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8-1
CHAPTER
GLOBAL
MARKETING
8
8-2
L E A R N I N G O B J E C T I V E S
Describe the components of a country market
assessment.
Understand the marketing opportunities in BRIC
countries.
Identify the various market entry strategies.
Highlight the similarities and differences between
a domestic marketing strategy and a global
marketing strategy.
Global Marketing
LO1
LO2
LO3
LO4
8-3
Assessing Global Markets
General economic
environment
Market size and
population growth
Real income
Economic
analysis using
metrics
Transportation
Channels
Communication
Commerce
Infrastructure
and technology
Tariff
Quota
Exchange control
Trade agreement
Government
actions
Power distance
Uncertainty avoidance
Individualism
Masculinity
Time orientation
Sociocultural
analysis
8-4
Economic Analysis
General Economic Environment
Gross
domestic
product
Gross national
income
Purchasing
power parity
Human
development
index
NationMaster
8-5
Evaluating Market Size
and Population Growth Rate
Population 2002
Population 2050
REUTERS/Arko Datta/Corbis.
8-6
Evaluating Real Income
 Firms can make
adjustments to an
existing product or
change the price to
meet the unique
needs of a particular
country market.
NarinderNanu/AFP/GettyImagesREUTERS/FayzaKabli
8-7
Analyzing Infrastructure
and Technological Capabilities
Communication
Commerce
Transportation
Distribution Channel
Stockdisc
©MIXA/PunchStock
Royalty-Free/CORBIS
PhotoLink/GettyImages
8-8
Analyzing Government Actions
Government
actions
Tariff
Quota
Exchange
control
Trade
agreement
8-9
Analyzing Sociocultural Factors
CulturePower
distance
Uncertainty
avoidance
Individualism Masculinity
Time
orientation
Indulgence
8-10
The Appeal of the BRIC Countries
 Great potential for
growth in the global
community
 Brazil
 Russia
 India
 China
8-11
CHECK YOURSELF
1. What are key metrics that can help analyze the
economic environment of a country?
2. What types of government actions should we
be concerned about as we evaluate a country?
3. What are five important cultural dimensions?
4. Why are each of the BRIC countries viewed as
potential candidates for global expansion?
8-12
Choosing a Global Entry Strategy
Risk
Control
Direct
Investment
Export
Joint
Venture
Strategic
Alliance
Franchising
8-13
CHECK YOURSELF
1. Which global entry strategy has the least risk
and why?
2. Which global entry strategy has the most risk
and why?
8-14
Choosing a Global Marketing Strategy:
Target Market (STP)
Cultural nuances
Subcultures
View of product and consumer role
Different positioning
Adaptation
Single positioning strategyCourtesy Ford India Pvt. Ltd.
8-15
The Global Marketing Mix:
Product or Service Strategies
Sell the same
product or service
in both the home
country market and
host country
Sell a product or
service similar to
that sold in home
country but include
minor adaptations
Sell totally new
products or
services
8-16
Global Marketing Mix:
Pricing Strategies
PriceTariffs
Quotas
Anti-dumping
Policies
Economic
Conditions
Competitive
factors
8-17
Global Marketing Mix:
Global Distribution Strategies
 Some global channels
are very long and
complex.
 Consumer shop local
small local stores.
 Suppliers must be
creative in delivering
to these outlets. http://www.youtube.com/watch?v=MrMURochE6Y
8-18
Global Marketing Mix: Global
Communication Strategies
Literacy levels vary by
country
Firms choose whether to
adapt to language
differences
Cultural and religious
differences also matter
Photo by Jeff Kravitz/FilmMagic/Getty Images
8-19
CHECK YOURSELF
1. What are the components of a global marketing
strategy?
2. What are the three global product strategies?

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Global Marketing

  • 2. 8-2 L E A R N I N G O B J E C T I V E S Describe the components of a country market assessment. Understand the marketing opportunities in BRIC countries. Identify the various market entry strategies. Highlight the similarities and differences between a domestic marketing strategy and a global marketing strategy. Global Marketing LO1 LO2 LO3 LO4
  • 3. 8-3 Assessing Global Markets General economic environment Market size and population growth Real income Economic analysis using metrics Transportation Channels Communication Commerce Infrastructure and technology Tariff Quota Exchange control Trade agreement Government actions Power distance Uncertainty avoidance Individualism Masculinity Time orientation Sociocultural analysis
  • 4. 8-4 Economic Analysis General Economic Environment Gross domestic product Gross national income Purchasing power parity Human development index NationMaster
  • 5. 8-5 Evaluating Market Size and Population Growth Rate Population 2002 Population 2050 REUTERS/Arko Datta/Corbis.
  • 6. 8-6 Evaluating Real Income  Firms can make adjustments to an existing product or change the price to meet the unique needs of a particular country market. NarinderNanu/AFP/GettyImagesREUTERS/FayzaKabli
  • 7. 8-7 Analyzing Infrastructure and Technological Capabilities Communication Commerce Transportation Distribution Channel Stockdisc ©MIXA/PunchStock Royalty-Free/CORBIS PhotoLink/GettyImages
  • 10. 8-10 The Appeal of the BRIC Countries  Great potential for growth in the global community  Brazil  Russia  India  China
  • 11. 8-11 CHECK YOURSELF 1. What are key metrics that can help analyze the economic environment of a country? 2. What types of government actions should we be concerned about as we evaluate a country? 3. What are five important cultural dimensions? 4. Why are each of the BRIC countries viewed as potential candidates for global expansion?
  • 12. 8-12 Choosing a Global Entry Strategy Risk Control Direct Investment Export Joint Venture Strategic Alliance Franchising
  • 13. 8-13 CHECK YOURSELF 1. Which global entry strategy has the least risk and why? 2. Which global entry strategy has the most risk and why?
  • 14. 8-14 Choosing a Global Marketing Strategy: Target Market (STP) Cultural nuances Subcultures View of product and consumer role Different positioning Adaptation Single positioning strategyCourtesy Ford India Pvt. Ltd.
  • 15. 8-15 The Global Marketing Mix: Product or Service Strategies Sell the same product or service in both the home country market and host country Sell a product or service similar to that sold in home country but include minor adaptations Sell totally new products or services
  • 16. 8-16 Global Marketing Mix: Pricing Strategies PriceTariffs Quotas Anti-dumping Policies Economic Conditions Competitive factors
  • 17. 8-17 Global Marketing Mix: Global Distribution Strategies  Some global channels are very long and complex.  Consumer shop local small local stores.  Suppliers must be creative in delivering to these outlets. http://www.youtube.com/watch?v=MrMURochE6Y
  • 18. 8-18 Global Marketing Mix: Global Communication Strategies Literacy levels vary by country Firms choose whether to adapt to language differences Cultural and religious differences also matter Photo by Jeff Kravitz/FilmMagic/Getty Images
  • 19. 8-19 CHECK YOURSELF 1. What are the components of a global marketing strategy? 2. What are the three global product strategies?