Global MarketingIntro to Marketing Chapter 7

Importance of Global Marketing• It expands the company’s profits, allows

growth and makes them less dependent on their own country’s economy.

• It provides a source of raw materials internationally to use in manufacturing in US– These raw materials may not be available

domestically.• Several firms buy the product overseas

and put their brand on it

• What does the US export?– Agricultural products, electrical machinery,

computers & office equipment, industrial machinery, motor vehicle parts, manufactured goods, services, retailing

• Who are the leading US exporters?– Boeing, Intel, Motorola, Caterpillar and Sun

Microsystems.

• Services & Retailing– Becoming increasingly more

important US export.– Services like banking,

entertainment, business/technical services, retailing, & communications.• American Express, AT & T, Disney

– Retailing• Wal-Mart, McDonalds, Arby’s, Dunkin

Donuts, Dominos, Gap, Foot Locker

Benefits of Going Global

• Additional revenue• Gaining new insights into

consumer behavior• Alternative distribution strategies• Advance notice of new products• Learn new marketing techniques

International Economic Environment

• Economic factors– Size of Nation, income, economic development

• Infrastructure– Communications,

transportation, energy• Exchange Rate

A nation’s culture, including language, education, religious attitudes, and social values, must be consideredExamples: • Movies must often be adapted

for foreign markets• Restaurant menus are often

printed in several languages• The use of pictures can also

help when language is a

problem

International Social-Cultural Environment

International Technological Environment

• Internet & cell phones make communication possible

International Political Legal Environment

US and International laws.• Trade Barriers

– Tariffs• Taxes on imported products

– Import Quotas– Embargos– Subsidies– International Organization for Standardization

(ISO)• Internationally recognized standards that ensure

quality

Multinational Economic Integration• GATT and WTO• NAFTA

• FTTA• European Union

Strategies for Entering International Markets

• Importing & Exporting• Contractual Agreements

– Franchising– Licensing– Subcontracting

• Direct Investment– Acquisitions– Joint Ventures– Overseas Divisions

Global Marketing Strategy

• A standard marketing mix with few modifications in all foreign– Works well for products with

strong, universal appeal such as McDonald’s, luxury items such as Rolex watchers, and high-tech brands such as Microsoft.

International Product & Promotional Strategies

Straight Extension - Same product, same message

Promotion Adaptation -Different product, same message

Product Adaptation -Same product, different message

Dual Adaptation – Different product, different message

Product Invention– Distribution Strategy– Pricing Strategy