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J. Global Marketing (A level only) - Coggle Diagram
J. Global Marketing (A level only)
Global firm
- A firm that, by operating in more than one country, gains R&D, production, marketing and financial advantages in its costs and reputation that are not available to purely domestic competitors. (For Example - Mac Donald might find it easier to have a better reputation in a new country than a locally grown burger joint)
International Marketing Decisions
Deciding whether to go global
Deciding which market to enter
Deciding how to enter the market
Looking at the global marketing environment
Deciding on the global marketing programme
Deciding on the global marketing organisation
Direct Investment
- Entering a foreign market by developing foreign-based assembly or manufacturing facilities
Exporting
- Entering foreign markets by selling goods produced in the company’s home country, often with little modification.
Direct
- The firm handles their own exports. (the firm handles the distribution, promotion, storage, etc... of the exports)
Indirect
- The firm does not require an overseas marketing organisation or network. (the firm does not handle the product after exporting) It is the least risky method
Joint Venturing
- Entering a foreign market by joining with foreign companies to produce or market a product
Licensing
- Entering foreign markets through developing an agreement with a licensee in the foreign market (Franchise)
Contract Manufacturing
- A joint in which company contracts with manufacturers in a foreign market to produce its product or provide its service
Management Contracting
- A joint venture in which the domestic firm supplies the management know-how to a foreign company that supplies the capital; the domestic firm exports management services rather than products.
Joint Ownership
- A cooperative venture in which a company creates a local business with investors in a foreign market, who share ownership and control.
Looking at the global marketing environment - micro and macro environments
Extent of Localisation
Standardised Global Marketing
- An international strategy that basically uses the same marketing strategy and mix in all international markets (No changes to the product)
Adapted global marketing
- An international marketing approach that adjusts the marketing strategy and mix elements to each international target market which creates more costs but hopefully produces a larger market share and return. (This requires Product adaptation; adapting a product to meet local conditions or wants in foreign markets.)
Global Product and Communication Strategies
Straight Extension
( No change in both communication and product
Product adaption
(Adapt product but do not change communication)
3.
Communication Adaptation
(No change in product but adapt communications)
Dual Adaptation
(Both adapt)
Product invention
(Develop a new product)
Global Value Delivery Network
International seller
Channels between nations
Channels within nations
Final buyer
Globalisation
- Companies today can no longer afford to pay attention only to their domestic market, regardless of its size. Many industries are global industries, and firms that operate globally achieve lower costs and higher brand awareness.