ACS TYBMM: Differentiate International and global marketing

Differentiate international and global marketing

International marketing can be segmented by country whereas global would indicate the "entire" globe, basically "all" countries. Global marketing is defined by the Oxford University Press as "marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives." Basically global marketing is selling your product all over the world. It sounds a lot like international marketing or like the two are exactly the same but here are the differences. Global marketing is basically when a company looks at the entire world as one market.There are no differences between a local market and the market 10,000 miles away. It views everything in the same way and not like it is any different in any specific ways. Global marketing is used by huge chain stores that sell only certain products. They usually won't bring anything different or new to the store near to you that might cater to a certain religion or cultural group, because they are based somewhere else. They usually won't bring in cultural foods or products, just because they are a general store. They sell the same exact products all over the world and the exact same things in every single store. To become a global company a company has to use the Four P's of marketing. They are price, promotion, product, and placement. They have to have a global team. They have to have a global marketing plan. It takes time for a company to evolve from a local company to one that sells products all over the world. International marketing is when a company that is based in one country decides to sell products in another. It sets up offices and headquarters in the other countries. International marketing is almost like a franchise is being built, just in another country.The company still owns and operates the business in the other country, but the headquarters in the specific country cater the business to the country's needs. You can still have a huge chain store using international marketing. The chain store still has its name and logos and products, but it sells mostly items that are specific to the country. It isn't based off of things that are say just American, but has things that are say French as well. 

The advantages of the international marketing is that : 

=> The executives are usually native to the country and so are familiar with customs and ideas that are best suited for the area. 

=> They still make most of the marketing and business decisions but have to report to the main headquarters in the country where the business started.International marketing means marketing between particular nations.

Global marketing means a blanket campaign that must be understandable and acceptable to many different countries and cultures. 

Global Marketing Example: Coca-Cola uses two formulas (one with sugar, one with corn syrup) for all markets.

International Marketing Example: Mc Donalds makes market specific menus. Differs from country to country culture to culture.

ACS TYBMM: Q-Set 3

1. An American company manufacturing Dish Washing Machine has appointed your agency to promote its product in the Indian market. Outline the prospects and problems associated with the product launch.

 

or

1. An Indian Spiritual Centre wishes to open its educational centres abroad. Describe the challenges
anticipated in the campaign. (14 marks)

2. Comment on the nature of poverty and unemployment in the Indian Economy. What is the impact of these issues on Advertising and vice-versa? (8) 

Or
2. Bring out the impact of Liberalization on the Indian Economy. 

3.Describe the current Global Trends in advertising discussing the 5 M’s of advertising. (8) 
or

3. Discuss the distinct features of International Marketing and Global Marketing. 

4. An NGO is promoting the cause of 'Ecological Friendly Packing Material'. Design a social marketing campaign using internet to promote the cause. (8)
or

4. A women NGO seeks support for its endeavour to provide psychological counselling and
rehabilitation measures for displaced bar dancers. How would you augment support for the social marketing campaign using the internet? 

5.Write short notes on any three of the following------- (any 3)

1. International distribution channel 
2. WWW as a marketing tool
3. Strategies to enter emerging markets
4. Social Benefits of advertising
5. Business markets and their control on media.

Advertising In Contemporary Society - TYBMM: Q - Set 2

1 
(a) “Today, the world over, the youth finds Indian designer wear kurtis and jackets very appealing.” Suggest an advertising strategy for a global launch of this kind of designer wear. (14)
Or
(b)”In many Indian cities and towns, space has become a premium.” Keeping in mind India’s
distinctive cultural and social flavor, design an advertising campaign for Multipurpose cabinet.

2. 
(a)“Liberalization is very interesting economic policy with wide reaching repercussions.” Discuss Liberalization in the light of wider consumer choice.(8) 

Or 

(b) The government is an important market in any country. Keeping in mind the various economic
policies discuss the government as a market and what media would be most suitable for it.

3. 
(a)“Many developing countries, all over the world are changing their views and would like to have foreign participation”. Discuss this in the light of various strategies that need to be adopted by emerging markets (developing countries) and global markets (developed countries).(8)
Or 
(b) If you are an individual in the area of international marketing, discuss a suitable distribution
channel.

4. 
(a) “Today the consumer is person who has become very aware of his/her rights.” Prepare an internet advertising campaign for housewives coming together to create consumer awareness. (8)
Or 
(b) A women’s wing of a corporate house together with a few doctors planned to have an anti-
stress camp for police officers' wives & families. Prepare a suitable social marketing for the same.

