Introduction to Global Business

International Marketing
Philips Cateora and John M Hess International Marketing is defined as Performance of business activities that direct the flow of a companys goods and services to consumers and users in more than one nation.

 Nathalie Prime International marketing consists in identifying and satisfying consumer needs abroad; better than the national and international competitors, under the constraints of the internationalization stage of the firm and the global environment.

 Changing Business environment 1.Liberalisation

2.Privatisation
3.Globalisation 4.Technology
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Indian Economy
1.In the past one year, the Indian rupee has been loosing momentum continuously . 2. While a weak rupee may be good for certain sectors, it certainly is bad for the Indian economy on the whole. 3. The rupee-dollar exchange rate today?? 4. Rupee depreciation is making a. Imports expensive b. Not helping exports because of economic slow down.
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FACTORS AFFECTING THE RUPEE MOVEMENT 1. Fiscal deficit of a country is an important factor that drives the currency of that nation.

2.

Dollar Demand-Supply
Rising oil prices mean more dollars are required by Indian oil companies to import crude oil since oil price is quoted in the US dollar in the international market.

 FACTORS AFFECTING THE RUPEE MOVEMENT cont. 3. Global Factors The current crisis in the Euro zone triggered -by political uncertainty in Greece - the recent election results in France and Germany are pointing towards negative sentiments for austerity measures taken by the government. Overall, there may be more bad news coming from the Euro zone. Hence, the dollar is getting stronger against other currencies, including the rupee

Global Perspective: Recent Events

1. Rise of Brazil, Russia, India, China and S.Africa (BRICS)

2. Euro zone Crisis

3.Strengthening of US Dollar

History of International Marketing

International Business in 3000BC in India. Indian goods reached Egypt, Mesopotamia, South East Asia. Latter half of 20th century large US, European and Japanese companies expanded their markets as well as production facilities beyond national borders.

Factors for growth in International Markets

Profit PLC Stage Competition Excess Capacity Geographic Diversification Increase in Market Size ICT and transportation facilities Income Growth Lower trade barriers Desire for new products (consumes) and new markets (marketers)

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Domestic Marketing

Market Focus

Domestic

Orientation

Ethnocentric

Marketing Mix Decisions

Focused on Domestic Customers

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Export Marketing
Market Focus Overseas (Targeting and Entering Foreign Markets)

Market Focus

Orientation

Ethnocentric

Marketing Mix Decisions

Focused on Domestic Customers Overseas Marketing-Generally extension of Domestic Marketing Decisions made at Headquarters

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International Marketing

Market Focus

Caters to specific needs of a few overseas market

Orientation

Polycentric Orientation

Marketing Mix Decisions

Products manufactured in home country with separate product adaptations for different markets Product Decisions made by individual subsidiaries

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Multinational Marketing
Market Focus

Market Focus Domestic

Consolidation of operations on regional basis Gains from Economies of Scale

Orientation

Regiocentric

Marketing Mix Decisions

Product Standardization within regions but not beyond them On regional basis

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Geocentric
Market Focus Consolidating firms operations on Global Basis

Orientation

Geocentric

Marketing Mix Decisions

Globalization of marketing mix decisions with local variations Joint decision making across firms global operations

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Global Retailing
Global Retail limited to luxury goods. - Such as Gucci, Cartier OR Specialty firms Ikea, Body Shop Recently Mass market retailers- WalMart, Carrefour.
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 II. Competitive Structure Porters Framework- competitive structure within the industry -Degree of rivalry among existing firms, a consequence of a. No. of Competitors b. Industry Growth c. Product Differentiation d. Exit Barriers
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 Threat of new entrants Some barriers make it difficult. Economies of scale Limited access to channels of distribution, high switching cost, government policy. Firms with favorable raw materials, technology benefit, hence absolute cost advantage.

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 Threat of Substitute Products Bargaining power of buyers Bargaining power of Suppliers

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Theory of Competitive Advantage

(Competitive Advantage of Nations, Michael Porter)

Porters Diamond Model -Factor Conditions (Input) -Demand Conditions -Related and Supporting Activities.(IT Hub Bangalore, gems and jewellery (Jaipur), Metal Handicrafts- Moradabad)
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-Firm Strategy, Structure,Rivalry 2 other factors -Chance - Govt.

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Thank You

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