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CHAPTER

GLOBAL MARKETING

8

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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

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Coca-Cola

Erica Simone Leeds RF

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Growth of Global Market

STR

/AFP

/Get

ty Im

ages

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Hiring Overseas

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Assessing Global MarketsGeneral 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

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Economic AnalysisGeneral Economic Environment

Gross domestic product

Gross national income

Purchasing power parity

Human development

index

NationMaster

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Evaluating Market Size and Population Growth Rate

Population 2002

Population 2050

REUTERS/Arko Datta/Corbis.

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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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r Nan

u/A

FP/G

etty

Imag

esR

EU

TER

S/F

ayza

Kab

li

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Analyzing Infrastructure and Technological Capabilities

Communication

Commerce

Transportation

Distribution Channel

Sto

ckdi

sc

©M

IXA

/Pun

chS

tock

Roy

alty

-Fre

e/C

OR

BIS

Pho

toLi

nk/G

etty

Imag

es

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Analyzing Government Actions

Government actions

Tariff

Quota

Exchange control

Trade agreement

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Both benefit domestically made products because they reduce foreign competition

Tariffs

• Tax• Artificially raises

prices• Lowers demand

Quotas

• Maximum limit• Reduces

availability of imported goods

Tariff and Quotas

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Exchange Control

Exchange rate CountertradeImage Source/Alamy Stockbyte/Punchstock Images

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Trade Agreements

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The European Union (EU)

Monetary and Trade Union

Euro Membership does not

consists of Croatia, Macedonia, Turkey and several others

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Analyzing Sociocultural Factors

Culture

Power distance

Uncertainty avoidance

IndividualismMasculinityTime orientation

Indulgence

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Country Clusters

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Country Clusters

Using the Geert Hofstede’s cultural dimensions concept, what type of cultural difference is affecting the person in the picture?

Uncertainty AvoidanceMcGraw-Hill Companies, Inc. Mark Dierker, photographer.

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The Appeal of the BRIC Countries

Great potential for growth in the global community

Brazil Russia India China

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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?

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Choosing a Global Entry Strategy

Risk

Con

trol

DirectInvestment

Export

JointVenture

StrategicAlliance

Franchising

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CHECK YOURSELF

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

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

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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.

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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

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Global Marketing Mix: Pricing Strategies

PriceTariffs

Quotas

Anti-dumpingPolicies

EconomicConditions

Competitivefactors

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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

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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

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Spanish Ad

Courtesy Nestlé SA

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CHECK YOURSELF

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

2. What are the three global product strategies?