231_Chapter15

The Global Marketplace : 

The Global Marketplace Chapter Fifteen

Agenda : 

1/13/2009 Copyright 2004, Pearson Education Canada Inc. 2 Agenda What’s Happening? Softwood Lumber Dispute Chapter 15: International Marketing Concepts Video: McDonald’s in India Next Class

The Global Environment : 

1/13/2009 Copyright 2004, Pearson Education Canada Inc. 3 The Global Environment The global company sees the world as one market Unstable governments and currencies, increased regulation, and uncertain economic conditions increase the risk in doing business globally Global firm: a firm, that, by operating in more than one country, gains R&D, production, marketing, and financial advantages that are not available to purely domestic competitors

Major Decisions in Global Marketing : 

1/13/2009 Copyright 2004, Pearson Education Canada Inc. 4 Major Decisions in Global Marketing Looking at the global marketing environment Deciding whether to go international Deciding which markets to enter Deciding on the global marketing organization Deciding on the global marketing program Deciding how to enter the market Figure 15-1

Indicators of Market Potential : 

1/13/2009 Copyright 2004, Pearson Education Canada Inc. 5 Indicators of Market Potential Demographic characteristics Size/density of population, rate of growth, degree of urbanization, age structure and composition Geographic characteristics Physical size, topography, climate conditions Economic factors GNP per capita, income distribution, growth, investment Technological factors Skills, production and consumption technology, education Sociocultural factors Values, lifestyles, ethnic groups, linguistic fragmentation Political factors Regulations, government stability National goals and plans Industry priorities, infrastructure investment plans Table 15-1

Market Entry Strategies : 

1/13/2009 Copyright 2004, Pearson Education Canada Inc. 6 Market Entry Strategies Figure 15-2 Amount of commitment, risk, control, and profit potential

Int’l Product & Promotion Strategies : 

1/13/2009 Copyright 2004, Pearson Education Canada Inc. 7 Int’l Product & Promotion Strategies Figure 15-3

Int’l Marketing Mistakes : 

1/13/2009 Copyright 2004, Pearson Education Canada Inc. 8 Int’l Marketing Mistakes Gerber, the name of the famous baby food maker, is also the French word for vomiting. IKEA sells this workbench as the FARTFULL. Pepsi is being sued in a Hyderabad, India city court in a public interest litigation for glorifying child labor in a television ad. In the ad, the Indian cricket team is in a celebratory huddle when a young boy serves them Pepsi. More International Advertising Mistakes

Distribution Channels : 

1/13/2009 Copyright 2004, Pearson Education Canada Inc. 9 Distribution Channels Figure 15-4 Seller Seller’s headquarters organization for international marketing Channels between nations Channels within nations Final user or buyer Whole-Channel Concept for International Marketing

The Global Marketing Organization : 

1/13/2009 Copyright 2004, Pearson Education Canada Inc. 10 The Global Marketing Organization Create an international division to expand export operations and have better accountability Becoming a global organization to take advantage of opportunities in emerging markets Top 1200 Global Companies A company’s international marketing organization may evolve over time as experience and opportunities arise, and their objectives change Stages in development: Organize an export department to sell in foreign markets

Video: McDonald’s in India : 

1/13/2009 Copyright 2004, Pearson Education Canada Inc. 11 Video: McDonald’s in India What entry strategy is McDonald’s using? Does McDonald’s use a standardized or adapted marketing mix? Give an example of a Product Adaptation that McDonald’s uses. Give an example of a Product Invention that McDonald’s uses. Big Mac Index

Next Class : 

1/13/2009 Copyright 2004, Pearson Education Canada Inc. 12 Next Class Presentations