marketing: an introduction the global marketplace chapter fifteen lecture slides –express version...
TRANSCRIPT
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nThe Global Marketplace
•Chapter Fifteen•Lecture Slides
–Express Version
•Course•Professor•Date
©Copyright 2004, Pearson Education Canada Inc.15-2
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nLooking Ahead
• After studying this chapter you should be able to:
• Discuss how the international trade system, economic, politico-legal, and cultural environments affect a company’s international marketing decisions
• Describe three key approaches to entering international markets
• Explain how companies adapt their marketing mixes for international markets
• Identify the three major forms of international marketing organization
©Copyright 2004, Pearson Education Canada Inc.15-3
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nImportance of International Trade
• International trade is very important to Canadian businesses– Exports made up 45% of our GDP in 2000 versus
25% for the U.S.– Depend on imports for wide range of goods and
services– Encourages competitive pricing– Creates jobs for Canadians; 1 in 3 jobs is tied to
trade– Stimulates technological advances, improves
learning and productivity– Can be risky
• Environmental factors supporting trade– Faster communication, transportation, and financial
flows make the world “smaller”
©Copyright 2004, Pearson Education Canada Inc.15-4
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nMajor Decisions in Global Marketing
Looking at the global marketing
environment
Deciding whether to gointernational
Decidingwhich markets
to enter
Deciding on the global marketing
organization
Deciding on the global marketing
program
Deciding how to enter
the market
Figure 15-1
©Copyright 2004, Pearson Education Canada Inc.15-5
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nThe International Trade System
• Restrictions to trade– Tariff– Quota– Embargo– Exchange controls– Nontariff barriers
• World Trade Organization (WTO)– Voluntary trade association, 144 members doing 90% of
world trade– Succeeded General Agreement on Trade and Tariffs
(GATT), in effect since 1948– Objective to promote international trade by removing
barriers through negotiation
©Copyright 2004, Pearson Education Canada Inc.15-6
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nThe International Trade System (continued)
• Economic communities– Groups of nations working toward common goal– Regional free trade zones– European Economic Community (EEC); adoption of
common currency to facilitate trade– North American Free Trade Agreement (NAFTA)
• Economic environment– Industrial structures
• Subsistence economies• Raw-material exporting economies• Industrializing economies• Industrial economies
– Income distribution
©Copyright 2004, Pearson Education Canada Inc.15-7
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nThe International Trade System (continued)
• Politico-legal environment– Attitudes towards international buying– Government bureaucracy– Political stability– Monetary regulations– Ethical issues between cultures
• Cultural environment– Differences in consumption between countries– Differences in language, norms of behaviour, taboos,
customs, and attitudes– Need to be sensitive to avoid mistakes
©Copyright 2004, Pearson Education Canada Inc.15-8
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nIndicators of Market Potential
• Demographic characteristics– Size/density of population, rate of growth, degree of
urbanization, age structure and composition
• Geographic characteristics– Physical size, topography, climate conditions
• Economic factors– GNP per capita, income distribution, growth, investment
• Technological factors– Skills, production and consumption technology, education
• Sociocultural factors– Values, lifestyles, ethnic groups, linguistic fragmentation
• National goals and plans– Industry priorities, infrastructure investment plans
Table 15-1
©Copyright 2004, Pearson Education Canada Inc.15-9
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nMarket Entry Strategies
Figure 15-2
Exporting
Indirect
Direct
Joint venturing
Licensing
Contractmanufacturing
Managementcontracting
Joint ownership
Direct investment
Assembly facilities
Manufacturingfacilities
Amount of commitment, risk, control, and profit potential
©Copyright 2004, Pearson Education Canada Inc.15-10
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nInternational Product & Promotion Strategies
Straightextension
Productadaptation
Productinvention
Communicationadaptation
Dualadaptation
Don’t changeproduct
Figure 15-1
Adaptproduct
Develop newproduct
Don’t changepromotion
Adaptpromotion
Product
Promotion
©Copyright 2004, Pearson Education Canada Inc.15-11
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nDistribution Channels
Figure 15-4
Seller
Seller’sheadquartersorganization
forinternational
marketing
Channelsbetweennations
Channelswithin
nations
Finaluser
orbuyer
Whole-Channel Concept for International Marketing
©Copyright 2004, Pearson Education Canada Inc.15-12
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nThe Global Marketing Organization
• Organize an export department• Create an international division• Becoming a global organization
©Copyright 2004, Pearson Education Canada Inc.15-13
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nLooking Back
• International trade system
• Economic, politico-legal, cultural environments
• 3 key approaches to international markets
• Adapting the marketing mix
• 3 forms of international marketing organization