CHAPTER 8 GLOBAL MARKETING 8 1 Global Marketing

CHAPTER 8 GLOBAL MARKETING 8 -1

Global Marketing LEARNING OBJECTIVES LO 1 LO 2 LO 3 LO 4 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. 8 -2

Assessing Global Markets General economic environment Market size and population growth Real income Power distance Uncertainty avoidance Individualism Masculinity Time orientation Transportation Channels Communication Commerce Economic analysis using metrics Infrastructure and technology Sociocultural analysis Government actions Tariff Quota Exchange control Trade agreement 8 -3

Economic Analysis General Economic Environment Gross domestic product Gross national income Purchasing power parity Human development index Nation. Master 8 -4

Evaluating Market Size and Population Growth Rate Population 2002 Population 2050 REUTERS/Arko Datta/Corbis. 8 -5

REUTERS/Fayza Kabli § Firms can make adjustments to an existing product or change the price to meet the unique needs of a particular country market. Narinder Nanu/AFP/Getty Images Evaluating Real Income 8 -6

Stockdisc ©MIXA/Punch. Stock Analyzing Infrastructure and Technological Capabilities Transportation Royalty-Free/CORBIS Photo. Link/Getty Images Communication Distribution Channel Commerce 8 -7

Analyzing Government Actions Tariff Trade agreement Government actions Quota Exchange control 8 -8

Analyzing Sociocultural Factors Individualism Masculinity Uncertainty avoidance Power distance Time orientation Culture Indulgence 8 -9

The Appeal of the BRIC Countries § Great potential for growth in the global community § Brazil § Russia § India § China 8 -10

CHECK YOURSELF 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? 8 -11

Choosing a Global Entry Strategy Direct Investment Control Joint Venture Strategic Alliance Franchising Export Risk 8 -12

CHECK YOURSELF 1. Which global entry strategy has the least risk and why? 2. Which global entry strategy has the most risk and why? 8 -13

Choosing a Global Marketing Strategy: Target Market (STP) Cultural nuances Subcultures View of product and consumer role Different positioning Adaptation Courtesy Ford India Pvt. Ltd. Single positioning strategy 8 -14

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 8 -15

Global Marketing Mix: Pricing Strategies Anti-dumping Policies Economic Conditions Quotas Tariffs Price Competitive factors 8 -16

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. http: //www. youtube. com/watch? v=Mr. MURoch. E 6 Y 8 -17

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 Photo by Jeff Kravitz/Film. Magic/Getty Images 8 -18

CHECK YOURSELF 1. What are the components of a global marketing strategy? 2. What are three global product strategies? 8 -19