The document discusses the controllable and uncontrollable factors that affect marketing. It provides examples of each. The controllable factors, also called the marketing mix, include the 4 P's of product, price, place, and promotion. The uncontrollable or environmental factors include political, economic, socio-cultural, technological, legal conditions, competition, and marketing channels. The document then discusses McDonald's marketing strategies for India as an example of addressing the controllable factors. It also discusses the role of multinational corporations and their impact on home and host countries.
The document discusses the controllable and uncontrollable factors that affect marketing. It provides examples of each. The controllable factors, also called the marketing mix, include the 4 P's of product, price, place, and promotion. The uncontrollable or environmental factors include political, economic, socio-cultural, technological, legal conditions, competition, and marketing channels. The document then discusses McDonald's marketing strategies for India as an example of addressing the controllable factors. It also discusses the role of multinational corporations and their impact on home and host countries.
The document discusses the controllable and uncontrollable factors that affect marketing. It provides examples of each. The controllable factors, also called the marketing mix, include the 4 P's of product, price, place, and promotion. The uncontrollable or environmental factors include political, economic, socio-cultural, technological, legal conditions, competition, and marketing channels. The document then discusses McDonald's marketing strategies for India as an example of addressing the controllable factors. It also discusses the role of multinational corporations and their impact on home and host countries.
The document discusses the controllable and uncontrollable factors that affect marketing. It provides examples of each. The controllable factors, also called the marketing mix, include the 4 P's of product, price, place, and promotion. The uncontrollable or environmental factors include political, economic, socio-cultural, technological, legal conditions, competition, and marketing channels. The document then discusses McDonald's marketing strategies for India as an example of addressing the controllable factors. It also discusses the role of multinational corporations and their impact on home and host countries.
Controllable Factors of Marketing. Globalization and Role of MNCs
BY- Gurleen Kaur Student of UIAMS, PU Controllable factor - often called as "Marketing Mix". It includes: Product, Price, Place and Promotion. Uncontrollable factors- often called as "Environmental Factors“ which are out of control. Uncontrolled Factors Political Conditions Economic Conditions Socio-Cultural Conditions Technological Conditions Legal Conditions Competition Marketing Channels Political Forces The political environment includes the characteristics and policies of the political party, the nature of the constitution and the government system and environment encompassing the economic and business policies. The most important policies are: Industrial Policy
EXIM and Trade Policy
Fiscal Policy Economic Forces
Global factors that are outside of the control of individual
organizations, but that can affect the way that businesses operate. Economic factors include: Unemployment rates,
Inflation rates,
Labor costs,
Per capita income,
Market size Socio-Cultural Forces Countries with cultural similarity can generally be approached more easily as compared to countries with cultural diversity. Social environment also affects the motives to make a buying decision and the communication strategy needs to be customized as per the varied social traits for different market. Technological Conditions
There are vast variations in availability of technology
between developed and emerging markets. Bajaj Auto accounts for 85% of the market share of three-wheelers in the Bangladesh market. Technological factors include ecological and environmental aspects, such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation Legal Forces Well-developed sound legal systems in the target market help to reduce the marketing risk and a firm can expect a relatively unbiased and fair treatment. Countries at a higher stage of economic development and democratic form generally provide a relatively independent and a more just legal system. Competition The competition in international market includes products imported from various parts of the world and also from the goods produced domestically in the target markets. The products imported from other competing countries that have significantly different business environment affect the competitiveness of the products. Marketing Channels The differences in the structure of marketing channels necessitate appropriate changes in the marketing mix. Generally, high-income countries, which have organized large-scale outlets have higher stake in business negotiations. CONTROLLABLE FACTORS – MC DONALD’S INDIA International Marketing Mix Mc Donald’s – Marketing Mix India Product • Indian Preferences : • Vegetarian Food • Spicy Food • So Mc Donald’s markets a product range tailor made for Indian needs. Place Price • Product Line Pricing: • McDonald’s offers a range of products prices according to use. • So one can order just a Coke or a Coke with a Burger at additional price.
• Product Bundle Pricing:
• McDonald’s combines several products in the same package. • For example one can buy a McAloo Tikki alone or buy a customized meal.
• Promotional Pricing: • McDonald’s clubs three or four products together as one and price of this new one will be lesser than the sum total of individual product.
