Dynamics of international marketing

5. Global marketing Emphasizes:
• Global marketing firms sell products and services in most countries around the world.
• Through global operations firms achieve reduction of cost inefficiencies and duplication of efforts among
their national and regional subsidiaries.
• Global operations allow opportunities for the transfer of products, brands, and other ideas across
subsidiaries.
• Opportunities to operate worldwide are supported by the emergence of global customers, and
• Improved linkages among national marketing infrastructures leading to the development of a global
marketing infrastructure
Dynamics of international marketing:
Modern marketers have to deal with customers who are changing.
• With channels of distribution that are changing
• And with the technological advances that are changing the nature of their products & services and
requiring them to operate imaginatively & effectively in the emerging markets.
The basic nature of Marketing does not change from domestic to international marketing, but marketing
outside national boundaries poses special problems, such as dealing with multiple environments, managing
operations in distant markets, optimizing businesses in more than one country, dealing with foreign nationals
etc.
International marketing therefore, unlike domestic marketing, requires operating simultaneously in more than
one kind of environment, coordinating these operations, and using the experience gained in one country for
making decisions in another country.
The demands are tough and the stakes are high. International marketers not only must be sensitive to
different marketing environments internationally, but also must be able to balance marketing moves
worldwide to seek optimum results for the company.
Globalization of markets:
It is widely asserted that we are living in an era in which the greater part of social life is determined by global
processes, in which national cultures, national economies and national borders are dissolving. Central to this
perception is the notion of a rapid and recent economic globalization. “In France the word is mondialisation.
In Spain and Latin America it is globalization. The Germans say Globalisierung”.
Many authors cite Wallerstein as the first one to open up the theme of ‘globalization’ in his book “The
Capitalist World-Economy”, published in 1979. Since then the topic has attracted much attention from
diverse perspectives. The common themes that run through the discourse of globalization are:
a) Ecological interdependence: The recognition that most places on the earth are linked to all others
by air, water, and overland links. Rapidly increasing interdependence of world is rendering national
boundaries meaningless.
b) Dominance and dependency:
 Falling barriers to international trade and world’s markets expose
everyone to domination by most powerful players and role of nations in weakening into service
structures for corporate interest.
c) Hologramatic diversity:
 The argument that each place reflects the same ‘diversity’ as each other.
What is perceived as human, social or cultural diversity is essentially all the same.
d) Homogenization of cultures:
 The view that both material and non-material cultures are becoming
more the same wherever one goes and the argument that a single ‘socioculturalpolitical’ system is the
only viable solution for the problems of interdependency.
e) Ubiquitous communication:
 The belief that communication is now becoming more and more
universal in all places at all times in all directions are called ubiquitous communication.
The above can probably be split into just two concerns:
(i) The awareness of (and probably inevitability of) a global ecosocial dynamics of interdependency.
(ii) Standardization in social, political, cultural, and material life in order to limit or control the chaos (or
to maximize economic gain).
‘Globalization’ has been defined in many ways. Some definitions are relatively concise while others are more
vague and evocative. A more precise definition of ‘globalization’ is as follows: