BMGT 205: PRINCIPLES OF MARKETING

Chapter 8: Global Marketing

GLOBAL MARKETINGLearning Objectives

Describe the components of a country market assessment.

Understand the marketing opportunities in BRIC countries.

Identify the various market entry strategies.

Highlight the similarities and differences between a domestic marketing strategy and a global marketing strategy.

LO1

LO2

LO3

LO4

Some Global Marketing Mistakes

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Assessing Global Markets

General economic environment Market size and population growth Real income

Economic analysis using metrics

Transportation Channels

Communication Commerce

Infrastructure and technology

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Tariff Quota

Exchange control Trade agreement

Government actions!Power distance Uncertainty avoidance Individualism Masculinity Time orientation

Sociocultural analysis

1. ECONOMIC ANALYSIS GENERAL ECONOMIC

ENVIRONMENT

Gross domestic product Gross national income

Purchasing power parity

Human development index

1. Economic Analysis Evaluating Market Size

and Population Growth Rate

• 36% of the worlds population lives in China and India

• What would be better: a 3% market share in the US or a 1% market share in India?

1. Economic Analysis Evaluating Real Income

• Firms can make adjustments to an existing product or change the price to meet the unique needs of a particular country market.

2. ANALYZING INFRASTRUCTURE AND TECHNOLOGICAL

CAPABILITIES

Communication

Commerce

Transportation

Distribution Channel

3. ANALYZING GOVERNMENT ACTIONS

Government actions

Quota Exchange control

Trade agreement Tariff

4. ANALYZING SOCIOCULTURAL FACTORS

CulturePower distance

Uncertainty avoidance

Individualism

Masculinity

Time orientation

Chapter Check In

1. What are key metrics that can help analyze the economic environment of a country?

2. What types of government actions should we be concerned about as we evaluate a country?

3. What are five important cultural dimensions? 4. Why are each of the BRIC countries viewed as potential

candidates for global expansion?

Choosing a Global Entry Strategy

Risk

Con

trol

Direct Investment

Export

Joint Venture

Strategic Alliance

Franchising

Choosing a Global Marketing Strategy: Target Market (STP)

Cultural nuances

Subcultures

View of product and consumer role

Different positioning

Adaptation

Single positioning strategy

The Global Marketing Mix: Product or Service Strategies

Sell the same product or

service in both the home

country market and host country

Sell a product or service

similar to that sold in home country but

include minor adaptations

Sell totally new products or

services

Global Marketing Mix: Pricing Strategies

PriceTariffs

Quotas

Anti-dumping Policies

Economic Conditions

Competitive factors

Global Marketing Mix: Global Communication Strategies

Literacy levels vary by country

Firms choose whether to adapt to language differences

Cultural and religious differences also matter

Chapter Check In

1. What are the components of a global marketing strategy? 2. What are the three global product strategies?

Global Marketing Mix: Global Distribution Strategies

• Some global channels are very long and complex.

• Consumer shop local small local stores.

• Suppliers must be creative in delivering to these outlets.

Key Terms

• A boycott pertains to a group’s refusal to deal commercially with some organization to protest against its policies.

• Cultural imperialism is the belief that one’s own culture is superior to that of other nations.

• Exchange control refers to the regulation of a country’s currency exchange rate, the measure of how much one currency is worth in relation to another.

Key Terms

• The purpose of the General Agreement on Tariffs and Trade (GATT) was to lower trade barriers such as high tariffs on imported goods and restrictions on the number and types of imported products that inhibited the free flow of goods across borders.

• Infrastructure is the basic facilities, services, and installations needed for a community or society to function.

Key Terms

• A quota designates the maximum quantity of a product that may be brought into a country during a specified time period.

• A tariff is a tax levied on a good imported into a country.

• A trade agreement is an intergovernmental agreement designed to manage and promote trade activities for a specific region.