Global Marketing 8
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Transcript of Global Marketing 8
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,
Exporting,and Sourcing
(Global Edition)Chapter 8
1
Chapter topics:
export marketing
activities
imports and exports
Key export participants
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product, at the same price, with thesame promo ona oo s n a erenplace
Export marketing tailors the marketing
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.
An understanding of the target market
environment
identification of market potential
ec s ons concern ng pro uct es gn,pricing, distribution and channels,
advertising, and communications
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1. The firm is unwilling to export; it will not even fill an
unsolicited export order. unsolicited orders; such a firm is an export seller
3. The firm explores the feasibility of exporting (this stage may
bypass Stage 2)
4. The firm exports to one or more markets on a trial basis
5. T e irm is an experience exporter to one or more mar ets
6. After this success, the firm pursues country- or region-
7. The firm evaluates global market potential before screening
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strategy and plan
... should be based on a number of criteria: market-related characteristics
cost-related as ects
the regulatory framework
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the importance of these selection criteriaepen s upon e n us ry e mar e s a en
into account
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1. Market Potential
2. Market Access
3. Shipping Cost & Time
.
5. Service
6. Product Fit
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Government Programs thatSupport Exports
ax incentives Subsidies
overnmen aassistance
Free trade zones
The Miami Free Trade Zone, near the airportand port of Miami, manages transactions of
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Govtal Actions to DiscourageImports & Block Market Access
Import controls
on ar arr ers
Quotas
Discriminatory procurement policies
Restrictive customs procedures
Portland CustomsCenter
Arbitrary monetary policies
Restrictive regulations
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Single-column tariff
Simplest type of tariff
imports from all countries on the same
Two-column tariff
General duties plus special duties apply
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Reduced tariff rate applied to imports from
GATT prohibits the use, with three exceptions:
s or ca pre erence arrangemen s a rea yexisted
re erence s part o orma econom cintegration treaty
n us r a coun r es are perm e o granpreferential market access to LDCs
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Ad valorem duty xpresse as percentage o va ue o goo s
Specific duty
Expressed as specific amount of currencyper unit of weight, volume, length, or otherun o measuremen
Compound or mixed dutiesApply both ad valorem and specific duties
on the same items
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Other Duties andImport Charges
Anti-dumping Duties Dumping is the sale of merchandise in
export markets at unfair prices
Special import charges equal to thedumping margin
Countervailing Duties
Variable Im ort Levies Temporary Surcharges
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Foreign purchasing Export distributor
agen s Export brokers
xpor comm ss onrepresentative
Export merchants
oopera veexporter
companies
re g t orwar ers
Manufacturers
exporrepresentatives
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Organizing for Exporting inthe Manufacturers Country
Exports can be handled
As a part-time activity performed bydomestic employees
hrough an export partner
Through an export department
Through an export department within aninternational division
For multi-divisional companies, eachpossibility exists for each division
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Organizing for Exporting inthe Market Country
Advantages: control and communications
Representation by independentintermediaries
Advantages: best for situations with small
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Export Financing andMethods of Payment
Documentary collections (bill of exchange)
Cash in advance
Sales on consignment basis
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Flowchart ofDocumentary Credit
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Customs Trade PartnershipAgainst Terrorism
he US Customs andBorder Patrol inspectscar o
C-TPAT aims to have
their security and that
They get inspection
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Refunds of duties paid on imports that are
re-exported
Used in the US to encourage exports
er , re uce raw ac s on expor s
to Canada and Mexico na a o re uce raw ac s n or er o o nthe WTO
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Must emphasize benefits of sourcing fromcountr other than home countr
Must assess vision and values of companyleadershi
Advantage can be gained by
activities in a single location
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Tapping opportunities for product
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Management vision
Factor costs and conditions Customer needs
Logistics
Political factors
Foreign exchange rates
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Behavior of costs (fixed plus variable) for exporting,
increases
Emphasizes rational behavior, with the costs andbenefits of strategic alternatives being compared, toidentify those options which maximize long-run
profits
Control is single most important determinant of both
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Stages-of-DevelopmentApproach
Based on incremental model of internationalization,
an evo u onary process w rms gra ua ydeveloping a greater commitment to foreign markets,
foreign sales, etc.
Decisions regarding foreign market entry modestaken incrementall with a shift to other entr
modes occurring only when previous ones haveproved inadequate
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Stages-of-DevelopmentApproach
Internationalization process involves several stages:
1. Ex erimental involvement sta e: ex ortinusually marginal and intermittent
2. Active involvement stage: systematically exploreexport possibilities in number of foreign markets
3. Committed involvement stage: long-runcomm tment to nternat ona mar et ng
4. Global involvement stage: broad international, -methods differ widely in pursuit of competitive
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Stages-of-DevelopmentApproach
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Emphasizes pragmatic nature of decision-
making in most organizations
Because of external uncertainty and politicalnature of decision-makin or anizations maadopt satisficing or muddling throughrather than a rational-analytical approach to
decision-making
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