Presentation on theme: "GLOBAL MARKETING The world is shrinking because of: faster communication transportation financial flows."— Presentation transcript:
GLOBAL MARKETING The world is shrinking because of: faster communication transportation financial flows
GLOBAL MARKETING ENVIRONMENT North American Free Trade Agreement: This agreement also commonly known as NAFTA became effective in 1994 and lifted many trade barriers between Canada, the United States and Mexico. The World Trade Organization: An international agency which encourages trade between member nations, administers global trade agreements and resolves disputes when they arise. -helps trade and reduces tariffs and other international trade barriers Protectionism: This is the practice of shielding one or more sectors in the countrys economy from foreign competition through the use of tariffs, quotas or embargos.
Understanding the Global Environment Political – Legal Environment: attitudes toward international buying government bureaucracy political stability monetary regulations
CULTURAL ENVIRONMENT Sellers must examine the ways consumers in different countries think about and use products and tailor their marketing activities toward that countrys consumer preferences Business norms vary from country to country Companies that understand cultural differences can position their products to an international market
Reasons for Going Global some foreign markets have higher profit opportunities Shrinking domestic markets company needs a larger customer base customer base expand to international market reduce dependency on a single market
How to Decide to Go International what volume of foreign sales is desired? what countries to market in? what types of countries to enter? COMPARISON SHOP WHEN LOOKING AT COUNTRIES Market size Market growth Risk Level Cost of doing business Competitive Advantage
Market Entry Strategy EXPORTING: Indirect: work through a international wholesaler Direct:export your product yourself
Market Strategy Standardization vs Adaptation Global Marketing Standardization world markets are becoming more alike and therefore standardized products can be sold the same way worldwide Global Marketing Adaptation more and more companies realizes they must adapt their product to meet the needs and wants of the target market within the country they are selling their product in.
Why Global Marketing is Important the internet and electronic commerce are changing the ways companies operate worldwide competitive pressure and expanding market opportunities
Research International Planning Process Phase 1 Preliminary Analysis – matching company and country needs Phase 2 Adapt the marketing mix to the target market Phase 3 Develop a marketing plan Phase 4 Implement And control