Global Marketing and Digital Business Practices Assignment (Doc)

GLOBAL MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
PORTFOLIO 1.................................................................................................................................1
1) Development of global marketing:..........................................................................................1
2 ) Development of global marketing concepts on basis of articles:...........................................1
3) Development of global marketing on base of example:..........................................................2
PORTFOLIO 2 ................................................................................................................................2
1) Background of bric country India:...........................................................................................2
2) Political risk in Indian market.................................................................................................2
3) Tariff and non tariff barriers between UK and India:..............................................................3
4) Review of economic environment ..........................................................................................3
5) Advantages and disadvantages to enter in Indian market.......................................................3
PORTFOLIO 3.................................................................................................................................3
Example of real business company McDonald ...........................................................................3
Modes of entry in foreign market................................................................................................4
PORTFOLIO 4.................................................................................................................................5
Franchising as an mode of entering market.................................................................................5
Advantages and disadvantages of franchising.............................................................................5
Benefits of franchising ................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Global market includes marketing of product in the international markets. Companies in
international market have to look after the factors affecting the product of the company and sale
of company. Global market have modes of entering the global marketing like franchising
exporting and joint ventures.
PORTFOLIO 1
1) Development of global marketing:
Global marketing is about marketing products in the global market or international
market. Companies which trade in global market are multinational companies. Globalization
have increased in every country but these multinational companies have advantages of global
marketing also like companies would overcome trade problems, save manufacturing cost on
product and adapt new technologies from various countries. Globalization also have some
disadvantages like language and economic conditions of the society. Some countries have
traditional society which do not adapt this product. Multi national companies must need to follow
the rules and regulations of the country and some countries faces problem of language and
translation problems. Difference of language in global market is also not a big issue translators
are hired by companies to communicate effectively.
2 ) Development of global marketing concepts on basis of articles:
Schlegelmilch, B.B., 2016.
From the above references I can say that the author is stating about globalization
strategies which are handled by the managers of company. Multinational companies have to do
research on the global market, economy of country and country market. Companies entering the
global markets have to look after the foreign direct investment, customer relation ships and how
to enter international markets (Schlegelmilch 2016).
Ogonu, G.C. and Nwogu, C.U., 2018.
From the references given above I can say that the author is saying about the Companies
entering the global market have to look after the business practices in global market place and
other global companies or competitors in global market. The companies have to look after the
economic conditions in global market. Globalization in the global market is increased because
global companies also follow marketing strategies which includes product price, place and legal
environment of the country (Ogonu and Nwogu 2018).
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Canel, C., Bejou, D. and Khumawala, B.M., 2015.
From the references provided above I can say that Authors says that for globalization,
international location must be suitable for companies and all facility must be provided in the
nearby areas. Capacity must not be increased and expansion of company premises must be in
control as pre need. Location for setup of plant is important because would also increase the
expenses of company (Canel Bejou and Khumawala 2015).
3) Development of global marketing on base of example:
McDonald is the company which is ruling the global market, it is a franchise which has it
outlets in every corner of the world. McDonald is uniform franchises are giving same quality
same experience and same food as well. Globalization has been increasing which has lead to
global success and company is entering the country market as per the need of customer, like
products are provided as per the consumers taste and culture of the country. Company is also
following market segmentation strategies, it is increasing the brand image by providing schemes
on happy meals and various offers. Company has adapted as per the country it is following the
culture, trends and religions and as well food is also healthy. It is also increasing their brand
value and goodwill of company in global market.
PORTFOLIO 2
1) Background of bric country India:
India has big and developing market. Companies in the Indian market are well-established
and developing as per time. Various multinational companies in Indian market is a big brand,
these companies focuses on customer relationships and this companies is collecting information
regarding the consumer behaviour their and their needs. Nowadays companies are also using
technologies for promoting their products in Indian markets. In Indian market the companies
must think about launching the product in market, because of high competition in market (Mani
Wathne and Antia 2019).
2) Political risk in Indian market
Indian market is affected by the elections and on that BJP is ruling party in the elections
and the companies have to look after the policies which would be changed after the elections.
