CHAP 5 DEVELOPING A GLOBAL VISION Flashcards
Importance of global marketing
Businesspeople who adopt a global vision are better able to identify global marketing opportunities, understand the nature of global networks, create effective global marketing strategies, and compete against foreign competition in domestic markets
Impact of multinational firms on the world economy
Multinational corporations are international traders that regularly operate across national borders. Because of their vast size and financial, technological, and material resources, multinational corporations have great influence on the world economy.
External environment facing global marketers
Global marketers face the same environmental factors as they do domestically: culture, economic development, the global economy, political structure and actions, demography, and natural resources. Cultural considerations include societal values, attitudes and beliefs, language, and customary business practices. A country’s economic and technological status depends on its stage of industrial development, which, in turn, affects average family incomes.
Various ways of entering the global marketplace
Firms use the following strategies to enter global markets, in descending order of risk: direct investment, joint venture, contract manufacturing, licensing and franchising, and exporting.
Basic elements involved in developing a global marketing mix
A firm’s major consideration is how much it will adjust the four Ps—product, promotion, place (distribution), and price—within each country. One strategy is to use one product and one promotion message worldwide. A second strategy is to create new products for global markets. A third strategy is to keep the product basically the same but alter the promotional message. A fourth strategy is to alter the product slightly to meet local conditions
How the Internet is affecting global marketing
Simply opening an e-commerce site can open the door for international sales. Global shippers such as UPS, FedEx, and DHL can help solve logistics problems. Language translation software can help an e-commerce business become multilingual. Global marketers use social media not only for understanding consumers but also to build
