chapter 19 slides with notes
TRANSCRIPT
Chapter 19 - slide 1Copyright © 2011 Pearson Canada Inc.
Chapter NineteenThe Global Marketplace
Chapter 19 - slide 2Copyright © 2011 Pearson Canada Inc.
Global Marketing Today
Chapter 19 - slide 3Copyright © 2011 Pearson Canada Inc.
Looking at the Global Marketing Environment
Restrictions on trade between nations include:
• Tariffs• Quotas• Exchange controls• Nontariff trade barriers
The International Trade System
Chapter 19 - slide 4Copyright © 2011 Pearson Canada Inc.
Looking at the Global Marketing Environment
General Agreement on Tariffs and Trade (GATT):• A 61-year-old treaty • Designed to promote world trade• Reduces tariffs and other international trade
barriersWorld Trade Organization• Enforces GATT rules• Mediates disputes• Imposes trade sanctions
The International Trade SystemThe World Trade Organization and GATT
Chapter 19 - slide 5Copyright © 2011 Pearson Canada Inc.
Looking at the Global Marketing Environment
• Economic communities are free trade zones
• European Union (EU)• North American Free Trade
Agreement (NAFTA)• Central American Free Trade
Association (EFTA)
The International Trade SystemRegional Free Trade Zones
Chapter 19 - slide 6Copyright © 2011 Pearson Canada Inc.
Looking at the Global Marketing Environment
• Subsistence Economics
• Raw Material Exporting Economics
• Industrializing Economics
• Industrial Economies
Economic EnvironmentIndustrial Structure
Chapter 19 - slide 7Copyright © 2011 Pearson Canada Inc.
Looking at the GlobalMarketing Environment
• Low-income households
• Middle-income households
• High-income households
Economic EnvironmentIncome Distribution
Chapter 19 - slide 8Copyright © 2011 Pearson Canada Inc.
Looking at the Global Marketing Environment
• Country’s attitude toward international buying
• Government bureaucracy• Political stability• Monetary regulations
Political-Legal Environment
Chapter 19 - slide 9Copyright © 2011 Pearson Canada Inc.
Looking at the Global Marketing Environment
North American companies have learned that to succeed abroad they must adapt to local cultural values and traditions rather than trying to force their own.
Cultural EnvironmentImpact of Marketing Strategy on Cultures
Chapter 19 - slide 10Copyright © 2011 Pearson Canada Inc.
Deciding Which Markets to EnterIndicators of Market Potential
Chapter 19 - slide 11Copyright © 2011 Pearson Canada Inc.
Deciding How to Enter the Market
Chapter 19 - slide 12Copyright © 2011 Pearson Canada Inc.
Deciding How to Enter the Market
Exporting is when the company produces its goods in the home country and sells them in a foreign market. It is the simplest means involving the least change in the company’s product lines, organization, investments, or mission.
Chapter 19 - slide 13Copyright © 2011 Pearson Canada Inc.
Deciding How to Enter the Market
Indirect exporting involves working through independent international marketing intermediaries.
• Less involvement, less riskDirect exporting is when the firm handles its own exports.• Greater involvement, greater risk, greater potential
return• Can be done through:
– Set up a domestic export department– Set up an overseas sales branch– Send home-based sales people abroad– Export through foreign-based distributors or agents
Chapter 19 - slide 14Copyright © 2011 Pearson Canada Inc.
Deciding How to Enter the Market
Joint venturing is when a firm joins with foreign companies to produce or market products or services
• Licensing• Contract manufacturing• Management contracting• Joint ownership
Joint venturing differs from exporting in that the company joins with a host country partner to sell or market abroad
Chapter 19 - slide 15Copyright © 2011 Pearson Canada Inc.
Deciding on the Global Marketing Program
Summary
Chapter 19 - slide 16Copyright © 2011 Pearson Canada Inc.
Deciding on the Global Marketing Program
Price Escalation & Dumping is a problem!
Uniform pricing
Market-based pricing
Standard markup pricing
Price
Chapter 19 - slide 17Copyright © 2011 Pearson Canada Inc.
Deciding on the Global Marketing Program
Whole-Channel View involves designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network
Distribution ChannelsWhole-Channel View