Global Marketing

Definitions  International Trade -- movement of goods and services across country borders  Multinational Company -- Firm that is produces goods and services in one country and sells them in other countries  International Marketing -- performance of marketing functions that facilitate exchange across national borders Considers the needs and wants of international customers

Global Marketing AT&T – a multi-national that engages in international marketing

Global Marketing Importance of Environmental Analysis in Global Marketing (Note that it is likely different than the US) Economic Environment  Economic Strength GNP DPI  Economic Development Political-Legal Environment  Differences exits Bribery is illegal in US, but is expected in Mexico  Stability is the key

Global Marketing The Fifteen Nations of the European Union

Global Marketing Socio-Cultural Environment  Cultural Differences (walking and meeting people is common in European cities – MacDonald’s has “walk-up” windows, sells beer) Competitive Environment  Legality of various competitive structures (OPEC is an oligopoly that openly colludes about pricing decisions – this is illegal in the US) Technological Environment  Existing Conditions v Potential (Currently Africa is the least “wired” continent – will it be in the future?) International research is essential

Global Marketing Harris Black is the leading “international” marketing research firm  Firms like this are critical to the success of an international marketer

Global Marketing Need to find out about the technological environment in a different country?  Check out the World Fact Book a US Government web site that provides such information

Global Marketing Recognizing the Cultural Variations of the Market It Serves, Coca-Cola’s Web Site in Belgium Gives Visitors the Choice of Three Cultural/Language Variations: Dutch, French or English.

Global Marketing Decisions  Orientation Ethnocentric Polycentric Regiocentric Geocentric

Global Marketing Decisions (cont’d)  Globalization Approaches Local (Domestic) Marketing Exporting Multinational Marketing Regional Marketing Global Marketing

Global Markets  The world is one market  Recognize cultural differences

Global Marketing Decisions (cont’d)  Globalization Approaches Trade  Importing  Exporting Licensing  Franchising Contractual Agreements Joint Ventures Direct Ownerships

Global Marketing Franchising: A Global Strategy for Ruth’s Chris Steak House – a type of “joint venture”

Global Marketing Conquering the European Air Travel Market through Joint Ventures

Global Marketing Coke’s globalization strategy