MKTG 311 1st Edition Lecture 26Outline of Last Lecture I. Economic ConsiderationsII. Political/ Regulatory Environment ConsiderationsIII. Cultural Environment ConsiderationsIV. The Global Marketing Environment- 4 Major TrendsV. The Global Marketing EnvironmentVI. Decide how to enter the market- Figure 7-5(Old Edition: 7-6)Outline of Current Lecture I. Ways to Enter the MarketII. Decide on the global marketing programA. Product DecisionsB. Promotion DecisionsC. Price DecisionsD. Distribution DecisionsIII. Integrated Marketing Communications (Ch. 17)IV. Traditional Forms of Communication:V. Today’s Promotion Mix: 3 Broad CategoriesCurrent LectureI. Ways to Enter the Market3. Strategic Alliance/ Joint Venture: 2 or more firms that pool their resources for common goals, one of the firms is local. + Better access to the market with the local knowledge- More commitment, more risk4. Direct Investment: When a global company invests and owns a subsidiary or division in the foreign market.+ Maximum freedom and control over product- Biggest commitment and riskII. Decide on the global marketing programA. Product Decisions1. Product extension (Straight extensions) - Retains the same product in the domestic and global market.2. Product adaptation- Modify the product for new global market. Example: Maybelline skin care products- skin type and weather pattern.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.3. Product invention- Create a new product for the global market. Example: Whirlpool- Ideal low budget washer/dryer. Developing market.B. Promotion Decisions- Are we going to promote the product the same or differently in the global market?- Communication adaption- Same product in the global market, but it is being promoted differently.- Dual adaptation- Adapting both the product and promotions in the new global market.- Why? Cultural: Think about differences between individualist and collectivist cultures. Language. Cosmopolitan/UrbanC. Price Decisions- Is the product priced the same or differently?- Transportation Issues- Tariff Issues- Differences in currency exchange ratesD. Distribution Decisions- Is the product distributed the same or differently in the new global market?- Transporting to remote areas- Reliance on large wholesalers and retailers, more small, mom and pop shops?III. Integrated Marketing Communications (Ch. 17)- Integrated Marketing Communications (IMC): Marketing communication programthat coordinate all promotional activities (Advertising, Sales Promotions, Public Relations, Personal Sales, and Direct Marketing) to provide a consistent message across all audiences.IV. Traditional Forms of Communication:- Advertising mass media and outdoor- Sales Promotion: Coupons, rebates, premiums, samples- Personal Selling: Presentations by sales staff.- Public Relations: News releases, dealing with the media, sponsorships, special events.- Direct Marketing: Reaching the customer direction: Direct mail, telemarketing, direct response TV.V. Today’s Promotion Mix: 3 Broad Categories1. Personal sales one to one+ Flexibility and modification of the message- Costly, difficult to ensure consistency of the message2. Mass Appeals: Reaching many prospective at a time. Advertising+ Marketer has total control over the message, when it will appear and who is likely to get it.- Costly, low