MARK 3321 1st Edition Lecture 4Outline of Last Lecture I. Marketing Plan ObjectivesII. Marketing StrategyIII. Target MarketsIV. Marketing Mix: The 4 P’sa. Productb. Placec. Promotiond. PriceV. Following up on Marketing PlanVI. Ethical GuidelinesVII. Corporate Social ResponsibilityOutline of Current Lecture I. Rewards of Global MarketingII. Benefits and Negatives of Trade and GlobalizationIII. External Environment Facing Global Marketsa. Cultureb. Political structurec. Natural resourcesd. Economic and technological developmente. Demographic makeupIV. Entering the Global Marketplacea. Exportb. Licensingc. Contract Manufacturingd. Joint venturee. Direct investmentV. Global Marketing Standardizationa. Global marketing standardizationb. Multi-domestic strategyVI. Global Marketing Mixa. Product/Promotionb. Place (Distribution)c. PricingThese 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 LectureCH 5 – Developing a Global Vision- Rewards of global marketingo 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 globalizationo Millions of Americans have lost jobso Millions fear losing jobso Threat of outsourcing if workers do not accept pay cutso Vulnerability to operations moving offshore- Benefits of globalizationo Expands economic freedomo Spurs competitiono Raises productivity and living standardso Offers access to foreign capital, global export markets, and advanced technologyo Promotes higher labor and environmental standardso Acts as a check on government power- External environment facing global marketso 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 timeo 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 tradearea 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 worldwideo Natural resourceso Economic and technological developmento Demographic makeup- Entering the global marketplaceo Export Sell domestically produced products to buyers in other countrieso Licensing Legal process allowing use of manufacturing/patents/knowledgeo Contract manufacturing Private-label manufacturing by a foreign countryo Joint venture Domestic firm buys/joins a foreign company to create new entityo Direct investment Active ownership of a foreign company/manufacturing facility- The Global Marketing Mixo 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 differentenvironment- Global Marketing Standardizationo Global marketing standardization Production of uniform products that can be sold the same way all over the worldo 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 problemso Logistics and shipping costs have been a growing challenge for US companies looking to move production overseaso Global trade has added to strains and charges for all forms of transportation- Global Marketing Mix: Pricingo Exchange rates Appreciation/depreciation Floating exchange rateso Dumping 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 exportero 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