Slide 1Global Marketing in the 21st CenturyMajor International Marketing DecisionsLooking at the Global Marketing EnvironmentIndustrial StructurePolitical-Legal EnvironmentCultural EnvironmentMajor International Marketing DecisionsDeciding Whether to Go GlobalMajor International Marketing DecisionsDeciding Which Markets to EnterMajor International Marketing DecisionsMarket Entry StrategiesMarket Entry StrategiesMarket Entry StrategiesMarket Entry StrategiesMajor International Marketing DecisionsDeciding on the Global Marketing ProgramFive Global Product and Promotion StrategiesGlobal Product StrategiesGlobal Promotion StrategiesMajor International Marketing DecisionsDeciding on the Global Marketing OrganizationChapter 15The Global MarketplaceBA 332Global Marketing in the 21st CenturyThe world is shrinking rapidly with the advent of faster communication, transportation, and financial flows.International trade is booming and accounts for 25% of U.S. GDP.Global competition is intensifyingHigher risks with globalizationMajor International Marketing DecisionsLooking at the Global Marketing EnvironmentThe International Trade System:Restrictions—tariffs, quotas, embargos, exchange controls, and non-tariff trade barriers.The World Trade Organization and GATT:Helps Trade—reduces tariffs and other international trade barriers. GATT replaced by WTO in 1995China joined WTO in 2001Regional Free Trade Zones:Groups of nations organized to work toward common goals in the regulation of international trade.Industrial StructureShapes a country’s product and service needs, income levels, and employment levels.Subsistence Economies (poor) Raw materials exporting economies (Saudi Arabia)Industrializing Economies (Bric) Industrial economies (U.S. Canada etc)Political-Legal EnvironmentAttitudes Toward International Buying Government bureaucracy Political Stability Monetary regulationsCultural EnvironmentSellers must examine the ways consumers in different countries think about and use products before planning a marketing program.Business norms vary from country to country.Companies that understand cultural nuances can use them to advantage when positioning products internationally.Major International Marketing DecisionsDeciding Whether to Go GlobalReasons to consider going global:Foreign attacks on global marketsForeign markets with higher profit opportunitiesStagnant or shrinking domestic marketNeed larger customer base to achieve economies of scaleReduce dependency on single marketFollow customers who are expandingMajor International Marketing DecisionsDeciding Which Markets to EnterBefore going abroad, the company should try to define its international marketing objectives and policies.What Volume of Foreign Sales is Desired?How Many Countries to Market In?What Types of Countries to Enter?Choose Possible Countries and Rank Based on Market Size, Market Growth, Cost of Doing Business, Competitive Advantage, and Risk LevelMajor International Marketing DecisionsMarket Entry StrategiesMarket Entry StrategiesExporting:Indirect: working through independent international marketing intermediaries.Direct: company handles its own exports.Market Entry StrategiesJoint Venturing:Joining with foreign companies to produce or market products or services.Approaches:LicensingContract manufacturingManagement contractingJoint ownershipMarket Entry StrategiesDirect Investment:The development of foreign-based assembly or manufacturing facilities.This approach has both advantages and disadvantages.Major International Marketing DecisionsDeciding on the Global Marketing ProgramStandardized Marketing Mix:Selling largely the same products and using the same marketing approaches worldwide.Adapted Marketing Mix:Producer adjusts the marketing mix elements to each target market, bearing more costs but hoping for a larger market share and return.Five Global Product and Promotion StrategiesGlobal Product StrategiesStraight Product Extension:Marketing a product in a foreign market without any change.Product Adaptation:Adapting a product to meet local conditions or wants in foreign markets.Product Invention:Creating new products or services for foreign markets.Global Promotion StrategiesCan use a standardized theme globally, but may have to make adjustments for language or cultural differences.Communication Adaptation:Fully adapting an advertising message for local markets.Changes may have to be made due to media availability.Major International Marketing DecisionsDeciding on the Global Marketing OrganizationOrganize an export departmentCreate international divisionsGeographical organizationsWorld product groupsInternational subsidiariesBecome a global
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