4 Developing a Global Vision Prepared by Deborah Baker Texas Christian University

Learning Objectives 1. Discuss the importance of global marketing Chapter 4 Learning Objectives 1. Discuss the importance of global marketing 2. Discuss the impact of multinational firms on the world economy 3. Describe the external environment facing global marketers

Chapter 4 Learning Objectives Identify the various ways of entering the global marketplace 5. List the basic elements involved in developing a global marketing mix 6. Discover how the Internet is affecting global marketing

Rewards of Global Marketing Chapter 4 Rewards of Global Marketing Recognize and react to international marketing opportunities Be aware of threats from foreign competitors Use international distribution networks 1

Stages of Global Business Development Chapter 4 Stages of Global Business Development 1. Companies operate in one country and sell into others 2. Set up foreign subsidiaries to handle sales 4. Virtual operation 3. Operate an entire line of business in another country 2

Global Marketing Standardization Chapter 4 Global Marketing Standardization World markets are becoming more alike Standardized products can be sold the same way worldwide Successful companies may vary products for global markets On Line http://www.cocacola.com http://www.colgate.com 2

The External Environment Chapter 4 The External Environment Natural Resources Demographic Makeup Economic and Technological Development Culture Environmental Factors Political Structure 3

Culture Language Religion Superstitions Etiquette Customs Traditions Chapter 4 Culture Language Religion Superstitions Etiquette Customs Traditions Notion of time 3

Economic and Technological Development Chapter 4 Economic and Technological Development Developed Country Less Developed Country Complex, sophisticated industries Basic industries On Line http://www.un.org/esa 3

Political Structure Extremes Chapter 4 Political Structure Extremes No private ownership Minimal individual freedom Little central government Maximum personal freedom 3

Political and Legal Considerations Chapter 4 Political and Legal Considerations Tariff Quota Boycott Exchange Control Market Grouping Trade Agreement Legal Structures Encourage or Limit Trade On Line http://www.wto.org 3

Marketing Considerations Chapter 4 Demographic Makeup Marketing Considerations Population density Urban or rural Personal income Age 3

Differences in Natural Resources Chapter 4 Differences in Natural Resources Create… International dependencies Shifts of wealth Inflation and recession Export opportunities if resources are abundant Stimulus for military intervention 3

Risk Levels for Global Entry Chapter 4 Risk Levels for Global Entry On Line http://www.cat.com High risk/ high return Risk Direct Invest- ment Joint Venture Contract Manu- facturing Licensing Export Low risk/ low return Return 4

Export Intermediaries Chapter 4 Export Intermediaries Buyer for Export Export Broker Export Agent Export Intermediaries 4

Product and Promotion Same One Product Product One Message Adaptation Chapter 4 Product and Promotion One Product One Message Product Adaptation Message Invention Same Change On Line http://www.mattelscrabble.com http://www.monopoly.com 5

Chapter 4 Pricing Must consider transportation and insurance costs, taxes and tariffs Determine what customers will spend Ensure that foreign buyers will pay them May need to simplify a product to lower price 5