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The GlobalThe Global

ap erap er

Objectives

n ers an ow en ers an ow einternational trade s steminternational trade s stem

economic, politicaleconomic, political--legal, andlegal, andcu ura env ronmen s a ec acu ura env ronmen s a ec acom an s internationalcom an s international

marketing decisions.marketing decisions.earn t ree ey approac es toearn t ree ey approac es to

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Objectives

n ers an ow compan esn ers an ow compan esada t their marketin mixesada t their marketin mixes

for international markets.for international markets.

Learn how to identify the threeLearn how to identify the three

marketing organizations.marketing organizations.

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Global FirmGlobal Firm

operating in more thanoperating in more thanone country, gainsone country, gains

R&D, production,R&D, production,marketing, andmarketing, and

nanc a a van ages nnanc a a van ages nits costs and reputationits costs and reputation

purely domesticpurely domestic

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..

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Global Marketing ine en ury

International trade is boominInternational trade is boominMany U.S. firms are successfulMany U.S. firms are successful

Global competition is intensifyingGlobal competition is intensifying

Global companies face severalGlobal companies face severalproblemsproblems

Companies face six major decisionsCompanies face six major decisions

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gure - :

International Marketin

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Looking at the Globalar e ng nv ronmen

The International Trade S stemThe International Trade S stem

Tariffs, quotas, embargos, exchangeTariffs, quotas, embargos, exchange,,

World Trade Organization and GATTWorld Trade Organization and GATT

Regional free trade zonesRegional free trade zones

Euro ean UnionEuro ean Union North American Free Trade AgreementNorth American Free Trade Agreement

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Looking at the Globalar e ng nv ronmen

Economic EnvironmentEconomic Environment Industrial structureIndustrial structure

Raw material exportingRaw material exporting

economieseconomies IndustrializingIndustrializing

economieseconomies Industrial economiesIndustrial economies

Income distributionIncome distribution

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Looking at the Globalar e ng nv ronmen

PoliticalPolitical--Legal EnvironmentLegal Environment Attitudes towardAttitudes toward

international buyinginternational buying overnment ureaucracyovernment ureaucracy Political stabilityPolitical stability one ary regu a onsone ary regu a ons

CountertradeCountertrade

CompensationCompensation

CounterpurchaseCounterpurchase

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Looking at the Globalar e ng nv ronmen

Cultural EnvironmentCultural Environment Impact of Culture onImpact of Culture on

Marketin StrateMarketin Strate Cultural traditions,Cultural traditions,

preferences, behaviorpreferences, behavior

Impact of MarketingImpact of MarketingStrategy on CulturesStrategy on Cultures

Globalization vs.Globalization vs.AmericanizationAmericanization

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Overlookincultural

result inem arrass ngmistakes. Nikefound that thisst lized Airlogo resembled

Arabic script

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Deciding Whether too n erna ona

Not all com aniesNot all com aniesneed an internationalneed an internationalpresencepresence

Globalization may beGlobalization may betri ered b severaltri ered b severalfactorsfactors

Risk and the abilit toRisk and the abilit to

operate globally mustoperate globally mustbe carefull assessedbe carefull assessed

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Deciding Whichar e s o n er

Define internationalDefine internationalmarketing polices andmarketing polices andob ectives and salesob ectives and salesvolume goalsvolume goals

countries to targetcountries to targetec e on e ypes oec e on e ypes o

countries to entercountries to enter

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Deciding Whichar e s o n er

Screen and rank eachScreen and rank eachof the possibleof the possible

using several criteriausing several criteria

Market size, marketMarket size, marketgrowth, cost of doinggrowth, cost of doingbusiness, competitivebusiness, competitiveadvantage, risk leveladvantage, risk level

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gure - :

Strate ies

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o yoDisneyland isowned ando erated b a Japanese

company under

Walt DisneyCompany

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Deciding Howo n er e ar e

ExportingExporting Direct vs. indirectDirect vs. indirect

Joint VenturinJoint Venturin Licensing, contractLicensing, contract

manufacturing,manufacturing,managemenmanagemen

contracting, jointcontracting, jointownershiownershi

Direct InvestmentDirect Investment Assembl facilitiesAssembl facilities

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manufacturing facilitiesmanufacturing facilities

gure - :

and Promotion Strate ies

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Deciding on the Globalar e ng rogram

Standardized MarketinStandardized MarketinMixMix

,,advertising, distribution,advertising, distribution,

the marketing mix arethe marketing mix areuse n a n erna onause n a n erna onamarkets.markets.

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Deciding on the Globalar e ng rogram

The marketingThe marketing

m x e ementsm x e ementsare ad ustedare ad ustedfor eachfor each

target market.target market.

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Deciding on the Globalar e ng rogram

Global Market Product Strate iesGlobal Market Product Strate ies Straight product expansionStraight product expansion

Product adaptationProduct adaptation

conditions or the wants of the foreignconditions or the wants of the foreignmarketmarket

Product inventionProduct invention

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foreign marketsforeign markets

Deciding on the Globalar e ng rogram

Global Promotion Strate iesGlobal Promotion Strate ies Standardized global communicationStandardized global communication

ver s ng emes are s an ar zever s ng emes are s an ar zefrom country to country with slightfrom country to country with slight

Communication adaptationCommunication adaptation

Advertising messages are fullyAdvertising messages are fullyadapted to local marketsadapted to local markets

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Guy Laroche standardizes global advertising.

Arabian version is less sensual.

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European Arabian

Deciding on the Globalar e ng rogram

Global PricingGlobal PricingStrategiesStrategies Companies faceCompanies face

many pro emsmany pro ems Price escalationPrice escalation

subsidiariessubsidiaries

Recent economicRecent economicand technologicaland technologicalforcesforces

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gure - :

-International Marketin

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Deciding on the Globalar e ng rogram

Global Distribution ChannelsGlobal Distribution Channels

WholeWhole--channel viewchannel view

SellersSellersea quar ersea quar ers

organizationorganization

nationsnations ChannelsChannels withinwithin

nationsnations

Numbers & typesNumbers & types

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o nterme ar eso nterme ar es

Deciding on the Globalar e ng rgan za on

Mana in InternationalMana in InternationalMarketing ActivitiesMarketing Activities

:: departmentdepartment

Step 2:Step 2:Create anCreate an

international divisioninternational division Step 3:Step 3:Become a globalBecome a global

or anizationor anization

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