DEVELOPING A GLOBAL
• Marketing to markets
reacting to international
be aware of threats in all
United States exports about one-fifth
of its industrial output and a
third of its agricultural products.
One in 16 US employees
are directly or indirectly
supported by exports.
US businesses export more than 500,000 million in goods
to foreign countries each year and nearly a third of US
corporate profits are derived from int'l trade and
Many people fear world trade and
Millions of Americans have lost their
jobs due to imports or transfers of
Millions more fear losing their
jobs, especially in companies
operating under competitive
A multinational corporation is a
company that is heavily
involved in international trade,
beyond exporting and
ENVIRONMENT FACING GLOBAL
A global company or one that considers the global
marketing should think about the environment. Many
of the same factors in the environment that they
operate in the domestic market also exist
internationally. These factors include:
• The Culture
• The economic and technological development.
• The structure and policy actions.
• The demographic makeup.
• Natural resources.
• A central factor in any society is a group of shared
values its citizens and that determines what is socially
acceptable. The underlying culture is the family, the
education system, religion and social class system.
• A company that does not understand the culture of
a country is bound to fail in it. Ignorance of such
culture gives rise to misunderstandings and often
rude to perceptions of incompetence and even.
ECONOMIC AND TECHNOLOGICAL
• The second factor in the overall environment facing
the company is the level of economic development
in the countries where it operates.
• The average family income is higher in less
developed than in more developed countries.
Higher incomes mean greater purchasing power
and higher demand.
STRUCTURE AND POLICY ACTIONS
• The political structure is the third important variable
that global companies face. Government policies
handle a variety of situations ranging from private
property, minimal individual freedom to a very small
central government and maximum personal
freedom. As the rights of private property increase,
owned industries and central planning tend to
THE DEMOGRAPHIC MAKEUP
• This takes into account the type of population, age
and purchasing power.
• There is a difference between the older populations
of industrialized countries and numerous age
populations in developing countries.
• These differences have important implications for the
economy, businesses and the competitiveness of
• A final environmental factor that has become
increasingly evident over the last decade is the
scarcity of natural resources.
GLOBAL MARKETING COMPANY FOR
Firms decide to become global for several reasons.
Perhaps the most important is to make additional
profits. Five methods to enter the global market are :
• Licensing and franchising
• Contract Manufacturing
• Joint ventures
• Direct Investment
• Sell products manufactured in one country to buyers in another
• Types of intermediaries: Buyer for export, export broker or broker,
LICENSING AND FRANCHISING
• Legal process in which the owner of a license (the
licensor) agrees to allow another company to use its
manufacturing process, trademarks, patents, trade
secrets or other proprietary knowledge.
• Companies that do not want to take part in the
licensing or engage in global marketing too can
participate in contract manufacturing, which is a
private label manufacturing by a foreign company.
• In some respects they are similar to the licensing. It is when a domestic
firm buys part of a foreign company or joins with it to create a new
• Active ownership of a foreign company or marketing
or manufacturing facilities abroad.
• Unique combination of strategies of product, place
(distribution), promotion and pricing designed to produce
mutually satisfying exchanges with a target market.
THE BASIC ELEMENTS OF AN
OVERALL MARKETING MIX
• One product – message
• Invention Product
• Adapting products.
• Tailoring messages.
• Adaptation Promotion.
• Place (distribution).
FLOATING EXCHANGE RATE
• The prices of different currencies rise and fall based on
demand and supply of each.
Sale of an exported product at a lower price than is charged for the same
or similar product on the market "source" of the exporting.
Form of trade in which all or part payment for goods or services is in the
form of other goods or services.
IMPACT OF INTERNET
Internet advertising has many advantages :
• It measures very accurately and continuously the results
of advertising campaigns.
• Allows enter into direct contact with potential customers
• Allows continuous adaptations and modifications of the
campaigns according to current requirements.
• It is much cheaper than the media "traditional".
• Analyze the type of customer who purchase our product.