GST have been introduced in the Indian tax system, which includes taxes on goods which will
effect the companies and products in the Indian market. Global companies are also affected by
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terrorist attacks in country and war like situation in country. India is having problems with
Pakistan so companies must look into the affairs relating Pakistan. All the factors will have
adverse effects on the market conditions and companies thinking to enter the Indian market are
facing problems to survive in market.
3) Tariff and non tariff barriers between UK and India:
Tariff barriers between India and UK are import duties and export duties whereas non
tariff barriers includes quotas and subsidies. India had recently increased import duties and excise
duties which are definitely going to affect the global companies. Non tariff barriers quotas are
decided on the basis of goods for a particular time, after time it would charge penalty or fine.
Subsidies are paid by government to domestic goods for competing foreign goods. It is paid in
the form of taxes grants and it also reduces cost of product.
4) Review of economic environment
GDP is gross domestic product and it states about economic condition of country. Indian
market have been a boon for new entries but through various changes in the economy is affecting
the market. GDP growth rate is around 11.5% and it was estimated 12%. Foreign exchange
reserves have been increasing in market. Government is also inviting new companies but through
digital India initiative and make in India. Due to this the country is digitalized and literate as
well.
5) Advantages and disadvantages to enter in Indian market
Advantages
Globalization will be increasing because Indian market is improving sales of those who
are in the market, through launching the product in the global Market companies are learning
how to compete in global markets. Global companies which are already in the market is
improving sales and reducing the cost of product.
Disadvantages
India is a culture of tradition different from any western culture, religions are first
priority with diversity in languages and religions. Here company has to work according to the
Indian culture. Every country has its own rules and regulations, these rules are also implied on
the global companies which are planning to enter Indian market.
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PORTFOLIO 3
Example of real business company McDonald
McDonald is a franchise and biggest brand in the global market. McDonald is a fast food
company which makes foods like burgers, French fries, soft drinks, wraps, desserts and
milkshakes. Business of company has spread to all countries and selling fast food as per
customer demand and keeping in mind the culture of the country. Company is always adding
something innovative as per customers taste and demand. Business is operated by joint ventures
of company and other local entities which handles the outlets.
Modes of entry in foreign market
globalization is prime motive for the companies to enter the global market through the
process of Exporting consists of selling goods outside the country, it would be direct or indirect.
Services given from one country to another country is also exporting. It helps to market access
and it is not costly and not risky as well. It is costly in case of direct exports because direct
exports needs high cost for start-ups and mediators between transaction are increasing the cost if
product (Laufs, Bembom and Schwens 2016).
Joint ventures are very common in globalization because foreign companies are not able
to stay everywhere, through global market countries are able to do ventures with localist, and
they run the business. It consists of technological benefits and optimum use of resources. It is
costly whereas there are problems in the management of company.
Franchising is common in globalization which includes some independent owners which
are liable to pay fees and royalty to the brand company or parent company. It is not risky and
employees are highly motivated to work with big brand whereas trade secrets are not maintained
and franchisee would become a competitor in the future. Sometimes it can also damage the
goodwill of company and have adverse effects on brand name or company image.
Factors affecting the entry in foreign market
Globalization is affected by the Market size in global market is an important factor
because through these only the company is going to decide the entry mode in global market.
Large companies would enter large market through franchising and joint ventures but small
companies can enter big markets through exporting only (Stoian, Rialp and Dimitratos 2017).
Globalization is affected by the Market growth is usually seen in established markets,
large companies enter these markets through various modes but small companies will afraid to
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enter these established markets and even if entered it will enter through exporting. Established
markets are those markets which are had a developed economy.
Government regulations are different in every country, so large companies are entering
markets through joint ventures, so that companies would not face problems in establishing the
plant in country. Small companies would also enter market through the help of localist.
Regulations of every country is prime factor selecting the market (Hollender, Zapkau, and
Schwens 2017).
Competition increases as company enter in global markets, various local companies are
already set up in market, so large companies enter market with improvising product as per the
need of customer, it would be possible through joint ventures because localist only can state
about likes and dislikes of customers. Small companies would enter by exporting the products in
the market.
PORTFOLIO 4
Franchising as an mode of entering market
A fashion retailer company would like to enter the global market through franchising and
the company would like to enter Indian fashion market through franchising. Various global
brands are already ruling market like topman. International companies are trying to rule Indian
market but the companies would have more competitors in the global market. Many investors are
trying to invest in these global brands, which will be a good capital for the companies to enter
market.
