Chapter 7 instructor

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  • Three country flag image attributed to Alex Covarrubias. See http://en.wikipedia.org/wiki/User:AlexCovarrubias
  • Chapter 7 instructor

    1. 1. McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
    2. 2. LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 7, YOU SHOULD BE ABLE TO: Describe the nature and scope of world trade from a global perspective and its implications for the United States . LO1 Identify the major trends that have influenced the landscape of global marketing in the past decade . LO2 Identify the environmental forces that shape global marketing efforts . LO3 7-
    3. 3. LO4 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 7, YOU SHOULD BE ABLE TO: Name and describe the alternative approaches companies use to enter global markets . Explain the distinction between standardization and customization when companies craft worldwide marketing programs . LO5 7-
    4. 4. "We Can Out-Compete Any Other Nation" 7- http://www.youtube.com/watch?v=TOPY1A2U12Q
    5. 5. <ul><li>Global Perspective </li></ul>DYNAMICS OF WORLD TRADE WORLD TRADE FLOWS LO1 <ul><li>United States Perspective </li></ul><ul><li>Countertrade </li></ul><ul><li>Trade Feedback Effect </li></ul><ul><li>Gross Domestic Product (GDP) </li></ul><ul><li>Balance of Trade </li></ul>7-
    6. 6. FIGURE 7-1 World trade flows for goods and commodities within and between geographic regions ($ billions U.S.) 7-
    7. 7. FIGURE 7-2 Porter’s diamond of national competitive advantage: 4 key elements on why some countries become world leaders 7-
    8. 8. <ul><li>Porter’s “Diamond” </li></ul>DYNAMICS OF WORLD TRADE COMPETITIVE ADVANTAGE OF NATIONS LO1 <ul><li>Factor Conditions </li></ul><ul><li>Demand Conditions </li></ul><ul><li>Company Strategy, Structure, and Rivalry </li></ul><ul><li>Related and Supporting Industries </li></ul><ul><li>Economic Espionage Act (1996) </li></ul>7-
    9. 9. Sharp Aquos TV and Bruno Magli Shoes What element of Porter’s Diamond of National Competitive Advantage? LO1 7-
    10. 10. MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 1—DECLINE OF ECONOMIC PROTECTIONISM LO2 <ul><li>Protectionism </li></ul><ul><li>Tariffs </li></ul><ul><li>Quota </li></ul><ul><li>World Trade Organization (WTO) </li></ul><ul><li>General Agreement on Tariffs and Trade (GATT) </li></ul>7-
    11. 11. FIGURE 7-3 Protectionism hinders world trade when countries raise prices and limit supply through tariff and quota policies 7-
    12. 12. <ul><li>European Union </li></ul><ul><li>Euro </li></ul><ul><li>North American Free Trade Agreement (NAFTA) </li></ul>MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 2—RISE OF ECONOMIC INTEGRATION LO2 <ul><li>Asian Free Trade Agreements </li></ul>7-
    13. 13. FIGURE 7-4 The European Union in early 2010 consists of 27 countries with more than 500 million consumers 7-
    14. 14. MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 3A—GLOBAL COMPETITION LO2 <ul><li>Global Competition </li></ul><ul><li>Strategic Alliances </li></ul>7-
    15. 15. FIGURE 7-A Global companies and marketing strategy 7-
    16. 16. <ul><li>International Firms </li></ul><ul><li>Transnational Firms </li></ul><ul><li>Multinational Firms </li></ul><ul><li>Multidomestic Marketing Strategy </li></ul><ul><li>Global Marketing Strategy </li></ul><ul><li>Global Brand </li></ul>MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 3B—GLOBAL COMPANIES LO2 7-
    17. 17. <ul><li>Global Consumers </li></ul>MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 3C—GLOBAL CONSUMERS LO2 7-
    18. 18. MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 4—A NETWORKED GLOBAL MARKETPLACE LO2 7-
    19. 19. A GLOBAL ENVIRONMENTAL SCAN CULTURAL DIVERSITY LO3 <ul><li>Foreign Corrupt Practices Act (1977) </li></ul><ul><li>Cross-Cultural Analysis </li></ul><ul><li>Values </li></ul><ul><li>Customs </li></ul>7-