5. Write short notes on: (Any 3) (12) 

i. Local flavor used in global advertising.
ii. W.W.W as marketing tool
iii. Promotion techniques in Internatonal advertising.
iv. Impact of advertising on perceptions and life styles. v. Current global trendes. 

ACS TYBMM: Q - Set 1

1.
(a) You are the creative head of an Indian Advertising Agency, undertaking a marketing campaign for leather shoes in US markets. What cultural and social factors would you bear in mind while preparing the

campaign? (14 Marks)

(b) Advice a foreign marketer on how to launch a new soap to the Indian masses, bearing in mind, India’s varied cultural factors and geographical background? (14 Marks)

2.
(a) Discuss the changing trends in Indian advertising over the past 2 decades. (8 Marks) 

Or

(b) “Liberalization has widened the scope for the Indian Advertising industry”. Discuss this with reference to the Industrial Markets in India. (8 Marks)

3. 
(a) “Geography has become history”. Discuss this with special reference to the challenges in International

Advertising. (8 Marks)

(b) You are local manufacturer who has decided to enter the global market. What strategies would you adopt to achieve your goal? (8 Marks)

4. 
(a) Design an internet campaign for an NGO seeking support to celebrate Christmas for underprivileged

kids.

(8 Marks)

Or


(b) The youth wing of your locality has decided to run a blood donation Camp. Design a social marketing

campaign highlighting the most suitable media. (8 Marks)

5. Write Short Note (any 3) (12 Marks) 

1. Impact of advertisements on Price.
   
2. Role of product packaging in Global advertising.
   
3. Sales promotion in International markets.
   
4. Social benefits of advertising
   
5. Cross cultural advertising. 

Economics FYBMM: Demand Analysis - Part 3: Contraction, Extension and Shift of curve, Demand Analysis terms

Movement along the Curve             v/s                   Shift of Curves

If we consider changes in price of a commodity as the only factor influencing its quantity demanded, then we experience movements on the same curve. We either have extension or contraction of demand.






When factors other than price of the commodity influence demand for that commodity, then we have either increase or decrease in demand shown by complete shifts in the demand curve.
When at the same price more is demanded or at higher price same quantity is demanded then there is increase in demand due to other factors.
Conversely at the same price of a commodity if less of its quantity is demanded or when at a lower price same quantity is demanded then there is a decrease in demand. (See the chart above).
In short, extension and contraction of demand are shown by movement along the demand curve, whereas increase or decrease in demand will be shown by shifts in the curve. 

Demand Analysis

Demand for Durable & Non-Durable goods
Non-durable lose their utility in a very short period hence demand for them depends upon prevailing conditions such as style, income or convenience.
Durable goods are demanded for future use; hence expectations play a vital role in influencing demand for them. Storability and postponability are two peculiar characteristics of durables.

Long-run and Short-run demand
Short run demand refers to the demand that exists at a point of time. It has immediate reaction to change in price and income.
Long run demand refers to the demand that will ultimately exist over a period of time as a result of price changes, competition, product improvement etc.

Direct Demand (Autonomous Demand) and Derived Demand
Demand is direct when it is to satisfy a human want. It is also called Pure Demand or Conventional Demand. Derived Demand, on the other hand, is to satisfy some other requirement. Thus cement is required for buildings and construction, so its demand depends upon that for buildings. Or demand for petrol depends upon vehicles. 

Joint or Complementary Demand
Some goods are demanded in a combination. Tea and sugar or tyres & tubes are examples. Thus demand for complementary is a joint demand.

Cross Demand
Demand for substitutes takes the form of cross demand.

Composite Demand
Composite demand implies that a commodity under consideration can be put to several uses. Demand for electricity is a composite demand as it can be used or lighting, cooing or ironing.

Industry Demand and Firm Demand
Demand for products of a particular company is called Firm Demand. Industry demand is demand for products produced by all companies in the Industry. Thus demand for coffee is Industry demand while demand for Nescafe, coffee produced by Nestle’, is Firm demand.
Under monopoly both these demands will be identical. While in perfect competition these two will be very different.

Total Market Demand and Market Segments Demand
Overall demand for a product in the market is Total Market Demand. That for products in the North India, or from upper middle class, or through mail order is Market Segments Demand. 

Economics FYBMM: Demand Analysis - Part 2: Demand Function and The Law of Demand

Demand Function:

As the quantity demanded of commodity X is a function of about eleven variables listed above, the function can be written as,

Qxd = f(Px,P1, Yd, U,Q,T,A . . . . etc)
Where, Px is price of X, P1 is price of substitute of X, Yd is disposable income of consumer, and U is utility etc.

