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Global Marketing Strategies

Global Marketing Strategies
Key Strategies of Global Marketing Globalization means many things to many people. For some it is a new paradigm – a set of fresh beliefs, working methods and economic, political and socio-cultural realities in which the previous assumptions are no longer valid. For developing countries, it means integration with the world economy. It can be better understood if we look it at this perspective- “the world integrated into one huge market”. It calls for the removal of all trade barriers among countries and a perfect competitive market prevails and the stress can lead to many positive and possible outcomes in terms of Quality Quantity Uniqueness Foreign exchange Benefits to the host country Increased productivity leading to Economic growth Well, it does not end there. An MNC (multi national company), by operating in more than one country gains r and d, production, marketing and financial advantages in terms ofcost and labor that other competitors may not enjoy. The global company views the world as one market, minimize the importance of national boundaries, sources, and raise capital and markets wherever it can do the job best. Why do companies go global? One reason could be the rapid shrinking of time and distance across the globe thanks to faster communication, speedier transportation, growing financial flows and rapid technological changes. It is being realized that the domestic markets are no longer adequate and rich. Japanese have flooded the U. S. Market with automobiles and electronic goods because the home market was not big enough to absorb whatever was produced. Companies at the first stage of globalization have only passive dealings with foreign individuals and organizations. By the second stage, companies deal directly with their overseas counterparts, though they might continue to use third parties also. The company might decide to set up an import or export department. Next comes the shedding of domestic capacity and floating an international organization and have a direct hand in exporting, importing, and perhaps producing goods and services abroad. Seldom companies reach this stage, even if they do, they recede later. The company can have a strong foothold in the countries it is organizing its activity only by way of * Superior product quality * Demand * Customer preference for that particular product range that the company offer * A dynamic CEO projecting and boosting company’s image, * Brand image * Availability of skilled labor * Licenses * Access to necessary infrastructure * Feasible financial structure * Viability in the long run * Marketing mix Chennai in India has become a hub for so many corporate as well as global companies since the business climate is very favorable and enterprising. Some of the strategies in globalization would be * Deciding whether to go global * Deciding which markets to enter * Deciding how to enter the market * Learning to handle differences * Adjusting the managing process * Deciding organization structure * Selecting a managerial approach. Developing countries like India have adopted new economic policies that are expected to encourage the international companies setting their foot in India, by which it compels many Indian companies to pursue internationalization vigorously. True globalization marks the beginning of a new economic era of growth and...
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Are You Customer Centric or Product Centric

Are You Customer Centric or Product Centric
Customer Centric or Product Centric Customer centric: refers to the orientation of a company to the needs and behaviors of its customers. Product centric: refers to the orientation of a company towards manufacturing and improving the product line. All products that enter the market are not given the kind of welcome which only certain products are able to enjoy. Why is that only few products are top notch and others average performers? The answer is very simple, you need to be customer centric rather focusing on improving your product and its range. What is the fun in making products that go bland over a period of time? Creating an appealing product does not suffice the requirements of the consumers. Understanding the consumer, his needs and preferences makes you a good marketer. “What people want to buy and what you want people to buy are entirely two different entities.” Customer Wanton and Preferences Marketing is a concept that talks about creating a favorable environment or identifying a niche where you can sell your products comfortably or where the products can sell themselves provided the focus is on the target customer. What companies do now in the name of marketing is nothing but product promotion that exhausts huge chunk of money from the management’s treasury. Business schools have a great role to play in idealizing these concepts for the better understanding of management graduates, make them deliver the right choice of action in real time environment. Marketing starts right from developing a prospective business idea into a concrete business plan followed by branding and promotions. But the product base has to be built upon customer wanton and preferences. Indigenous Products The soft drink “Bovonto” is very popular and a preferred drink in south of Tamilnadu, India and the manufacturers have their plants at various places in Tamilnadu. Although not a big name in the international market, it is a direct competitor for Coke and Pepsi in the southern regions of Tamilnadu. The grape vine is that the product is a perfect “market fit”. To our amusement and amazement the product has communicated well with the market place through taste and quality. Here is the unerring message, ‘Let the product speak for itself’. Indigenous products always gain instant recognition as they connect well with the local people emotionally. If people of each and every country vows only to buy indigenous products, many MNC’s would be out of business and filing for bankruptcy. Such is the power of the market and people who are the owners of the market. What is that ‘X’ factor that makes your product different and unique Let’s look at it from another perspective. Incidentally you happen to develop a great product and you want to market the product. This situation calls for patenting the product and again it can be made market centric by finding the right market segment for the product and promoting it in such a way that the product content appeals to the market. Tell the masses how your product can solve specific problems through its unique content. What is that ‘X’ factor that makes your product different and unique as well is what you have to communicate to the people whom you are targeting. Facebook has revolutionized the internet marketplace by offering simple and user friendly interface and a sophisticated niche for each and every individual who wants to make his/ her presence felt. A good business plan is one which incorporates the best of ideas from all spheres of the company, as marketing is not a separate entity and promotions call for huge investments. Many companies fail to understand the basis of market success which...
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Aim and Scope of Operations Management

