Transcript
Chapter 19 - slide 1Copyright © 2011 Pearson Canada Inc.
Chapter NineteenThe Global Marketplace
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Global Marketing Today
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Looking at the Global Marketing Environment
Restrictions on trade between nations include:
• Tariffs• Quotas• Exchange controls• Nontariff trade barriers
The International Trade System
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Looking at the Global Marketing Environment
General Agreement on Tariffs and Trade (GATT):• A 61-year-old treaty • Designed to promote world trade• Reduces tariffs and other international trade
barriersWorld Trade Organization• Enforces GATT rules• Mediates disputes• Imposes trade sanctions
The International Trade SystemThe World Trade Organization and GATT
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Looking at the Global Marketing Environment
• Economic communities are free trade zones
• European Union (EU)• North American Free Trade
Agreement (NAFTA)• Central American Free Trade
Association (EFTA)
The International Trade SystemRegional Free Trade Zones
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Looking at the Global Marketing Environment
• Subsistence Economics
• Raw Material Exporting Economics
• Industrializing Economics
• Industrial Economies
Economic EnvironmentIndustrial Structure
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Looking at the GlobalMarketing Environment
• Low-income households
• Middle-income households
• High-income households
Economic EnvironmentIncome Distribution
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Looking at the Global Marketing Environment
• Country’s attitude toward international buying
• Government bureaucracy• Political stability• Monetary regulations
Political-Legal Environment
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Looking at the Global Marketing Environment
North American companies have learned that to succeed abroad they must adapt to local cultural values and traditions rather than trying to force their own.
Cultural EnvironmentImpact of Marketing Strategy on Cultures
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Deciding Which Markets to EnterIndicators of Market Potential
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Deciding How to Enter the Market
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Deciding How to Enter the Market
Exporting is when the company produces its goods in the home country and sells them in a foreign market. It is the simplest means involving the least change in the company’s product lines, organization, investments, or mission.
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Deciding How to Enter the Market
Indirect exporting involves working through independent international marketing intermediaries.
• Less involvement, less riskDirect exporting is when the firm handles its own exports.• Greater involvement, greater risk, greater potential
return• Can be done through:
– Set up a domestic export department– Set up an overseas sales branch– Send home-based sales people abroad– Export through foreign-based distributors or agents
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Deciding How to Enter the Market
Joint venturing is when a firm joins with foreign companies to produce or market products or services
• Licensing• Contract manufacturing• Management contracting• Joint ownership
Joint venturing differs from exporting in that the company joins with a host country partner to sell or market abroad
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Deciding on the Global Marketing Program
Summary
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Deciding on the Global Marketing Program
Price Escalation & Dumping is a problem!
Uniform pricing
Market-based pricing
Standard markup pricing
Price
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Deciding on the Global Marketing Program
Whole-Channel View involves designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network
Distribution ChannelsWhole-Channel View
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