Zeyad Negash MKTG 301 Benefits of Globalization Expands economic freedom Spurs competition Raises productivity and living standards Offers access to foreign capital global export markets and advanced technology Promotes higher labor and environmental standards Acts as a check on government power Multinational Firms highly involved in international markets Stages of Global business development 1 2 3 4 Companies operate in one country and sell into others Set up foreign subsidiaries to handle sales Operate an entire line of business in another country Virtual operation Global Marketing Standardization production of uniform products that can be sold the same way all over the world Multidomestic strategy subsidiaries of multinational firms are allowed to compete independently in domestic markets External Environment Facing Global Marketers Culture Economic and Technological Development Natural Resources Political structure Demographic Makeup Risk Levels for Five Methods of Entering the Global Marketplace Export low risk o Buyer for export o Export broker o Export agent Licensing and Franchising Contract Manufacturing Joint Venture Direct Investment high risk Product and Promotion 1 product 1 message s product s message Product Adaptation c product s message Promotion Adaptation s product c message Product Invention c product c message Place distribution Adequate distribution is necessary Logistics and shipping costs have been a growing challenge for U S companies looking to move production overseas Pricing What customers will spend Ensure that foreign buyers will pay price May need to simplify a product to lower price Don t assume that low income countries are willing to accept low quality Exam Review DO NOT STUDY THESE TERMS Ch 1 Teamwork Ch 2 Cash cow Dog Experience curves Marketing audit Portfolio matrix Problem child question mark Star Ch 3 Various theories Ch 4 Baby boomers CPSC FTC FDA Generation X Generation Y Ch 5 CAFTA DR GATT G20 Mercosur NAFTA Uruguay Round
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