Global marketing Basis

A company that engages in global marketing focuses its resources on global market opportunities and threats. Successful global marketers such as Nestlé, Coca-Cola and Honda use familiar marketing mix elements – the 4 PS – to create global marketing programs. Marketing, R&D, manufacturing and other activities comprise a firm’s value chain; firms configure these activities to create superior customer value on a global basis. Global companies also maintain strategic focus while relentlessly pursuing competitive advantage. The marketing mix, value chain, competitive advantage, and focus are universal in their applicability, irrespective of whether a company does business only in the home country or has a presence in many markets around the world. However, in a global industry, companies that fail to pursue global opportunities risk being pushed aside by stronger global competitors.
A firm’s global marketing strategy (GMS) can enhance its worldwide performance. The GMS addresses chiefly 3 basic issues. 1. The nature of the marketing program in terms of the balance between a standardization approach to the marketing mix elements and a localization (adaptation) approach that is responsive to country or regional differences.2. The concentration of marketing activities in a few countries or the dispersal of such activities across many countries. 3. The pursuit of global marketing activities requires cross-border coordination of marketing activities

[...] V The political, legal, and regulatory environments of global marketing The political environment of global marketing is the set of governmental institutions, political parties, and organizations that are the expression of the people of the nations of the world. Anyone engaged in global marketing should have an overall understanding of the importance of sovereignty to national governments. The political environment varies from country to country, and political risk assessment is crucial. It is also important to understand a particular government’s actions with respect to taxes and seizure of assets. [...]

[...] Companies with global aspirations generally have operations in all three areas. Market potential for a product can be evaluated by determining product saturation levels in light of income level. A country’s balance of payment is a record of its economic transactions with the rest of the world. This record shows whether a country has a trade surplus (value of imports exceeds value of imports) or a trade deficit (value of imports exceed value of exports). Trade figures can be further divided into merchandise trade and services trade accounts. [...]