As this is a complex functional relationship, we assume that all the other variables are held constant and establish relation between Price of X and Quantity demanded of X.

Or

Qxd = f(Px)                                       where, P1 =P0; Yd =Yd0; U=U0; etc.

 The Law of Demand

As stated above the law of demand assumes factors other than price of commodity remain constant.
The law states, “Other things remaining the same the quantity demanded of a commodity X is inversely related to its price.”
Demand schedule indicates different quantities of commodity X demanded at various prices. When these are plotted on a graph we get a demand curve as below. This curve slopes down from left to right indicating the inverse relationship. 

Exceptions to the Law of Demand:

1. Expectations of further changes in prices and speculation.
When prices are rising, more quantities are demanded with the expectations that prices will rise further. This happens on Stock Exchanges.

2. Giffen’s Paradox.
In case of inferior good when the price falls, real income of consumer goes up and this increase is used to buy some other goods in stead of that inferior good [like bread]. This paradox is known as Giffen’s Paradox.

3. Qualitative Changes.
If the price is taken as a yardstick for quality, mere rise in price of a commodity may increase demand for it.

4. Price Illusions.
Consumer these days believes that higher the price better is the product, thus greater demand for it.

5. Display of Standard of Living.
Demonstration effect makes consumer buy high priced items like cars, jewelry to display his wealth. 

Economics FYBMM: Demand Analysis - Part 1: Introduction and Determinants of Demand

Introduction:

In economics demand means desire, need or a want of a consumer backed by his willingness and ability to pay.
Demand in Economics is the desire to possess something and the willingness and ability to pay a certain price in order to possess it.

Demand thus has four dimensions 
Market – whose demand?
Price - at what price?
Time- at what period of time?
Quantity- How much?

Determinants of Demand:

1. The price of commodity X:
Demand is primarily influenced by price. At higher price less of the commodity demanded and at lower price, more.

2. The price of substitutes of X:
The consumer wanting to buy X, also checks and compares the price of a substitute of X and then takes decision to buy.

3. Income of the consumer:
The disposable income of a consumer has a direct influence on demand for X that
consumer wants to buy.

4. Utility of the commodity:
Demand for a commodity arises because of its utility to consumer.

5. Quality of the commodity:
Better the quality of the good, more of it will be demanded by the consumer.

6. The taste and Fashion:
The taste of a consumer for a particular commodity influences the extent of demand. He will buy more of what he prefers.

7. Size of population: Demand depends on the number of buyers.

8. Expectations about future prices:
Consumers’ expectations of prices that may prevail in the near future have effect on demand. 

9. Climatic conditions: Climatic changes affect demand. 

10. Psychology of the consumers:

There is a possibility that as more and more consumers possess a particular good, others are psychologically activated to buy it. This is known as a ‘Bandwagon’ effect.

On the other hand consumers want to possess a good which is not commonly demanded by others. This is known as ‘Snob’ effect.

11. Advertisements and salesmanship:
In modern market demand for a product is created through appropriate
advertisements and sales promotion.

Economics FYBMM: Terms and concepts - Part 5: Micro And Macro Economics

Micro and Macro Economics:
These are two approaches to the study of Science of Economics. In micro economics we analyze the behavior of individual economic units such as individual consumer, producer etc. In macro economics we are concerned with the aggregates i.e. the behavior of the economy as a whole. 

Distinction between Micro and Macro Economics:

1. Unit of Study	Micro Individual	Macro Aggregate
2. Method	Slicing	Lumping
3. Subject Matter	Study of product & Factor pricing etc.	Study of National income, general level of prices, trade cycles etc.
4. Basis	Based on Independence	Based on inter-dependence
5. Advocated by	Alfred Marshall	J M Keynes
6. Vision	Worm’s eye view. Study of a tree	Bird’s eye view. Study of a forest as a whole.

What is true of an individual may not be true of for the economy as a whole. Hence the two approaches. 

Economics FYBMM: Terms and concepts - Part 4: Profit, Optimisation, Avg Cost, Marginal Cost

Profit:

In common terminology excess of revenue over its cost is profit. In Economics we refer to profits as rewards to the organization (entrepreneur) as a factor of production for its participation in the process of production.
Profit is further split into Gross profit, which is Total Revenue less explicit costs that are shown on in the books of accounts. Gross Profits less Depreciation and Taxes are termed Net Profits.

Optimisation:

Optimisation is making the best possible use of available resources to obtain the maximum possible desired quality of output.

Average and Marginal:

These concepts are applicable to revenue, cost, and propensity to consume and save.
Average cost (AC) = Total cost/Units of Output Produced
While marginal cost (MC) is additional cost for producing additional unit of output.

