Mc g h g&l chap008

8-1© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

C H A P T E R

Global Marketing

8

Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

8-2

L E A R N I N G O B J E C T I V E S

© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

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


Assessing Global Markets

General 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


Economic AnalysisGeneral Economic Environment

Gross domestic product

Gross national income

Purchasing power parity

Human development

index

NationMaster Website

http://www.nationmaster.com/red/graph/eco_hum_dev_ind-economy-human-development-index&b_map=1


Evaluating Market Size and Population Growth Rate

Population 2002

Population 2050

REUTERS/Arko Datta/Corbis.


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.

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P/G

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Analyzing Infrastructure and Technological Capabilities

Communication

Commerce

Transportation

Distribution Channel

Sto

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Analyzing Government Actions

Government actions

Quota

Exchange control

Trade agreement

Tariff


Analyzing Sociocultural Factors

CulturePower distance

Uncertainty avoidance

Individualism

Masculinity

Time orientation


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?


Choosing a Global Entry Strategy

Risk

Co

ntr

ol

DirectInvestment

Export

JointVenture

StrategicAlliance

Franchising


CHECK YOURSELF

1. Which global entry strategy has the least risk and why?

2. Which global entry strategy has the most risk and why?


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.


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


Global Marketing Mix: Pricing Strategies

PriceTariffs

Quotas

Anti-dumpingPolicies

EconomicConditions

Competitivefactors


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.

Courtesy of CJ Tucker, NASA/GSFC


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


CHECK YOURSELF

1. What are the components of a global marketing strategy?

2. What are the three global product strategies?

8-19

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A boycott pertains to a group’s refusal to deal commercially with some organization to protest against its policies.

Glossary

8-20

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Cultural imperialism is the belief that one’s own culture is superior to that of other nations.

Glossary

8-21

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

Glossary

8-22

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The purpose of the General Agreement on Tariffs and Trade (GATT) 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.

Glossary

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Infrastructure is the basic facilities, services, and installations needed for a community or society to function.

Glossary

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A quota designates the maximum quantity of a product that may be brought into a country during a specified time period.

Glossary

8-25

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A tariff is a tax levied on a good imported into a country.

Glossary

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

Glossary