Transcript
BMGT 205: PRINCIPLES OF MARKETING
Chapter 8: Global Marketing
GLOBAL MARKETINGLearning Objectives
Describe the components of a country market assessment.
Understand the marketing opportunities in BRIC countries.
Identify the various market entry strategies.
Highlight the similarities and differences between a domestic marketing strategy and a global marketing strategy.
LO1
LO2
LO3
LO4
Some Global Marketing Mistakes
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Assessing Global Markets
General economic environment Market size and population growth Real income
Economic analysis using metrics
Transportation Channels
Communication Commerce
Infrastructure and technology
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Tariff Quota
Exchange control Trade agreement
Government actions!Power distance Uncertainty avoidance Individualism Masculinity Time orientation
Sociocultural analysis
1. ECONOMIC ANALYSIS GENERAL ECONOMIC
ENVIRONMENT
Gross domestic product Gross national income
Purchasing power parity
Human development index
1. Economic Analysis Evaluating Market Size
and Population Growth Rate
• 36% of the worlds population lives in China and India
• What would be better: a 3% market share in the US or a 1% market share in India?
1. Economic Analysis 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.
2. ANALYZING INFRASTRUCTURE AND TECHNOLOGICAL
CAPABILITIES
Communication
Commerce
Transportation
Distribution Channel
3. ANALYZING GOVERNMENT ACTIONS
Government actions
Quota Exchange control
Trade agreement Tariff
4. ANALYZING SOCIOCULTURAL FACTORS
CulturePower distance
Uncertainty avoidance
Individualism
Masculinity
Time orientation
Chapter Check In
1. What are key metrics that 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?
Choosing a Global Entry Strategy
Risk
Con
trol
Direct Investment
Export
Joint Venture
Strategic Alliance
Franchising
Choosing a Global Marketing Strategy: Target Market (STP)
Cultural nuances
Subcultures
View of product and consumer role
Different positioning
Adaptation
Single positioning strategy
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
Global Marketing Mix: Pricing Strategies
PriceTariffs
Quotas
Anti-dumping Policies
Economic Conditions
Competitive factors
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
Chapter Check In
1. What are the components of a global marketing strategy? 2. What are the three global product strategies?
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.
Key Terms
• A boycott pertains to a group’s refusal to deal commercially with some organization to protest against its policies.
• Cultural imperialism is the belief that one’s own culture is superior to that of other nations.
• Exchange control refers to the regulation of a country’s currency exchange rate, the measure of how much one currency is worth in relation to another.
Key Terms
• The purpose of the General Agreement on Tariffs and Trade (GATT) was to lower trade barriers such as high tariffs on imported goods and restrictions on the number and types of imported products that inhibited the free flow of goods across borders.
• Infrastructure is the basic facilities, services, and installations needed for a community or society to function.
Key Terms
• A quota designates the maximum quantity of a product that may be brought into a country during a specified time period.
• A tariff is a tax levied on a good imported into a country.
• A trade agreement is an intergovernmental agreement designed to manage and promote trade activities for a specific region.
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