TOPIC COVERED : GLOBAL MARKETING STRATEGY

He explained about most of the large corporation expand to international market. The keys drive to the multinational to oversea is divided to the traditional motivations and the emerging motivations.

The Traditional Motivations:

- Need to secure key supplier

- Market seeking for expansion

- Desire to access low-cost factor

The Emerging motivations:

- A set of economic, technological and social development

- Global scanning and learning capability

- To enhance competitive positioning

There are reason using global strategy:

- Growing similarities among countries carry similar market

- Reduction of tariff and non-tariff barrier that can increase company’s profit margin

- Maturity in domestic market

- Higher Cost of Technology, R&D investment leads to higher cost of production

- Competitive Pressure for gain advantage over competitors.

- Rapid innovation of communication and information Technologies

- A requirement to survival of new markets.

Diagnosing Industrial Global Potential can be divided to several issues:

- Market Global driver is concerned of common customer needs and customer expectation of the products.

- Cost Globalization Driver is to reduce cost of production by Global scale, Scope which speed and variety of products using same machine. The steep of expectation of the products.

- Sourcing efficiency logistic supply chain seeking for lowest cost. Also, favorable logistic one of the tools to help lower the cost.

- Government Driver is emphasizing with the favorable trade Policies, the global company which applicable to comply with local government regulation. The global company has a compatible technical for the automobile industry as the example.

- Competitive Globalization Drivers, which can be high volume of, export and import from the competitors in different continents.

Global Marketing Strategy can be useful to any organization:

First, the firm has to understand the definition, which is different global approach to developing market strategies and programs that blends flexibility with uniformity. The types of the competitive Market Position Strategy can be categorized to Market leader, Market challenger, Market follower, and Market niche. There will be two sides of the coin that is the benefit and drawback.

The benefit side can be cost reduction to the globalize business:

- Enhance the customer preference

- Improve product quality

- Improve program effectiveness

- Increasing competition leverage.

On the other hand, the drawback are concerned to better manage the mistakes for future concerns; such as:

- Significant management costs

- Reduced management effectiveness

- Lessoned customer responsiveness & flexibility

- Risk of not be able to fully satisfy the customer.

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