the global market place.ppt

7/29/2019 the global market place.ppt

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Chapter 15

The Global Marketplace


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Road Map:Previewing the ConceptsDiscuss how the international trade system,economic, political-legal, and culturalenvironments affect a companys international

marketing decisions.Describe three key approaches to enteringinternational markets.

Explain how companies adapt their marketingmixes for international markets.

Identify the three major forms of internationalmarketing organization.


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Global Marketing into theTwenty-First Century

The world is shrinking rapidly with the advent offaster communication, transportation, and

financial flows.International trade is booming and now accountsfor a quarter of the United States GDP.

Between 1996 and 2006, U.S. exports areexpected to increase 51%.

Global competition is intensifying and few U.S.industries are now safe from foreign competition.


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Global Marketing into theTwenty-First Century

To compete, many U.S. companies arecontinuously improving their products, expanding

into foreign markets, and becoming global firms.Global firms face several major problems:

High debt, inflation, and unemployment have resulted inhighly unstable governments & currencies,

Governments placing more regulations on foreign firms,

Protectionist tariffs and trade barriers,

Corruption.


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McDonalds in BeijingMany U.S. companieshave long been

successful, includingMcDonalds, atinternational marketing.

http://www.mcdonalds.com/
http://www.mcdonalds.com/http://www.mcdonalds.com/http://www.mcdonalds.com/http://www.mcdonalds.com/


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Major International MarketingDecisions (Fig. 15-1)


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Looking at the Global MarketingEnvironment

The International Trade Systemi.e. Tariff, Quota, Embargo, Exchange

Control, and Nontariff Trade Barriers

The World Trade Organization and GATTTreaty designed to promote world trade by reducing

tariffs and other international trade barriers

Regional Free Trade ZonesGroup of nations organized to work toward

common goals in the regulation of international trade


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When exporting goods to a foreigncountry, a marketer may be faced withtrade restrictions. Discuss the effectsthat a tariff might have on an exportersmarketing mix.


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Types ofIndustrialStructure

SubsistenceEconomies

Raw MaterialExportingEconomies

IndustrializingEconomies

IndustrialEconomies

Economic Environment


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Attitudes TowardInternational

Buying

GovernmentBureaucracy

PoliticalStability

MonetaryRegulations

At Least Four Political-Legal Factors Should beConsidered in Deciding Whether to do Business in a

Given Country:

Political-Legal Environment


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Cultural EnvironmentHow CustomersThink About and

Use Products

Cultural Traditions,Preferences, and

Behaviors

BusinessNorms andBehavior

Sellers Must Examine theFollowing BeforePlanning a MarketingProgram Within a GivenCountry.


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Deciding Whether to GoInternational

Reasons companies might consider internationalexpansion:

Global competitors attacking the domestic market,Foreign markets might offer higher profit opportunities,

Domestic markets might be shrinking,

Need an enlarged customer base to achieve economiesof scale,

Reduce dependency on any one market,

Customers might be expanding abroad.

Most companies do not act until some situation orevent thrusts them into the global arena.


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Deciding Which Markets to EnterDefine Organizations Marketing Objectives

and Policies

What Volumeof Foreign Sales is Desired?

How ManyCountries Should the Firm Go Into?

What Typesof Countries Should be Entered?

Rank by Market Size & Growth, Cost of DoingBusiness, Competitive Advantage, & Risk Level.


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Deciding How to Enter theMarket (Fig. 15-2)


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Pair with the student on your left todiscuss the following situation.

Once a company has decided to sell in aforeign country, it must determine thebest mode of entry. Assume that you

were the marketing manager forMountain Dew and devise a plan andpick a mode of entry for marketing yourproduct in China.


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ChangesinProduc

t,

Advertising,

Distribution

Channels,

&

Price

StandardizedMarketing Mix

Selling Largely the SameProducts and Using the

same MarketingApproaches Worldwide .

i.e Coca-Cola

Adapted MarketingMix

Adjusts the MarketingMix Elements to EachInternational Target

Market.

i.e. Japanese Barbie

Deciding on the Global Marketing

Program


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Five Global Product and Promotion

Strategies (Fig. 15-3)


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International PricingCompanies face many problems in setting theirinternational prices.

Possibilities in setting prices include:Charge a uniform price all around the world.Charge what consumers in each country could pay.

Use a standard markup of its costs everywhere.

International prices tend to be higher thandomestic prices because of price escalation.

Companies may become guilty of dumping whena foreign subsidiary charges less than its costs or

less than it charges in its home market.


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Whole-Channel Concept for

International Marketing (Fig. 15-4)


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1. Organize an Export Department

2. Create an International Division

3. Become a Global Organization

Degree of Involvement inInternational Marketing Activities

Deciding on the Global Marketing

Organization


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Rest Stop: Reviewing the ConceptsDiscuss how the international trade system,economic, political-legal, and culturalenvironments affect a companys international

marketing decisions.Describe three key approaches to enteringinternational markets.

Explain how companies adapt their marketingmixes for international markets.

Identify the three major forms of internationalmarketing organization.

the global market place.ppt

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