19 - Global Marketplace Flashcards
global firm
firm that operates in more than one country
gains:
- R&D, production, marketing, and financial advantages in its costs
- reputation that is not available to purely domestic competitors
major international marketing decisions
looking at the global marketing environment
deciding whether to go global
deciding which markets to enter
deciding how to enter the market
deciding on the global marketing program
deciding on the global marketing organization
elements of global marketing environment
international trade system (tariffs, quotas, exchange controls…)
World Trade Organization (GATT - aim: reduce tariffs)
regional free trade zones - economic communities (EU)
economic environment
political-legal environment
cultural environment
economic factors that reflect the country’s attractiveness
industrial structure
income distribution
relevance of industrial structure
shapes the country’s product + service needs
- subsistence economy: agriculture, consume most of their output and barter rest
- industrial economy: major importers/exporters of manufactured goods/services
political-legal environment
country’s reception of foreign firms
government bureaucracy
political stability
monetary regulation
deciding whether to go global - international risks
understand consumer preferences
produce competitive products
adapt to foreign market conditions
manager’s international experience
international regulation
deciding which markets to enter - characteristics to consider
demographic
sociocultural
geographic
political-legal
economic
how to enter the market
exporting - indirect + direct
joint venture - joining w/ foreign company
direct investment - developing foreign assembly or manufacturing facilities
types of joint ventures
licensing - buys the right to use the company’s name/patent…
contract manufacturing - contracts with manufacturers in a foreign market
management contracting - domestic firm supplies management know-how to a foreign firm
joint ownership - cooperative venture
deciding on the global marketing program
standardized global marketing: uses the same marketing strategy + mix in all international markets
adapted global marketing: adjusts the marketing strategy and mix to each international target market
- more costs but hopefully produces a larger market share + return
product decisions
straight product extension
product adaptation
product invention
promotion decisions
communication adaptation - adapting advertising messages to markets
price decisions
uniform global price
mark up pricing
distribution decisions
channels b/w nations = move the products to the borders of the foreign nations
channels w/in nations = move the products from their foreign point of entry to the final customers
