(PDF) Global Marketing Management : Assignment

PORTFOLIO

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
Development of global marketing concept..............................................................................................3
Further research on development of marketing concept ......................................................................3
Example of real business world regarding portfolio................................................................................4
TASK 2..........................................................................................................................................................4
Choose one of the emerging BRIC markets.............................................................................................4
TASK 3..........................................................................................................................................................5
Choose a real company and provide the background..............................................................................5
TASK 4..........................................................................................................................................................6
CONCLUSION...............................................................................................................................................8
REFERNECES................................................................................................................................................9

INTRODUCTION
Global marketing refers to the process of developing strategies related to marketing by
using which companies want to survive and adjust in the market conditions of other countries
(De Mooij, 2018). Cross-border businesses greatly rely on the sales and profit which help them
survive in tough competition. In this report, global marketing, emerging BRIC markets, details
about Franchise and influence of choice of entry mode have been discussed.
TASK 1
Development of global marketing concept
Global marketing is a concept which is focused on carrying various activities related to
promoting, advertising and selling the products or services to different markets across the world.
The term marketing is used in all the organizations irrespective of their size, nature and scope.
With the increase in global trade which allows entities to expand the business outside domestic
regions to international markets. It is a combination of two words viz. global which means not
limited to one particular nation and marketing means the activities of selling the products to the
customers by reaching them. In the past years, the competition in the global market has increased
which affect the businesses of large companies operating in multiple countries. Global marketing
provides a common base or strategies which can be adjusted according to changes taking place
outside the business organization (Gillespie, 2015). Furthermore, this concept has been
developed by considering the universal demand of certain goods for example food and
automobiles. It is comparatively easy to market the products in local markets, but when it comes
to increase the awareness in international markets, decisions are made. In this, a research is
undertaken to understand different areas and markets in order to choose the target audience.
Further research on development of marketing concept
According to Philip Kotler, global marketing is an approach by which different markets
around the world can be studied in order to make decisions. There are many components in a
market which should be analyzed in order to understand the needs and requirements of customers
for higher satisfaction. Furthermore, changes in the global market conditions take place
frequently forcing the entities to make adjustments in their policies and plans(Kotler and et. al.,
2015).

As per the views of Peter Drucker, global marketing is is a broader concept than just
content to advertising and selling things to customers (Robinson, 2012). There are different types
of factors which affect the business operations and these should be taken into account by the
entities for making strategies and policies to overcome them. Furthermore, with the help of
global marketing there can be increased communication between two nations.
In the words of Regis McKenna, global marketing is a new concept which is still
evolving with the time and adding new aspects to it. It is everything which a company can adopt
to make the goods or services successful in the international market.
Example of real business world regarding portfolio
Coca-Cola is a company that deals in beverages and have presence in multiple countries.
Its brand image is quite strong and has competitive edge however, in order to survive in the
global market it has to focus on marketing. For this purpose, it uses one brand strategy and taste
the feeling marketing campaign by which customers from all over the world are interacted. It
uses universal storytelling and every moments to connect with consumers around the world
(Coca-Cola Global Marketing strategy, 2018).
TASK 2
Choose one of the emerging BRIC markets
a. The country that has been chosen is India for many reasons. India is a country in Southeast
Asia which is this seventh largest country by area second largest by population. It is one of
the members of BRIC which has made strong position in the world in terms of development
in the economy. The main reason to join BRIC is to form strategic relationship with other
member countries for economic growth, peace and stability.
b. The political risk in India is stable because of various trade policies that have been made by
the current government to encourage FDIs and other investors to invest in this country. Some
major decisions regarding taxation and related aspects have been taken by the government to
make prevailing situation strong for local as well as its national entities operating or about to
enter the Indian market. The elections have held in 2019 only which states that the political
conditions are likely to be stable for next 5 years ant maximum investments are being made
in digital technology as it is one of the emerging industries.

c. In order to who is the transactions done between UK and India, bilateral trade agreements
have been signed in order to remove non tariff barriers and formulate common operating
standards. After executing this agreement, trade in goods and services between the two
countries increased by 15% which created a revenue of 18 billion pounds in the year 2017.
There is a constant growth in this rate which help these two countries exchange technology,
finance and renewable energy (India's as a BRIC member, 2019.).
d. India is been considered as one of the major economy in the world which is likely to take the
lead in coming years. The current GDP rate for 2019 was between 5.8 to 6.6 % and a growth
at 6% has been estimated. Since, it comprises of both public and private sector, companies
from different countries can successfully establish their business and expect good written on
the basis of stability in the economy. It is growing at a fast pace and can provide use number
of benefits and return.
e. Organizations having their businesses established in UK and wish to enter the Indian market
mail look for the opportunities offered in the chosen country. The main merits for starting the
business in India is attractiveness of industries, cheap labor as compared to UK markets,
plenty of resources and advancement in technology. However there are some disadvantages
as well such as the local businesses may cause issues for international organizations,
fluctuations in inflation, weakening of currency rate and many more. Any entity which is
planning to move to Indian market should conduct a detailed research in order to formulate
strategies and decide the mode of entry.
TASK 3
Choose a real company and provide the background
1. The company chosen in this question is Marks and Spencer which is a British
multinational retailer having its headquarters in Westminster, London. It deals in high quality
clothing, home products and food products (Official profile of Marks & Spencer, 2019). It is
listed on London stock exchange. It was founded in 1884 by Michael marks and Thomas Spencer
which sells branded products of premium quality to huge number of customers around the world.
2. A business has to choose from various entry modes in order to enter an international
market. This is a significant decision based on number of factors that should be considered by

