Global Marketing Chapter 1 Notes

Chapter 1 Global market refers to marketing activities that take place across national borders and outside of the firms home country Involvement in global marketing does not mean that a firm must sell its products in every country or region of the solid ground Coordination and integration of marketing system with an emphasis on standardization are substitution tenet of GM Evolution of the conceptDomestic marketing International sales are incidental to marketing strategy Multidomestic marketing unique strategy for each country market Global marketing Focus instantaneously on standardization and global segments Local marketing Standardization but with a focus on the needs of local customers Glocal Marketing reflects the need for balance between global marketing, with a focus on standardization, and local marketing, with its focus on adaptation to country differences GlobalizationGlobalization refers to the increased integration of the worlds economies. on-going global techno logical innovation in marketing has direct effect on the efficiency and strong suit of all stage business activities. Globalization reflects a business orientation based on the belief that the world is becoming more homogeneous and that distinctions between national markets are not only fading but, for some(prenominal) products, will eventually disappear. Forms of globalisation Globalization of markets vs. Globalization of production Drivers of Globalization Market factors convergence of markets, airing of telecommunication & internet. Growing of retailers are now showing great flexibility in their strategies for entering bran-new geographic markets * Cost factors avoiding cost inefficiencies and duplication of effort are two of the most powerful globalization drivers. Economies of scale refers to the reduction in per unit cost of production. Economies of scope refers to reduced cost per unit as the firm spreads its total costs over a large number of brands, product lines, or stigma markets. Environmental factors government barriers have fallen dramatically in the last several years and this has nevertheless facilitated the globalization of markets and the activities of marketers within them. Rapid technological evolution is contributing to the process. * Competitive factors to remain competitive, the marketer may have to be the first to do something or to be able to match or pre-empt antagonists moves. Without a global network, a marketer may run the risk of seeing carefully researched ideas picked off by global players.Market presence may be necessary to execute global strategies and to proscribe others from having undue advantage in unchallenged markets. The anti-globalization movement The globalization trend has drawn its fair deal out of critics over the years. Anti-globalists have expressed concerns about the impact of the trend on the poor, the environment, and on national sovereignty. many another(prenominal) anti-globalization protes ts have turned violent in the past Opportunities and challenges in global marketingThe growth of global business activities offers increased opportunities. International activities can be crucial to a firms survival and growth. By transferring knowledge around the globe, an international firm can build and strengthen its competitive position. What is needed is an sensory faculty of global developments, an understanding of their meaning, and a development of capabilities to adjust to change. Willing or unwilling, firms are becoming participants in global business affairs.