chapter global marketing eight copyright © 2015 mcgraw-hill education. all rights reserved. no...
TRANSCRIPT
chapter
global marketing
eight
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
8-2
LEARNING OBJECTIVES
LO 8-1 Describe the components of a country market assessment.
LO 8-2 Understand the marketing opportunities in BRIC countries.
LO 8-3 Identify the various market entry strategies.
LO 8-4 Highlight the similarities and differences between a domestic marketing strategy and a global marketing strategy.
8-3
General Agreement on Tariffs and Trade (GATT)
World Trade Organization
(WTO)
WTO Website
PhotoLink/Getty Images
8-4
Assessing Global Markets
General economic environmentMarket size and population growthReal income
Economic analysis
using metrics
TransportationChannelsCommunicationCommerce
Infrastructure and
technology
TariffQuotaExchange controlTrade agreement
Government actions
Power distanceUncertainty avoidanceIndividualismMasculinityTime orientation
Sociocultural analysis
8-5
Economic AnalysisGeneral Economic Environment
Gross domestic product
Gross national income
Purchasing power parity
Human development
index
NationMaster Website
8-6
Evaluating Market Size and Population Growth Rate
Population 2002
Population 2050
REUTERS/Arko Datta/Corbis.
8-7
Evaluating Real Income
• Firms can make adjustments to an existing product or change the price to meet the unique needs of a particular country market.
Nari
nd
er
Nan
u/A
FP/G
ett
y Im
ag
es
REU
TER
S/F
ayza
Kab
li
8-8
Analyzing Infrastructure and Technological Capabilities
Communication
Commerce
Transportation
Distribution Channel
Sto
ckd
isc
©M
IXA
/Pu
nch
Sto
ck
Royalt
y-Fr
ee/C
OR
BIS
Ph
oto
Lin
k/G
ett
y Im
ag
es
8-10
Both benefit domestically made products because they reduce foreign competition
Tariffs
• Tax• Artificially raises
prices• Lowers demand
Quotas
• Maximum limit• Reduces
availability of imported goods
Tariff and Quotas
8-11
Boycott
Ethical Consumer Website
The McGraw-Hill Companies, Inc/John Flournoy, photographer
8-13
Trade Agreements
Name Countries
EuropeanUnion
There are 27 member countries of the EU: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. There are five official candidate countries to join the EU: Croatia, Macedonia, Turkey, Iceland, and Montenegro.
NAFTA United States, Canada, and Mexico.
CAFTA United States, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.
Mercosur Full members: Argentina, Brazil, Paraguay, Uruguay, and Venezuela.
ASEAN Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam
8-14
Analyzing Sociocultural Factors
CulturePower distance
Uncertainty avoidance
Individualism
Masculinity
Time orientation
check yourself
8-16
1.What metrics can help analyze the economic environment of a country?
2.What types of government actions should we be concerned about as we evaluate a country?
3. What are five important cultural dimensions?
4.Why are each of the BRIC countries viewed as potential candidates for global expansion?
8-17
Choosing a Global Entry Strategy
Risk
Con
trol
DirectInvestment
Export
JointVenture
StrategicAlliance
Franchising
check yourself
8-18
1.Which global entry strategy has the least risk and why?
2.Which global entry strategy has the most risk and why?
8-19
Choosing a Global Marketing Strategy: Target Market (STP)
Cultural nuances
Subcultures
View of product and consumer role
Different positioning
Adaptation
Single positioning strategyCourtesy Ford India Pvt. Ltd.
8-20
The Global Marketing Mix: Product or Service Strategies
Sell the same product or
service in both the home
country market and host country
Sell a product or service similar to that sold in home country
but include minor
adaptations
Sell totally new products or
services
8-21
Global Marketing Mix: Pricing Strategies
PriceTariffs
Quotas
Anti-dumpingPolicies
EconomicConditions
Competitivefactors
8-22
Global Marketing Mix: Global Distribution Strategies
• Some global channels are very long and complex.
• Consumer shop local small local stores.
• Suppliers must be creative in delivering to these outlets.
Courtesy of CJ Tucker, NASA/GSFC
FedEx Commercial
8-23
Global Marketing Mix: Global Communication Strategies
Literacy levels vary by country
Firms choose whether to adapt to language
differences
Cultural and religious differences also matter
Photo by Jeff Kravitz/FilmMagic/Getty Images