1. FMA 601 Foreign Market Analysis
Module 1:
Introduction to Global Marketing

2. Foreign Market Analysis Global Marketing

3. Foreign Market Analysis
A market analysis studies the attractiveness and the dynamics of a special market within a special industry.
It is part of the industry analysis and thus in turn of the global environmental analysis.
Market research is any organized effort to gather information about target markets or customers. It is a very important component of business strategy
WATCH “THE BIRTH OF EMPIRE THE EAST INDIA COMPANY” ON BBC

4. Marketing: A Universal Discipline
Marketing is the process of focusing the resources & objectives of an organization on environmental opportunities and needs
Marketing is also a set of concepts, tools, theories, practices, procedures and experiences
Although marketing is a universal discipline, marketing practice varies from country to country

5. The Marketing Concept
The concept has changed dramatically over the years
The old concept: Focus on products
The new concept (around 1960):
Focus was a customer orientation
Development of the marketing mix (4P’s): => product => price => place => promotion

6. FACTORS INFLUENCING INTERNATIONAL MARKETING STRATEGY
Demographic/ Economic
environment
Technological/
Physical
environment
Marketing
Intermediaries
Information system
Planning system
Product
Promotion
Organisation system
Control system
Target
customers
Publics
Suppliers
Price
Place
Competitors
Political / Legal
environment
Social / Cultural
environment

7. The Marketing Concept The Strategic Concept (1990s):
Focus on customer in the context of the broader external environment
Competition, government policy and regulation
Economic, social and technological macro forces
Focus on stakeholder value
employees, customers, shareholders, society

8. The 3 Principles of Marketing
CUSTOMER VALUE
COMPETITIVE ADVANTAGE
FOCUS

9. The Three Principles of Marketing: Customer Value
Goal: create customer value that is greater than the value created by competitors
Strategy:
Expand or improve product and/or service benefits
Reduce the price
Combine these two elements
V = Value
B = Perceived Benefits
C = Perceived Costs
V = B - C

10. The Three Principles of Marketing: Competitive Advantage
Goal: Create competitive advantage
through differentiation
Advantage can exist in any element of a company’s offer
One way to penetrate a new national market is to offer a superior product at a lower price.

11. The Three Principles of Marketing: Focus
Focus is the concentration of attention and resources
Requirement to create customer value at a competitive advantage
A clear focus on customer needs and wants

12. Examples of Global Marketing Strategies
Product Design
Apple/Google/McDonalds/Toyota
Brand Name
Coca-Cola/Apple/BMW
Product Positioning
Unilever/Harley Davidson/Apple/Samsung
Packaging
Gillette/Apple
Sourcing
Toyota/Honda/Nike/Wal-Mart/Apple
Innovation
Apple/Google/Samsung/Tata/Foxconn
Distribution
IKEA/Apple/H&M
Customer Service
Caterpiller/Dell/Apple/Lexus

13. Globalization and Global Marketing
The U.S. represents approximately 25% of the total world market for all products and services
China is now the world’s 2nd largest economy; Japan is now number three
In 2009, China became the world’s largest market for cars
None of the top 15 automobile and parts companies are Chinese

14. Driving Forces Affecting Global Marketing
Technology
Culture
Market Needs
Cost
Free Markets
Peace
Management Vision
Strategic Intent

15. The World Economy - Overview
Since WWII, we have seen:
Emergence of global markets
Integration of world economy
Capital movements are the driving force
Production is “uncoupled” from employment
Macroeconomics of individual countries no longer control economic outcomes

16. The World Economy: Important Trends
Economic activity will shift from West to East
Aging worldwide population will demand increasing levels of productivity and efficiency
Shifts and growth in consumer segments will result in changes in the global consumer marketplace
Changing industry structures and emerging new models of corporate organization will be characteristic of growing global competition

17. The World Economy: Important Trends
The demand for natural resources will continue to grow
Scrutiny of global firms’ worldwide practices will increase as the reach and sale of global firms expand
The economics of information will be transformed as the ubiquitous nature of information expands
Talent pools have become global in nature

18. Richest Countries in the World GNP (PPP) (2010)
United States $14,657,000 trillion
China ,085,708 trillion
Japan ,309,432 trillion
India ,060,392 trillion
Germany ,940,434 trillion
United Kingdom ,172,768 trillion
Brazil ,172,258 trillion
France ,145,287 trillion
Italy ,773,547 trillion

19. The Location of Population
Country 2010 Pop 2000 Pop China 1,330,141,295 1,268,853,362 India 1,173,108,018 1,000,124,224 United States 310,232, ,338,631 Indonesia 242,968, ,829,469 Brazil 201,103, ,319,621 Pakistan 177,276, ,404,914 Bangladesh 158,065, ,406,594 Nigeria 152,217, ,178,818 Russia 139,390, ,709,971 Japan 126,804, ,729,223

20. International Business
All commercial transactions including marketing, investments, and transportation that take place between two or more countries
With Foreign Market Analysis and global marketing you increase your chances of business success