* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Foundations of Marketing
Survey
Document related concepts
Marketing research wikipedia , lookup
Digital marketing wikipedia , lookup
Marketing channel wikipedia , lookup
Ambush marketing wikipedia , lookup
Youth marketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Multi-level marketing wikipedia , lookup
Viral marketing wikipedia , lookup
Sensory branding wikipedia , lookup
Advertising campaign wikipedia , lookup
Direct marketing wikipedia , lookup
Marketing plan wikipedia , lookup
Marketing strategy wikipedia , lookup
Multicultural marketing wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Green marketing wikipedia , lookup
Transcript
of MARKETING Chapter 20 Global Marketing Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Objectives 1. Discuss some of the fundamental concepts that underlie international business. 2. Identify aspects of marketing strategy that are important in the global marketplace. 3. Outline the environment for international business. 4. Explain how the marketing mix may be affected by competition in a global environment. 5. Outline various approaches to global marketing that are taken by companies. 6. Discuss the various modes of entry into international markets. 7. Discuss the different types of trade agreements. 8. Discuss NAFTA. 20-1 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Balance of Trade and Payments Balance of Trade • The relationship between a country’s exports and its imports. Balance of Payments • The flow of money into or out of a country. 20-2 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Exchange Rate • The rate at which a nation’s currency can be exchanged for other currencies or gold. 20-3 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Devaluation • Situation in which a nation reduces the value of its currency in relation to gold or some other currency. 20-4 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Revaluation • Situation in which a country adjusts the value of its currency upward. 20-5 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Absolute Advantage • A nation has an absolute advantage in the marketing of a product if it is the sole producer or can produce a product for less than anyone else. 20-6 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Comparative Advantage • A nation has a comparative advantage if it can produce a given product more efficiently per unit of output than it can produce other products. 20-7 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Company Approaches to Global Marketing (1 of 2) • Ethnocentric Company – Firm that assumes that its way of doing business in its home market is the proper way to operate, and tries to replicate this in foreign markets. • Polycentric Company – Firm that assumes that every country is different and that a specific marketing approach should be developed for each separate country. 20-8a Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Company Approaches to Global Marketing(2 of 2) • Regiocentric Company – Firm that recognizes that countries with similar cultures and economic conditions can be served with a similar marketing mix. • Geocentric Company – Firm that develops a marketing mix that meets the needs of target consumers in all markets. 20-8b Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Modes of International Activity • • • • • • Indirect Exporting and Importing Direct Exporting and Importing Licensing Joint Venture Foreign Production and Marketing Multinational Enterprise 20-9 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Indirect International Trade • Exporting and/or importing only through other domestic companies that trade internationally. 20-10 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Direct International Trade • Exporting directly to markets and/or importing directly from suppliers in other countries. 20-11 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Licensing • Granting authority to produce and sell a product developed in one country in another. 20-12 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Joint Venture • A partnership of firms from different countries, often to set up a local business in a country that is foreign to one of the partners. 20-13 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Direct Investment • The ownership and management of production and/or marketing facilities in a foreign country. 20-14 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Multinational Corporation (MNC) • A corporation that produces and markets goods and services in several countries. 20-15 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Culture • An integrated system of learned behaviour patterns that are distinguishing characteristics of the members of any given society. 20-16 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Local Content Laws • Laws specifying the portion of a product that must come from domestic sources. 20-17 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Cartel • The monopolistic organization of a group of firms. 20-18 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Friendship, Commerce and Navigation (FCN) Treaties • Treaties that address many aspects of commercial relations with other countries; such treaties constitute international law. 20-19 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 World Trade Organization (WTO) • The international body that deals with the rules of trade between nations. 20-20 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Principles of the Trading System • • • • • Without discrimination Freer Predictable More competitive More beneficial for less developed countries 20-21 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Integration of World Markets (1 of 2) • Free Trade Area – Areas established by agreement among two or more nations within which participants agree to free trade of goods and services among themselves. • Customs Union – Agreement among two or more nations that establishes a free trade area, plus a uniform tariff with nonmember nations. 20-22a Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Integration of World Markets (2 of 2) • Common Market – A customs union that also allows factors of production such as labour, capital, and technology to flow freely among members. • Economic Union 20-22b – A common market that also requires members to harmonize monetary policies, taxation, and government spending. In addition, a common currency is used by members. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 North American Free Trade Agreement (NAFTA) • The agreement establishing a free trade area among Canada, the United States, and Mexico that followed the FTA. 20-23 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Free Trade Agreement (FTA) • The agreement establishing a free trade area between Canada and the United States that preceded NAFTA. 20-24 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Trade Restrictions • Tariff – A tax levied against products imported from abroad. • Import Quota – A limit set on the amount of products that may be imported in a certain category. • Embargo 20-25 – A complete ban on importing a particular product. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Tariff • A tax levied against products imported from abroad. 20-26 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Import Quota • A limit set on the amount of products that may be imported in a certain category. 20-27 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Embargo • A complete ban on importing a particular product. 20-28 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Exchange Control • Requirement that firms gaining foreign exchange by exporting must sell their foreign exchange to the central bank or agency, and importers must buy foreign exchange from the same organization. 20-29 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Dumping • Practice of selling products at significantly lower prices in a foreign market than in a nation’s own domestic market. 20-30 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Global Marketing Chapter 20 Import Quota • A limit set on the amount of products that may be imported in a certain category. 20-31 Copyright © 2003 by Nelson, a division of Thomson Canada Limited.