CHAPTER
Day 10
BUS 222
Agenda
• Questions
• Quiz 2
– Mar 8 (change from syllabus)
– Chaps 5, 6, 7 15 M/C 45 min.
– Same format as before
• Assignment 3 Posted
– We will discuss it at end of Class
– Due March 8
– Marketing Assignment 3.pdf
• Discuss Global Marketing
Ch 1 -2
CHAPTER
GLOBAL
MARKETING
McGraw-Hill/Irwin
07
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Global Marketing
LEARNING OBJECTIVES
LO1 List the factors that aid in the growth of
globalization.
LO2 Describe the components of a country market
assessment.
LO3 Identify the various market entry strategies.
LO4 Highlight the similarities and differences
between a domestic marketing strategy and a
global marketing strategy.
Kraft
©Imaginechina Photo Agency
STR/AFP/Getty Images
Growth of Global Market
Hiring Overseas
General Agreement on
Tariffs and Trade (GATT)
World Trade
Organization
(WTO)
PhotoLink/Getty Images
WTO Website
Assessing Global Markets
Economic Analysis
General Economic Environment
Gross domestic
product
Gross national
income
Purchasing
power parity
Human
development
index
https://www.cia.gov/library/publications/the-world-factbook/index.html
http://hdr.undp.org/en/statistics/
http://data.worldbank.org/country
NationMaster Website
Evaluating Market Size
and Population Growth Rate
Population 2002
Population 2050
http://www.tatanano.com/
REUTERS/Fayza Kabli
• Firms can make
adjustments to an
existing product or
change the price to
meet the unique
needs of a particular
country market.
Narinder Nanu/AFP/Getty Images
Evaluating Real Income
Stockdisc
©MIXA/PunchStock
Analyzing Infrastructure
and Technological Capabilities
Transportation
Royalty-Free/CORBIS
PhotoLink/Getty Images
Communication
Distribution Channel
Commerce
Analyzing Government Actions
Tariff and Quotas
Tariffs
Quotas
• Tax
• Artificially raises
prices
• Lowers demand
• Maximum limit
• Reduces
availability of
imported goods
Both benefit domestically made products
because they reduce foreign competition
The McGraw-Hill Companies, Inc/John Flournoy, photographer
Boycott
Ethical Consumer Website
Exchange Control
Image Source/Alamy
Exchange rate
Stockbyte/Punchstock Images
Countertrade
http://www.x-rates.com/calculator/?from=USD&to=INR&amount=1.00
Trade Agreements
http://ucatlas.ucsc.edu/trade/subtheme_trade_blocs.php
The European Union (EU)
• Monetary and Trade
Union
• Euro
• Membership does not
consists of Croatia,
Macedonia, Turkey
and several others
http://europa.eu/index_en.htm
Analyzing Sociocultural Factors
Individualism
Uncertainty
avoidance
Power
distance
Masculinity
Culture
http://geert-hofstede.com/countries.html
Time
orientation
Country Clusters
Spanish Ad
French Ad
Courtesy Nestlé SA
Check Yourself
1.
What are key metrics that can help
analyze the economic environment of
a country?
2.
What types of government actions
should we be concerned about as we
evaluate a country?
3.
What are five important cultural
dimensions?
Choosing a Global Entry Strategy
Check Yourself
1.
Which global entry strategy has the
least risk and why?
2.
Which global entry strategy has the
most risk and why?
Choosing a Global Marketing Strategy:
Target Market (STP)
Cultural nuances
Subcultures
View of product and consumer role
Different positioning
Adaptation
Single positioning strategy
http://www.learnenglish.de/mistakes/HorrorMistakes.htm
The Global Marketing Mix:
Product or Service Strategies
Sell the same
product or service
in both the home
country market and
host country
Sell a product or
service similar to
that sold in home
country but include
minor adaptations
Sell totally new
products or
services
Global Marketing Mix:
Pricing Strategies
Antidumping
Policies
Quotas
Tariffs
Price
Economic
Conditions
Competitive
factors
Global Marketing Mix:
Global Distribution Strategies
• Some global channels
are very long and
complex.
• Consumer shop local
small local stores.
• Suppliers must be
creative in delivering
to these outlets.
Courtesy of CJ Tucker, NASA/GSFC
FedEx Commercial
Global Marketing Mix: Global
Communication Strategies
Literacy levels vary by country
Firms choose whether to
adapt to language differences
Cultural and religious
differences also matter
Photo by Jeff Kravitz/FilmMagic/Getty Images
Check Yourself
1.
What are the components of a global
marketing strategy?
2.
What are the three global product
strategies?