GLOBAL MARKETING

INTRODUCTION:
The term “Global Marketing” means the marketing strategy that was planned by the company to sell the products or services in the same way everywhere in the world. Here the company addresses to the global customers and markets. This document gives a clear Idea about the complexity involved in global marketing. It also gives a clear idea about the different types of export documents required in global marketing.
EXPLINATION:
Global market is a place where a company can sell their products or services to the customers of different countries. While entering into the global marketing the company has to consider some important points.
They are:
1. Market size
2. Buyers behavior
3. Marketing practices
4. Tax structure and peace
To succeed in global marketing the company has to review about the advantages, Economic trends and demographic conditions. The companies have to consider their geographical conditions too while entering into the global markets. While entering the organization into global market it has to decide to which extent it wants to enter into the international markets. The firm can be for domestic purposes only or to the home country or to the global oriented development. The firm has to consider about the size of the global market because if the competition is less then the firm can fix the price in such a way that most people can afford the price while buying the product. The firm also considers the buyers preference while expanding the firm to internationally because the taste of the people of one country is different with another country. So the company has to produce the product according to the buyer’s preference. The firm also consider about the tax structure that is being imposed by the country. Some countries are opening for global markets by lowering their tax structures so the company has to keep a view on the tax imposing on the product by the host country. After considering all these points the company can decide the expansion of the company to which countries and according to that they can develop the products.
Risks involved in the markets of host countries:
The markets in developing countries will be at high risk when compared to the markets at developed countries. The markets in developed countries will be in stable position where as the markets in developing countries varies due to many factors like transportation, technology, convertibility of currency, stable banking etc.Even the politics in those countries play an important effect on the markets compared to developed countries. As a result of these the company that has experienced a high growth rate for many years can also lower their growth rates suddenly.
At some point of time the company has to consider to which countries the firm has to improve as there are many countries in the world. As stated earlier the companies will look over the countries that are providing a low tax rates on the goods and additional opportunities provided by the country.
A global market strategy represents the common marketing principles that can be applied to marketing conditions in most countries. The company looks the global market as one rather than seeing of country-by-country markets.
A firm has two options in carrying out the export options they are exporting the product either directly under the firms control or indirectly under the firm’s control. The Company can export the product in either of the ways. While exporting the product the documents required are explained below.
Export documents required:
While exporting the products into the global markets the companies has to produce the export documents, international contracts and the trade of the product. In the export transaction the shipping documents are very important. The shipping documents consist of the bill of lading, the marine insurance policy and the invoice. If the payment of shipping is done through bankers documentary credit the two more documents has to be submitted while exporting the product. The two additional documents are the contract of the bank with the buyer as well as with the seller.
After fulfilling the necessary documents there will be a pre shipment inspection done by agency or the appointed body. After completion of this the product will be packed and labeled. Thus a confirmation will be done and the product will be exported to the host country.
Fixing the price of the product:
While fixing the price of the product the company has to consider all the costs involved in developing the product, the costs incurred in exporting the product, the taxes incurred by the government’s etc. thus after considering all these costs the price of the commodity is fixed by the company and it is sold in the host country. The company should also consider the costs of the same products available in the markets. The company has to fix the price based on all these strategies and the price should be in such a way that it should be less when compared to other products available in the market and it should bring profits to the company and the goals has to be reached.
Summary:
Global marketing is the process of focusing on the resources available in the firm to expand the company to globally in order to achieve the goals by applying the long term and short term goals developed based on the resources available.