The Global MarketplaceObjectivesSlide 3Slide 3DefinitionGlobal Marketing in the 21st CenturySlide 6Looking at the Global Marketing EnvironmentSlide 8Slide 10Slide 11Slide 12Slide 12Deciding Whether to Go InternationalDeciding Which Markets to EnterSlide 16Slide 16Slide 17Slide 18Deciding How to Enter the MarketSlide 20Deciding on the Global Marketing ProgramSlide 23Slide 24Slide 25Slide 25Slide 27Slide 27Slide 28Slide 30Deciding on the Global Marketing OrganizationThe Global The Global MarketplaceMarketplaceChapter 19Chapter 1919- 2ObjectivesUnderstand how the Understand how the international trade system, international trade system, economic, political-legal, and economic, political-legal, and cultural environments affect a cultural environments affect a company’s international company’s international marketing decisions.marketing decisions.Learn three key approaches to Learn three key approaches to entering international markets.entering international markets.19- 3ObjectivesUnderstand how companies Understand how companies adapt their marketing mixes adapt their marketing mixes for international markets.for international markets.Learn how to identify the three Learn how to identify the three major forms of international major forms of international marketing organizations.marketing organizations.19- 41900: Coca-Cola was 1900: Coca-Cola was available in foreign available in foreign countriescountriesEarly branding Early branding efforts placed logo efforts placed logo prominently abroadprominently abroad1971: “I’d like to buy 1971: “I’d like to buy the world a Coke” TV the world a Coke” TV adadCoca-cola has recently Coca-cola has recently entered India, China and entered India, China and IndonesiaIndonesiaConsistent positioning Consistent positioning and taste worldwideand taste worldwideAds and promotions are Ads and promotions are adapted to local marketsadapted to local marketsSprite: a global successSprite: a global successcCoca-ColaCoca-Cola19- 5DefinitionGlobal FirmGlobal FirmA firm that, by operating A firm that, by operating in more than one in more than one country, gains R&D, country, gains R&D, production, marketing, production, marketing, and financial and financial advantages in its costs advantages in its costs and reputation that are and reputation that are not available to purely not available to purely domestic competitors.domestic competitors.19- 6International trade is boomingInternational trade is boomingMany U.S. firms are successful Many U.S. firms are successful international marketersinternational marketersGlobal competition is intensifyingGlobal competition is intensifyingGlobal companies face several Global companies face several problemsproblemsCompanies face six major decisions Companies face six major decisions in international marketingin international marketingGlobal Marketing in the 21st Century19- 7Figure 19-1: Major Decisions in International Marketing19- 8The International Trade SystemThe International Trade SystemTariffs, quotas, embargos, exchange Tariffs, quotas, embargos, exchange controls, nontariff trade barrierscontrols, nontariff trade barriersWorld Trade Organization and GATTWorld Trade Organization and GATTRegional free trade zonesRegional free trade zones European UnionEuropean Union North American Free Trade AgreementNorth American Free Trade Agreement Other free trade areasOther free trade areasLooking at the Global Marketing Environment19- 919- 10Economic EnvironmentEconomic EnvironmentIndustrial structureIndustrial structure Subsistence economiesSubsistence economies Raw material exporting Raw material exporting economies economies Industrializing Industrializing economies economies Industrial economiesIndustrial economiesIncome distributionIncome distributionLooking at the Global Marketing Environment19- 11Political-Legal EnvironmentPolitical-Legal EnvironmentAttitudes toward Attitudes toward international buyinginternational buyingGovernment bureaucracyGovernment bureaucracyPolitical stabilityPolitical stabilityMonetary regulationsMonetary regulations CountertradeCountertrade•BarterBarter•CompensationCompensation•CounterpurchaseCounterpurchaseLooking at the Global Marketing Environment19- 12Cultural EnvironmentCultural EnvironmentImpact of Culture on Impact of Culture on Marketing StrategyMarketing Strategy Cultural traditions, Cultural traditions, preferences, behavior preferences, behaviorImpact of Marketing Impact of Marketing Strategy on CulturesStrategy on Cultures Globalization vs. Globalization vs. Americanization AmericanizationLooking at the Global Marketing Environment19- 13Overlooking cultural differences can result in embarrassing mistakes. Nike found that this stylized “Air” logo resembled “Allah” in Arabic script19- 14Not all companies Not all companies need an international need an international presencepresenceGlobalization may be Globalization may be triggered by several triggered by several factorsfactorsRisk and the ability to Risk and the ability to operate globally must operate globally must be carefully assessedbe carefully assessedDeciding Whether to Go International19- 15Define international Define international marketing polices and marketing polices and objectives, and sales objectives, and sales volume goalsvolume goalsDecide how many Decide how many countries to targetcountries to targetDecide on the types of Decide on the types of countries to entercountries to enterDeciding Which Markets to Enter19- 16Screen and rank each Screen and rank each of the possible of the possible international markets international markets using several criteriausing several criteriaMarket size, market Market size, market growth, cost of doing growth, cost of doing business, competitive business, competitive advantage, risk leveladvantage, risk levelDeciding Which Markets to Enter19- 17Consider beauty products Consider beauty products such as anti-aging creams, such as anti-aging creams, cosmetics, and hair dyes.cosmetics, and hair dyes.What International markets What International markets would offer an attractive would offer an attractive target. What particular target. What particular markets should your markets should your company avoid? company avoid? Discussion Question19- 18Figure 19-2: Market Entry Strategies19- 19Tokyo Disneyland is owned and operated by a Japanese development company under