Either,


MCnth = TCn - TCn-1

Or


MC = ΔTC/ΔQ 

Elasticity:

By elasticity we mean the degree of responsiveness of change in one variable brought about by the change in some other variable. Thus degree of responsiveness of quantity demanded of X to the change in price of X is called Price Elasticity of Demand. 

Economics FYBMM: Terms and concepts - Part 3: Cost, Price, Competition, and Monopoly

Cost:
Production involves cost. The cost of production is defined as the aggregate of the expenditure incurred by the producer in the process of production. Cost is also valuation placed on the use of resources.
There are several concepts of costs and these are discussed in the chapter on Cost Analysis.

Price:
The value of anything expressed in terms of money is the ‘Price’ of that thing. There are two concepts of price namely; Market Price and Normal Price. Market price is the price, which actually prevails in the market at a given time. Normal price is the one that is normally expected to prevail in the long run.
The demand side determines the market price as in the short time supply is assumed to be almost inelastic.
In the long run supply is capable of adjusting itself, and hence Normal price is more influenced by supply side.

Competition:
In absence of monopoly a degree of competition is always there in the markets. It can be either perfect or imperfect. The latter has several forms such as monopoly, duopoly, oligopoly or monopolistic competition.

Monopoly:
Monopoly is that market category in which there is a single seller. Features of monopoly are
1. Existence of a single firm.
2. Firm is itself an Industry.
3. Absence of a close substitute.
4. Barriers to entry of a new firm.
5. A monopolist can fix either the price or output, but not both. 

Economics FYBMM: Terms and concepts - Part 2: Supply, Production, Distribution, Consumption

Supply:
Supply of any commodity refers to various amounts of the commodity which the sellers are willing to sell at different possible prices at any given time.
Please refer to later chapters for complete understanding of the concepts of Supply and Demand.

Production:
Production, as commonly understood, refers to creation of something tangible, which can be used to satisfy human want. The process of addition of utilities to the existing matter by changing its form, place and keeping it over time is referred to as Production in Economics. Technologically conversion of inputs into outputs is production. We need Land, Labour, Capital and organization to undertake production. These four are called Factors of Production.

Distribution:
The term distribution in Economic Theory refers to the sharing of the wealth produced in the community among the various factors of production. These rewards to the factors are known by Rent for Land, Wages for Labor, Interest for Capital and Profits for the organization.
However, in general, the term distribution is loosely used to denote the process by which the goods and services produced are made to reach, through different stages to the final consumers.

Consumption:
Consumption, in Economics implies destruction or use of utilities for satisfying human wants. As consumer starts consuming unit after unit of a commodity his total utility or satisfaction goes on increasing but at the diminishing rate. This continues until total utility is the maximum and marginal utility is minimum ultimately reaching zero.
If the price of the commodity is to be considered, then he will consume it until its marginal utility equals the price of the commodity. 

Thus,

MU X = Price of X

The consumer in reality consumes a variety of commodities and at that stage will consider price of each commodity as well as total income at his disposal. The Law of equi- 

MU indicates that,

MUx /Px = MUy/Py = MUz/pz 

Economics FYBMM: Terms and concepts - Part1: Wants, Utility and Demand

Wants:
Human wants are the starting point of all economic activities. Wants refer to the lack of satisfaction, a state of discomfort, which every individual desires to eliminate.
They can be classified into Necessities, Comforts and Luxuries.
They are unlimited. All wants cannot be satisfied simultaneously and fully.
But resources to satisfy them are limited and scarce. These resources have alternative uses.
The allocation of scarce means having alternative uses to meet our unlimited wants is fundamentally the problem of economics.

Utility:
Utility is the capacity of a good to satisfy human want. This is a relative and subjective concept because the same good appears to possess different utility to different individuals at different places and different times.
Total utility means aggregate of utilities derived from consuming all the units of the commodity. Marginal utility is the additional utility by consuming one more unit of the commodity. Hence Total utility is summation of all marginal utilities.
Thus,
TUn = MU1st + MU2nd + MU3rd ........+ MUnth
... TU= ∑ MUs
Whereas marginal utility is MUnth = TUn – TUn-1
Marginal utility goes on diminishing as the consumer goes on consuming unit after unit of that commodity. This phenomenon is called the Marshallian Law of Diminishing Returns.

Demand:
In economics desire backed by purchasing power is the demand. The purchasing power depends on the level of prices and the disposable income of the consumer. Therefore, demand is the desire of the consumer to buy and it depends on his ability to pay as well as his willingness to pay.
Demand = Desire to buy + Ability to pay + Willingness to pay