Chapter 07 MKT120 Global MKT

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LEARNING OBJECTIVES

Learning Objectives

What factors aid the growth of globalization?

How does a firm decide to enter a global market?

What ownership and partnership options do firms have for entering a new global market?

What are the similarities and differences between a domestic marketing strategy and a global marketing strategy?

How do ethical issues affect global marketing practices?

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Marriot Hotels

Dependable luxury and absolute quality

Marriot Commercial

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Growth of Global Market

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General Agreement on Tariffs and Trade (GATT)

WTO Website

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Assessing Global Markets

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Economic AnalysisGeneral Economic Environment

NationMaster Website

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Evaluating Market Size and Population Growth Rate

Population 2002

Population 2050

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Evaluating Real Income

P&G targets developing countries

Sotheby’s grows in Asia

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Analyzing Infrastructure and Technological Capabilities

Communication

Commerce

Transportation

Distribution Channel

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Analyzing Government Actions

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Both benefit domestically made products because they reduce foreign competitionBoth benefit domestically made products because they reduce foreign competition

Tariff and Quotas

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Boycott

Ethical Consumer Website

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Exchange Control

Exchange rate Countertrade

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Trade Agreements

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The European Union (EU)

Monetary and Trade Union

Euro Membership does

not consists of Croatia, Macedonia, Turkey and several others

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Analyzing Sociocultural Factors

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Country Clusters

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Spanish Ad

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Check Yourself

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?

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Choosing a Global Entry Strategy

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Check Yourself

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

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

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Choosing a Global Marketing Strategy: Target Market (STP)

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The Global Marketing Mix: Product or Service Strategies

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Global Marketing Mix: Pricing Strategies

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Whole Foods in London

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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.

FedEx Commercial

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Global Marketing Mix: Global Communication Strategies

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Ethical Issues in Global Marketing: Environmental Concerns

Waste ManagementWaste Management PollutionPollution

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Ethical Concerns: Global Labor Issues

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Ethical Concerns: Impact on Host Country Culture

Cultural imperialismCultural

imperialism

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Check Yourself

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

2. What are the three global product strategies?

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Glossary

A boycott pertains to a group’s refusal to deal commercially with some organization to protest against its policies.

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Glossary

Cultural imperialism is the belief that one’s own culture is superior to that of other nations.

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Glossary

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.

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Glossary

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.

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Glossary

Infrastructure is the basic facilities, services, and installations needed for a community or society to function.

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Glossary

A quota designates the maximum quantity of a product that may be brought into a country during a specified time period.

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Glossary

A tariff is a tax levied on a good imported into a country.

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Glossary

A trade agreement is an intergovernmental agreement designed to manage and promote trade activities for a specific region.

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