Chapter 1

Global Marketing
Course Facilitator
Dr. Muhammad Bilal Majid Ch.
Official Email: bilal.majid@ucp.edu.pk

Personal Email: bilalmajid34@gmail.com
Post-PhD Fellow & PhD Marketing (Malaysia).

MS Marketing (PK).
Marketing & Research Methods Certified (UK).
Customer Analytics Certified (USA).
YouTube Link
 https://www.youtube.com/watch?v=gOQNTMLrma8
 https://www.youtube.com/watch?v=uBYla36OAa4
 https://www.youtube.com/watch?v=qaeV64W-3Sg
 https://www.youtube.com/watch?v=fXbSirrXQ4U
 https://www.youtube.com/watch?v=r95YHHnL5Fo
Chapter 1
Nature of International
Marketing
Objectives of Global Marketing
 To promote social and cultural exchange among

the nations.
 To assist developing countries in their economic
and industrial growth by inviting them to the
international market thus eliminating the gap
between the developed and the developing
countries.
 To assure sustainable management of resources
globally.
Challenges and Opportunities
 Process of International Marketing

 International Dimensions of Marketing
 Domestic Marketing vs. International Marketing
 Multinational Corporations (MNCs)
- Pros and Cons
- Multinationality and Market Performance
- Characteristics of MNCs
 The Process of Internationalization
 Benefits of International Marketing
Definition of International Marketing
 Multinational process of planning and executing the

conception, pricing, promotion, and distribution of
ideas, goods, and services and to create exchanges
that satisfy individual and organizational objectives
 According to Cateora and Graham, "International
marketing is the performance of business activities
designed to plan, price, promote, and direct the flow
of a company's goods and services to consumers or
users in more than one nation for a profit."
Dimensions of Marketing
 Consumer Marketing vs. Business-to-Business Marketing
Most of the time, B2B (also known as business-to-
business) marketing focuses on logical process-driven purchasing
decisions, while B2C (also known as business-to-
consumer) marketing focuses on emotion-driven purchasing decisions.
B2B and B2C marketing differ primarily in terms of their audiences and
how they communicate to them. While B2C marketing focuses on quick
solutions and enjoyable content, B2B marketing is more concerned with
building relationships and proving a product's return on investment for a
business customer.
 Domestic Marketing vs. Foreign Marketing
Domestic marketing refers to marketing within the geographical boundaries
of the nation. International marketing means the activities of
production, promotion, distribution, advertisement and selling are extend
over the geographical limits of the country. Sharing and use of latest
technology.
Cont.Dimensions of Marketing
 Comparative Marketing
Comparative advertising is a marketing strategy in which a company's
product or service is presented as superior when compared to a
competitor's. A comparative advertising campaign may involve printing
a side-by-side comparison of the features of a company's products
next to those of its competitor.
Cont.Dimensions of Marketing
 International Marketing vs. Global/Multinational Marketing
Global marketing is the application of a single marketing strategy in the
worldwide market, for a product or service. International marketing
refers to the company's penetration into the prospective markets of
different countries by directly engaging in the local marketing
environment.
 Domestic Marketing vs. International Marketing
Domestic marketing deals with only a single market while international
marketing deals with several different countries and markets. ...
Domestic marketing deals only with one set of consumers while
international marketing deals with different types of consumers with
different tastes.
- similar in nature but not in scope (scale)
MNCs (MULTINATIONAL
CORPORATIONS)
The multinational corporation is a business organization whose

activities are located in more than two countries and is the organizational
form that defines foreign direct investment.
Cons
- Exploitation
- Erosion of a Nation's Sovereignty
Pros
- Power and Prestige

- Social Responsibility
- Market Performance
Characteristics of MNCs
 Definition by Size
- market value
- sales
- profits
- assets
- number of employees
 Definition by Structure
- number of countries in which the firm does
business
- citizenship of corporate owners and top
managers
 Definition by Performance
- commitment of corporate resources to foreign
operations
- amount of rewards from that commitment
 Definition by Behavior
- ethnocentricity
- polycentricity
- geocentricity
Behavior/ Attitude
 Ethnocentricity
Ethnocentric Orientation: (home country orientation)
• Overseas operations are viewed as secondary to domestic operations
and primarily as means of disposing of ‘surplus’ domestic production.
• Overseas market are developed in home office, utilizing policies and
procedures identical to those employed in domestic market.
• Its operations are conducted from a home country base and there is
likely to be strong reliance on export agents.
• Ethnocentric position appears to be appropriate for small company just
entering international operations or for companies with minimal
international commitments because it has minimal risk and
commitments to overseas market.
Efficient but not effective.
Behavior/ Attitude
 Polycentricity (strong orientation to host country) • To recognize

the importance of inherent differences in overseas market, a
polycentric orientation emerges.
 In this stage, local personnel and techniques are best suited to deal
with local market conditions.
 This results in maximum degree of geographic decentralization
are recognized as being psychologically close to markets,
environments and customers.
 Under polycentric, marketing is normally characterized by adoption
strategy.
 The merit of polycentric orientation is adaption of marketing strategies
to local conditions.
 Effective but not efficient
Behavior/ Attitude
 Geocentricity (world orientation)

