Download Chapter 4

Marketing 4
Global Marketing
Developing a Global Vision - 4





Importance of global marketing
Impact of multinational firms
The International Environment
Level of involvement in International
Markets
Developing a Global Marketing Mix
4.1
Global Marketing I

Global Vision
• Recognize/React to global opportunities
& threats
• Use global distribution networks
effectively
4.2
Global Marketing II

Importance of Global Markets
• World Trade $7 TRILLION
• 12% of US GDP
• 20% of US industrial production
exported
• 1/3 of US farm products exported
• $731 Billion/Year US to World
• International trade and foreign
investments account for nearly 1/3 of
US corporate profits
4.2
Global Marketing III

Globalization
• Negative effects



Lost jobs
Fear of losing job
Leverage against employees’ salary
expectations
• Positive effects




↑ Economic freedom
↑ Competition
↑ Productivity
↑Standard of living
4.2
Global Marketing IV

Impact of Terrorism
• ↑ insurance costs
• ↑ security costs
• Tougher border inspections


slower cargo movement
more paperwork/red tape
• Tighter immigration
4.2
Levels of Globalization





Export: marketing products to
customers in other countries
Licensing: License another firm to
use forms of proprietary knowledge
Joint Venture: buy or partner with a
company to form a new entity
Multinational Corporation:
company with operations and activities
in more than one country
Global Corporation: organization
that has markets worldwide
4.6
MNC: Four Stages to Global
Business Development
1.
2.
3.
4.
Operate in one country/sell in
another.
Establish foreign subsidiaries to sell
in another country.
Operate an entire line of business in
another country.
Virtual corporation/structure not
limited by geography
Global vs. Customized
Strategies
Standard
Strategy
Product
Price
Global
Promotion
Distribution
World as One Market
Promotion
Price
Product
Single
Marketing Mix
Promotion
Price
Customized
Strategies
Product
Distribution
Distribution
Tailored Marketing Mixes
4.7
World as Many Markets
Strategic Decisions Based
on:

Target Market

Firm Capabilities

Market Potential
4.8
External Environment for Global
Marketing

Culture
• Preferences
• What is Acceptable
• Language


Translation
Images
NOVA
• Political/Legal


Government Policies  (In) Efficiencies
Tariff; Quota; Boycott; Exchange Control;
Trade Alliance; Trade Agreement
4.3
External Environment for Global
Marketing



Economic Development
Technology Development
Political
• WTO (Formerly GATT)
• Dropping Trade Barriers

NAFTA; Mercosur; FTAA
• EU (USE?)
• World Bank & IMF
4.4
External Environment for Global
Marketing

Demographic Makeup
• Population



Urban/Rural (Belgium vs. Kenya)
Age
Education
• Standard of Living

Natural Resources
• Export Excess
• Import Deficiencies
4.5
Five Methods for Entering Global
Marketplace





Export (Low Risk/Low Return)
Licensing
Contract Manufacturing
Joint Venture
Direct Investment (High Risk/High
Return)
The Global Marketing Mix

Product and Promotion
• One product, one message
• Product innovation
• Product adaptation
• Message adaptation
The Global Marketing Mix

Distribution

Pricing
• Exchange rates
• Purchasing power
• Dumping