Chapter 1: Global Marketing Imperative Flashcards
Global Marketplace can be both
threat and opportunity
is the process of planning and conducting transactions across national borders to create exchanges that satisfy the objectives of individuals and organizations.
International marketing
export – import trades - turnkey operations
licensing - management contracts
joint ventures
wholly owned subsidiaries
International marketing
2 Basic Tenets of Marketing
Satisfaction
Exchange
is subject to a new set of macro-environmental factors, to different constraints, and to quite frequent conflicts resulting from different laws, cultures, and societies
international marketer
The basic principles of marketing still apply, but their applications, complexity, and intensity may vary substantially.
international marketer
MAJOR CONSIDERATIONS
How does the marketing concept fit into these societies?
How should distribution systems be organized?
How can marketing contribute to economic development and the improvement of society?
How can we get the price mechanism to work?
ISSUES IN GOING GLOBAL
- SHOULD I OBTAIN MY SUPPLIES DOMESTICALLY OR FROM ABROAD?
- WHAT MARKETING ADJUSTMENTS ARE OR WILL BE NECESSARY?
- WHAT THREATS FROM GLOBAL COMPETITION SHOULD I EXPECT?
- HOW CAN I WORK WITH THESE THREATS TO TURN THEM INTO OPPORTUNITIES?
- WHAT ARE MY STRATEGIC GLOBAL ALTERNATIVES?
If all these issues are integrated into each decision made by individuals and by firms, international markets can become a source of ___, ____, ___, and ________ that would not have existed for them had they limited themselves to domestic activities.
growth, profit, needs satisfaction, and quality of life
Foreign Environment (uncontrollable)
Economic Forces
Competitive Forces
Level of Technology
Structure of Distribution
Geography and Infrastructure
Cultural Forces
Political/Legal Forces
Domestic Environment (uncontrollable)
Competitive Structure
Economic Climate
Political/Legal Forces
Controllable
Firm Characteristics
Price
Promotion
Product
Channels of distribution
Research
International Marketing Task
Foreign Environment - 7
Domestic Environment - 3
Controllable - 6
STAGES OF INTERNATIONAL MARKETING INVOLVEMENT
NO DIRECT FOREIGN MARKETING
INFREQUENT FOREIGN MARKETING
REGULAR FOREIGN MARKETING
INTERNATIONAL MARKETING
GLOBAL MARKETING
A company in this stage does not actively cultivate customers outside national boundaries; however, this company’s products may reach foreign markets.
NO DIRECT FOREIGN MARKETING
Temporary surpluses caused by variations in production levels or demand may result in infrequent marketing overseas
INFREQUENT FOREIGN MARKETING
the surpluses are characterized by their temporary nature; therefore, sales to foreign markets are made as goods become available, with little or no intention of maintaining continuous market representation.
INFREQUENT FOREIGN MARKETING
At this level, the firm has permanent productive capacity devoted to the production of goods and services to be marketed in foreign markets
REGULAR FOREIGN MARKETING
A firm may employ foreign or domestic overseas intermediaries, or it may have its own sales force or sales subsidiaries in important foreign markets.
REGULAR FOREIGN MARKETING
Companies in this stage are fully committed to and involved in international marketing activities.
INTERNATIONAL MARKETING
Such companies seek markets all over the world and sell products that are a result of planned production for markets in various countries.
INTERNATIONAL MARKETING
This planning generally entails not only the marketing but also the production of goods outside the home market.
INTERNATIONAL MARKETING
At this point, a company becomes an international or multinational marketing firm.
INTERNATIONAL MARKETING
At this stage, companies treat the world, including their home market, as one market.
GLOBAL MARKETING
Market segmentation decisions are no longer focused on national borders.
GLOBAL MARKETING
Instead, market segments are defined by income levels, usage patterns, or other factors that frequently span countries and regions.
GLOBAL MARKETING
has given rise to global linkages of markets, technology, and living standards that were previously unknown and unanticipated.
World trade
At the same time, it has deeply affected domestic policy-making and has often resulted in the emergence of totally new opportunities as well as threats to firms and individuals.
World trade
New strategies need to be ________, new plans need to be made, and the way of doing business needs to be ______
envisioned
changed
The way to obtain and retain leadership, economically, politically, or morally, is not through passivity but rather through a continuous, alert adaptation to the changing world environment.
OPPORTUNITIES
To help a country remain a player in the world economy, governments, firms, and individuals need to respond aggressively with innovation, process improvements, and creativity
CHALLENGES