    20. 20. FIGURE 7-B Cultural appreciation 7-
    21. 21. A GLOBAL ENVIRONMENTAL SCAN CULTURAL DIVERSITY LO3 <ul><li>Cultural Symbols </li></ul>#13 <ul><li>Semiotics </li></ul>7-
    22. 22. A GLOBAL ENVIRONMENTAL SCAN CULTURAL DIVERSITY LO3 <ul><li>Language </li></ul><ul><li>Unintended Meanings </li></ul><ul><li>Back Translation </li></ul><ul><li>Consumer Ethnocentrism </li></ul>7-
    23. 23. A GLOBAL ENVIRONMENTAL SCAN ECONOMIC CONSIDERATIONS LO3 <ul><li>Stage of Economic Development </li></ul><ul><li>Developed Countries: Japan </li></ul><ul><li>Developing Countries </li></ul><ul><li>Made the Move: Brazil </li></ul><ul><li>Remain Locked: Tanzania </li></ul><ul><li>Bottom of the Pyramid </li></ul>7-
    24. 24. A GLOBAL ENVIRONMENTAL SCAN ECONOMIC CONSIDERATIONS LO3 <ul><li>Economic Infrastructure </li></ul><ul><li>Communications </li></ul><ul><li>Financial </li></ul><ul><li>Transportation </li></ul><ul><li>Distribution Systems </li></ul>7-
    25. 25. A GLOBAL ENVIRONMENTAL SCAN ECONOMIC CONSIDERATIONS LO3 <ul><li>Consumer Income and Purchasing Power </li></ul><ul><li>Microfinance: India </li></ul><ul><li>Currency Exchange Rate </li></ul>7-
    26. 26. FIGURE 7-5 A comparison of the purchasing power differences around the world 7-
    27. 27. <ul><li>Political Stability </li></ul><ul><li>Trade Regulations </li></ul>A GLOBAL ENVIRONMENTAL SCAN POLITICAL-REGULATORY CLIMATE LO3 7-
    28. 28. FIGURE 7-6 Alternative global market-entry strategies 7-
    29. 29. <ul><li>Exporting </li></ul><ul><li>Indirect Exporting </li></ul><ul><li>Direct Exporting </li></ul>GLOBAL MARKET-ENTRY STRATEGIES EXPORTING LO4 7-
    30. 30. <ul><li>Advantages </li></ul><ul><li>Disadvantages </li></ul><ul><li>Franchising </li></ul>GLOBAL MARKET-ENTRY STRATEGIES LICENSING LO4 <ul><li>Contract Manufacturing </li></ul><ul><li>Contract Assembly </li></ul>7-
    31. 31. <ul><li>Joint Venture </li></ul>GLOBAL MARKET-ENTRY STRATEGIES JOINT VENTURE LO4 <ul><li>Advantages </li></ul><ul><li>Disadvantages </li></ul>7-
    32. 32. GLOBAL MARKET-ENTRY STRATEGIES DIRECT INVESTMENT LO4 <ul><li>Advantages </li></ul><ul><li>Disadvantages </li></ul><ul><li>Direct Investment </li></ul>7-
    33. 33. FIGURE 7-7 Five product and promotion strategies for global marketing 7-
    34. 34. <ul><li>Product Extension </li></ul>CRAFTING A WORLDWIDE MARKETING PROGRAM PRODUCT STRATEGIES LO5 <ul><li>Product Adaptation </li></ul><ul><li>Product Invention </li></ul>7-
    35. 35. <ul><li>Communication Adaptation </li></ul>CRAFTING A WORLDWIDE MARKETING PROGRAM PROMOTION STRATEGIES LO5 <ul><li>Dual Adaptation </li></ul><ul><li>Identical Message </li></ul>7-
    36. 36. <ul><li>Countries Impose Pricing Constraints </li></ul>CRAFTING A WORLDWIDE MARKETING PROGRAM DISTRIBUTION AND PRICING STRATEGIES LO5 <ul><li>Channels Can Be Long or Short </li></ul><ul><li>Prices May Be Too High or Too Low </li></ul><ul><li>Dumping </li></ul><ul><li>Gray Market </li></ul><ul><li>Channels and Economic Development </li></ul>7-
    37. 37. FIGURE 7-8 Channels of distribution in global marketing 7-
    38. 38. <ul><li>What are the advantages and disadvantages for CNS taking Breathe Right strips into international markets? </li></ul><ul><li>What are the advantages to CNS of </li></ul><ul><ul><li>using its three-stage process to enter new global markets and </li></ul></ul><ul><ul><li>having specific criteria to move through the stages? </li></ul></ul><ul><li>Using the CNS criteria, with what you know, which countries should have highest priority for CNS? </li></ul><ul><li>Which single segment of potential Breathe Right strip users would you target to enter new markets? </li></ul><ul><li>Which marketing mix variables should CNS emphasize the most to succeed in a global arena? Why? </li></ul>CNS Breathe Right Strips: Going Global

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