MARK 3321 1st Edition Lecture 4 Outline of Last Lecture I Marketing Plan Objectives II Marketing Strategy III Target Markets IV Marketing Mix The 4 P s a Product b Place c Promotion d Price V Following up on Marketing Plan VI Ethical Guidelines VII Corporate Social Responsibility Outline of Current Lecture I Rewards of Global Marketing II Benefits and Negatives of Trade and Globalization III External Environment Facing Global Markets a Culture b Political structure c Natural resources d Economic and technological development e Demographic makeup IV Entering the Global Marketplace a Export b Licensing c Contract Manufacturing d Joint venture e Direct investment V Global Marketing Standardization a Global marketing standardization b Multi domestic strategy VI Global Marketing Mix a Product Promotion b Place Distribution c Pricing These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Current Lecture CH 5 Developing a Global Vision Rewards of global marketing o Having a global vision means Recognizing and reacting to international marketing opportunities Using effective global marketing strategies Being aware of threats from foreign competitors Negatives of trade and globalization o Millions of Americans have lost jobs o Millions fear losing jobs o Threat of outsourcing if workers do not accept pay cuts o Vulnerability to operations moving offshore Benefits of globalization o Expands economic freedom o Spurs competition o Raises productivity and living standards o Offers access to foreign capital global export markets and advanced technology o Promotes higher labor and environmental standards o Acts as a check on government power External environment facing global markets o o Culture The common set of values shared by a society s citizens that determine what is socially acceptable Ex Language religion superstitions etiquette customs traditions notion of time Political structure Tariff a tax levied on goods entering a country Quota a limit on the amount of a specific product that can enter a country Boycott the exclusion of all products from certain countries or companies Exchange control a law compelling a company to sell its foreign exchange to a control agency Market grouping When several countries agree to work together to form a common trade area that enhances trade opportunities Ex European Union EU has established a free trade zone among its 28 members Trade agreement An agreement to stimulate international trade Ex the Uruguay Rounds signed by 157 nations has reduced tariffs by 1 3 worldwide o Natural resources o Economic and technological development o Demographic makeup Entering the global marketplace o Export o o Private label manufacturing by a foreign country Joint venture o Legal process allowing use of manufacturing patents knowledge Contract manufacturing o Sell domestically produced products to buyers in other countries Licensing Domestic firm buys joins a foreign company to create new entity Direct investment Active ownership of a foreign company manufacturing facility The Global Marketing Mix o The first step in creating a marketing mix is developing a thorough understanding of the global target market however global marketing research is conducted in vastly different environment Global Marketing Standardization o Global marketing standardization o Production of uniform products that can be sold the same way all over the world Multi domestic strategy Subsidiaries of multinational firms are allowed to compete independently in domestic markets Global Marketing Mix Product and Promotion Global Marketing Mix Place distribution o Adequate distribution is necessary for success in global markets Lack of distribution infrastructure and cultural differences create problems o Logistics and shipping costs have been a growing challenge for US companies looking to move production overseas o Global trade has added to strains and charges for all forms of transportation Global Marketing Mix Pricing o Exchange rates Appreciation depreciation o Dumping o Floating exchange rates The sale of an exported product at a price lower than that charged for the same or a like product in the home market of the exporter Countertrade A form of trade in which all or part of the payment for goods or services is in the form of other goods or services