1. DEVELOPING A GLOBAL VISION

2. AGENDA Deciding whether to enter International Markets
Environmental Analysis Issues in Global Markets
Ways of entering global marketplace
The Global Marketing Mix

3. External Environment Facing Global Marketers

4. External Environment: Social
Culture: Set of values shared by group that determine what is socially acceptable, including
social structure
assumptions and attitudes
personal beliefs and assumptions
interpersonal relationships

5. Issues from scan of social environment
Cultural influences on buying behavior
Language differences
Population size and distribution
Socioeconomic status
Ethical issues

6. Economic Environment Buying Power Currency Gross National Product-
Per capita income-
Currency
Exchange rate-price of currency in terms of another country

7. Economic Environment (cont.)
Stages of Development
Traditional Society
Pre-Industrial Society
Takeoff Economy
Industrialising/Developing
Fully Industrialised Society

8. Political and Legal Environment: Questions to ask about Political Systems
How much control exerted over private organisations?
Attitude toward foreign business?
Political Stability

9. Political and Legal Environment: Laws
Tax charged on imported goods/services
limit on amount of product that can be bought in
limits on amount of money that may be exchanged for other currency
Tariff:
Quota:
Exchange
control:
Regulating Business operating in host nations
General Agreement on Tariffs and Trade

10. Technological Environment
Levels of Technological Development
Available Infrastructure

11. Competitive Environment
Degree of government involvement in competition
Ownership of competitors
local
foreign
government

12. Natural Environment
Resources Available

13. Methods of Entry and Risk Levels for Global Marketing
High Control/High Risk/ High Return
Direct Ownership
Joint
Ventures
Licensing
Exporting
Little Control/Low Risk/ Low Return

14. Methods of Entering the Global Marketplace - Export
+ simple
+ minimal financial risk
- may be less profitable than other mechanisms

15. Methods of Entering the Global Marketplace: Licensing
+ minimal capital outlay
+ useful for serving countries with export restrictions
- difficult to control licensee
- when licensing agreement ends, licensee may become competitor
- may be less profitable than other mechanisms

16. Methods of Entering the Global Marketplace: Joint Venture
Joint Venturing: Domestic firm buys or joins with a foreign company to create a new entity
+ risk limited to organizations share in venture
+ foreign partner contributes expertise the organization lacks
+ useful when host country limits foreign ownership
- share control with venture partner
- partner may learn technology or secrets

17. Methods of Entering the Global Marketplace: Direct Ownership
+ maximum control over foreign operations
+ are close to customers
- expensive to set up
- requires extensive knowledge of foreign markets and contacts overseas

18. Global Marketing Standardisation
Some multinational corporations moving toward a degree of global marketing standardisation
Based on assumption that
markets throughout the world are becoming more alike
globally standardised products can be sold the same way all over the world
uniform production creates lower production & marketing costs and greater profits

19. DEVELOPING A GLOBAL MARKETING MIX
Product
Extension
Adaptation
Invention
Price
Dumping
Level
uniform
market based
cost based
Bribery

20. Developing a Global Marketing Mix
Distribution
Promotion