Lamb, Hair, McDaniel
2010-2011
CHAPTER 5
Developing a Global Vision
1
Learning Outcomes
LO 1 Discuss the importance of global marketing
LO 2 Discuss the impact of multinational firms on
the world economy
LO 3 Describe the external environment facing
global marketers
2
Learning Outcomes
LO 4 Identify the various ways of entering the
global marketplace
LO 5 List the basic elements involved in
developing a global marketing mix
LO 6 Discover how the Internet is affecting global
marketing
3
Rewards of Global Marketing
Discuss the
importance of
global marketing
LO1
4
Rewards of
Global Marketing
Having a global vision means…
 Recognizing and reacting to
international marketing
opportunities
 Using effective global marketing
strategies
LO1
 Being aware of threats from foreign
competitors
5
Beyond the Book
Emerging Markets
Ex e cu tive s' F ive -Ye a r P la n s fo r Em e rg in g M a rke ts
90
80
70
60
Exp e ct t o
50
Exp an d o r
L o cat e ( %) 40
30
20
10
0
Eas ter n
Latin
Southeas t
Eur ope
A mer ic a
A s ia
India
China
A ll Companies
M ar k e t
LO1
$1B+ Companies
Source: Deloitte's Global Manufacturing Industry Practice, Deloitte Touche Tohmatsu, May 1, 2007
6
Importance of Global
Marketing to the U. S.
 U.S. exports a fifth of industrial production.
 One of every 10 jobs in U.S. is supported by
exports.
 U.S. businesses export over $800 billion in
goods.
 Exports account for 25 percent of U.S.
economic growth.
 U.S. is world’s leading exporter of farm
products.
LO1
7
The Fear of Trade
and Globalization
 Millions of Americans
have lost jobs
 Millions fear losing jobs
 Threat of outsourcing
if workers do not
accept pay cuts
 Vulnerability to
operations moving
offshore
LO1
8
Benefits of
Globalization




Expands economic freedom
Spurs competition
Raises productivity and living standards
Offers access to foreign capital, global
export markets, and advanced technology
 Promotes higher labor and environmental
standards
 Acts as a check on government power
LO1
9
Multinational Firms
Discuss the impact of
multinational firms on
the world economy
LO2
10
Stages of Global
Business Development
1
Companies operate in one country and
sell into others
2
Set up foreign subsidiaries to handle sales
3
Operate an entire line of business in
another country
4
Virtual operation
LO2
11
Global Marketing
Standardization
Global Marketing
Standardization
Production of uniform products
that can be sold the same way
all over the world.
LO2
12
External Environment Facing
Global Marketers
Describe the external
environment facing
global marketers
LO3
13
External Environment Facing
Global Marketers
Culture
Natural
Resources
Economic and
Technological
Development
Political
Structure
Demographic
Makeup
LO3
14
Culture
Culture
LO3
The common set of
values shared by its
citizens that determine
what is socially
acceptable.
15
Economic and
Technological Development
LO3
Developed
Country
Complex, sophisticated
industries
Less Developed
Country
Basic industries
16
Political Structure and Actions
No private ownership
Minimal individual freedom
LO3
Little central government
Maximum personal freedom
17
Legal Considerations
Tariff
A tax levied on goods entering
a country
Quota
Limit on the amount of a
product entering a country
Boycott
Exclusion of products from
a country
Exchange Control
Foreign exchange must be
sold to a control agency
Market Grouping
Common trade alliance
Trade Agreement
An agreement to stimulate
international trade
LO3
18
Political and Legal
Considerations
The Uruguay Round made changes
in world trading practices
Entertainment, pharmaceuticals,
integrated circuits, and software
Financial, legal, and accounting services
Agriculture
Textiles and apparel
LO3
And created a new trade organization:
The World Trade Organization
19
Doha Round
• Began in 2001
• Highly contentious from the
beginning
• Failed in summer, 2008
• First multilateral free trade act
failure since WWI
• Cost of Failure: $100 billion
annually
LO3
20
Political and Legal
Considerations
Agreements
and Organizations
CAFTA
LO3
NAFTA
European
Union
http://www.wto.org
Online
21
Demographic Makeup
Marketing Considerations:
Population density
Urban or rural
Personal income
Age
LO3
22
Shortages in Natural Resources…
…Create:
 International
dependencies
 Shifts of wealth
 Inflation and recession
 Export opportunities if
resources are
abundant
 Stimulus for military
intervention
LO3
23
Natural Resources
Petroleum
Foodstuffs
Precious
metal
Timber
Water
LO3
24
External Environment Facing
Global Marketers
Natural
Resources
• dependence
• independence
Cultural
• values
• language
• customs
• traditions
Demography
• urban v. rural
• young v. old
• purchasing
power
Global
Marketing
Mix
Economic
Development
Political Structure
• tariffs
Technological
• quotas
Development
LO3
• boycotts
• exchange controls
• market controls
• trade agreements
25
Global Marketing by
the Individual Firm
Identify the various
ways of entering the
global marketplace
LO4
26
Global Marketing Questions
 What are our options in
selling abroad?
