Slide 1: REACHING GLOBAL MARKETS CHAPTER
Slide 2: Marketing that targets customers throughout the world. More customers=more money. Good thing, right? Global Marketing
Slide 3: Protectionism Hurts or Helps Domestically?
Slide 4: How protectionism affects world trade Quota Tariff World Trade Organization (WTO)-
“Referee” for global trade
Slide 5: Lets Make “Domestic” Bigger! Economic community
An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies
Slide 6: Examples of Economic Communities MERCOSUR NAFTA OPEC
Slide 7: Global Companies International Firm – each market is identical Multinational Firm - each market is unique Transnational Firm –emphasizes similarities,recognize differences No Borders, New Rules
Slide 8: Multi-domestic
Marketing Strategy Global Brand Global Marketing
Strategy Global Companies & Marketing Strategies
Slide 9: Things to Consider When Going Global
Slide 10: Economic Considerations Economic Infrastructure -
Communications
Power
Distribution
Monetary systems Consumer Income -
Level AND buying power
Slide 11: Political – Regulatory Climate Political Stability Trade Regulations-Its legal here, but is it legal there?
Health
Promotional
Environmental
Slide 12: GLOBAL MARKET-ENTRY STRATEGIES RISK Exporting Joint
Venture Direct
Investment Licensing &
Contract Mfg
Slide 13: Product and Promotion Strategies for Global Marketing
Slide 14: Pricing Strategy Hurts the local businesses Gray Market or
Parallel Importing –
(individuals) Dumping – (companies)
Slide 15: Pricing Strategy Countertrade - a form of trade in which the payment for goods and services is in the form of other goods and services
Hurts the local governments
Slide 16: Protectionism Protectionism is the practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quotas.
Slide 17: Tariff A tariff is a government tax on goods or services entering a country, primarily serving to raise prices on imports.
Slide 18: Quota A quota is a restriction placed on the amount of of a product allowed to enter or leave a country.
Slide 19: World Trade Organization The World Trade Organization (WTO) is a permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.
Slide 20: Multidomestic Marketing Strategy A multidomestic marketing strategy is used by multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.
Slide 21: Global Marketing Strategy A global marketing strategy is used by transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
Slide 22: Global Brand A global brand is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.
Slide 23: Exporting is producing goods in one country and selling them in another country. Exporting
Slide 24: A joint venture is when a foreign country and a local firm invest together to create a local business. Joint Venture
Slide 25: A gray market is a situation where products are sold through unauthorized channels of distribution. Also called parallel importing. Gray Market
Slide 26: Direct investment entails a domestic firm actually investing in and owning a foreign subsidiary or division. Direct Investment
Slide 27: Direct investment entails a domestic firm actually investing in and owning a foreign subsidiary or division. Licensing is the legal process allowing the use of manufacturing, patents and/or knowledge. Licensing
Slide 28: Dumping is when a firm sells aproduct in a foreign country belowits domestic price or below its actual cost. Dumping