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Chapter 18

MARKETING INMARKETING INA GLOBAL ECONOMYA GLOBAL ECONOMY

18-1 The Expanding World Economy

18-2 How Businesses Get Involved

18-3 Understanding International Markets

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Focus Questions:Based on the ad, what

types of products and services does XL Capital offer and who are its customers?

How would a business involved in international trade benefit by working with XL?

©X

L

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THE EXPANDINGWORLD ECONOMY

GOALSGOALSDescribe the important role that

international trade plays in the global economy.

Explain why businesses expand into international markets and how governments assist them in doing so.

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The United States and International Trade

International tradeimportsexports

The changing nature of international trade

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Why Businesses Are Going Global

Changing markets and competitionAssistance with international marketing

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HOW BUSINESSESGET INVOLVED

GOALSGOALSDefine indirect and direct exporting and

balance of trade.Explain how foreign production, foreign

investment, and foreign joint ventures operate.

Describe the way in which multinational companies compete by thinking globally.

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The Importance of Marketing in International Trade

Indirect exportingDirect exportingBalance of trade

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Foreign Production, Investment, and Joint Ventures

Foreign productionForeign investmentJoint ventures

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Multinational Companies

Businesses that have operations throughout the world and that conduct planning for worldwide markets are multinational companies.

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The World’s Largest Employers

Company Home Country No. of Employees

Wal-Mart Stores United States 1,900,000

China National Petroleum China 1,086,966

U.S. Postal Service United States 796,199

Sinopec China 681,900

Siemens Germany 475,000

McDonald’s United States 465,000

Deutsche Post Germany 463,350

Carrefour France 456,295

Agricultural Bank of China China 452,464

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UNDERSTANDING INTERNATIONAL MARKETS

GOALSGOALSExplain how economic conditions affect the

ability to market within a country.Describe the factors that determine the best

marketing mix for particular countries.Examine how conditions in international

markets affect the completion of marketing functions.

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The InternationalEconomic Environment

Preindustrial economiesIndustrial economiesPostindustrial economies

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Information Needed for International Markets

Market Information

NeedsEconomic

EnvironmentEconomic

Environment

Culture and Customs

Culture and CustomsConsumer

CharacteristicsConsumer

Characteristics

Political andLegal Structure

Political andLegal Structure

TechnologyTechnology

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Condition of the Economy

Gross domestic product (GDP)Gross national product (GNP)Standard of livingProductivityPurchasing powerConsumer Price Index InflationRecessionBusiness cycles

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Finding the Right Mixfor Foreign Markets

Consumer characteristicsCulture and customsTechnologyPolitical and legal structure

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International Marketing Activities

Gathering market informationAdjusting the marketing mix and marketing

functionsProduct/service managementDistribution SellingFinancingPricingPromotion