Developing a global vision (global marketing)

DEVELOPING A GLOBAL VISION

Global MarketingFerdinand Fernandez

Ryan Rodríguez

Jeff Bessard

GLOBAL MARKETING

• Marketing to markets worldwide.

• Marketing to markets worldwide.

Global VisionRecognizing and reacting to international marketing opportunities, be aware of threats in all markets.

Productivity grows more quickly when countries produce goods and services in which they have a comparative advantage.

United States exports about one-fifth of its industrial output and a third of its agricultural products.

One in 16 US employees are directly or indirectly supported by exports.

US businesses export more than 500,000 million in goods to foreign countries each year and nearly a third of US corporate profits are derived from int'l trade and foreign investment.

Many people fear world trade and globalization

Millions of Americans have lost their jobs due to imports or transfers of production abroad.

Millions more fear losing their jobs, especially in companies operating under competitive pressure.

MULTINATIONAL CORPORATION

A multinational corporation is a company that is heavily involved in international trade, beyond exporting and importing.

ENVIRONMENT FACING GLOBAL ENTERPRISES

A global company or one that considers the global marketing should think about the environment. Many of the same factors in the environment that they operate in the domestic market also exist internationally. These factors include:

• The Culture

• The economic and technological development.

• The structure and policy actions.

• The demographic makeup.

• Natural resources.

CULTURE• A central factor in any society is a group of shared

values its citizens and that determines what is socially acceptable. The underlying culture is the family, the education system, religion and social class system.

• A company that does not understand the culture of a country is bound to fail in it. Ignorance of such culture gives rise to misunderstandings and often rude to perceptions of incompetence and even.

ECONOMIC AND TECHNOLOGICAL DEVELOPMENT

• The second factor in the overall environment facing the company is the level of economic development in the countries where it operates.

• The average family income is higher in less developed than in more developed countries. Higher incomes mean greater purchasing power and higher demand.

STRUCTURE AND POLICY ACTIONS

• The political structure is the third important variable that global companies face. Government policies handle a variety of situations ranging from private property, minimal individual freedom to a very small central government and maximum personal freedom. As the rights of private property increase, owned industries and central planning tend to decrease.

THE DEMOGRAPHIC MAKEUP

• This takes into account the type of population, age and purchasing power.

• There is a difference between the older populations of industrialized countries and numerous age populations in developing countries.

• These differences have important implications for the economy, businesses and the competitiveness of each country.

NATURAL RESOURCES

• A final environmental factor that has become increasingly evident over the last decade is the scarcity of natural resources.

GLOBAL MARKETING COMPANY FOR INDIVIDUAL

Firms decide to become global for several reasons. Perhaps the most important is to make additional profits. Five methods to enter the global market are :

• Exportations

• Licensing and franchising

• Contract Manufacturing

• Joint ventures

• Direct Investment

EXPORTATIONS

• Sell products manufactured in one country to buyers in another nation.

• Types of intermediaries: Buyer for export, export broker or broker, agent exports.

LICENSING AND FRANCHISING

• Legal process in which the owner of a license (the licensor) agrees to allow another company to use its manufacturing process, trademarks, patents, trade secrets or other proprietary knowledge.

• Companies that do not want to take part in the licensing or engage in global marketing too can participate in contract manufacturing, which is a private label manufacturing by a foreign company.

JOINT VENTURES

• In some respects they are similar to the licensing. It is when a domestic firm buys part of a foreign company or joins with it to create a new entity.

DIRECT INVESTMENT

• Active ownership of a foreign company or marketing or manufacturing facilities abroad.

MARKETING MIX

• Unique combination of strategies of product, place (distribution), promotion and pricing designed to produce mutually satisfying exchanges with a target market.

THE BASIC ELEMENTS OF AN OVERALL MARKETING MIX

• One product – message

• Invention Product

• Adapting products.

• Tailoring messages.

• Adaptation Promotion.

• Place (distribution).

• Price.

FLOATING EXCHANGE RATE• The prices of different currencies rise and fall based on

demand and supply of each.

Dumping Sale of an exported product at a lower price than is charged for the

same or similar product on the market "source" of the exporting.

Countertrade Form of trade in which all or part payment for goods or services is in the

form of other goods or services.

IMPACT OF INTERNETInternet advertising has many advantages :

• It measures very accurately and continuously the results of advertising campaigns.

• Allows enter into direct contact with potential customers or users.

• Allows continuous adaptations and modifications of the campaigns according to current requirements.

• It is much cheaper than the media "traditional".

• Analyze the type of customer who purchase our product.

END OF PRESENTATION