chapter

global marketing

eight

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8-2

LEARNING OBJECTIVES

LO 8-1 Describe the components of a country market assessment.

LO 8-2 Understand the marketing opportunities in BRIC countries.

LO 8-3 Identify the various market entry strategies.

LO 8-4 Highlight the similarities and differences between a domestic marketing strategy and a global marketing strategy.

8-3

General Agreement on Tariffs and Trade (GATT)

World Trade Organization

(WTO)

WTO Website

PhotoLink/Getty Images

8-4

Assessing Global Markets

General economic environmentMarket size and population growthReal income

Economic analysis

using metrics

TransportationChannelsCommunicationCommerce

Infrastructure and

technology

TariffQuotaExchange controlTrade agreement

Government actions

Power distanceUncertainty avoidanceIndividualismMasculinityTime orientation

Sociocultural analysis

8-5

Economic AnalysisGeneral Economic Environment

Gross domestic product

Gross national income

Purchasing power parity

Human development

index

NationMaster Website

8-6

Evaluating Market Size and Population Growth Rate

Population 2002

Population 2050

REUTERS/Arko Datta/Corbis.

8-7

Evaluating Real Income

• Firms can make adjustments to an existing product or change the price to meet the unique needs of a particular country market.

Nari

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Nan

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FP/G

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REU

TER

S/F

ayza

Kab

li

8-8

Analyzing Infrastructure and Technological Capabilities

Communication

Commerce

Transportation

Distribution Channel

Sto

ckd

isc

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IXA

/Pu

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Sto

ck

Royalt

y-Fr

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OR

BIS

Ph

oto

Lin

k/G

ett

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es

8-9

Analyzing Government Actions

Government actions

Quota

Exchange control

Trade agreeme

nt

Tariff

8-10

Both benefit domestically made products because they reduce foreign competition

Tariffs

• Tax• Artificially raises

prices• Lowers demand

Quotas

• Maximum limit• Reduces

availability of imported goods

Tariff and Quotas

8-11

Boycott

Ethical Consumer Website

The McGraw-Hill Companies, Inc/John Flournoy, photographer

8-12

Exchange Control

Exchange rate CountertradeImage Source/Alamy Stockbyte/Punchstock Images

8-13

Trade Agreements

Name Countries

EuropeanUnion

There are 27 member countries of the EU: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. There are five official candidate countries to join the EU: Croatia, Macedonia, Turkey, Iceland, and Montenegro.

NAFTA United States, Canada, and Mexico.

CAFTA United States, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.

Mercosur Full members: Argentina, Brazil, Paraguay, Uruguay, and Venezuela.

ASEAN Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam

8-14

Analyzing Sociocultural Factors

CulturePower distance

Uncertainty avoidance

Individualism

Masculinity

Time orientation

8-15

Country Clusters

check yourself

8-16

1.What metrics 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?

4.Why are each of the BRIC countries viewed as potential candidates for global expansion?

8-17

Choosing a Global Entry Strategy

Risk

Con

trol

DirectInvestment

Export

JointVenture

StrategicAlliance

Franchising

check yourself

8-18

1.Which global entry strategy has the least risk and why?

2.Which global entry strategy has the most risk and why?

8-19

Choosing a Global Marketing Strategy: Target Market (STP)

Cultural nuances

Subcultures

View of product and consumer role

Different positioning

Adaptation

Single positioning strategyCourtesy Ford India Pvt. Ltd.

8-20

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

8-21

Global Marketing Mix: Pricing Strategies

PriceTariffs

Quotas

Anti-dumpingPolicies

EconomicConditions

Competitivefactors

8-22

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

8-23

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

8-24

1.What are the components of a global marketing strategy?

2. What are the three global product strategies?