* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Chapter 15 slides
Perfect competition wikipedia , lookup
Digital marketing wikipedia , lookup
Neuromarketing wikipedia , lookup
Market penetration wikipedia , lookup
Viral marketing wikipedia , lookup
Target audience wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Youth marketing wikipedia , lookup
Darknet market wikipedia , lookup
Direct marketing wikipedia , lookup
Competition (companies) wikipedia , lookup
Multi-level marketing wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Dumping (pricing policy) wikipedia , lookup
Marketing plan wikipedia , lookup
Target market wikipedia , lookup
Product planning wikipedia , lookup
Street marketing wikipedia , lookup
Advertising campaign wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Sensory branding wikipedia , lookup
Multicultural marketing wikipedia , lookup
Green marketing wikipedia , lookup
Marketing channel wikipedia , lookup
The Global Marketplace Chapter 15 Rest Stop: Previewing the Concepts • Discuss how the international trade system • • and the economic, political-legal, and cultural environments affect a company’s international marketing decisions Describe three key approaches to entering international markets Explain how companies adapt their marketing mixes for international markets 15 - 2 Rest Stop: Previewing the Concepts • Identify the three major forms of international marketing organization 15 - 3 First Stop: Google in China • By early 2006, Google received Chinese government approval to launch Google.cn • Despite its successes, it started growing increasingly uncomfortable with China’s censorship restrictions • In 2010, the company removed all technical operations from mainland China 15 - 4 Global firm • A firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors Figure 15.1 – Major International Marketing Decisions 15 - 6 Trade Barriers Tariffs • Taxes on certain imported products designed to raise revenue or protect domestic firms Quotas • Limits on the amount of foreign imports that they will accept in certain product categories Trade Barriers Exchange controls • Limit the amount of foreign exchange and the exchange rate against other countries Nontariff trade barriers • Biases against a company’s bid, restrictive product standards, or excessive hostcountry regulations Trade Barriers The Chinese government has set up a “great firewall of China”—electronic and censorship barriers that limit or keep out foreign Web sites such as Google and YouTube, while creating safe havens within which Chinese copycat Web sites such as Baidu and Youku can thrive The World Trade Organization (WTO) • Established by the General Agreement on Tariffs and Trade (GATT) in 1995 • Promotes world trade by reducing tariffs and other international trade barriers • Imposes international trade sanctions and mediates global trade disputes 15 - 10 The World Trade Organization The WTO promotes trade by reducing tariffs and other international trade barriers Regional free trade zones (Economic communities) • Group of nations organized to work toward common goals in the regulation of international trade European Union (EU) • Reduces barriers to free flow of products, services, and labor among member countries • Develops policies on trade with nonmember nations The European Union represents one of the world’s largest single markets. Its current member countries contain more than half a billion consumers and account for 20 percent of the world’s exports 15 - 13 Regional Free Trade Zones • North American Free Trade Agreement • Established free trade zone among United States, Mexico, and Canada • Central American Free Trade Agreement • Established free trade zone between the United States and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua • Union of South American Nations 15 - 14 Economic Environment • Factors that reflect a country’s attractiveness as a market: • Industrial structure • Income distribution • Industrial structure shapes its product and service needs, income levels, and employment levels 15 - 15 Types of Industrial structure Subsistence economies • Vast majority of people engage in simple agriculture • Consume most of their output and barter the rest for simple goods and services Raw material exporting economies • Rich in one or more natural resources but poor in other ways • Much of the revenue comes from exporting these resources 15 - 16 Types of Industrial structure Emerging economies (industrializing economies) • Fast growth in manufacturing results in rapid overall economic growth • As manufacturing increases, the country needs more imports of raw materials and fewer imports of finished products Industrial economies • Major exporters of manufactured goods, services, and investment funds • Trade goods among themselves and also export them to other types of economies for raw materials and semifinished goods 15 - 17 Income Distribution • Industrialized nations – May have low-, medium-, and high-income households • Subsistence economies – Consist mostly of households with very low family incomes Income Distribution In India, Ford’s $7,700 Figo targets low- to middle-income consumers who are only now able to afford their first car Political-Legal Environment • In considering whether to do business in a given country, companies should consider: • • • • Country’s attitude toward international buying Government bureaucracy Political stability Monetary regulations 15 - 20 The Impact of Culture on Marketing Strategy • Consumers in different countries think about and use certain products differently • Business norms and behaviors also vary from country to country • Companies that understand cultural nuances can: • Avoid expensive and embarrassing mistakes • Take advantage of cross-cultural opportunities 15 - 21 The Impact of Culture on Marketing Strategy • Companies that understand cultural nuances can use them to their advantage in the global markets IKEA customers in China want a lot more from its stores than just affordable Scandinavian-design furniture The Impact of Marketing Strategy on Cultures Many iconic American brands are prospering globally, even in some of the most unlikely places. At this Tehran restaurant, American colas are the drink of choice. Coke and Pepsi have grabbed about half the national soft drink sales in Iran. (Also, did you notice the familiar TABASCO hot sauce bottle?) 