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REACHING GLOBAL
MARKETS
CHAPTER
Marketing that targets
customers throughout
the world.
More customers=more money. Good thing, right?
Global Marketing
Protectionism
Hurts or Helps Domestically?
How protectionism affects world trade
Quota Tariff
World Trade Organization (WTO)- “Referee” for global trade
Lets Make “Domestic” Bigger!
• Economic community– An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies
Examples of Economic Communities
MERCOSURNAFTA
OPEC
Global Companies
• International Firm – each market is identical
• Multinational Firm - each market is unique
• Transnational Firm –emphasizes similarities,recognize differences
No Borders, New Rules
Multi-domestic Marketing Strategy
Global Brand
Global Marketing Strategy
Global Companies & Marketing Strategies
Things to Consider When Going Global
Economic Considerations
Economic Infrastructure - Communications PowerDistributionMonetary systems
Consumer Income - Level AND buying power
Political – Regulatory Climate
Political Stability
Trade Regulations-Its legal here, but is it legal there?HealthPromotionalEnvironmental
No private ownershipMinimal individual freedom
Little central governmentMaximum personal freedom
GLOBAL MARKET-ENTRY STRATEGIES
RISK
ExportingJointVenture
DirectInvestment
Licensing &Contract Mfg
SameSameProductProduct
One ProductOne MessageOne ProductOne Message
Product AdaptationProduct
Adaptation
MessageAdaptationMessage
AdaptationProduct InventionProduct Invention
SameSameMessageMessage
ChangeChangeMessageMessage
ChangeChangeProductProduct
Product and Promotion Strategies for Global Marketing
Pricing Strategy
Hurts the local businesses
Gray Market or Parallel Importing – (individuals)
Dumping – (companies)
Pricing Strategy
Countertrade - a form of trade in which the payment for goods and services is in the form of other goods and services
Hurts the local governments
Protectionism
Protectionism is the practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quotas.
Protectionism is the practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quotas.
Tariff
A tariff is a government tax on goods or services entering a country, primarily serving to raise prices on imports.
A tariff is a government tax on goods or services entering a country, primarily serving to raise prices on imports.
Quota
A quota is a restriction placed on the amount of of a product allowed to enter or leave a country.
A quota is a restriction placed on the amount of of a product allowed to enter or leave a country.
World Trade Organization
The World Trade Organization (WTO) is a permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.
The World Trade Organization (WTO) is a permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.
Multidomestic Marketing Strategy
A multidomestic marketing strategy is used by multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.
A multidomestic marketing strategy is used by multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.
Global Marketing Strategy
A global marketing strategy is used by transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
A global marketing strategy is used by transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
Global Brand
A global brand is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.
A global brand is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.
Exporting is producing goods in one country and selling them in another country.
Exporting is producing goods in one country and selling them in another country.
Exporting
A joint venture is when a foreign country and a local firm invest together to create a local business.
A joint venture is when a foreign country and a local firm invest together to create a local business.
Joint Venture
A gray market is a situation where products are sold through unauthorized channels of distribution. Also called parallel importing.
A gray market is a situation where products are sold through unauthorized channels of distribution. Also called parallel importing.
Gray Market
Direct investment entails a domestic firm actually investing in and owning a foreign subsidiary or division.
Direct investment entails a domestic firm actually investing in and owning a foreign subsidiary or division.
Direct Investment
Direct investment entails a domestic firm actually investing in and owning a foreign subsidiary or division.
Licensing is the legal process allowing the use of manufacturing, patents and/or knowledge.
Licensing
Dumping is when a firm sells aproduct in a foreign country belowits domestic price or below its actual cost.
Dumping is when a firm sells aproduct in a foreign country belowits domestic price or below its actual cost.
Dumping