chapter 5 developing a global vision. global vision identifying and reacting to international...
TRANSCRIPT
![Page 1: Chapter 5 Developing a Global Vision. Global Vision Identifying and reacting to international marketing opportunities Creating effective global marketing](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649e725503460f94b71402/html5/thumbnails/1.jpg)
Chapter 5Developing a Global Vision
![Page 2: Chapter 5 Developing a Global Vision. Global Vision Identifying and reacting to international marketing opportunities Creating effective global marketing](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649e725503460f94b71402/html5/thumbnails/2.jpg)
Global VisionIdentifying and
reacting to international marketing opportunities
Creating effective global marketing strategies
Being aware of worldwide competition
![Page 3: Chapter 5 Developing a Global Vision. Global Vision Identifying and reacting to international marketing opportunities Creating effective global marketing](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649e725503460f94b71402/html5/thumbnails/3.jpg)
Global Marketing Influences EconomiesThe U.S. exports a fifth of what it
manufacturesOne in ten jobs in the U.S. is supported by
exportsAlmost one-third of U.S. corporate profits
come from international trade and foreign investment
The U.S. Is the world’s largest exporter of agricultural goods
![Page 4: Chapter 5 Developing a Global Vision. Global Vision Identifying and reacting to international marketing opportunities Creating effective global marketing](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649e725503460f94b71402/html5/thumbnails/4.jpg)
Benefits Versus Concerns About Global MarketingConcerns:
Jobs going overseas Lower salaries
Foreign products replace “made in America”
Wage cutsService centers
moving offshoreNegative image of
America in some foreign markets
Benefits:Increased competition
May bring prices down May result in more
innovationIncreased standard of
living in other countries More markets for
American productsMay result in more
individual freedom in some countries
![Page 5: Chapter 5 Developing a Global Vision. Global Vision Identifying and reacting to international marketing opportunities Creating effective global marketing](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649e725503460f94b71402/html5/thumbnails/5.jpg)
Multinational FirmsMove resources,
goods, services and skills across national boundaries regardless of the location of the company headquarters
![Page 6: Chapter 5 Developing a Global Vision. Global Vision Identifying and reacting to international marketing opportunities Creating effective global marketing](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649e725503460f94b71402/html5/thumbnails/6.jpg)
Why Go Global?Earn additional sales and profitsLeverage a unique product or technological
advantagePossess exclusive marketing informationDomestic market is saturatedExcess capacityGain economies of scale
![Page 7: Chapter 5 Developing a Global Vision. Global Vision Identifying and reacting to international marketing opportunities Creating effective global marketing](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649e725503460f94b71402/html5/thumbnails/7.jpg)
Global Marketing StrategiesStandardization CustomizationAssumes markets around
the world are similarMarketing mix is as much
the same as possibleGain economies of scale
Recognizes the differences in global markets
Create marketing mixes to suit each market
More costly, but may be worth it
![Page 8: Chapter 5 Developing a Global Vision. Global Vision Identifying and reacting to international marketing opportunities Creating effective global marketing](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649e725503460f94b71402/html5/thumbnails/8.jpg)
External EnvironmentsAll of the major environments have to be
considered international and domesticallySocio-culturalEconomicTechnologicalDemographicsPhysical/naturalPolitical/legal
![Page 9: Chapter 5 Developing a Global Vision. Global Vision Identifying and reacting to international marketing opportunities Creating effective global marketing](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649e725503460f94b71402/html5/thumbnails/9.jpg)
Global Legal issuesTariffQuotaBoycottExchange controlTrade alliancesTrade Agreements
![Page 10: Chapter 5 Developing a Global Vision. Global Vision Identifying and reacting to international marketing opportunities Creating effective global marketing](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649e725503460f94b71402/html5/thumbnails/10.jpg)
Trade AgreementsUruguay RoundWorld Trade
OrganizationNAFTACentral American
Free Trade Agreement
European UnionInternational
Monetary Fund
![Page 11: Chapter 5 Developing a Global Vision. Global Vision Identifying and reacting to international marketing opportunities Creating effective global marketing](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649e725503460f94b71402/html5/thumbnails/11.jpg)
Common Methods for Entering the Global MarketplaceExportingLicensingFranchisingContract
manufacturingJoint VentureDirect Investment
![Page 12: Chapter 5 Developing a Global Vision. Global Vision Identifying and reacting to international marketing opportunities Creating effective global marketing](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649e725503460f94b71402/html5/thumbnails/12.jpg)
The Global Marketing Mix: Product / Promotion
![Page 13: Chapter 5 Developing a Global Vision. Global Vision Identifying and reacting to international marketing opportunities Creating effective global marketing](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649e725503460f94b71402/html5/thumbnails/13.jpg)
The Global Marketing Mix: DistributionAdequate distribution is
necessary for successSome countries have
complicated systemsLack of distribution
infrastructure and cultural differences
The company may gain competitive advantage through innovative distribution strategies
![Page 14: Chapter 5 Developing a Global Vision. Global Vision Identifying and reacting to international marketing opportunities Creating effective global marketing](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649e725503460f94b71402/html5/thumbnails/14.jpg)
Global Marketing Mix - PriceConsider transportation
costs, taxes and tariffsDetermine what
customers will spendMay need to simplify a
product to lower the price
Don’t assume that lower income countries are willing to accept lower quality
![Page 15: Chapter 5 Developing a Global Vision. Global Vision Identifying and reacting to international marketing opportunities Creating effective global marketing](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649e725503460f94b71402/html5/thumbnails/15.jpg)
Exchange RatesThe price of one’s
currency in terms of another country’s currency
![Page 16: Chapter 5 Developing a Global Vision. Global Vision Identifying and reacting to international marketing opportunities Creating effective global marketing](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649e725503460f94b71402/html5/thumbnails/16.jpg)
DumpingThe sale of an
exported product at a price lower than that charged for the same or a like product in the home market.
![Page 17: Chapter 5 Developing a Global Vision. Global Vision Identifying and reacting to international marketing opportunities Creating effective global marketing](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649e725503460f94b71402/html5/thumbnails/17.jpg)
CountertradeAn alternative to
exchanging currency for goods
A form of trade in which all or part of the payment for goods or services in the form of other goods or services.