Copyright © 2005 Pearson Education Inc. The Global Marketplace Chapter 18 PowerPoint slides Express version Instructor name Course name School name Date Principles of Marketing, Sixth Canadian Edition

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 18.2 Learning Objectives After studying this chapter, you should be able to: –Discuss how the international trade system, economic, political-legal, and cultural environments affect a company’s international marketing decisions –Describe three key approaches to entering international markets –Explain how companies adapt their marketing mixes for international markets –Identify the three major forms of international marketing organization

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 18.3 Major Decisions in Global Marketing Importance of international trade Canada exports $468.5 billion in 2002 One of three jobs in Canada tied to trade Marketing environment characterized by: –Faster communication –Faster transportation –Faster financial flows Figure 18.1 Global firm: a firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages that are not available to purely domestic competitors

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 18.4 The International Trade System Tariff Quota Embargo Exchange controls Non-tariff trade barriers: –Bias against bids –Product standards Figure 18.1 Trade organizations: –WTO and GATT –European Union (EU) –NAFTA –APEC –MERCOSUR

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 18.5 The International Trade System (continued) Two factors influence attractiveness: Types of economies: –Subsistence economies –Raw-material-exporting economies –Industrializing economies –Industrial economies Income distribution Figure 18.1

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 18.6 The International Trade System (continued) Political-legal environment: –Attitudes toward international buying –Government bureaucracy –Political stability –Monetary regulations Countertrade Figure 18.1 Cultural environment: –Impact of culture on marketing strategy –Impact of marketing strategy on cultures

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 18.7 The Decision to go International Reasons for entering international markets: –Growth opportunities outside of domestic markets –As a counterattack against competition at home –Reduce dependence on existing markets –Need a larger customer base to achieve economies of scale Factors to consider: –Marketing objectives –Volume of foreign sales Figure 18.1 –How many countries –Types of countries to enter

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 18.8 Indicators of Market Potential Table 19.1

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 18.9 Major Entry Strategies Many companies begin with indirect exporting, the simplest way to sell internationally Commitment, investment, potential for profit, and risk increases over time Figure 18.2

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition Global Marketing Programs Standardized marketing mix: using the same marketing mix elements for all of the company’s international markets Adapted marketing mix: adjusting the marketing mix elements to better suit each international target market entered Figure 18.3

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition Whole Channel Concept Whole-channel view: designing international channels that take into account all the necessary links in distributing the seller’s products to final buyers, including: –The seller’s headquarters organization, –Channels between nations, and –Channels within nations Figure 18.4

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition In Conclusion… The learning objectives for this chapter were: –Discuss how the international trade system, economic, political-legal, and cultural environments affect a company’s international marketing decisions –Describe three key approaches to entering international markets –Explain how companies adapt their marketing mixes for international markets –Identify the three major forms of international marketing organization