1. chapter global marketing eight Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

2. 8-2 LEARNING OBJECTIVES LO 8-1Describe the components of a country market assessment. LO 8-2Understand the marketing opportunities in BRIC countries. LO 8-3Identify the various market entry strategies. LO 8-4Highlight the similarities and differences between a domestic marketing strategy and a global marketing strategy.

3. 8-3 General Agreement on Tariffs and Trade (GATT) World Trade Organization (WTO) WTO Website PhotoLink/Getty Images

4. 8-4 Assessing Global Markets General economic environment Market size and population growth Real income Economic analysis using metrics Transportation Channels Communication Commerce Infrastructure and technology Tariff Quota Exchange control Trade agreement Government actions Power distance Uncertainty avoidance Individualism Masculinity Time orientation Sociocultural analysis

5. 8-5 Economic Analysis General Economic Environment Gross domestic product Gross national income Purchasing power parity Human development index NationMaster Website

6. 8-6 Evaluating Market Size and Population Growth Rate Population 2002 Population 2050 REUTERS/Arko Datta/Corbis.

7. 8-7 Evaluating Real Income Firms can make adjustments to an existing product or change the price to meet the unique needs of a particular country market. Narinder Nanu/AFP/Getty Images REUTERS/Fayza Kabli

8. 8-8 Analyzing Infrastructure and Technological CapabilitiesInfrastructure Communication Commerce Transportation Distribution Channel Stockdisc ©MIXA/PunchStock Royalty-Free/CORBIS PhotoLink/Getty Images

9. 8-9 Analyzing Government Actions Government actions Quota Exchange control Trade agreement Tariff

10. 8-10 Both benefit domestically made products because they reduce foreign competition Tariffs Tax Artificially raises prices Lowers demand Quotas Maximum limit Reduces availability of imported goods Tariff and Quotas

11. 8-11 Boycott Ethical Consumer Website The McGraw-Hill Companies, Inc/John Flournoy, photographer

12. 8-12 Exchange Control Exchange rateCountertrade Image Source/Alamy Stockbyte/Punchstock Images

13. 8-13 Trade Agreements NameCountries European Union There are 27 member countries of the EU: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. There are five official candidate countries to join the EU: Croatia, Macedonia, Turkey, Iceland, and Montenegro. NAFTAUnited States, Canada, and Mexico. CAFTAUnited States, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua. MercosurFull members: Argentina, Brazil, Paraguay, Uruguay, and Venezuela. ASEANBrunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam

14. 8-14 Analyzing Sociocultural Factors Culture Power distance Uncertainty avoidance Individualism Masculinity Time orientation

15. 8-15 Country Clusters

16. check yourself 8-16 1.What metrics can help analyze the economic environment of a country? 2.What types of government actions should we be concerned about as we evaluate a country? 3. What are five important cultural dimensions? 4.Why are each of the BRIC countries viewed as potential candidates for global expansion?

17. 8-17 Choosing a Global Entry Strategy Risk Control Direct Investment Direct Investment Export Joint Venture Joint Venture Strategic Alliance Strategic Alliance Franchising

18. check yourself 8-18 1.Which global entry strategy has the least risk and why? 2.Which global entry strategy has the most risk and why?

19. 8-19 Choosing a Global Marketing Strategy: Target Market (STP) Cultural nuancesSubculturesView of product and consumer roleDifferent positioningAdaptationSingle positioning strategy Courtesy Ford India Pvt. Ltd.

20. 8-20 The Global Marketing Mix: Product or Service Strategies Sell the same product or service in both the home country market and host country Sell a product or service similar to that sold in home country but include minor adaptations Sell totally new products or services

21. 8-21 Global Marketing Mix: Pricing Strategies Price Tariffs Quotas Anti-dumping Policies Anti-dumping Policies Economic Conditions Economic Conditions Competitive factors Competitive factors

22. 8-22 Global Marketing Mix: Global Distribution Strategies Some global channels are very long and complex. Consumer shop local small local stores. Suppliers must be creative in delivering to these outlets. Courtesy of CJ Tucker, NASA/GSFC FedEx Commercial

23. 8-23 Global Marketing Mix: Global Communication Strategies Literacy levels vary by country Firms choose whether to adapt to language differences Cultural and religious differences also matter Photo by Jeff Kravitz/FilmMagic/Getty Images

24. check yourself 8-24 1.What are the components of a global marketing strategy? 2. What are the three global product strategies?

25. Return to slide 8-25 A boycott pertains to a group’s refusal to deal commercially with some organization to protest against its policies. Glossary

26. Return to slide 8-26 Cultural imperialism is the belief that one’s own culture is superior to that of other nations. Glossary

27. Return to slide 8-27 Exchange control refers to the regulation of a country’s currency exchange rate, the measure of how much one currency is worth in relation to another. Glossary

28. Return to slide 8-28 The purpose of the General Agreement on Tariffs and Trade (GATT) was to lower trade barriers such as high tariffs on imported goods and restrictions on the number and types of imported products that inhibited the free flow of goods across borders. Glossary

29. Return to slide 8-29 Infrastructure is the basic facilities, services, and installations needed for a community or society to function. Glossary

30. Return to slide 8-30 A quota designates the maximum quantity of a product that may be brought into a country during a specified time period. Glossary

31. Return to slide 8-31 A tariff is a tax levied on a good imported into a country. Glossary

32. Return to slide 8-32 A trade agreement is an intergovernmental agreement designed to manage and promote trade activities for a specific region. Glossary