Principles of marketing: Lecture 41

MGT301
Principles of Marketing
Lecture­41


Summary
of  
Lecture­40


Creating Competitive Advantage

Competitor Analysis



Steps 



Identifying Competitors



Assessing Competitors



Selecting Competitors to Attack or Avoid

Competitive Strategies



Competitive Positions


Market Leader



Market Challenger



Market Follower



Market Nicher


Global Marketplace


Today’s Topics
Global Marketing
Reasons for Global Marketing



 Growth 
– Access to new markets 
– Access to resources



 Survival
– Against competitors with lower costs (due to 
increased access to resources)




Global competitors attacking the domestic market,



Foreign markets might offer higher profit opportunities,



Domestic markets might be shrinking,



Need an enlarged customer base to achieve 

economies of scale,



Reduce dependency on any one market,



Customers might be expanding abroad. 



Getting involved in international 
marketing: A five step process
DO WE GET
INVOLVED IN
INTERNATINAL
MARKETING?

IF YES,
WHICH
MARKETS?

IMPACT ON
DOMESTICBASED
MARKETING?

HOW MUCH
COMMITMENT
IN EACH

MARKET?

HOW SHOULD
WE
REORGANIZE
OUR
OPERATIONS?


Global Marketplace




Global competition is intensifying and few 



industries are now safe from foreign competition.



To compete, many companies are continuously 

    improving their products, expanding into foreign 
    markets and becoming Global Firms.


Global firms face several major problems:
–  Variable exchange rates, 

–  Unstable governments,
–  Protectionist tariffs and trade barriers,
–  Corruption.


Global Vision




Recognizing and reacting to international 
marketing opportunities;



Being aware of threats from foreign competitors in 
all markets;



Effectively using international marketing mix 
opportunities


Decisions in 
International/Global Marketing


Looking
Lookingat

atthe
theglobal
globalmarketing
marketingenvironment
environment
Deciding
Decidingwhether
whetherto
togo
gointernational
international
Deciding
Decidingwhich
whichmarkets
marketsto
toenter
enter
Deciding
Decidinghow
howto
toenter
enterthe
themarket
market
Deciding
Decidingon
onthe
theglobal
globalmarketing
marketingprogram

program
Deciding
Decidingon
onthe
theglobal
globalmarketing
marketingorganization
organization


Looking at the Global Marketing
Environment


The
The International
International Trade
Trade System
System

The
The World
World Trade
Trade Organization
Organization and
and GATT
GATT

Regional
Regional Free

Free Trade
Trade Zones
Zones


The International Trade System
– Tariffs, quotas, embargos, exchange controls, 
nontariff trade barriers
– World Trade Organization and GATT
– Regional free trade zones
  European Union
  North American Free Trade Agreement
  Other free trade areas