8-1

CHAPTER

GLOBAL MARKETING

8

8-2

L E A R N I N G O B J E C T I V E S

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.

Global Marketing

LO1

LO2

LO3

LO4

8-3

Assessing Global Markets

General economic environmentMarket size and population growthReal income

Economic analysis using

metrics

TransportationChannelsCommunicationCommerce

Infrastructure and technology

TariffQuotaExchange controlTrade agreement

Government actions

Power distanceUncertainty avoidanceIndividualismMasculinityTime orientation

Sociocultural analysis

8-4

Economic AnalysisGeneral Economic Environment

Gross domestic product

Gross national income

Purchasing power parity

Human development

index

NationMaster

8-5

Evaluating Market Size and Population Growth Rate

Population 2002

Population 2050

REUTERS/Arko Datta/Corbis.

8-6

Evaluating Real Income

Firms can make adjustments to an existing product or change the price to meet the unique needs of a particular country market.

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8-7

Analyzing Infrastructure and Technological Capabilities

Communication

Commerce

Transportation

Distribution Channel

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8-8

Analyzing Government Actions

Government actions

Tariff

Quota

Exchange control

Trade agreement

8-9

Analyzing Sociocultural Factors

Culture Power distance

Uncertainty avoidance

Individualism Masculinity

Time orientation

Indulgence

8-10

The Appeal of the BRIC Countries

Great potential for growth in the global community

Brazil

Russia

India

China

8-11

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?

8-12

Choosing a Global Entry Strategy

Risk

Co

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ol

DirectInvestment

Export

JointVenture

StrategicAlliance

Franchising

8-13

CHECK YOURSELF

1. Which global entry strategy has the least risk and why?

2. Which global entry strategy has the most risk and why?

8-14

Choosing a Global Marketing Strategy: Target Market (STP)

Cultural nuances

Subcultures

View of product and consumer role

Different positioning

Adaptation

Single positioning strategyCourtesy Ford India Pvt. Ltd.

8-15

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

8-16

Global Marketing Mix: Pricing Strategies

PriceTariffs

Quotas

Anti-dumpingPolicies

EconomicConditions

Competitivefactors

8-17

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=MrMURochE6Y

8-18

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/FilmMagic/Getty Images

8-19

CHECK YOURSELF

1. What are the components of a global marketing strategy?

2. What are the three global product strategies?