Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Thrive in the Marketing Environment: The World Is Flat Chapter Three Chapter Objectives Understand the big picture of international marketing and the decisions firms must make when they consider globalization Explain how international organizations such as the World Trade Organization (WTO), economic communities, and individual country regulations facilitate and limit a firm’s opportunities for globalization Understand how factors in a firm’s external business environment influence marketing strategies and outcomes in both domestic and global markets Explain some of the strategies that a firm can use to enter global markets © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-2 Global Marketing Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Take a Bow: Marketing on the Global Stage The global marketplace World trade: The flow of goods and services among different countries—the value of all the exports and imports of the world’s nations © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-4 Figure 3-1 North American Trade Flows (in Billions of Dollars) © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-5 Take a Bow: Marketing on the Global Stage Countertrade: A type of trade in which goods are paid for with other items instead of with cash • Barter is common form of countertrade © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-6 Countertrade Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Going Global? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Figure 3-2 Steps in the Decision Process for Entering Global © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-9 Deciding to Go Global Must consider market conditions and competitive advantage when making a decision • Chinese firms such as Chery are now exporting their brands to other countries, including the U.S. © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-10 Understand International, Regional and Country Regulations Initiatives in international regulation and cooperation help trade • General Agreement on Tariffs and Trade (GATT) • World Trade Organization (WTO) Protectionism restricts trade • Quotas, embargoes, and tariffs Economic communities help to promote trade World Trade Organization © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-11 Environmental Scanning Yields Opportunities © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-12 TECHNOLOGICAL ENVIRONMENT ECONOMIC ENVIRONMENT COMPETITIVE ENVIRONMENT Global Marketing Environment Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall POLITICAL/LEGAL ENVIRONMENT SOCIOCULTURAL ENVIRONMENT The Economic Environment: Indicators of Economic Health Key economic indicators: • Gross domestic product (GDP): • • Total dollar value of goods/services a country produces within its borders in a year Gross national product (GNP): Value of all goods and services produced by a country’s citizens or organizations Economic infrastructure Quality of country’s distribution, financial, and communications systems © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-14 Table 3-2 Selected Comparisons of Economic and Demographic Characteristics © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-15 The Economic Environment: Level of Economic Development Least developed country (LDC) • Economic base is often agricultural Developing countries • Economy shifts emphasis from agriculture to industry Developed countries • Offer wide range of opportunities for international marketers © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-16 The Economic Environment: The Business Cycle All economies go through periods of: • Prosperity • Recession • Recovery • Depression • Inflation Economy.com © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Do sales of all goods and services suffer in a recession? If not, name some goods and services that may in fact sell better during a recession than during times of prosperity. 3-17 Competitive Environment Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall The Competitive Environment: Analyzing the Market and Competition Competitive intelligence: Gathering and analyzing publicly available information about rivals to develop superior marketing strategies • Collected from news media, the Internet, and publicly available government documents © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-19 The Competitive Environment: Competition in the Microenvironment Competition in the microenvironment • Competition for consumer’s discretionary income • Product competition • Brand competition Name some examples of competition at each level for the iPhone. © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-20 The Competitive Environment: Competition in the Macroenvironment Competition in the macroenvironment (overall structure of industry) • Monopoly • Oligopoly • Monopolistic competition • Perfect competition © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-21 The Technological Environment Technology: • Provides firms with important competitive advantages • Profoundly affects marketing activities • Can transform industries Patent: • Legal document giving inventors exclusive rights to produce/sell a particular invention in that country © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-22 Roadblocks at the border Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall The Political and Legal Environment: Political Constraints on Business Retaliatory actions against American businesses sometimes occur as a result of political activity or war Political constraints on trade are commonly imposed: • Economic sanctions • Nationalization • Expropriation © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-24 The Political and Legal Environment: Regulatory Constraints on Business Regulatory constraints on trade often restrict the marketing of goods • Local content rules © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Human rights issues may limit foreign countries’ business opportunities 3-25 The Sociocultural Environment Key sociocultural considerations: • Demographics • Cultural values Individualism Collectivism • Social norms and customs • Language • Ethnocentrism © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-26 Market Entry Strategies Exporting Contractual Agreements COMMITMENT - RISK Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Strategic Alliances Direct investment Table 3.6 Market Entry Strategies © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-28 How “Global” Should a Global Marketing Strategy Be? Product-level decisions: the marketingmix strategy: • Standardization vs. localization Standardization: Offer the same products in all markets Localization: Offer a customized marketing mix for each country © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-29 How “Global” Should a Global Marketing Strategy Be? Tweaking the marketing mix • Product decisions: Straight extension strategy Product adaptation strategy Product invention strategy Backward invention • Promotion decisions: Whether or not to modify © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-30 How “Global” Should a Global Marketing Strategy Be? Tweaking the marketing mix • Price decisions: Products are often more expensive to produce for foreign markets – Free trade zones – Gray market goods – Dumping • Distribution decisions: Getting the product to remote locations is often difficult © 2012 Pearson Education, Inc. publishing as Prentice-Hall. 3-31 Group Activity Formulate either a brief standardized or local strategy in a foreign country (of your choice) for a product: Make a SLEPT analysis Describe how the it will affect weather to chose standardized or localized strategy Explain your strategy (the marketing mix). 32