1. Chapter 7 - Global Marketing

2. WHY EXPAND INTO OVERSEAS MARKETS? the world is getting smaller expands market share new, untapped markets some raw materials cheaper/more plentiful creates jobs

3. Differences in Global Marketing 1. MARKET SIZE –world population > 6 billion www.census.gov Factors Affecting Market Potential –income level –stage of country's economic development

4. 2. BUYER BEHAVIOR –differs by country & among market segments w/in each country –need to consider local customs, tastes & living conditions ie: Snapple (sugar, foggy look) ie: EuroDisnesy (alcohol, employees look) –food differences & preferences

5. 5 Considerations Prior to Entering Foreign Market 1. Demand 2. Competition 3. Economic environment 4. Social-cultural environment 5. Political-legal environment

6. The Environment for International Marketing 1. ECONOMIC FACTORS –nations size, per capital income & stage of economic develop –need to gear product to income level of country –need to consider unemployment level –infrastructure: transportation, communication and utilities –exchange rate: how currency converts from one to another

7. 2. SOCIAL-CULTURAL FACTORS –study nations' culture incl: language, education, social values, & religious attitudes –be sure about translations! ie: Gerbers baby food in India ie: Time, Lunch Hours

8. 3. POLITICAL-LEGAL FACTORS –political turmoil –may need to adjust marketing strategy based on political envir.

9. TRADE BARRIERS –Tariffs  revenue tariffs  protective tariffs –IMPORT QUOTAS - limits on imports –EMBARGO - complete ban on import of certain products (Cuba) –DUMPING - sell goods at lower price than domestic market price

10. Strategies for Entering International Markets 1. EXPORTING – indirect exporting –direct exporting

11. 2. Contractual Agreements: –Licensing, Franchise 3. OVERSEAS MARKETING –ie: foreign sales offices

12. 4. FOREIGN PRODUCTION AND MARKETING –subsidiary that is responsible for foreign production & marketing

13. 2 Types of International Marketing Strategies 1. GLOBAL MARKETING STRATEGY –standardized marketing mix w/ minimal modifications in all foreign markets 2. MULTIDOMESTIC MARKETING –treats each nation separately

14. Product & Promotional Strategies: Figure 3.12