Aim and Scope of Operations Management
Aim and Scope of Operations Management The management of conversion or transformation process which accepts inputs and delivers usable goods and services is what is called “operations management.” The inputs may be in the form of, capital, material, labor, technology, information, machines etc. The process takes place in an effective and efficient manner through operations planning, design, management and control. Earlier it was called, production or manufacturing management. Since operation is a general term in a productive environment whose output may be goods or services, the term operations management has become more appropriate.  The aim of a good operational management would be High level of productivity Competitive cost and quality Timely delivery Producing goods as per the requirements of the consumer, that is customer oriented. Flexibility and responsiveness in the production of goods and services Production or operation in the three important sectors of an economy, namely, agriculture, industry and service, creates national wealth and serves as an index for the growth of that economy. One has to understand the link between operations management and other functional areas to appreciate its scope. The goals of the operations strategy has to necessarily be in tandem with the overall corporate strategy to accomplish the goals of a firm. Scope of Operations Management From marketing department, cues regarding customer preference and market segmentation in terms of product, price and volume are supplied to the production department, based on which the production planning is concluded. From Research and development comes the product design and process technology. Human resource is an integral part of production process and also a crucial input. Man power planning by the human resource department plays a major role in recruiting, selecting, training, evaluating and empowering labor force. Operations Strategy The great diversity in products and services available in the market should be taken into consideration before deciding on your operations strategy. At one end we have custom made products that are designed and manufactured to suit the specific needs of the consumers. For instance, custom made shoes, shirts, suits, furniture etc. Here the emphasis is on quality and delivery where the customer is not very much bothered about the price. At the other end manufacturers go for highly standardized products that are available “off the shelf.” Say, home appliances, detergents, soaps etc., here the product differentiation is very minimal and the focus is on competitive pricing as the material is available in plenty. Economy of Scale: A customized product would require a manufacturing set up that can handle a wide variety of general products. The sequence of operations for each product would vary in the manufacturing system making a customized product. So, a process oriented manufacturing system is designed, where similar facilities doing similar operations are grouped together and departmentalized. Standardized products go for a product focused manufacturing system, to reduce the “through put” time as large volumes are required. To be cost effective, each product should have a dedicated line of production to take advantage of the “economy of scale.” Intermediate types of products also find their place in the market and they are produced in a production layout that has a mix of product and process orientation. Here a whole range of products and services are created for the benefit of the customers. In a long term basis, manufacturers should aim to develop new technology, environmentally viable products, increase R and D activity, update skills of work force and managers and focus on development of new products, process and...
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Theory of Demand and Supply

Theory of Demand and Supply
Demand and Supply in Different Markets Demand Criteria Since the analysis of a business firm is central to managerial economics, we are primarily interested in the demand for a #commodity faced by a firm. The demand for a commodity faced by a firm depends on the size of the market, industry demand for the commodity, the form in which the market is organized and the number of firms in the industry vying for the same set of resources and customers. Demand Curve The #market demand curve for a commodity shows the various quantities of the commodity demanded in the market per time period at various alternative prices of the commodity, while holding everything else constant. The curve is negatively sloped, indicating that #price and #quantity are inversely related. The things held constant in drawing a market demand curve for a #product are the number of customers in the market, consumer’s income, the prices of related commodities and tastes. Types of Markets #Monopoly and #Perfect Competition Coming back to the form of a business firm, at one end there exist the monopolist (the sole producer of a commodity for which there are no good substitutes), and at the other end, perfect competition, where there are a large number of firms producing a homogenous product and each firm is too small to affect the price of the commodity by its own actions. In such a case, each firm is a price taker unlike the monopolist who is a price maker thanks to the product exclusivity factor. #Oligopoly In oligopoly there are only a few firms in the industry producing either a homogenous or differentiated product. Since there are only a few firms, the pricing, advertising and other promotional behavior of each firm greatly affect the other firms in the industry and evoke imitation or duplication. We witness many industrial giants fighting for their market share in the respective industrial domains. #Monopolistic In monopolistic competition, there are many firms selling a differentiated product. As the name implies, monopolistic competition has elements of both competition and monopoly. The monopoly element arises because each firm’s product is somewhat different from other firm’s products that facilitate the firms to have some degree of control over the price. Although we try to establish an inverse relationship between price and demand, the other side of the coin shows a different picture in that, as the income levels of a consumer is on an increasing trend, his or her purchasing power increases. Consumers tend to purchase more of most commodities like automobiles, housing, travel and so on, when the income rises. There are some goods, however of which the consumer purchases decline as income rises- for example, maize and similar cheap foods as the consumer has the power to buy goods with better quality and there is no need for a compromise. Demand is one of the most important aspects of managerial economics, since a firm would not be established or survive if a sufficient demand for its product did not exist or could not be created. A firm could have the most efficient production techniques and the most effective #management, but still without a demand for its product that is sufficient to cover all production and selling costs over the long run, it simply could not survive. Demand is thus essential for the creation, survival and profitability of a...
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