Page 4 - Lesson Note 14

(v) Marketing strategies:

The marketing strategies of global companies are far more effective than

other companies. They use aggressive marketing strategies in order to

increase their sales in a short period. They possess a more reliable and up-

to-date market information system. Their advertising and sales promotion

techniques are normally very effective. Since they already have carved out

a place for themselves in the global market, and their brands are well-

known, selling their products is not a problem.

(vi) Expansion of market territory :

Their operations and activities extend beyond the physical boundaries of

their image also builds up and their market territory expands enabling

them to become international brands. They operate through a network of

subsidiaries, branches and affiliates in host countries. Due to their giant

size they occupy a dominant position in the market.

(vii) Centralized control:

They have their head quarters in their home country and exercise control

over all branches and subsidiaries. However, this control is limited to the

broad policy framework of the parent company. There is no interference

in day-to-day operations.

Advantages.