GLOBAL MARKETING
AND WORLD TRADE
Trends that have affected world
trade
1. The decline of economic
protectionism
2. Increase in economic integration
and free trade
3. Global competition among global
companies for global consumers
PP5-3 How Protectionism Affects
World Trade
Protectionism
Tariffs
Quotas
Increase
Prices
Limit
Supply
Decreased
Global Trade
Global Consumers
Global Consumers consist of
customer groups living in many
countries or regions of the world
who have similar needs or seek
similar features and benefits from
products and services.
Global Environmental Scan
Cultural Appreciation
Values
Customs
Aspects of
culture
Symbols
Language
Economic Considerations
• Stage of Economic Development
• Economic Infrastructure
• Consumer Income and
Purchasing Power
• Currency Exchange Rates
Global Market Entry Strategies
Market Entry
• Indirect Exporter.
Market Entry
• Direct Exporting.
Market Entry
• Foreign Production
– Licensing
– Franchising
– Contract Manufacturing
– Assembly
– Fully Integrated Production
• Ownership Strategies
– Joint Ventures
– Alliances
– Acquisitions
Worldwide Marketing Effort
Crafting a Worldwide Marketing Effort
• Product and Promotion Strategies
Selling Products Globally
1. Product Extension
2. Product Adaptation
3. Product Invention
• By recognizing cultural and buying motive
differences, firms can sell the same products
to different countries by using a
communication adaptation strategy.
• Some companies use dual adaptation, which
means modifying both product and promotion
messages.