15 - 23 Deciding Whether to Go Global – Factors • Attack on a company’s home market by global competitors • Expanding customer base in international markets • Better opportunities for growth 15 - 24 Market At Work • Coca-Cola has emphasized international growth in recent years to offset stagnant or declining U.S. soft drink sales With sales stagnating in its mature markets, Coca-Cola is looking to emerging markets—such as Africa—to meet its ambitious growth goals. Its African distribution network is rudimentary but effective Deciding Which Markets to Enter • Company should: • Define its international marketing objectives and policies • Decide what volume of foreign sales it wants • Choose in how many countries it wants to market • Decide on types of countries to enter • Carefully evaluate each country 15 - 26 Figure 15.2 – Market Entry Strategies 15 - 27 Exporting • Entering foreign markets by selling goods produced in the company’s home country, often with little modification • Indirect exporting – Involves less investment because the firm does not require an overseas marketing organization or network • Direct exporting – Investment and risk are greater in this strategy, but so is the potential return 15 - 28 Joint venturing • Entering foreign markets by joining with foreign companies to produce or market a product or service Types of Joint Ventures Licensing • Entering foreign markets through developing an agreement with a licensee in the foreign market Contract manufacturing • Company contracts with manufacturers in a foreign market to produce the product or provide its service Management contracting • Domestic firm supplies the management knowhow to a foreign company that supplies the capital 15 - 30 Types of Joint Ventures Joint ownership • Company creates a local business with investors in a foreign market, who share ownership and control Direct investment • Entering a foreign market by developing foreign-based assembly or manufacturing facilities 15 - 31 Direct Investment • Advantages: • • • • Lower costs Improved image in the host country Deeper relationships Full control over investment • Disadvantages: • Restricted or devalued currencies • Falling markets Deciding on the Global Marketing Program Adapted global marketing • International marketing approach that adjusts the marketing strategy and mix elements to each international target market, which creates more costs but hopefully produces a larger market share and return 15 - 33 Deciding on the Global Marketing Program Standardized global marketing • International marketing strategy that basically uses the same marketing strategy and mix in all of the company’s international markets 15 - 34 Marketing Mix Adaptation In India, McDonald’s serves chicken, fish, and vegetable burgers, and the Maharja Mac—two all-mutton patties, special sauce, lettuce, cheese, pickles, onions, on a sesame-seed bun Figure 15.3 – Five Global Product and Communications Strategies Global Product Strategies Straight product extension • Marketing a product in a foreign market without making any changes to the product Product adaptation • Adapting a product to meet local conditions or wants in foreign markets Product invention • Creating new products or services for foreign markets Global Promotion Strategies • Companies can either • Adopt the same communication strategy they use in the home market • Change it for each local market • Even in highly standardized communications campaigns, adjustments might be required for language and cultural differences 15 - 38 Communication adaptation • Global communication strategy of fully adapting advertising messages to local markets Marketing at Work • While translating brand names and slogans, phonetic appeal, associations with historical figures, legends, and other factors should also be considered Some standardized names do not translate well globally. You won’t likely find this French lemonade brand at your local Kroger store. Global Price Considerations • Companies could: • Charge what consumers in each country would bear • Use a standard markup of its costs everywhere • Companies’ foreign prices are usually higher than their domestic prices for comparable products 15 - 41 Global Price Considerations Levi Strauss recently launched the Denizen brand, created for teens and young adults in emerging markets such as China, India, and Brazil who cannot afford Levi’s-branded jeans 15 - 42 Whole-channel view • Designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network Figure 15.4 – Whole-Channel Concept for International Marketing 15 - 44 Global Distribution Channels In its efforts to sell rugged, affordable phones to Indian consumers, Nokia forged its own distribution structure, including a fleet of distinctive blue Nokia-branded vans that prowl rutted country roads to visit remote villages. 15 - 45 Deciding on the Global Marketing Organization • International marketing efforts can be managed in three different ways: • Organizing an export department • Creating international divisions: • Geographical organizations • World product groups • International subsidiaries • Becoming a global organization 15 - 46 Deciding on the Global Marketing Organization European household, health, and consumer goods producer Reckitt Benckiser has a truly global organization. “Most of our top managers . . . view themselves as global citizens rather than as citizens of any given nation.” 15 - 47 Rest Stop: Reviewing the Concepts • Discuss how the international trade system • • and the economic, political-legal, and cultural environments affect a company’s international marketing decisions Describe three key approaches to entering international markets Explain how companies adapt their marketing mixes for international markets 15 - 48 Rest Stop: Reviewing the Concepts • Identify the three major forms of international marketing organization 15 - 49 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 15 - 50