have been made to assess its effects on firms. In the last two decades, we have witnessed dramatic changes

in business and marketing activities, driven by a trend towards more interdependence among nations. These changes demonstrate the significant impact that globalization has on businesses, and thus calls for the need to study this topic. Since marketing is a context-driven discipline (Sheth and Sisodia, 1999), an investigation of globalization effectsas one of the contextual factors surrounding marketing activitiesproves to be worthwhile.

GLOBALIZATION EFFECTS AND FIRM PERFORMANCE In the past two decades, the world has gone through the process of globalization, one that causes increasing economic, financial, social, cultural, political, market, and environmental interdependence among nations. Business, as well, is inevitably affected by this process of change towards more interdependence. Many forms of organizational restructuring (such as downsizing, reengineering, implementation of cooperative strategies) have been witnessed as responses to globalization (Jones, 2002). Yet, limited empirical studies have been conducted to investigate how globalization actually affects firms. International business scholars (e.g., Clark and Knowles, 2003; Clougherty, 2001; Eden and Lenway, 2001; Young, 2001) point out the need to explore further the effects of globalization on firms. Therefore, we aim to investigate the effects of globalization on firm performance. In this study, globalization is defined as the process of increasing social and cultural inter-connectedness, political interdependence, and economic, financial and market integrations (Eden and Lenway, 2001; Giddens, 1990; Molle, 2002; Orozco, 2002). Although much descriptive and theoretical literature is published on the impact of globalization, very little empirical work exists that tests globalization effects. A few exceptions of empirical studies examining the impact of globalization include, for example, Clougherty (2001), and Oxley and Schnietz (2001). While Cloughertys (2001) study is related to industry-level variables (i.e.,

domestic competition policy in the airline industry), the study conducted by Oxley and Schnietz (2001) is more focused on firm-level variables by relating globalization to firm performance. At the macro level, globalization is found to undermine autonomy in domestic airline competition policy (Clougherty, 2001). At the micro level, globalization (operationalized as trade liberalization) is found to improve the performance of U.S. multinational enterprises (Oxley and Schnietz, 2001). From these two studies, we have learned that globalization is a multi-faceted construct. Therefore, the classification of its effects into different dimensions and the study of their impact on firms prove to be worthwhile. Based on the aforementioned discussion, the purpose of this study is twofold. We aim to classify and define the effects of globalization based on a review of globalization-related literature. Furthermore, we operationalize such effects and conduct an empirical test on the relationships between each of the key globalization effects and the performance of exporting firms in two distinct economic contexts, the developed markets (the U.S.) and the emerging markets (Thailand). Hence, this research attempts to answer two research questions: 1) Does globalization affect firm performance? and 2) Is the relationship between global market opportunities and performance stronger than the relationship between global market threats and performance? This paper is organized as follows. We first review the literature on globalization effects, and define global market opportunities and global market threats. We then discuss the theoretical frameworks underlying this study and the hypotheses. The two research contexts of the study (i.e., the developed and emerging markets) are then described. The next section discusses the research method and presents the results of the study. The research contributions and conclusions are provided in the last section of the paper.

Global market opportunities and firm performance Global market opportunities can be defined as increases in market potential, trade and investment potential and resource accessibility resulting from globalization (Contractor and Lorange, 1988; Fawcett and Closs, 1993; Jones, 2002; Levitt, 1983; Shocker, Srivastava, and Ruekert, 1994). Developments in information technology, removal of trade and investment barriers, privatization, and deregulation of trade and investment policies have provided firms seeking international markets with tremendous opportunities (Scully and Fawcett, 1994). Such changes in the business environment enable firms to not only access new markets but also lower costs by relocating their operations and exploiting cheap resources around the world (Czuchry and Yasin, 2001). Firms can outsource their production in various locations to lower their costs (Chimerine, 1997). Market transactions have also become more efficient due to globalization of technology (Peterson, Welch, and Liesch, 2002). These new market opportunities have eventually fostered rapid growth in various economic sectors in many regions around the world (Graham, 1996). A large volume of cross-border flows of trade, investment, and technology during the 1990s and early 2000s is excellent evidence of increasing opportunities driven by globalization (UNCTAD, 2003). As discussed earlier, globalization increases market potential, trade and investment potential and resource accessibility of firms. It has become easier for firms to outsource their production to different locations to gain benefits from location advantage since less trade and investment barriers are present in todays global marketplace (Chimerine, 1997; Czuchry and Yasin, 2001). Firms are able to reach out and serve many new untapped markets around the globe. Liberal movements of financial and human capital also facilitate their business transactions. Moreover, advances in communication technology and information systems also lower search costs and improve efficiency (Peterson, Welch, and Liesch, 2002). Hence, it is clear that globalization makes resources necessary for a firms growth and

success more abundant. Given that these opportunities are likely to enhance the firm performance.

Global market threats and firm performance Global market threats can be further categorized into 1) global competitive threats and 2) global market uncertainty. Global competitive threats are defined as the intensified competition in global markets resulting from larger numbers of competitors in the global marketplace (DAveni, 1994; Hafsi, 2002). Along with higher competition, another threat posed by globalization is global market uncertainty, which refers to the increasing complexity and demand uncertainty in the market (Burgers, Hill, and Kim, 1993; Chimerine, 1997; Courtney, 2001; Oxelheim and22 Wihlborg, 1991). These two types of global market threats and their hypothesized relationships are discussed in detail in the following section.

Global marketing uncertainty Global market uncertainty, which refers to the increasing complexity and demand uncertainty in the market (Burgers, Hill, and Kim, 1993; Courtney, 2001; Oxelheim and Wihlborg, 1991) is another threat confronted by firms operating in the global marketplace. Firms are faced with increasing difficulties in planning and making decisions (Chimerine, 1997; Hitt, Keats, and DeMarie, 1998). Demand has become hard to forecast for various reasons. Since a growing number of firms now participate in the global marketplace, forecasting demand and/or competitors responses has become increasingly difficult. Moreover, technology is changing at a rapid pace and information about new products is easily accessible by consumers. This has enabled consumers to shift between producers, making demand become less predictable and uncertain (Chimerine, 1997). Since operating in the global marketplace increases the level of uncertainty encountered

by firms, their performance is affected. In addition, past studies found a negative relationship between perceived uncertainty and firm performance (Downey and Slocum, 1982; Gerloff, Muir, and Bodensteiner, 1991; Waddock and Isabella, 1989). Thus, global market uncertainty is hypothesized to negatively affect firm performance.