Meaning and Definition of Global Marketing
Global marketing is defined as the marketing activity which is carried out across the national boundaries. Hence, it involves the process of marketing the goods and services from one nation to another nation. International Marketing is also referred to as Multinational/ Multi-regional/ International Marketing. A company can market its products in more than one country at a time. One should not misunderstand global marketing as international trade. Global marketing is just a part of international trade.
According to AMA (American Marketing Association)___” International marketing is multinational process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchange that satisfy individual and organisational objectives“.
According to Warren J.Keegan___” International marketing is the process of focusing the resources and objectives of an organization on global marketing opportunities and needs”.
Characteristics of Global Marketing
- Large Scale Operations: Generally, the global marketing transactions are held in large or bulk quantity, which help the manufacturer to reap the benefits of economics of scale. It is operate on wholesale basis. Large scale operation helps the company to obtain the advantages related to warehousing, transportation and handling.
- Dominance of Multinationals: The international marketing scenario is mainly dominated by the various multinational corporations. These corporations have worldwide contacts and connections, which help them to expand their business globally. They are much capable of adapting global approaches, whichever is necessary in global marketing activities. They manage their business operations very economically and proficiently.
- Sensitive Character: The nature of international marketing is greatly flexible and sensitive. The environmental factors largely influence the international marketing, e.g., the changing political and economic conditions may prove a product to be unfavorable for a country. Other than this new and advanced technologies used by competitors may directly affect the sales of a product.
- Use of Advanced Technology: The technological advancement is highly dynamic in nature. There is technological change on daily basis. Moreover, the international market is quality conscious and competitive. In these kinds of markets, the company needs to be extra conscious for providing products and services to be international market.
- Need for Long Term Planning.
- Develops Cultural Relations and Maintains World Peace.
Scope of Global Marketing
- Exporting: Exporting is an activity of selling goods and services to foreign markets. The exporter performs several other activities apart from exporting. Those activities are:
- Joint Venture or Collaborations.
- Licensing Arrangements.
- Consultancy Service.
- Technical and Managerial Know-How.
- Importing: Importing is an activity of buying goods and services from other nations. Import of goods and services is possible when there is change in ownership from non-resident to a resident company. In this process it is not compulsory that the goods or services should cross national boundaries.
- Re-Exporting: It is also known as re-engineering of goods for export purpose. It is a process of importing semi-finished goods and then exporting the same as finished goods.
- Management of International Operations: This function involves activities like:
- Conducting various sales and marketing activities abroad.
- Setting up assembling or manufacturing facilities in foreign countries.
- Preparing joint venture and licensing agreements.
- Organisation and formation of trade blocks.
- Settlement of external payments.
- Arranging and managing of foreign exchange.