- centralization + decentralization + coordination
- Geocentric Orientation: (World orientation)
• Geocentric company views entire world as a single market and develops
standardized marketing mix, projecting a uniform image of company
and its products, for global market.
• It is characterized by sufficiently distinctive national markets that
ethnocentric approach is unworkable, where importance of learning
curve effects in marketing, production technology and
management philosophy.
Efficient and effective
The Types Of Multinational Business (And
The Financial Benefits Of Each)
 MULTINATIONAL DECENTRALIZED
CORPORATION
 A decentralized multinational corporation maintains a prominent
presence in its home country. With decentralization, the corporation’s
organizational structure doesn’t have management or administrative
centers. Instead, each office or asset hosts a unique management
structure.
 Decentralization allows for rapid expansion. Each new unit can operate
as a separate entity within a local market.
 Branch managers also have the freedom to respond to opportunities or

emergencies without constrictions from a tedious chain of command.
 GLOBAL CENTRALIZED CORPORATION

 The organizational structure of a centralized global corporation has a
chief administrative and management office or head office. The
corporation may outsource production to developing economies to
lower costs, for example.
 These businesses may also develop production infrastructure in these

countries to optimize affordable resources and acquire cost
advantages.
 A centralized international organization facilitates proximity to its

international target markets. The main advantage of affiliates and
subsidiaries in target markets is distribution cost reduction. It also
makes potential consumers and their information more accessible.
 INTERNATIONAL COMPANY
 One of the objectives of an international company is to build on the
research and development of its parent company. Effective R&D
allows for the creation of new products or the addition of features to
existing successes.
 Building on existing R&D gives these global companies a competitive

edge in local markets, too. Other benefits include an increase in
market participation and better cost management.
 TRANSNATIONAL ENTERPRISE
 Transnational enterprises generally have a decentralized
organizational structure. These corporations do business in several
countries without one location as a corporate home.
 Transnational enterprise structures engage in value creation in various

countries while maintaining high levels of responsiveness. It is a
flexible and efficient approach that is gaining popularity.
Benefits of International Marketing
 Survival and Growth

 Sales and Profits
 Diversification
 Inflation and Price Moderation
 Employment
 Standards of Living
 Understanding of Marketing Process
The Process of Internationalization
 STAGE 1:- DOMESTIC OPERATIONS
The firm’s market is exclusively domestic. Most international companies have

their origin as domestic companies. These companies focus on domestic
operations only. Example: Patanjali have currently its major operations in India
only.
 STAGE 2:- EXPORT OPERATIONS
The firm expands its market by engaging into export operations and offering the
domestic products to other countries also, but retains production facilities
within domestic borders. Example: Indian firms exporting textiles, jute, spices,
nuts, rice all around the world.
 STAGE 3:- SUBSIDIARIES OR JOINT VENTURES
The firm physically moves some of its operations out of the home country. There
is a mutual cost, profit sharing and management in such method. Example: A
joint venture between Maruti (Indian Company) and Suzuki (Japanese
Company).
The Process of Internationalization
 STAGE 4:- MULTINATIONAL OPERATIONS

The firm becomes the fully fledged multinational co.[MNC] with the
assembly of production facilities in several countries & regions of the
world. Some decentralization of decision making is common but many
personnel decisions are still made at corporate level in headquarters.
Example: Mc Donalds is a MNC operating worldwide.
 STAGE 5:- TRANSNATIONAL OPERATIONS
In this the firms that reach this particular stage are often called
transnational companies because they achieve both global efficiency
and local responsiveness. They use global market and resources for
their functioning. Example: Coca-Cola, Nestle

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Global Marketing

Dr. Muhammad Bilal Majid Ch.

Official Email: bilal.majid@ucp.edu.pk

Post-PhD Fellow & PhD Marketing (Malaysia).

 To promote social and cultural exchange among

 Process of International Marketing

 Multinational process of planning and executing the

The multinational corporation is a business organization whose

- Power and Prestige

 Polycentricity (strong orientation to host country) • To recognize

 Geocentricity (world orientation)

 Branch managers also have the freedom to respond to opportunities or

 GLOBAL CENTRALIZED CORPORATION

 These businesses may also develop production infrastructure in these

 A centralized international organization facilitates proximity to its

 Building on existing R&D gives these global companies a competitive

 Transnational enterprise structures engage in value creation in various

 Survival and Growth

 STAGE 1:- DOMESTIC OPERATIONS

The firm’s market is exclusively domestic. Most international companies have

 STAGE 4:- MULTINATIONAL OPERATIONS

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