• Value Pricing: • McDonald’s has realized that Indian market is a price conscious market and this has forced McDonald’s to provide value products. Examples are economy meal and value meal served by McDonald’s in India. Promotion Advertising TV Commercials, Billboards, Pamphlets Personal Selling Mcdonald’s hires employees in its stores to cater customer needs. Sales Promotion Coupons, Online Deals Public Relations News Stories, Sponsorships, events Direct Marketing Home Delivery, Emails Globalisation Definition: An economic phenomenon? A social phenomenon? A cultural phenomenon?
The movement towards the
expansion of economic and social ties between countries through the spread of corporate institutions and the capitalist philosophy that leads to the shrinking of the world in economic terms. Integration of Economies Made possible by: Technology Communication networks Internet access Growth of economic cooperation : trading blocs (EU, NAFTA, etc.) Collapse of ‘communism’ Movement to free trade ROLE OF MULTINATIONAL CORPORATIONS MULTINATIONAL CORPORATION
It is a corporation that:
Manages Delivers production & And/Or services Operation
In more than one country How Is A Company Classified As An MNC?
Subsidiaries in foreign countries;
High proportion Stakeholders
Operations of assets or/ are from in a number and revenues different of from global countries. countries; operations; Globalization of business
„Globalization is a way of corporate life
necessitated, facilitated and nourished by the transnationalisation of the world economy and developed by corporate strategies
The internationalization process
It is a process by which a company enters a foreign
market. MNCs and International trade
„The sale of foreign subsidiaries in the host
countries are three to four times as large as total world exports Significant increase in the export intensity of the foreign affiliates of MNCs The abilities of multinationals to manipulate financial flows by the use of artificial transfer prices is bound to be a matter of Reasons for The Establishment of MNCs
To increase market share.
To secure cheaper premises and labour.
Employment and Health & Safety Legislations in other
countries may be more relaxed.
To avoid or minimise the amount of tax to be paid.
To take advantage of government grants available.
To save on costs of transporting goods to the market
place.
To develop an international brand.
Advantages
To the Host To the Home
Country Country Benefits of MNCs to the Home Country Acquisition of raw materials from abroad.
Technology and management expertise acquired
from competing in global markets.
Export of components and finished goods for
assembly or distribution in foreign markets.
Inflow of income from overseas profits, royalties and
management contracts. Benefits of MNCs to the Host Country Transfer of technology, capital and entrepreneurship.
Increase in the investment level and thus, the income and
employment in the host country.
Greater availability of products for local consumers.
Increase in exports and decrease in imports.
Drawbacks of MNCs:
Trade restrictions imposed at the government-level
Limited quantities (quotas) of imports.
Effective management of a globally dispersed
organization.
Slow down in the growth of employment in home
countries.
Destroy competition and acquire monopoly.
MNCs in INDIA „In India the government policy confined the foreign investment to the priority areas like high technology and heavy investment sectors of national importance and export sectors. Firms which had been established in non-priority areas prior to the implementation of this policy have, however, been allowed to continue in those sectors. „Several Indian outfits of MNCs are in the low technology consumer goods sector. There are many MNCs which are in high technology area. „Since the economic liberalization unshared in 1991, many multinationals in different lines of business have entered the Indian market. Fortune Global 500 List 2011: Top 10
RANK COMPANY COUNTRY FIELD
1 Wal-Mart Stores United States Retail
2 Royal Dutch Shell Netherlands Petroleum
3 Exxon Mobil United States Petroleum
4 BP United Kingdom Petroleum
5 Sinopec China Petroleum
China National 6 China Petroleum Petroleum
7 State Grid China Power
8 Toyota Motor Japan Automobiles
9 Japan Post Holdings Japan Diversified
10 Chevron United States Petroleum
Indian companies in fortune global 500 list 2011: COUNTRY COMPANY GLOBAL CITY REVENUE RANK 500 RANK ($ millions) 1 Indian Oil 98 New Delhi 68,837 2 Reliance 134 Mumbai 58,900 Industries 3 Bharat 272 Mumbai 34,102 Petroleum 4 State Bank of 292 Mumbai 32,450 India 5 Hindustan 336 Mumbai 28,593 Petroleum 6 Tata Motors 359 Mumbai 27,046 7 Oil & Natural 361 Dehradun 26,945 Gas 8 Tata Steel 370 Mumbai 26,065 THANK YOU
