Post on 17-Aug-2015
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Learning Objectives
• Discuss how the international trade system and the economic, political-legal, and cultural environments affect a company’s international marketing decisions.
• Describe three key approaches to entering international markets.
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Copyright © 2015 Pearson Education, Inc.
Learning Objectives
• Explain how companies adapt their marketing strategies and mixes for international markets.
• Identify the three major forms of international marketing organization.
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First Stop: Coca-Cola in Africa
• Competes in developing global markets and enters emerging markets
• Marketing strategies used• Traditional channels in larger African cities• Grassroots tactics in smaller communities
• Street-by-street campaign
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Global Firm
• Operates in more than one country• Gains research and development, production,
marketing, and financial advantages in its costs and reputation
• Problems faced• Highly unstable governments and currencies• Restrictive government policies and regulations• High trade barriers and corruption
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Major International Marketing Decisions
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Looking at the Global Marketing Environment
• International trade system• Economic environment• Political-legal environment• Cultural environment
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International Trade System
• Trade barriers• Tariffs or duties• Quotas and exchange
controls• Nontariff trade barriers
• Biases against the bids• Restrictive product
standards• Excessive host-country
regulations or enforcement
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World Trade Organization (WTO)
• Established by the General Agreement on Tariffs and Trade (GATT) in 1995
• Promotes world trade by reducing tariffs and other international trade barriers
• Negotiates to reassess trade barriers and establish new rules for international trade
• Imposes international trade sanctions and mediates global trade disputes
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Regional Free Trade Zones
• Economic community: Group of nations organized to work toward common goals in the regulation of international trade• European Union (EU)• North American Free Trade Agreement (NAFTA)• Central American Free Trade Agreement
(CAFTA-DR)• Union of South American Nations (UNASUR)
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Economic Environment
• Factors reflecting a country’s market attractiveness:• Industrial structure
• Subsistence economies• Raw material exporting economies• Emerging economies• Industrial economies
• Income distribution• Low-, medium-, and/or high-income households
depending on the industrial structure of the nation15 - 11
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Political-Legal Environment
• Considerations for a company to do business in a country:• Country’s attitude toward international buying• Government bureaucracy• Political stability• Monetary regulations
• International trade involves:• Cash transactions• Barter
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Impact of Culture on Marketing Strategy
• Companies that understand cultural nuances can:• Avoid expensive and
embarrassing mistakes
• Take advantage of cross-cultural opportunities
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Impact of Marketing Strategy on Cultures
• Elements of American culture have become omnipresent worldwide.
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Decision to Go Global
• Influential factors• Attack on a company’s home market by global
competitors• Expanding customer base in international
markets• Better opportunities for growth
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Deciding Which Markets to Enter
• A company should:• Define its international marketing objectives and
policies• Decide what volume of foreign sales it wants• Choose in how many countries it wants to market• Decide on the types of countries to enter• Evaluate each market
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Table 15.1 - Indicators of Market Potential
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Figure 15.2 - Market Entry Strategies
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Deciding on the Global Marketing Program
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Figure 15.3 - Five Global Productand Communications Strategies
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Global Price Considerations
• Set a uniform price globally
• Set according to the customers
• Use a standard markup of the company’s costs everywhere
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Figure 15.4 - Whole-ChannelConcept for International Marketing
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Deciding on the Global Marketing Organization
• Methods of managing international marketing activities:• Organizing an export department• Creating international divisions
• Geographical organizations• World product groups• International subsidiaries
• Becoming a global organization
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Copyright © 2015 Pearson Education, Inc.
Learning Objectives
• Discuss how the international trade system and the economic, political-legal, and cultural environments affect a company’s international marketing decisions.
• Describe three key approaches to entering international markets.
15- 24
Copyright © 2015 Pearson Education, Inc.
Learning Objectives
• Explain how companies adapt their marketing strategies and mixes for international markets.
• Identify the three major forms of international marketing organization.
15 - 25
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Copyright © 2015 Pearson Education, Inc.Copyright © 2015 Pearson Education, Inc.