Test 1 Chapters 1 2 3 4 5 6 7 8 14 Chapter 1 The Global Marketing Manager I Global marketing and domestic marketing Marketing the collection of activities undertaken by a firm to assess and satisfy customer needs wants and desire o Includes for profit and not for profit organizations Marketing management the planning and coordinating of activities to achieve a successfully integrated marketing program o To become successful a firm needs to identify its customers develop satisfying products set reasonable prices distribute the products inform the market guarantee satisfaction and monitor competitors International marketing the act of marketing across borders including marketing between countries as well as within each country II 1 International marketing a closer look Identifying and global consumer needs Carrying out international marketing research and analyzing market segments Seeking to understand similarities and differences in customer group across countries 2 Satisfying customer needs Adapting manufactured goods services and elements of the marketing mix to satisfy different customer needs across countries and regions Included in manufacturing and technology decisions are the implications of costs and prices development of global customer information databases and distribution channel and logistics info Point of sale POS the location at which a transaction occurs between buyer and seller 3 Being better than the competition Assessing monitoring and responding to global competition by offering better value and developing superior brand image and product positioning Broader product range low price high quality good performance superior distribution advertising and service Recognizing that competitors may include state owned enterprises other multinationals and domestic firms each having different goals such as market share instead of profits 4 Coordinating marketing activities Coordinating and integrating marketing strategies and implementing them across countries regions and the global market which involves centralization delegation standardization and local responsiveness 5 Recognizing the constraints of the global environment Includes o Complex variation due to governmental protectionist and industrial policies o Cultural and economic differences o Differences in marketing infrastructure o Financial constraints due to exchange rate variation and differences in inflation rates Global environment a business environment in which business transactions take place between and within different country environment o Three ways economic political legal and cultural o PETE Political economic technological environmental being cultural and ecological III International marketing management The complexity of international marketing is due largely to 2 factors o The global completion and the global environment 4P s of marketing the key aspects of any marketing program product price place distribution and promotion Also profitability These are the controllable elements o The uncontrollable elements include the legal cultural economic technological and competitive env Foreign marketing marketing within foreign countries Global marketing coordinating marketing in multiple markets in the face of global competition IV The global marketplace Eurodisney Disney Japan Maui Jim sunglasses Marketing selling in Russia Ben Jerry V Trends in international marketplace The role of emerging and emerged economies as both consumer and competitor has increased The service sector shows continues growth and strength Franchising offers growth opportunities Ongoing change and increasing risk are the new normal Increasing economic integration and cooperation between countries mean opportunity and risk The global financial crisis of 2008 2009 has undermined any growing support for globalization Small can be big New communication technologies and social media are important influences Product life cycles are shortening Import and export regulations are increasing Chapter 2 The Global Economic Environment I Challenging differences in the global economic environment Institutions in the world economy Regional economic integration International trade theory Balance of payments Government policy and trade II International trade theory difference in price countries Absolute advantage Nations trade for economic political and cultural reasons the biggest focus is ECONOMIC because of the Autarky self sufficiency in the context in a country s production of goods and services It is like vertical integration for firms o Most nations decide against complete self sufficiency so they can buy cheaper goods from other Absolute advantage a country s ability to produce a good at a lower cost in terms of real resources than another country Comparative advantage Prices differ between countries because countries producing the goods have different costs Also different goods require a different mix of factors in their production and countries differ in their supply of these factors Comparative advantage a country s ability to produce a good at a lower cost relative to other goods compared to another country a country tends to product and export those goods in which it has the greatest comparative advantage and import those goods in which is has the least comparative advantage o Nations maximize their supply of goods by concentrating production where it is most efficient and trading some of those products for imported products where production is least efficient Ex Portugal and England trading wine for manufacture Product life cycle of global trade Product life cycle when referring to international trade and product patterns a trade cycle that many markets go through wherein one nation is initially an exporter then loses its export markets and finally may become an importer of the product o this theory is helpful to figure out when a company should consider overseas manufacturing especially as the product matures and includes 4 phases 1 The US exports the product after filling home market needs it starts to export the new product seizing its first mover advantage 2 Foreign production other country s domestic starts Importing countries become familiar with the product and begin producing it domestically to reduce export cost Product innovation a new or substantially different way of meeting customers needs through the development of a new product 3 Foreign production becomes competitive in export markets Foreign firms gain production