1. Global Versus Localized Marketing Global marketing emphasizes selling the same product with the same marketing mix all over the world Localized marketing emphasizes a unique marketing mix for each country or trading block

2. Successful Global Marketing Requires: Comparative Advantage Opportunity

3. THE LAW OF COMPARATIVE ADVANTAGE “Countries are better off producing items where they have inherent advantages and buying from others’ products where they have handicaps.”

4. Foreign Market Selection Factors Size of Market (enough customers?) Distinct competitive advantage? Level of Financial Risk –Cultural differences –Government instabilities

5. Market Entry Strategies Export Licensing Joint ventures Investing in your own facilities Increasing levels of commitment, risk, control, and profit potential

6. Risks in Global Marketing  Trade Restrictions  Currency Exchange  Unstable Governments  Cultural Factors

7. Problems with Global Marketing can be due to: Insufficient research on the intended countries Overstandardization or lack of flexibility in approaches utilized

8. Risks of Cultural Factors  Standard of Living Differences  Style of Living Differences  Religion Differences

9. Understanding Cultural Factors Overseas buyers often have different concepts of time, space, and etiquette Need to study how potential customers regard and use your product Examples: –Privacy may be viewed differently –comparative advertising or sexual innuendo may be taboo

10. Think Global But Act Local Global marketing often works and can save money Have global objectives But don’t ignore local market conditions Adjust plans to meet the special needs of particular customers in other countries

11. DYNAMICS OF WORLD TRADE A New Reality: Global Competition Among Global Companies for Global Customers  Global Competition Global Competition  Global Companies Global Companies International Firm Multinational Firm  Multidomestic Marketing Strategy Multidomestic Marketing Strategy Transnational Firm  Global Marketing Strategy Global Marketing Strategy

12. 1. Cross-cultural analysis involves the study of _________. Concept Check A: similarities and differences among consumers in two or more nations or societies

13. Slide 7-32 2. When foreign currencies can buy more U.S. dollars, are U.S. products more or less expensive for a foreign consumer? A: Less expensive. Concept Check

14. GLOBAL MARKET-ENTRY STRATEGIES Exporting  Indirect Exporting Indirect Exporting  Direct Exporting Direct Exporting Licensing Joint Venture Direct Investment  Franchising Franchising

15. Alternative global market-entry strategies

16. Global competition exists when firms originate, produce, and market their products and services worldwide. Global Competition

17. Multinational firms use a multi-domestic marketing strategy when they have as many different product variations, brand names, and advertising programs as countries in which they do business. Multi-domestic Marketing Strategy

18. Transnational firms employ a global marketing strategy, which is the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ. Global Marketing Strategy

19. Global consumers consist of customer groups living in many different countries who have similar needs or seek similar features and benefits from products or services. Global Consumers

20. Cross-cultural analysis involves the study of similarities and differences among consumers in two or more nations or societies. Cross-Cultural Analysis

21. Exporting is producing goods in one country and selling them in another country. Exporting

22. A joint venture is when a foreign country and a local firm invest together to create a local business. Joint Venture

23. Direct investment entails a domestic firm actually investing in and owning a foreign subsidiary or division. Direct Investment