kotler pom13e student 19
TRANSCRIPT
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Chapter 19 - slide 1Copyright 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter Nineteen
The Global Marketplace
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Chapter 19 - slide 2Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Global Marketplace
Global Marketing Today
Looking at the Global Marketing
Environment Deciding Whether to Go Global
Deciding Which Markets to Enter
Deciding How to Enter the Market
Deciding on the Global Marketing Program
Deciding on the Global MarketingOrganization
Topic Outline
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Chapter 19 - slide 3Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Global Marketing Today
A global firm
Operates in more than one country Gains marketing, production, R&D, and
financial advantages not available to purely
domestic competitors
The global firm sees the world as one
market
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Chapter 19 - slide 4Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Global Marketing Today
Global firms ask a number of basic questions:
What market position should we try to
establish in our own country, in oureconomic region, and globally?
Who will our global competitors be, andwhat are their strategies and resources?
Where should we produce or source ourproduct?
What strategic alliances should we form withother firms around the world?
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Chapter 19 - slide 5Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Looking at the GlobalMarketing Environment
Restrictions on trade between nations include:
Tariffs Quotas
Exchange controls
Nontariff trade barriers
The International Trade System
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Chapter 19 - slide 6Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Looking at the GlobalMarketing Environment
Tariffs are taxes on certain imported productsdesigned to raise revenue or to protect
domestic firms
Quotas are limits on the amount of foreignimports a country will accept in certainproduct categories to conserve on foreignexchange and protect domestic industry andemployment
The International Trade System
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Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Looking at the GlobalMarketing Environment
Exchange controls are a limit on the amountof foreign exchange and the exchange rate
against other currencies
Nontariff trade barriers are biases againstbids or restrictive product standards that goagainst American product features
The International Trade System
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Publishing as Prentice Hall
Looking at the GlobalMarketing Environment
General Agreement on Tariffs and Trade
(GATT): A 61-year-old treaty
Designed to promote world trade
Reduces tariffs and other international trade
barriers
The International Trade SystemThe World Trade Organization and GATT
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Chapter 19 - slide 9Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Looking at the GlobalMarketing Environment
World Trade Organization
Enforces GATT rules
Mediates disputes
Imposes trade sanctions
The International Trade SystemThe World Trade Organization and GATT
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Chapter 19 - slide 10Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Looking at the GlobalMarketing Environment
Economic communities are free trade
zones
European Union (EU)
North American Free Trade Agreement
(NAFTA)
Central American Free Trade Agreement(CAFTA)
The International Trade SystemRegional Free Trade Zones
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Chapter 19 - slide 11Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Looking at the GlobalMarketing Environment
Economic factors reflect a countrys
attractiveness as a market: Industrial structure
Income distribution
Economic Environment
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Chapter 19 - slide 12Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Looking at the GlobalMarketing Environment
Subsistence economies
Raw material exporting economies
Industrializing economies
Industrial economies
Economic EnvironmentIndustrial Structure
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Chapter 19 - slide 13Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Looking at the GlobalMarketing Environment
Low-income households
Middle-income households
High-income households
Economic EnvironmentIncome Distribution
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Chapter 19 - slide 14Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Looking at the GlobalMarketing Environment
Countrys attitude toward international
buying
Government bureaucracy
Political stability
Monetary regulations
Political-Legal Environment
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Chapter 19 - slide 15Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Looking at the GlobalMarketing Environment
Countertrade is non-cash payment
Barter is the exchange of goods or services
Compensation orbuyback is the sale of aplant or equipment and the payment inresulting products
Counterpurchase is when the sellerreceives payment and agrees to spendsome of the money in the other country
Political-Legal Environment
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Chapter 19 - slide 16Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Looking at the GlobalMarketing Environment
Business norms Cultural preferences, traditions,
behaviors
Cultural EnvironmentImpact of Culture on Marketing Strategy
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Chapter 19 - slide 18Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Deciding Whether to Go Global
Can the company understand the
consumers
Can it offer competitively attractive products Will it be able to adapt to local culture
Can they deal with foreign nationals
Do the companys managers have theexperience
Has management considered regulation and
political environment of other countries
Factors to Consider
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Chapter 19 - slide 19Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Deciding Which Markets to Enter
Define international marketing objectives andpolicies
Foreign sales volume
How many countries to market to
Types of countries to market to based on:
Geography
Income and population Political climate
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Chapter 19 - slide 20Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Deciding Which Markets to Enter
Rank potential global markets based on:
Market size
Market growth Cost of doing business
Competitive advantage
Risk level
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Chapter 19 - slide 21Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Deciding How to Enter the Market
Ways to enter global markets include:
Exporting
Joint venturing Direct investment
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Chapter 19 - slide 22Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Deciding How to Enter the Market
Exporting is when the company produces itsgoods in the home country and sells them in
a foreign market. It is the simplest meansinvolving the least change in the companysproduct lines, organization, investments, ormission.
