TOPIC: ANALYSING & TARGETING GLOBAL MARKET OPPORTUNITIES TO INCLUDE THE FOLLOWING: Nature of global Customers
Marketing in transitional economies & less developed countries Global Bias (customer value & value equation)
Global marketing plan.
Global market represents marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives of a company. Tapping and capturing global market opportunities is not a revolutionary shift but an evolutionary process for any company. Usually a company starts operating in the domestic market, creates its customer base, makes an image and thereafter leads to various activities which help it enter the international markets. The activities that enable the company to enter and be an international marketer are exports, franchising, joint venture and full direct entry into another country. Once the company creates a strong base and hold in a few countries it starts targeting the world on continental or economy sized bases. And it gains the title of a global marketer once it starts to cater to almost all countries on the planet. The global firm retains the capability, reach, knowledge, staff, insights and expertise to deliver value to customers worldwide. Various examples of a global marketer are Apple, Intel, Toyota, Procter & Gamble, XL Group and the list goes on.
Tapping a global market opportunity is a very long process. We need to follow the following process:
Market attractiveness is a term that describes the profit possibilities available in a given market or industry. The more attractive the market is, the higher will be the potential profits. The model of using market attractiveness framework helps in answering the following 3 questions: Determining what factors make a market attractive
How strengths of the underlying product/service can be pinned down Providing a strategic plan to proceed in the market.
Following are the factors affecting attractiveness of a market: 1. Market Size – It refers to the size of the market for that particular product/service and thereby helps in deciding the influence of competition on the industry and the availability of customers. For example, the market for shoes is very large and can accommodate rivals quite easily. On the other hand the market for specialized industrial equipment is much smaller providing fewer opportunities to brak into the market and limiting the number of customers. 2. Market Climate – It refers to the economic condition and the rules & regulations abiding the industry in which you want to launch your product/service. For example entering a highly regulated market will be more difficult an d provide less motivation as compared to the one with less regulations.Also an economy dealing with high inflation won’t present a strong customer base for the launch of an expensive product. 3. Scope – It refers to the potential it provides to a firm. The broader a market is, the more likely it is to provide room for diverse companies operating within the market, increasing the potential for profits. A small regional market is more limited and may not provide room for growth. 4. Market growth –It refers to the stage of the industry in which it is operating in. The market potential starts with development followed by rapid growth then slow growth and ultimately declining. A market operating in the 2nd stage provides the maximum potential. 5. Intensity of Competition – The level of competition and the nature of competition plays a vital role in the potential a market provides. The higher the competition, the less will be the potential and vice versa. 6. Risk in the Industry – It refers the level of risk prevailing in the industry. And in turn the risk depends on the nature of the industry it Is dealing in. For example a more stable market possess low risk and vice-versa. Studying and evaluating the following...
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