1. Chapter 1 An Overview of Marketing
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2. Lo Discuss the importance of global marketing
Chapter 5 Developing a Global Vision Lo
Discuss the importance of global marketing
Discuss the impact of multinational firms on the world economy
Describe the external environment facing global marketers
Identify the various ways of entering the global marketplace
List the basic elements involved in developing a global marketing mix
Discover how the Internet is affecting global marketing

3. Global Marketing, Global Vision, and GDP
Chapter 5 Developing a Global Vision
LO 1
Global marketing: Targeting markets throughout the world
Global vision: Recognizing and reacting to international marketing opportunities
Gross Domestic Product (GDP): Total market value of all final goods and services produced in a country for a given period
Over the past two decades, world trade has climbed from $200 billion a year to more than $18 trillion in merchandise exports.
Many countries depend more on international commerce than the United State does. France, the United Kingdom, and Germany derive 28, 30, and 46 percent of their respective gross domestic products (GDPs) from world trade.
Only large multinational companies have seriously attempted to compete worldwide. However, more and more small and medium-sized companies are now pursuing international markets.
Discussion/Team Activity
Discuss ways that small- and medium-sized firms can compete in a global environment with limited resources.

4. Job Outsourcing and Inshoring
Chapter 5 Developing a Global Vision
LO 1
Outsourcing: Sending U.S. jobs abroad
Leads to corporate growth, efficiency, productivity, and revenue growth
Inshoring: Returning production jobs to the United States because of rapid consumer product innovation
Innovation forces the need to keep product designers, marketing researchers, logistic experts, and manufacturers in close proximity
Discussion/Team Activity
Discuss examples of the downside of globalization.
Debate the ethical issues associated with foreign “sweatshops.”

5. Benefits of Globalization
Chapter 5 Developing a Global Vision
LO 1
Expands economic freedom
Spurs competition
Raises a nation’s productivity and living standards if it opens itself to the global market
Offers access to foreign capital, global export markets, and advanced technology
Promotes higher labor and environmental standards
Acts as a check on government power
Traditional economic theory says that globalization relies on competition to drive down prices and increase product and service quality.
Business goes to the countries that operate most efficiently and/or have the technology to produce what is needed.

6. Costs of Globalization
Countries create trade barriers to boost exports and limit imports
Globalization leads to people being laid off from their jobs
Most workers do not find jobs in other cities or industries

7. Pros and Cons of Multinationals
Chapter 5 Developing a Global Vision
LO 2
Pros
Cons
Accounts for 20 percent of U.S. private Jobs
Technology is capital intensive and does not necessarily increase employment
Provides 25 percent of all private wages
Support governments that benefit the company and not necessarily the country and its people
Spend $ 680 billion in R&D
May take away more wealth than they generate
To counter criticism about taking away more wealth than they generate, more and more multinationals are taking a proactive role in being good global citizens. Sometimes companies are spurred to action by government regulation, and in other cases multinationals are attempting to protect their good brand names. 7

8. Global Marketing Standardization
Chapter 5 Developing a Global Vision
LO 2
Global marketing standardization
Production of uniform products that can be sold the same way all over the world
Multidomestic strategy provides a variety of strategies instead of offering the same product
Multidomestic strategy: Subsidiaries of multinational firms are allowed to compete independently in domestic markets
Multinational corporations operate somewhat differently in each country with a strategy of providing different product features, packaging, and advertising.
According to Ted Levitt, communication and technology have made the world smaller, and thus the emergence of global markets for standardized products, as opposed to segmented foreign markets with different products.
Even though global marketing standardization should enable companies to lower production and marketing costs, success is based on variation and not on offering the same product everywhere. One method of this type of variation is through a multidomestic strategy.
Discussion/Team Activity
Discuss products and services that are successfully marketed as globally standardized products. Examples include Camay soap, Crest toothpaste, Head and Shoulders shampoo, and Pampers diapers.

9. External Environment Faced by Global Marketers
Chapter 5 Developing a Global Vision
LO 3
Culture
Economic development
Political structure
Demography makeup
Natural resources
Many of the same external environmental factors that operate in domestic markets also apply to global markets.
Culture underlies the family, the educational system, religion, and the social class system.
A company with no understanding of a country’s culture is doomed to fail. Furthermore, cultural blunders lead to misunderstandings and perceptions of rudeness or even incompetence.
Language is an important aspect of culture. It must be paid attention to when translating product names, slogans, production instructions, and promotional messages.
Each country has its own unique customs and traditions that determine business practices and influence negotiations with foreign customers.
Level of economic development in countries where a global marketer operates also affects the international market.
Complex and sophisticated industries are found in developed countries
Basic industries are found in less developed nations
Global economy is of an intertwined nature
Government policies run the gamut from no private ownership and minimal individual freedom to little central government and maximum personal freedom. As rights of private property increase, government-owned industries tend to decrease
The least regulated and most efficient economies are concentrated among countries with well-established common-law traditions, including Australia, Canada, New Zealand, the United Kingdom, and the United States. Others are Singapore and Hong Kong

10. Methods of Entering the Global Market
Chapter 5 Developing a Global Vision
LO 4
Exporting
Buyer for export
Export broker
Export agent
Licensing
Contract manufacturing
Joint venture
Direct foreign investment
Many firms form multinational partnerships—called strategic alliances—to assist them in penetrating global markets; strategic alliances are examined in Chapter 7.

11. Elements in Developing a Global Marketing Mix
Product decision strategies
One product one message, invention, adaptation, and adaptation
Distribution
Adequate infrastructure and finding the right franchise contribute to efficient distribution
Pricing
Simplifying a product leads to lower prices
Exchange rates: Price of one country’s currency in terms of another country’s currency

12. Dumping and Countertrade
Chapter 5 Developing a Global Vision
LO 5
Dumping: Sale of an exported product at a lower price than that charged for a similar product in the home market of the exporter
Countertrade: Form of trade in which all or part of the payment for goods or services is in the form of other goods or services

13. Global marketers use social media:
e-Commerce
Chapter 5 Developing a Global Vision
LO 6
Opening an e-commerce site puts a company in the international marketplace
Internet-based economy remains hindered by brick and mortar rules, regulations, and habits
Global marketers use social media:
Because it is popular around the world
To understand customers
For global brand building
Lands’ End is not allowed to mention its unconditional refund policy on its e-commerce site in Germany because German retailers, which normally do not allow returns after fourteen days, sued and won a court ruling blocking mention of it.

14. Key Global marketing Global vision Gross domestic product (GDP)
Outsourcing
Inshoring
Multinational corporation
Capital intensive
Global marketing standardization
Multidomestic strategy
Balance of trade
Balance of payment
Mercosur
Uruguay Round
World Trade Organization (WTO)
General Agreement on Tariffs and Trade (GATT)
North American Free Trade Agreement (NAFTA)
Dominican-Republic- Central-America Free Trade Agreement (CAFTA-DR)

15. Key 2 European Union (EU) World Bank International Monetary Fund (IMF)
Group of Twenty (G-20)
Exporting
Buyer for export
Export broker
Export agent
Licensing
Contract manufacturing
Joint venture
Direct foreign investment
Exchange rate
Floating exchange rates
Dumping
Countertrade

16. Summary Global marketing has become imperative for business
Multinational corporations move resources, goods, services, and skills across national boundaries without regard to the country in which their headquarters are located
Many of the same environmental factors that operate in the domestic market also exist internationally

17. Summary2
One of the most important reasons companies decide to go global is to earn additional profits
To succeed, firms seeking to enter into foreign trade must still adhere to the principles of the marketing mix
In many respects, going global is easier than it has ever been before