8-1 CHAPTER GLOBAL MARKETING 8

8-2 LEARNING OBJECTIVES 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 environment Market size and population growth Real income Economic analysis using metrics Transportation Channels Communication Commerce Infrastructure and technology Tariff Quota Exchange control Trade agreement Government actions Power distance Uncertainty avoidance Individualism Masculinity Time orientation Sociocultural analysis

8-4 Economic Analysis General 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. Narinder Nanu/AFP/Getty Images REUTERS/Fayza Kabli

8-7 Analyzing Infrastructure and Technological CapabilitiesInfrastructure Communication Commerce Transportation Distribution Channel Stockdisc ©MIXA/PunchStock Royalty-Free/CORBIS PhotoLink/Getty Images

8-8 Analyzing Government Actions Government actions TariffQuota Exchange control Trade agreement

8-9 Analyzing Sociocultural Factors Culture Power distance Uncertainty avoidance IndividualismMasculinity 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 Control Direct Investment Direct Investment Export Joint Venture Joint Venture Strategic Alliance Strategic Alliance 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 nuancesSubculturesView of product and consumer roleDifferent positioningAdaptationSingle positioning strategy Courtesy 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 Price Tariffs Quotas Anti-dumping Policies Anti-dumping Policies Economic Conditions Economic Conditions Competitive factors Competitive factors

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.

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?

8-20 Return to slide A boycott pertains to a group’s refusal to deal commercially with some organization to protest against its policies. Glossary

8-21 Return to slide Cultural imperialism is the belief that one’s own culture is superior to that of other nations. Glossary

8-22 Return to slide Exchange control refers to the regulation of a country’s currency exchange rate, the measure of how much one currency is worth in relation to another. Glossary

8-23 Return to slide Infrastructure is the basic facilities, services, and installations needed for a community or society to function. Glossary

8-24 Return to slide A quota designates the maximum quantity of a product that may be brought into a country during a specified time period. Glossary

8-25 Return to slide A tariff is a tax levied on a good imported into a country. Glossary

8-26 Return to slide A trade agreement is an intergovernmental agreement designed to manage and promote trade activities for a specific region. Glossary