L2GlobalMarketing.pptx

2014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global Marketing1Global MarketingBy Phunnapost Dararatn2014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingObjectives1.Describetheimportanceofglobalmarketingfromtheperspectivesoftheindividualfirmandthenation.2.Identifythemajorcomponentsoftheenvironmentforglobalmarketing.3.Identifythealternativestrategiesforenteringforeignmarkets.4.Describethealternativemarketingmixstrategiesusedinglobalmarketing22014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingIntroductionExporting-MarketingdomesticallyproducedgoodsandservicesinforeigncountriesImporting-Purchasingforeigngoodsandservices3The Importance of Global MarketingDemandforforeignproductsisincreasinginfast-growingeconomiesGlobalizationandtheInternetalloweverymarketertobeaninternationalmarketer2014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingBenefits of Going GlobalAdditionalrevenueNewinsightsintocustomerbehaviorAlternativedistributionstrategiesAdvancenoticeofnewproductsAmajorkeytoachievingsuccessinforeignmarketsAbilitytoadaptproductstolocalpreferencesandculture42014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingInternational Economic EnvironmentFactorsthatdetermineanationsprospectsasahostforinternationalbusinessexpansionSizeofmarketPer-capitaincomeStageofeconomicdevelopmentStageoftechnologydevelopment52014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingInternational Social-Cultural EnvironmentTobeeffective,marketersmustunderstandanationscultureLanguageplaysanimportantroleinglobalmarketing62014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingInternational Technological EnvironmentTheInternettranscendspolitical,economic,andculturalbarrierstoreacheverycorneroftheglobe.Technologyallowsglobalmarketerstoextendtheircustomersbeyondtheirborder.Leveloftechnologicaldevelopmentalsodeterminetherangeofproductsthatcanbesoldineachcountry.72014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingInternational Political-Legal EnvironmentGlobalmarketersmuststayabreastoflawsandtraderegulationsineachcountryinwhichtheycompeteFirmssetupinternalpolitical risk assessmentunitsThepoliticalenvironmentinvolveslaborconditionsindifferentcountries82014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingTrade BarriersBarriersfallintotwomajorcategoriesTariff-TaxleviedagainstimportedgoodsAdministrativebarriersTwotypesoftariffsRevenue tariffs-DesignedtoraisefundsfortheimportinggovernmentProtective tariffs-Designedtoraisetheretailpriceofanimportedproducttomatchorexceedthatofasimilardomesticproduct92014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingTrade AgreementsTradeagreementshaveeliminatedmanytariffsonmanyproductsCountriesfrequentlyusenontariffbarrierstoboostexportsandcontroltheflowsofimportedproducts(WTO,EU,NAFTA)*DUMPING-Controversialpracticeofsellingaproductinaforeignmarketatapricelowerthanwhatitreceivesintheproducersdomesticmarket102014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingWorld Trade Organization(WTO)SucceededGATTOverseesGATTagreementsServesasaforumfortradenegotiationsMediatestradedisputesMonitorsnationaltradepoliciesWorkstoreducetradebarriersthroughouttheworld112014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingWorld Trade Organization(WTO)WTOhasmadeslowprogresstowarditsmajorpolicyinitiativesLiberalizingworldfinancialservicesTelecommunicationsMaritimemarkets122014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingEuropean Union(EU)Customsunionthatismovinginthedirectionofaneconomicunionby:AdoptingacommoncurrencyRemovingtraderestrictionsPermittingfreeflowofgoodsandworkersthroughoutthemembernationsGoalistoremoveallbarrierstofreetradeamongitsmembers132014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingFigure 8.2-The 27 Members of the European Union142014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingNorth American Free Trade Agreement(NAFTA)AccordremovingtradebarriersamongCanada,Mexico,andtheUnitedStatesParticularlyimportanttoU.S.marketersbecauseCanadaandMexicoaretwoofitslargesttradingpartners152014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingGoing GlobalReasonsformarketerstogoglobalSaturationofthetargetmarketStrongdomesticmarketshareGlobalizationofcustomersNewcustomersinemergingmarketsReducedtradebarriersAdvancesintechnologyEnhancedcustomerresponsiveness162014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingStrategies for Entering Foreign MarketsThreebasicchoicesImportingandexportingContractualagreementssuchasfranchising,licensingInternationaldirectinvestment172014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingFigure 