Presentation on theme: "Definition Global Firm"— Presentation transcript:
0Global MarketingA global firm operates in more than one country. It sees the world as one market.19
1Definition Global Firm A firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors.
3Looking at the Global Marketing Environment The International Trade SystemTariffs, quotas, embargos, exchange controls, nontariff trade barriersWorld Trade Organization and GATTRegional free trade zonesEuropean UnionNorth American Free Trade AgreementOther free trade areas
4Looking at the Global Marketing Environment Economic EnvironmentIndustrial structureSubsistence economiesRaw material exporting economiesIndustrializing economiesIndustrial economiesIncome distribution
5Looking at the Global Marketing Environment Political-Legal EnvironmentAttitudes toward international buyingGovernment bureaucracyPolitical stabilityMonetary regulationsCountertrade: barter, compensation, counterpurchase
6Looking at the Global Marketing Environment Cultural EnvironmentImpact of Culture on Marketing StrategyCultural traditions, preferences, behaviorImpact of Marketing Strategy on CulturesGlobalization vs. Americanization
7Deciding Whether to Go International Not all companies need to go internationalLocal businessesDomestic can be easier and saferNo unstable currency issuesMay be drawn international by global competitor’s attackIf domestic market growth low, global may bring higher salesThe company needs to evaluate its abilities and the consumer and business environments in other countries.
9Deciding on the Global Marketing Program Standardized Marketing MixSame basic product, advertising, distribution, and other elements of the marketing mix are used in all international markets.Adapted Marketing MixThe marketing mix elements are adjusted for each international target market.
10Five International Product and Promotion Strategies
11Deciding on the Global Marketing Organization Managing International Marketing ActivitiesStep 1: Organize export departmentStep 2: Create an international divisionStep 3: Become a global organization