Ppt Chapter 8

PowerPoint Presentation

Principles of MarketingMKT3010

Chapter 8Global Marketing

Patricia Knowles, Ph.D.

Associate ProfessorClemson University

112Principles of MarketingMKT3010

2Global MarketingThese are the learning objectives guiding the chapter and will be explored in more detail in the following slides.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.LO1LO2LO3LO423

3Assessing Global MarketsAny entry into a new market, especially into a new country, requires careful planning. A formal market assessment prevents firms from making costly mistakes. Principles of MarketingMKT3010General economic environmentMarket size and population growthReal incomeEconomic analysis using metricsTransportationChannelsCommunicationCommerceInfrastructure and technologyTariffQuotaExchange controlTrade agreementGovernment actionsPower distanceUncertainty avoidanceIndividualismMasculinityTime orientationSociocultural analysis34

4Economic Analysis: General Economic EnvironmentPrinciples of MarketingMKT3010Each of these standardized measures allow for comparisons across countries. The use of each depends on specific circumstances. Many reports now feature GNI rather than GDP, because it includes the economic impact of firms that earn income from their global operations, unlike GDP, which dramatically undercounts the impact of those activities on the economy of the firms home markets. The human development index is interesting to students.

45

5Evaluating Market Size and Population Growth RatePrinciples of MarketingMKT3010Population 2002Population 2050

REUTERS/Arko Datta/Corbis.56

6Evaluating Real IncomePrinciples of MarketingMKT3010Firms can make adjustments to an existing product or change the price to meet the unique needs of a particular country market.

Narinder Nanu/AFP/Getty ImagesREUTERS/Fayza Kabli67

7Analyzing Infrastructure and Technological Capabilities Principles of MarketingMKT3010A firms ability to conduct business in a particular country is in large measure determined by that countrys infrastructure.

Communication

CommerceTransportation

Distribution Channel

StockdiscMIXA/PunchStockRoyalty-Free/CORBISPhotoLink/Getty Images78

8Analyzing Government ActionsPrinciples of MarketingMKT3010This category includes not just the impact of governmental actions but also those of non-governmental organizations (NGOs). 89

9Principles of MarketingMKT3010Analyzing Sociocultural FactorsPerhaps no other aspect of globalization has posed more difficulties to marketers than culture. Outsiders often have trouble understanding the detailed meanings associated with proper communication in a foreign culture. CulturePower distanceUncertainty avoidanceIndividualismMasculinityTime orientation910

10Principles of MarketingMKT3010Check YourselfWhat are key metrics that can help analyze the economic environment of a country?What types of government actions should we be concerned about as we evaluate a country? What are five important cultural dimensions?Why are each of the BRIC countries viewed as potential candidates for global expansion?

1011

11Choosing a Global Entry StrategyPrinciples of MarketingMKT3010RiskControlDirectInvestmentExportJointVentureStrategicAllianceFranchising1112

12Check YourselfPrinciples of MarketingMKT3010Which global entry strategy has the least risk and why?Which global entry strategy has the most risk and why?

1213

13Choosing a Global Marketing Strategy: Target Market (STP)Principles of MarketingMKT3010Adjusting the marketing mix and positioning strategy to meet the needs of a new market may represent the most complex topic for global marketing.

Courtesy Ford India Pvt. Ltd.1314

14The Global Marketing Mix: Product or Service StrategiesPrinciples of MarketingMKT30101415

15Global Marketing Mix: Pricing StrategiesPrinciples of MarketingMKT3010In addition to competitive, cost, and other considerations, global pricing involves additional dimensions that increase its complexity. PriceTariffsQuotasAnti-dumpingPoliciesEconomicConditionsCompetitivefactors1516

16Global Marketing Mix: Global Distribution StrategiesPrinciples of MarketingMKT3010Delivering products to local retailers can be incredibly difficult and frustrating. Infrastructure issues often prevent traditional distribution methods and require creative adjustments. Global firms must find distribution strategies that enable them to reach even really remote markets. For instance, Avon sells and delivers cosmetics to customers using canoes. This example could also prompt an ethical discussion on whether or not firms should be marketing hedonic products or services to consumers with very little disposable income.

Courtesy of CJ Tucker, NASA/GSFCSome global channels are very long and complex.

Consumer shop local small local stores.

Suppliers must be creative in delivering to these outlets.

1617

17Global Marketing Mix: Global Communication StrategiesPrinciples of MarketingMKT3010

Photo by Jeff Kravitz/FilmMagic/Getty Images1718

18Check YourselfPrinciples of MarketingMKT3010What are the components of a global marketing strategy? What are the three global product strategies?

1819

19GlossaryPrinciples of MarketingMKT3010Boycott pertains to a groups refusal to deal commercially with some organization to protest against its policies.

Cultural imperialism is the belief that ones own culture is superior to that of other nations.

Exchange control refers to the regulation of a countrys currency exchange rate, the measure of how much one currency is worth in relation to another.

General Agreement on Tariffs and Trade (GATT)s purpose 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.1920

20GlossaryPrinciples of MarketingMKT3010Quota designates the maximum quantity of a product that may be brought into a country during a specified time period.

Tariff is a tax levied on a good imported into a country.

Trade agreement is an intergovernmental agreement designed to manage and promote trade activities for a specific region.20