8.3-Levels of Involvement in Global Marketing182014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingImporting and ExportingDecisiontoimport,orbringinforeigngoodstoselldomesticallyoruseascomponentparts,dependson:AbilityofsuppliertomaintainqualityFlexibilityinfillingordersthatvaryResponsetimeinfillingordersTotalcosts192014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingImporting and ExportingFirst-timeexporterscanreachforeigncustomersthrough:Export-tradingcompaniesExport-managementcompaniesOffsetagreement202014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingFranchisingContractualarrangementinwhichawholesalerorretaileragreestomeettheoperatingrequirementsofamanufacturerorotherfranchiserBenefitsareriskreduction,standardizedoperations,andgreaterrecognizabilitySuccessdependsonabilitytoadapttolocalcustomerpreferences212014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingForeign LicensingAgreementthatgrantsforeignmarketerstherighttodistributeafirmsmerchandiseortouseitstrademark,patent,orprocessinaspecifiedgeographicareaGivesaccesstolocalpartnersmarketinginformationanddistributionchannels,andprotectionfromlegalbarriersAllowsquickentryintoaforeignmarketwithaknownproduct222014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingInternational Direct InvestmentHighinvolvementandhighriskarethemajorcharacteristicsFirmschoosingthismethodoftenhaveacompetitiveadvantageSeveralformsAcquisitionJointventure232014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global Marketing1.Standardized:Globalmarketingstrategy2.Adaptation:Multi-domesticmarketingstrategy24Developing an International Marketing StrategySAMEDIFFERENT2014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingDeveloping an International Marketing StrategyGlobal marketing strategy-StandardizedmarketingmixwithminimalmodificationsthatafirmusesinallofitsdomesticandforeignmarketsCaneffectivelymarketsomegoodsandservicestosegmentsinmanynationsthatshareculturesandlanguagesCanbehighlyeffectiveforluxuryproductsthattargetupscaleconsumerseverywhereMajorbenefitisitslowcosttoimplement252014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global Marketing 1.RussianconsumerhadlittleknowledgeofKodaksproducts,andtheconsumermarketforphotographywasveryunderdeveloped.Therewasnoinfrastructureinplacefordistributingphotographicequipmentandfilms.Russianconsumerwerepoorandunlikelytobeabletoaffordallbutthemostinexpensivecamerasandfilms.2.KodakcommunicatedtoRussianconsumerthroughanumberofmediaincludingradio,tv,printads.Themarketingmessageischangedtobebasedontheideaof“savingmemories”bytakingpicturesinaquickandeasyway.Sure!itisarightthingtodoasreflectedfrom26%KodakgrowthratefromjustoneyearaftertheyregisteredinRussia.3.Dependonyourideaandthereasonsthatsupportyouridea(isitavailable/suitabletodo?&isitmakesense?)26Answer Guideline for“Kodak in Russia”case study2014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingDeveloping an International Marketing StrategyMultidomestic marketing strategyAdapttoeachapplicationofmarketsegmentationonforeignmarketsbytailoringthefirmsmarketingmixtomatchspecifictargetmarketsineachnation272014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingFigure 8.4-Alternative International Product and Promotional Strategies282014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingInternational Distribution StrategyMarketersmustsetupproperchannelsandanticipateextensivephysicaldistributionproblemsAdistributiondecisioninvolvestwostepsThefirmmustdecideonamethodofenteringtheforeignmarketItmustdeterminehowtodistributetheproductwithintheforeignmarketthroughthatentrychannel292014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingPricing StrategyCompetitive,economic,political,andlegalfactorscanlimitpricingdecisionsAdaptationtothepriceleveloflocalmarketsBuyingpowerofcustomerineachmarketalsoimportantfactor302014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingPromotion StrategyPush strategy:emphasizespersonalsellingratherthanmassmediaadvertisinginthepromotionalmix.Althougheffectivepromotionaltool,personalsellingrequiresintensiveuseofsalesforceandrelativelycostlyPull strategy:dependsmoreonmassmediaadvertisingtocommunicatethemarketingmessagetopotentialconsumers312014CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter 8 Global MarketingClosing CaseManagementFocus:Unilever-SellingtoIndiasRuralpopulationQuestion1:Pleaseexplain-HowdifferentthatIndiasruralpopulationdifferfrompassedcustomersofUnilever?Question2:WhatisthemarketingactivitiesthatUnileverdid?AndthisactivityisconsideredasPushstrategyorPullstrategy(pleasechooseonly1choice)?Why?32