Presentation on theme: "Objectives Understand how the international trade system, economic, political-legal, and cultural environments affect a company’s international marketing."— Presentation transcript:
1 ObjectivesUnderstand how the international trade system, economic, political-legal, and cultural environments affect a company’s international marketing decisions.Learn three key approaches to entering international markets.
2 ObjectivesUnderstand how companies adapt their marketing mixes for international markets.Learn how to identify the three major forms of international marketing organizations.
3 Case StudyCoca-Cola1900: Coca-Cola was available in foreign countriesEarly branding efforts placed logo prominently abroad1971: “I’d like to buy the world a coke” TV adCoca-cola has recently entered India, China and IndonesiaConsistent positioning and taste worldwideAds and promotions are adapted to local marketsSprite: a global success
4 Definition Global Firm A firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors.
5 Global Marketing in the 21st Century International trade is boomingMany U.S. firms are successful international marketersGlobal competition is intensifyingGlobal companies face several problemsCompanies face six major decisions in international marketing
6 Global Marketing in the 21st Century International Marketing DecisionsLooking at the global environmentDeciding whether to go internationalDeciding which markets to enterDeciding how to enter the marketsDeciding the global marketing problemDeciding on the global marketing organization
7 Looking at the Global Marketing Environment The International Trade SystemTariffs, quotas, embargos, exchange controls, nontariff trade barriersWorld Trade Organization and GATTRegional free trade zonesEuropean UnionNorth American Free Trade AgreementOther free trade areas
8 Looking at the Global Marketing Environment Economic EnvironmentIndustrial structureSubsistence economiesRaw material exporting economiesIndustrializing economiesIndustrial economiesIncome distribution
9 Looking at the Global Marketing Environment Political-Legal EnvironmentAttitudes toward international buyingGovernment bureaucracyPolitical stabilityMonetary regulationsCountertrade: barter, compensation, counterpurchase
10 Looking at the Global Marketing Environment Cultural EnvironmentImpact of Culture on Marketing StrategyCultural traditions, preferences, behaviorImpact of Marketing Strategy on CulturesGlobalization vs. Americanization
11 Deciding Whether to Go International Not all companies need an international presenceGlobalization may triggered by several factorsRisk and the ability to operate globally must be carefully assessed
12 Deciding Which Markets to Enter Define international marketing polices and objectives, and sales volume goalsDecide how many countries to targetDecide on the types of countries to enterScreen and rank each of the possible international markets using several criteriaMarket size, market growth, cost of doing business, competitive advantage, risk level
13 Deciding How to Enter the Market ExportingDirect vs. indirectJoint VenturingLicensing, contract manufacturing, management contracting, joint ownershipDirect InvestmentAssembly facilities, manufacturing facilities
14 Deciding on the Global Marketing Program Standardized Marketing MixSame basic product, advertising, distribution, and other elements of the marketing mix are used in all international markets.Adapted Marketing MixThe marketing mix elements are adjusted for each international target market.
15 Deciding on the Global Marketing Program Product Strategies for the Global MarketStraight product expansionMarketing the product with no changesProduct adaptationAltering the product to meet local conditions or the wants of the foreign marketProduct inventionCreating new products or services for foreign markets
16 Deciding on the Global Marketing Program Global Promotion StrategiesStandardized global communicationAdvertising themes are standardized from country to country with slight modificationsCommunication adaptationAdvertising messages are fully adapted to local markets
17 Deciding on the Global Marketing Program Global Pricing StrategiesCompanies face many problemsPrice escalationPricing to foreign subsidiariesRecent economic and technological forcesThe Internet
18 Deciding on the Global Marketing Program Global Distribution ChannelsWhole-channel viewSeller’s headquarters organizationChannels between nationsChannels within nationsNumbers and types of intermediaries
19 Deciding on the Global Marketing Organization Managing International Marketing ActivitiesStep 1: Organize export departmentStep 2: Create an international divisionStep 3: Become a global organization