Upload
dorcas-atkins
View
217
Download
0
Tags:
Embed Size (px)
Citation preview
1
CHAPTER FOUR
DEVELOPING A GLOBAL VISION
Prepared by Jack Gifford
Miami University (Ohio)
© 2000 South-Western College Publishing
2
THE REWARDS OF GLOBAL MARKETING
Global revolutions are under way in many area of our lives: management, politics, communications, and technology.
Global marketing is not simply an option... but an imperative for business
© 2000 South-Western College Publishing
3
GLOBAL VISION Recognizing and reacting to
international marketing opportunities
Being aware of threats from foreign competitors in all markets
Effectively using international marketing distribution networks
© 2000 South-Western College Publishing
4
IMPORTANCE OF GLOBAL MARKETING IN THE UNITED STATES
US exports 20% of industrial production and 33% of farm products
Almost 33% of US corporate profits generated from international trade and foreign investment
U.S. businesses export over $500 billion in goods to foreign countries every year
About 10% of all manufacturing businesses are regularly involved in international marketing
Your odds of being involved professionally in international business after graduation in some manner are close to 100%!
© 2000 South-Western College Publishing
5
Multinational vs International Marketing
International = is any individual or organization that buys or sells its goods or services from beyond its home nation’s boundaries
Multinational = any individual or organization that has substantial marketing activities in many nations and “thinks globally but acts locally.” They also adopt a corporate culture, business philosophy and marketing strategy that views the world rather than their “home of record” as their domain. A true multinational marketer is a “citizen of the world.”
© 2000 South-Western College Publishing
6
Imports vs Exports
Just a reminder….
© 2000 South-Western College Publishing
7
THE MULTINATIONAL ADVANTAGE
Can overcome trade problems like embargoes
Ability to sidestep regulatory problems
Multinationals can shift production from one plant to another as market conditions change
Can tap new technologies from around the world
Can often save a lot in labor costs, even in highly unionized countries
© 2000 South-Western College Publishing
8
GLOBAL MARKETING STANDARDIZATION
Because of global communications and cross-cultural experiences, there is an emerging global market for standardized consumer products… sometimes with minor variations.
© 2000 South-Western College Publishing
9
THE EXTERNAL ENVIRONMENT FACING GLOBAL MARKETERS
Culture Economic
development Technological
development Political structure Demographic makeup Natural resources
© 2000 South-Western College Publishing
10
THE EXTERNAL ENVIRONMENT FACING GLOBAL MARKETERS: CULTURE
Culture: “a common set of values shared by a country’s citizens that determine what is socially acceptable behavior” language, gestures, symbols customs and traditions social institutions assumptions and attitudes personal beliefs, values,
norms, roles
Interpersonal relationshipssocial structure
© 2000 South-Western College Publishing
11
THE EXTERNAL ENVIRONMENT FACING GLOBAL MARKETERS: ECONOMIC & TECHNOLOGICAL DEVELOMENT
Traditional Pre industrial Takeoff Industrializing
Fully industrialized
© 2000 South-Western College Publishing
12
CENTRALLY PLANNED ECONOMY
MARKET ORIENTEDECONOMY
© 2000 South-Western College Publishing
THE EXTERNAL ENVIRONMENT FACING GLOBAL MARKETERS: POLITICAL STRUCTURE
Moscow St. Louis
13
THE EXTERNAL ENVIRONMENT FACING GLOBAL MARKETERS: LEGAL CONSIDERATIONS
Justice and court system Legal structure Tariffs Quotas Boycotts Exchange control Trade alliances Trade agreements Trade organizations (WTO)
Special restrictions for certain industries (Hong Kong & textiles)
Japanese Keiretsu NAFTA European Union (EU) Recognition of
international accords/agreements
© 2000 South-Western College Publishing
14
THE EXTERNAL ENVIRONMENT FACING GLOBAL MARKETERS: DEMOGRAPHIC MAKEUP & NATURAL RESOURCES
DEMOGRAPHICS Size of middle class Per capita income Education Birth rate Housing market Population density Age distribution Etc.
In underdeveloped nations, secondary data is often bad or
nonexistent!
Natural Resources Physical Human capital Intellectual
capital
© 2000 South-Western College Publishing
15
GETTING INVOLVED IN INTERNATIONAL MARKETING: A FIVE STEP PROCESS
DO WE GET INVOLVED IN
INTERNATIONAL MARKETING?
IF YES, WHICH MARKETS?
HOW MUCH COMMITMENT
IN EACH MARKET?
HOW SHOULD WE
REORGANIZE OUR
OPERATIONS?
IMPACT ON DOMESTIC-
BASED MARKETING?
© 2000 South-Western College Publishing
16
FACTORS INFLUENCING WHETHER A FIRM BECOMES INVOLVED IN INTERNATIONAL MARKETING
ENCOURAGING FACTORS Saturated domestic
market Obsolete in domestic
market Govt. or EPA problems Foreign market
opportunities
DISCOURAGING FACTORS
High tariffs or low import quotas
Government restrictions or uncertainty
Negative uncontrollable market variables
Inadequate financial resources or human capital
© 2000 South-Western College Publishing
17
VARIOUS WAYS OF ENTERING THE GLOBAL MARKETPLACE BY LEVELS OF RISK
1st level: Exporting 2nd level: Joint Venturing
Franchising Licensing Contract manufacturing Joint ownership
3rd level: Direct Investment
LOW RISK
HIGH RISK
© 2000 South-Western College Publishing
18
Target Market
THE GLOBAL MARKETING MIX
PRODUCT PRICE
PROMOTIONPLACE
•Japan
•Russia
•China
•Sun City, Arizona USA
© 2000 South-Western College Publishing
19
THE GLOBAL MARKETING MIX:PRODUCT & PROMOTION
One product, one message
Product innovation New or drastic changes
in existing product
Product adaptation Message adaptation
•Japan
•Russia
•China
•Sun City, Arizona USA
© 2000 South-Western College Publishing
20
THE GLOBAL MARKETING MIX:PRICING & DISTRIBUTION
Adjustment of price to economic conditions
Dumping Counter trade Number of channel levels Different intermediaries Unique supply chain
technological or communication requirements
•Japan
•Russia
•China
•Sun City, Arizona USA
© 2000 South-Western College Publishing
21
Ethics in Global Marketing
Bribes? Gifts? Forced Loans? Protection money? Slotting fees?
---------------------------------
Whose standards of right and wrong?
© 2000 South-Western College Publishing
22
The key to future world peace and a universally enhanced quality of life depends upon successful and enlightened multinational business entities!
© 2000 South-Western College Publishing