L.RAJARAJESWARI, ASST.PROFESSOR, DEPARTMENT OF BUSINESS ADMINISTRATION, ARUL ANANDAR COLLEGE, KARUMATHUR – 625514, MADURAI DISTRICT. Abstract:
Globalization is no longer an abstraction but a stark reality that virtually all firms, large and a small, face. Firms that want to survive in the 21st century must confront this all encompassing force that pervades every aspect of business. In a wide range of industries from automobiles to food and clothing, firms face the pressures of global competition at home as well as in international markets. Choosing not to participate in global markets is no longer an option. All firms, regardless of their size, have to craft strategies in the broader context of world markets to anticipate, respond and adapt to the changing configuration of these markets. Firms initially entering international markets will be more concerned with learning about international markets, selecting an appropriate arena to compete, and determining how to leverage core competencies in international markets. Once in international markets, firms have to build their position in these markets, establishing a strong local presence by developing new products and adapting to local tastes and preferences. As the firm expands internationally, it will need to move away from country-centred strategies and improve integration and coordination across national markets, leveraging its competencies and skills to develop a leadership position. Keywords: Global marketing, Product strategy, Pricing strategy, product positioning, Advertising, Sales and Distribution Introduction
Transnational corporations serve different markets around the world. Their global expansion may be driven by various factors. These include saturated and intensely competitive domestic markets, diversification of risk on a geographical basis, opportunity to realize economies of scale and scope, entry of competitors into overseas markets, the need to follow customers going abroad and the desire to compete in a market with sophisticated consumer tastes. In different markets, customer requirements may vary. The temptation to customize for each market has to be tempered by the need to keep costs down through standardization. A truly global marketing strategy would aim to apply uniformly some elements of the marketing mix across the world, while customizing others. Meaning of global marketing:
Global marketing refers to the marketing activities that direct the flow of goods and services to the customers or users in more than one nation. Key issues in global marketing:
Typically, marketing includes the following activities: -
o Market research.
o Concept & idea generation.
o Product design.
o Prototype development & test marketing
o Choice of brand name
o Selection of packaging material, size and labeling o Choice of advertising agency
o Development of advertisement copy
o Execution of advertisements
o Recruitment and posting of sales force
o Sales Promotion
o Selection and management of distribution channels. Some of these activities are agreeable to a uniform global approach. Others involve a great degree of customization. Phases:
A global marketing strategy typically evolves over a period of time. o Decision to enter the market
o The mode of entry.
o To expand across several markets, simultaneously or one at a time. o Customization of the marketing mix or development of completely new products. o In the final phase, global companies examine their product portfolio across countries, strive for higher levels of coordination and integration and attempt to strike the right balance between scale efficiencies and local customization. Entering new markets
While choosing new markets, MNCs need to consider several macro and micro...