1. Chapter 8 – Global Marketing

2. WHY EXPAND INTO OVERSEAS MARKETS?
the world is getting smaller
expands market share
new, untapped markets
some raw materials cheaper/more plentiful
creates jobs

3. Differences in Global Marketing
1. MARKET SIZE
world population > 7.5 billion
US population>326 million
Factors Affecting Market Potential
income level
stage of country's economic development

4. 2. BUYER BEHAVIOR
differs by country & among market segments w/in each country
need to consider local customs, tastes & living conditions
ie: Snapple (sugar, foggy look)
ie: EuroDisnesy (alcohol, employees look)
food differences & preferences

5. 5 Considerations Prior to Entering Foreign Market
1. Demand
2. Competition
3. Economic environment
4. Social-cultural environment
5. Political-legal environment

6. The Environment for International Marketing
1. ECONOMIC FACTORS
nations size, per capital income & stage of economic develop
need to gear product to income level of country
need to consider unemployment level
infrastructure: transportation, communication and utilities
exchange rate: how currency converts from one to another

7. 2. SOCIAL-CULTURAL FACTORS
study nations' culture incl: language, education, social values, & religious attitudes
be sure about translations!
ie: Gerbers baby food in India
ie: Time, Lunch Hours
Papa John’s in Egypt: shrimp alfredo and pizza “Fisherman’s Catch”.

8. 3. POLITICAL-LEGAL FACTORS
political turmoil
may need to adjust marketing strategy based on political environment

9. TRADE BARRIERS Tariffs IMPORT QUOTAS - limits on imports
revenue tariffs
protective tariffs
IMPORT QUOTAS - limits on imports
EMBARGO - complete ban on import of certain products (Cuba)
DUMPING - sell goods at lower price than domestic market price

10. Strategies for Entering International Markets
1. EXPORTING
indirect exporting
direct exporting

11. 2. Contractual Agreements:
Licensing, Franchise
3. OVERSEAS MARKETING
ie: foreign sales offices

12. 4. FOREIGN PRODUCTION AND MARKETING
subsidiary that is responsible for foreign production & marketing

13. 2 Types of International Marketing Strategies
1. GLOBAL MARKETING STRATEGY
standardized marketing mix w/ minimal modifications in all foreign markets
2. MULTIDOMESTIC MARKETING
treats each nation separately

14. Product & Promotional Strategies: Figure 8.4