 How difficult is global
marketing?
 What are the potential risks
and returns?
http://www.cat.com
Online
LO4
27
Why “Go Global”?
LO4
 Earn additional profits
 Leverage a unique
product or technological
advantage
 Possess exclusive market
information
 Saturated domestic
markets
 Excess capacity
 Utilize “economies of
scale”
28
Risk Levels for Global Entry
Risk
Joint
Venture
Export
Low risk/low
return
LO4
Direct
Investment
High
risk/
high
return
Licensing
Return
29
Entering the Global
Marketplace
Export
Sell domestically produced products
to buyers in other countries
Licensing
Legal process allowing use of
manufacturing/patents/knowledge
Contract
Manufacturing
Private-label manufacturing
by a foreign country
Joint Venture
Domestic firm buys/joins a foreign
company to create new entity
Direct Investment
Active ownership of a foreign
company/manufacturing facility
LO4
30
Export Intermediaries
Buyer for Export
Assumes all ownership risks and
sells globally for its own account.
Export Broker
Plays the traditional broker’s role by
bringing buyer and seller together.
Export Agent
Acts like a manufacturer’s agent for
the exporter in the foreign market.
LO4
31
The Global Marketing Mix
List the basic elements
involved in developing
a global marketing mix
LO5
32
Product and Promotion
Same
Message
Change
Message
LO5
Same
Product
Change
Product
One Product
One Message
Product
Adaptation
Message
Adaptation
Product
Invention
http://www.disney.go.com
Online
33
Place (Distribution)
 Adequate distribution is necessary for
success in global markets
– Some countries have complicated systems
– Lack of distribution infrastructure and cultural
differences create problems
 Innovative distribution systems can create
competitive advantage
LO5
34
Pricing
 Must consider transportation and
insurance costs, taxes and tariffs
 Determine what customers will spend
 Ensure that foreign buyers will pay price
 May need to simplify a product to lower
price
 Don’t assume that low-income countries
are willing to accept lower quality
5
LO
35
Exchange Rates
Exchange
Rates
The price of one’s currency in terms of
another country’s currency.
LO5
36
Dumping
1.
Trying to increase an overseas market share
2.
Temporarily distributing products to
overseas markets to offset slack demand at
home
3.
Lowering unit costs by exploiting large-scale
production
4.
Attempting to maintain stable prices during
periods of exchange rate fluctuations
LO5
37
Countertrade
Countertrade
A form of trade in which all or
part of the payment for goods or
services is in the form of other
goods or services.
LO5
38
The Impact of the Internet
Discover how the
Internet is affecting
global marketing
LO6
39
The Impact of the Internet
• Opening an e-commerce site
puts a company in the
international marketplace
• Internet Economy remains
hindered by brick and mortar
rules, regulations, and habits
LO6
40
International Marketing
• Coca-Cola is the best global brand in 2009
– Five Creative Coca-Cola Commercials from 2009
• Toyota, also one of the top Global Brands in
2009, offers different ads for different
markets:
– Australian ad for dual drivetrains
LO6
41
Descargar

Chapter 1