Advantages and disadvantages of franchising
Advantages
Less risky because investors in the global markets will not risk the investment done by
them. Investment includes lease agreements and capital invested by the investors.
Brand names of the companies are used to establish the franchises and outlets of
franchises are loyal towards the customer. Relationship between the customer and franchises is
build up due to brand names.
Globalization is increasing due to Company would provide full support to the company
which includes training and setting up of new business. Products in the franchisee like fashion
material would be same quality and same quantity and totally original. No experience is needed
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for the owners to run the business or test the product on the customers (Boellis, Mariotti,
Minichilli and Piscitello 2016).
Disadvantages
cost of franchise needs huge capital and investment, for franchise owners have to pay
management fees to the company. Owners need to buy the buy products and manage the
franchisee.
It includes restrictions which come under the policies of company, which includes how to
run the franchisee and what must be followed by the franchisee. Sometimes it not suits the local
market, it also affects the reputation of the company as well.
Profits sharing is mentioned in the policies of the company, whole profit is not kept by the
franchisee. It has fixed percentage of sharing in the franchising (Argyres, Bercovitz and Zanarone
2016).
Benefits of franchising
Franchising is the mode of entry in the global market which is increasing the
globalization. Franchising has many benefits which are investment of capital and motivated
employees. Many investors are trying to enter global markets through investing in franchising. It
needs fewer employees as well those employees feel motivated to work with a big brand. It also
has limited risk and liability, it also increases the brand image and goodwill of company.
Through franchising companies are attaining the growth in global market, because of brand and
trust the customers are loyal towards the company franchises. Companies are expanded globally
as well nationally, it is expanded easier and faster (Fan, Kühn, and Lafontaine 2017).
CONCLUSION
Global marketing includes companies to enter in global market and trade internationally
across all the world. International marketing has modes of entry in the market which are
exporting, franchising and joint ventures. In global market companies have to fulfil the needs of
customer and follow the culture of country franchising has its own advantages like low risk and
motivated employees. It also has disadvantages of investing huge capital and to follow rules and
regulations. In global market there are many competitors which are already ruling the market,
new companies must look into the factors affecting the sale of the product.
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REFERENCES
Books and journals:
Argyres, N., Bercovitz, J. and Zanarone, G., 2016. The role of relational contracts in inter-firm
relationships: theory and evidence on multiunit franchising. Available at SSRN 2816591.
Boellis, A., Mariotti, S., Minichilli, A. and Piscitello, L., 2016. Family involvement and firms’
establishment mode choice in foreign markets. Journal of International Business
Studies. 47(8). pp.929-950.
Canel, C., Bejou, D. and Khumawala, B.M., 2015. An Application of Global Marketing Via
International Locations. In Proceedings of the 1993 World Marketing Congress (pp.
203-207). Springer, Cham.
Fan, Y., Kühn, K.U. and Lafontaine, F., 2017. Financial constraints and moral hazard: The case
of franchising. Journal of Political Economy. 125(6). pp.2082-2125.
Hollender, L., Zapkau, F.B. and Schwens, C., 2017. SME foreign market entry mode choice and
foreign venture performance: The moderating effect of international experience and
product adaptation. International Business Review. 26(2). pp.250-263.
Laufs, K., Bembom, M. and Schwens, C., 2016. CEO characteristics and SME foreign market
entry mode choice: The moderating effect of firm’s geographic experience and host-
country political risk. International Marketing Review. 33(2). pp.246-275.
Mani, S., Wathne, K.H. and Antia, K.D., 2019. 20. Franchising research in marketing:
suggestions for future research. Handbook of Research on Distribution Channels. p.470.
Ogonu, G.C. and Nwogu, C.U., 2018. Global Marketing and Business Practices in
Nigeria. International Journal of Marketing and Communication Studies. 3(1). pp.21-33.
Schlegelmilch, B.B., 2016. Global Marketing Strategy. Management for Professionals.
Stoian, M.C., Rialp, J. and Dimitratos, P., 2017. SME networks and international performance:
Unveiling the significance of foreign market entry mode. Journal of Small Business
Management. 55(1). pp.128-148.
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