1. 4 Developing a Global Vision Prepared by Deborah Baker
Texas Christian University

2. 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

3. 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

4. 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

5. 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

6. 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 2

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

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

9. Economic and Technological Development
Chapter 4
Economic and Technological Development
Developed Country
Less Developed Country
Complex, sophisticated industries
Basic industries
On Line 3

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

11. 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 3

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

13. 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

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

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

16. 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 5

17. 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