Strategies, Definition, Issues, Examples Global marketing is defined as the process of adjusting the marketing strategies of your company to adapt to the conditions of other countries.
Concerning investment and control, the question really is how far the company wishes to control its own fate. The degree of risk involved, attitudes and the ability to achieve objectives in the target markets are important facets in the decision on whether to license, joint venture or get involved in direct investment.
Cunningham1 identified five strategies used by firms for entry into new foreign markets: In marketing products from less developed countries to developed countries point iii poses major problems. Buyers in the interested foreign country are usually very careful as they perceive transport, currency, quality and quantity problems.
This is true, say, in the export of cotton and other commodities. Because, in most agricultural commodities, production and marketing are interlinked, the infrastructure, information and other resources required for building market entry can be enormous.
Sometimes this is way beyond the scope of private organisations, so Government may get involved. It may get involved not just to support a specific commodity, but also to help the "public good". Whilst the building of a new road may assist the speedy and expeditious transport of vegetables, for example, and thus aid in their marketing, the road can be put to other uses, in the drive for public good utilities.
Moreover, entry strategies are often marked by "lumpy investments". Huge investments may have to be undertaken, with the investor paying a high risk price, long before the full utilisation of the investment comes.
Good examples of this include the building of port facilities or food processing or freezing facilities. Moreover, the equipment may not be able to be used for other processes, so the asset specific equipment, locked into a specific use, may make the owner very vulnerable to the bargaining power of raw material suppliers and product buyers who process alternative production or trading options.
Zimfreeze, Zimbabwe is experiencing such problems. It built a large freezing plant for vegetables but found itself without a contract.
It has been forced, at the moment, to accept sub optional volume product materials just in order to keep the plant ticking over. In building a market entry strategy, time is a crucial factor.
The building of an intelligence system and creating an image through promotion takes time, effort and money. Brand names do not appear overnight. Large investments in promotion campaigns are needed. Transaction costs also are a critical factor in building up a market entry strategy and can become a high barrier to international trade.
Theodore "Ted" Levitt of Harvard Business School set the marketing world abuzz in with a bold prediction: Globalization had arrived, and before long global companies would be selling products and. Start studying International Business: Chapter 12 International Strategies. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Firms facing these pressures need to differentiate their products and marketing strategy in each country. The goal is to pursue a low-cost strategy on a global scale. A(n) _____ strategy makes sense when a firm faces high pressures for cost reductions, high pressures for local responsiveness, and significant opportunities for leveraging valuable skills within a multinational's global network of operations.
Costs include search and bargaining costs. Physical distance, language barriers, logistics costs and risk limit the direct monitoring of trade partners. Enforcement of contracts may be costly and weak legal integration between countries makes things difficult.Jun 18, · Viacom’s cable networks have seen phenomenal growth in the international markets over the past few years, primarily driven by the success of its programming at .
On the other hand, too much localization to suit the tastes of the region could dilute MTV’s global brand.
This paper will discuss MTVN’s challenges, strategy and effectiveness in expanding in the Middle East. Global company has the flexibility of low prices for products and service in domestic market and capture market share at the domestic company’s expenses subsidizing razor-thin margins or losses with healthy profits earned in its sanctuaries, this practice called as cross market subsidization.
Start studying International Business: Chapter 12 International Strategies. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Firms facing these pressures need to differentiate their products and marketing strategy in each country.
The goal is to pursue a low-cost strategy on a global scale.
Global Strategy. A firm using a global strategy  sacrifices responsiveness to local requirements within each of its markets in favor of emphasizing efficiency.
This strategy is the complete opposite of a multidomestic strategy. Some minor modifications to products and services may be made in various markets, but a global strategy stresses the need to gain economies of scale by offering.
Estee Lauder’s strategy is that their products are aspirational. Based on their market research and psychological research, they feel that Chinese consumers would be willing to invest in products that are relatively expensive versus their income because they are confident about the future.
Describe MTV’s global marketing strategy. MTV.