1. 8-1 CHAPTER GLOBAL MARKETING 8 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

2. 8-2 LEARNING OBJECTIVES Describe the components of a country market assessment. Understand the marketing opportunities in BRIC countries. Identify the various market entry strategies. Highlight the similarities and differences between a domestic marketing strategy and a global marketing strategy. Global Marketing LO1 LO2 LO3 LO4

3. 8-3 Coca-Cola Erica Simone Leeds RF

4. 8-4 Growth of Global Market STR/AFP/Getty Images

5. 8-5 Hiring Overseas

6. 8-6 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

7. 8-7 Economic Analysis General Economic Environment Gross domestic product Gross national income Purchasing power parity Human development index NationMaster

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

9. 8-9 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

10. 8-10 Analyzing Infrastructure and Technological CapabilitiesInfrastructure Communication Commerce Transportation Distribution Channel Stockdisc ©MIXA/PunchStock Royalty-Free/CORBIS PhotoLink/Getty Images

11. 8-11 Analyzing Government Actions Government actions TariffQuota Exchange control Trade agreement

12. 8-12 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

13. 8-13 Exchange Control Exchange rateCountertrade Image Source/Alamy Stockbyte/Punchstock Images

14. 8-14 Trade Agreements

15. 8-15 The European Union (EU)  Monetary and Trade Union  Euro  Membership does not consists of Croatia, Macedonia, Turkey and several others

16. 8-16 Analyzing Sociocultural Factors Culture Power distance Uncertainty avoidance IndividualismMasculinity Time orientation Indulgence

17. 8-17 Country Clusters

18. 8-18 Country Clusters  Using the Geert Hofstede’s cultural dimensions concept, what type of cultural difference is affecting the person in the picture? Uncertainty Avoidance McGraw-Hill Companies, Inc. Mark Dierker, photographer.

19. 8-19 The Appeal of the BRIC Countries  Great potential for growth in the global community  Brazil  Russia  India  China

20. 8-20 CHECK YOURSELF 1.What are key metrics that 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?

21. 8-21 Choosing a Global Entry Strategy Risk Control Direct Investment Direct Investment Export Joint Venture Joint Venture Strategic Alliance Strategic Alliance Franchising

22. 8-22 CHECK YOURSELF 1.Which global entry strategy has the least risk and why? 2.Which global entry strategy has the most risk and why?

23. 8-23 Choosing a Global Marketing Strategy: Target Market (STP) Cultural nuancesSubculturesView of product and consumer roleDifferent positioningAdaptationSingle positioning strategy Courtesy Ford India Pvt. Ltd.

24. 8-24 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

25. 8-25 Global Marketing Mix: Pricing Strategies Price Tariffs Quotas Anti-dumping Policies Anti-dumping Policies Economic Conditions Economic Conditions Competitive factors Competitive factors

26. 8-26 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. http://www.youtube.com/watch?v=MrMURochE6Y

27. 8-27 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

28. 8-28 Spanish Ad Courtesy Nestlé SA

29. 8-29 CHECK YOURSELF 1.What are the components of a global marketing strategy? 2. What are the three global product strategies?

30. 8-30 Return to slide A boycott pertains to a group’s refusal to deal commercially with some organization to protest against its policies. Glossary

31. 8-31 Return to slide Cultural imperialism is the belief that one’s own culture is superior to that of other nations. Glossary

32. 8-32 Return to slide 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

33. 8-33 Return to slide Infrastructure is the basic facilities, services, and installations needed for a community or society to function. Glossary

34. 8-34 Return to slide A quota designates the maximum quantity of a product that may be brought into a country during a specified time period. Glossary

35. 8-35 Return to slide A tariff is a tax levied on a good imported into a country. Glossary

36. 8-36 Return to slide A trade agreement is an intergovernmental agreement designed to manage and promote trade activities for a specific region. Glossary