chapter global marketing seven Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

LEARNING OBJECTIVES LO1List the factors that aid in the growth of globalization. LO2Describe the components of a country market assessment. LO3Identify the various market entry strategies. LO4Highlight the similarities and differences between a domestic marketing strategy and a global marketing strategy. Global Marketing 7-2

General Agreement on Tariffs and Trade (GATT) World Trade Organization (WTO) WTO Website PhotoLink/Getty Images 7-3

Assessing Global Markets 7-4

Economic Analysis Using Metrics General Economic Environment Gross domestic product Gross national income Purchasing power parity Human development index NationMaster Website 7-5

Evaluating Market Size and Population Growth Rate Population 2002 Population

Evaluating Real Income Firms can make adjustments to an existing product or change the price to meet the unique needs of a particular country market. Narinder Nanu/AFP/Getty Images REUTERS/Fayza Kabli 7-7

Analyzing Infrastructure and Technological CapabilitiesInfrastructure Communication Commerce Transportation Distribution Channel Stockdisc ©MIXA/PunchStock Royalty-Free/CORBIS PhotoLink/Getty Images 7-8

Analyzing Government Actions 7-9

Analyzing Sociocultural Factors Culture Power distance Uncertainty avoidance IndividualismMasculinity Time orientation 7-10

Country Clusters 7-11

Choosing a Global Entry Strategy 7-12

Choosing a Global Marketing Strategy: Target Market (STP) Cultural nuancesSubculturesView of product and consumer roleDifferent positioningAdaptationSingle positioning strategy 7-13

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 7-14

Global Marketing Mix: Pricing Strategies Price TariffsQuotas Anti- dumping Policies Economic Conditions Competitive factors 7-15

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 Courtesy of CJ Tucker, NASA/GSFC 7-16

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 Photo by Jeff Kravitz/FilmMagic/Getty Images 7-17

Return to slide A boycott pertains to a group’s refusal to deal commercially with some organization to protest against its policies. Glossary 7-18

Return to slide Cultural imperialism is the belief that one’s own culture is superior to that of other nations. Glossary 7-19

Return to slide Exchange control refers to the regulation of a country’s currency exchange rate, the measure of how much one currency is worth in relation to another. Glossary 7-20

Return to slide 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. Glossary 7-21

Return to slide Infrastructure is the basic facilities, services, and installations needed for a community or society to function. Glossary 7-22

Return to slide A quota designates the maximum quantity of a product that may be brought into a country during a specified time period. Glossary 7-23

Return to slide A tariff is a tax levied on a good imported into a country. Glossary 7-24

Return to slide A trade agreement is an intergovernmental agreement designed to manage and promote trade activities for a specific region. Glossary 7-25