global marketing -U7

global marketing

wold is viewed as one single market by global firms who sell their goods regardless of culture, traditions and language , concentrating on similarities

reasons for going global

• economies of scale

• modern ICT

• deregulation

standardise marketing mix

using an identical MM for all countries globally by focusing on similarities of the global market

adapted marketing mix

product is altered , price is changes, promotion varies and distribution is adapted to suit spesific market needs

global product

product may be varies to suit, firms will develop a global USP and establish it brand name and logo , eg ford changing their cars for the Irish market

global prie

prices may vary from market to market, depending on conditions such a labour, cast of materials, standard of living and tariffs , eg Netflix subscriptions change from region to region

global promotion

having an adapted strategy is important to cater to different languages, cults or legislation , eg KFC slogan finger licking good is adapted in china

global place

the global channel of distribution is longer , with more middlemen in the chain from manufacturer to consumer , such as exporters or agents , eg, glad Bia sell their cheese through a Hungarian company in Hungaria

different channels of distributions they use

• direct

• franchising

• agency

challenges in going global

• increased competition

• cultural differences

• distribution

• trade barriers

• standards of living

benefits for Irish firms trading in global market

• increased sales

• economies of scale

• premium pricing

• less dependency on domestic market

developments in technology that help global business

• marketing/promotion - social media

• production- CAM CAD

• e-business - 24/7 sales

• communications

trade fair

where suppliers promote and display their goods in an exhibition to potential customers

trade mission

irish businesses travel to foreign markers to network and negotiate sales, enterprises give grants to do this

transnational companies

an enterprise whose main office is in one country, but posses and control the factors of production(land, labour, capital) in countries outside where they are established

reasons for transnational companies/ expansion

• increased market size/sales

• economies of scale

• less dependancy on domestic market

• deregulation/trading blocs

positive impact of transnational companies

• increased employment

• capital - machinery and tech new

• government revenue increased

• competition

negative impacts of transnationals

• relocation- not loyal , can move on (fruit of the loom donegal-morocco)

• political influence- apple tax concession

• labour- take all labour from indigenous firms

why do large firms locate in Ireland

• free trade zone- access to EU trade bloc

• low corporation tax- 12.5-15%

• educational workforce English language

IDA

industrial development authority

industrial development authority research

provides market research and both quantitive and qualitative information on key industry and business sectors

industrial development authority advice

gives advice to international investors on property investments and assets in setting up businesses in Ireland

industrial development authority linkage

IDA enables linkages schemes by introducing potential investors to irish businesses and service providers