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8-1
CHAPTER
GLOBAL MARKETING
8
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
8-2
L E A R N I N G O B J E C T I V E S
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.
Global Marketing
LO1
LO2
LO3
LO4
8-3
Coca-Cola
Erica Simone Leeds RF
8-4
Growth of Global Market
STR
/AFP
/Get
ty Im
ages
8-5
Hiring Overseas
8-6
Assessing Global MarketsGeneral economic environmentMarket size and population growthReal income
Economic analysis using
metrics
TransportationChannelsCommunicationCommerce
Infrastructure and technology
TariffQuotaExchange controlTrade agreement
Government actions
Power distanceUncertainty avoidanceIndividualismMasculinityTime orientation
Sociocultural analysis
8-7
Economic AnalysisGeneral Economic Environment
Gross domestic product
Gross national income
Purchasing power parity
Human development
index
NationMaster
8-8
Evaluating Market Size and Population Growth Rate
Population 2002
Population 2050
REUTERS/Arko Datta/Corbis.
8-9
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.
Nar
inde
r Nan
u/A
FP/G
etty
Imag
esR
EU
TER
S/F
ayza
Kab
li
8-10
Analyzing Infrastructure and Technological Capabilities
Communication
Commerce
Transportation
Distribution Channel
Sto
ckdi
sc
©M
IXA
/Pun
chS
tock
Roy
alty
-Fre
e/C
OR
BIS
Pho
toLi
nk/G
etty
Imag
es
8-11
Analyzing Government Actions
Government actions
Tariff
Quota
Exchange control
Trade agreement
8-12
Both benefit domestically made products because they reduce foreign competition
Tariffs
• Tax• Artificially raises
prices• Lowers demand
Quotas
• Maximum limit• Reduces
availability of imported goods
Tariff and Quotas
8-13
Exchange Control
Exchange rate CountertradeImage Source/Alamy Stockbyte/Punchstock Images
8-14
Trade Agreements
8-15
The European Union (EU)
Monetary and Trade Union
Euro Membership does not
consists of Croatia, Macedonia, Turkey and several others
8-16
Analyzing Sociocultural Factors
Culture
Power distance
Uncertainty avoidance
IndividualismMasculinityTime orientation
Indulgence
8-17
Country Clusters
8-18
Country Clusters
Using the Geert Hofstede’s cultural dimensions concept, what type of cultural difference is affecting the person in the picture?
Uncertainty AvoidanceMcGraw-Hill Companies, Inc. Mark Dierker, photographer.
8-19
The Appeal of the BRIC Countries
Great potential for growth in the global community
Brazil Russia India China
8-20
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?
4. Why are each of the BRIC countries viewed as potential candidates for global expansion?
8-21
Choosing a Global Entry Strategy
Risk
Con
trol
DirectInvestment
Export
JointVenture
StrategicAlliance
Franchising
8-22
CHECK YOURSELF
1. Which global entry strategy has the least risk and why?
2. Which global entry strategy has the most risk and why?
8-23
Choosing a Global Marketing Strategy: Target Market (STP)
Cultural nuances
Subcultures
View of product and consumer role
Different positioning
Adaptation
Single positioning strategyCourtesy Ford India Pvt. Ltd.
8-24
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
8-25
Global Marketing Mix: Pricing Strategies
PriceTariffs
Quotas
Anti-dumpingPolicies
EconomicConditions
Competitivefactors
8-26
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.
http://www.youtube.com/watch?v=MrMURochE6Y
8-27
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
Photo by Jeff Kravitz/FilmMagic/Getty Images
8-28
Spanish Ad
Courtesy Nestlé SA
8-29
CHECK YOURSELF
1. What are the components of a global marketing strategy?
2. What are the three global product strategies?