every entity before finalizing the route to enter. In the context of Marks and Spencer, franchising
is the mode by which it it offers the products to different countries. Before making this decision,
it has undertaken an evaluation of external factors. There are a number of macro environmental
factors which are beyond the control of a company and can influence the operations to a major
extent. For example, political conditions of a country can hamper the business and main turn the
situation upside down due to the fluctuations in government policies for trade. Similarly,
economic factors consisting inflation rate, wages, employment, unemployment etc. If Marks and
Spencer which to enter developing country then it has to consider the economic conditions.
Another external factor being social factor, it’s about the beliefs and perception of people living
in a society about the products or services that are going to be launched. Since the brand image
of Marks and Spencer is recognized and strong in different parts of the world, franchising was
the right option to choose as people always find their interest in working or associated with a
popular brand. On coming to the technological factor, the advancement of the technology in the
targeting country should be analyzed so that adjustments can be made accordingly. It is one of
the major factor in deciding the entry mode. With regard to Marks and Spencer, it enters into
new markets through franchising as local people have the capability to invest in the technology
which can be used by Marks and Spencer. On coming to legal factors, the mode of entry should
be chosen which has lower legal formalities. It is useful in saving cost and time and start the
business as expeditiously as possible.
TASK 4
1. ZARA is an apparel retailer based in Arteixo, Spain. It specializes in fast fashion and
products include clothing, accessories, shoes, swimwear, beauty and perfumes. It has been given
the tag of world's largest apparel retailer. It has 10000 stores and serve worldwide by generating
a revenue about 18.9 billion USD per annum.
2. There are number of markets which has been targeted by ZARA for catering the needs
and demands of customers and capturing huge market share. Japan and South Africa are markets
where ZARA has entered through franchise. These two countries have huge demand of the
products made by ZARA in clothing. However, it is not the only country board which is being
followed by the company. joint venture is another mode through which it starts the business at
international level in different nations.

3. Every entry mode has some pros and cons which should be taken into account for
deciding or choosing this is suitable mode of entry. Similarly, advantages and disadvantages of
franchise as an entry mode have been discussed below:
Advantages:
 The chances of business failure is reduced because the business idea has already
been used which is only being expanded to another country.
 Customers can be persuaded by using recognized brand name and trademark for
the purpose of advertising and promotion.
 The products and services will have already established a market share therefore
market testing is not a prime concern. It creates an exclusive rights in a particular area.
Disadvantages:
 The cost element can be higher and beyond the expectations.
 The party who bought the franchise has to follow the restrictions and conditions
put by the franchisor, this may cause closure of the business rapidly.
 There maybe issues or disputes between the parties involved in a franchise
leading to do in efficiency of the whole business processes.
 Sharing of profits.
 Inflexible nature of franchise may restrict the ability to introduce changes
according to the market needs and growth of the business.
4. What are the benefits franchise to chosen fashion retailer
ZARA enters many new markets through franchise on the basis of different benefits
that has been gained by it. Some of these are listed below-

 There is greater security in franchise as ZARA has the ultimate control over the policies and
strategies applied in the stores.
 it reduces the number of formalities that are required to be done for entering into a new
market if it is to be done from any other mode settings merger and amalgamation, exporting and
so on.
 The administration becomes easier and helps in gaining competitive advantage along with
optimal utilization of resources.
CONCLUSION
From the above report it has been concluded that companies look for opportunities to
expand your business and setting for making the presence in international market is one of the
targets of every types of entities. Also, the success depends on hire sales and profit which is
possible through effective marketing. Therefore, a concept such as global marketing has been
developed to look beyond the basic activities of marketing. This helps companies make strategies
which can be implemented for achieving the goals and objectives.

REFERNECES
Books & Journals:
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Gillespie, K., 2015. Global marketing. Routledge.
Kotler, P., and et. al., 2015. Marketing. Pearson Higher Education AU.
Robinson, C.K., 2012. Peter Drucker on marketing: application and implications for
libraries. The Bottom Line. 25(1). pp.4-12.
Online:
Coca-Cola Global Marketing strategy. 2018. [Online]. Available through :<https://www.coca-
colacompany.com/press-center/press-releases/coca-cola-announces-one-brand-global-
marketing-approach>.
Official profile of Marks & Spencer. 2019. [Online]. Available through
:<https://www.marksandspencer.com/>.
India's as a BRIC member. 2019. [Online]. Available
through :<https://www.ukibc.com/lowering-non-tariff-barriers-in-uk-india-bilateral-
trade/>.