Indirect exporting Direct exporting
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Chapter 19 - slide 23Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Deciding How to Enter the Market
Joint venturing is when a firm joins withforeign companies to produce or marketproducts or services
Licensing Contract manufacturing Management contracting Joint ownership
Joint venturing differs from exporting in that thecompany joins with a host country partner tosell or market abroad
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Chapter 19 - slide 24Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Deciding How to Enter the Market
Licensing is when a firm enters into an
agreement with a licensee in a foreign
market. For a fee or royalty, thelicensee buys the right to use the
companys process, trademark, patent,
trade secret, or other item of value.
Joint Venturing
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Chapter 19 - slide 25Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Deciding How to Enter the Market
Contract manufacturing is when a firm
contracts with manufacturers in theforeign market to produce its product or
provide its service. Benefits include
faster startup, less risk, and theopportunity to form a partnership or to
buy out the local manufacturer.
Joint Venturing
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Chapter 19 - slide 27Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Deciding How to Enter the Market
Direct investment is the development offoreign-based assembly or manufacturingfacilities and offers a number of advantages
Lower costs
Raw material
Labor Government incentives
Logistics
Control
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Chapter 19 - slide 28Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Deciding on the GlobalMarketing Program
Standardized marketing mix involves sellingthe same products and using the same
marketing approaches worldwide
Adapted marketing mix involves adjusting the
marketing mix elements in each targetmarket, bearing more costs but hoping for a
larger market share and ROI
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Chapter 19 - slide 29Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Deciding on the GlobalMarketing Program
Straight product extension means marketinga product in a foreign market without anychange
Product adaptation involves changing theproduct to meet local conditions or wants
Product invention consists of creatingsomething new for a specific country market
Maintain or reintroduce earlier products
Create new products
Product
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Chapter 19 - slide 30Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Deciding on the GlobalMarketing Program
Companies can either adopt the same
communication strategy they use athome or change it for each market
Promotion
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Chapter 19 - slide 31Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Deciding on theGlobal Marketing Program
Uniform pricing is the same price in allmarkets but does not consider income orwealth where the price may be too high in
some or not high enough in other markets
Market-based pricing is the price the marketcan pay but does not consider actual costs
Standard markup pricing is a price based ona percentage of cost but can causeproblems in countries with high costs
Price
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Chapter 19 - slide 32Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Deciding on theGlobal Marketing Program
Sellers headquarters organizationsupervises the channel and is also a part ofthe channel
Channels between nations move the productsto the borders of the foreign nations
Channels within nations move the productsfrom their foreign point of entry to the finalcustomers
Distribution ChannelsWhole-Channel View
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Chapter 19 - slide 33Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Deciding on theGlobal Marketing Organization
Typical management of international marketing
activities include:
Organizing and exporting department with asales manager and staff
Creating an international division organized
by geography, products, or operating units
Becoming a complete global organization
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Chapter 19 slide 34Copyright 2010 Pearson Education Inc
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall