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© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

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Presentation on theme: "© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin."— Presentation transcript:

1 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2 7-2 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin LEARNING OBJECTIVES Learning Objectives What factors aid the growth of globalization? How does a firm decide to enter a global market? What ownership and partnership options do firms have for entering a new global market? What are the similarities and differences between a domestic marketing strategy and a global marketing strategy? How do ethical issues affect global marketing practices?

3 7-3 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Marriot Hotels Dependable luxury and absolute quality Marriot Commercial

4 7-4 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Growth of Global Market

5 7-5 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin General Agreement on Tariffs and Trade (GATT) World Trade Organization (WTO) WTO Website

6 7-6 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Assessing Global Markets

7 7-7 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Economic Analysis General Economic Environment Gross domestic product Gross national income Purchasing power parity Human development index NationMaster Website

8 7-8 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Evaluating Market Size and Population Growth Rate Population 2002 Population 2050

9 7-9 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Evaluating Real Income P&G targets developing countries Sothebys grows in Asia

10 7-10 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Analyzing Infrastructure and Technological CapabilitiesInfrastructure Communication Commerce Transportation Distribution Channel

11 7-11 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Analyzing Government Actions

12 7-12 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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

13 7-13 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Boycott Ethical Consumer Website

14 7-14 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Exchange Control Exchange rateCountertrade

15 7-15 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Trade Agreements

16 7-16 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The European Union (EU) Monetary and Trade Union Euro Membership does not consists of Croatia, Macedonia, Turkey and several others

17 7-17 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Analyzing Sociocultural Factors Culture Power distance Uncertainty avoidance IndividualismMasculinity Time orientation

18 7-18 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Country Clusters

19 7-19 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Spanish Ad

20 7-20 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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?

21 7-21 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Choosing a Global Entry Strategy

22 7-22 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Check Yourself 1. Which entry strategy has the least risk and why? 2. Which entry strategy has the most risk and why?

23 7-23 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Choosing a Global Marketing Strategy: Target Market (STP) Cultural nuancesSubculturesView of product and consumer roleDifferent positioningAdaptationSingle positioning strategy

24 7-24 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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

25 7-25 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Global Marketing Mix: Pricing Strategies Price TariffsQuotas Anti- dumping Policies Economic Conditions Competitive factors

26 7-26 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Whole Foods in London

27 7-27 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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. FedEx Commercial

28 7-28 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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

29 7-29 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Ethical Issues in Global Marketing: Environmental Concerns Waste Management Pollution

30 7-30 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Ethical Concerns: Global Labor Issues Fair WagesWorking conditionsChild Labor

31 7-31 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Ethical Concerns: Impact on Host Country Culture Cultural imperialism

32 7-32 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Check Yourself 1. What are the components of a global marketing strategy? 2. What are the three global product strategies?

33 7-33 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary A boycott pertains to a groups refusal to deal commercially with some organization to protest against its policies. Return to slide

34 7-34 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Cultural imperialism is the belief that ones own culture is superior to that of other nations. Return to slide

35 7-35 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Exchange control refers to the regulation of a countrys currency exchange rate, the measure of how much one currency is worth in relation to another. Return to slide

36 7-36 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary 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. Return to slide

37 7-37 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Infrastructure is the basic facilities, services, and installations needed for a community or society to function. Return to slide

38 7-38 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary A quota designates the maximum quantity of a product that may be brought into a country during a specified time period. Return to slide

39 7-39 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary A tariff is a tax levied on a good imported into a country. Return to slide

40 7-40 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary A trade agreement is an intergovernmental agreement designed to manage and promote trade activities for a specific region. Return to slide


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