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Global Marketing
- 2. Global Marketing ➔ The whole process of planning, producing, placing, and promoting a company’s products in a worldwide market. ➔ Most companies realize that their target market is limited if they just concentrate on a country’s market. ➔ When a company thinks globally, it looks for overseas opportunities to increase its market share and customer base.
- 3. Global Trade âž” It takes the form of exporting & importing â—† Exporting: selling domestic goods and services abroad â—† Importing: purchasing foreign goods and services âž” Builds employment âž” Accounts for roughly 25 percent of the U.S. gross domestic product (GDP) â—† Compared with 10 percent 30 years ago.
- 4. Global Trade continued.. âž” Protectionism â—† Countries safeguarding key industries from foreign competition â—† Tariffs â—Ź Limit global trade- tax on goods and services imported in to a country â—Ź The tariff puts the imported goods or services at a disadvantage due to a higher price. â—† Quota â—Ź Limit global trade- A limit on the number of products that can be imported into a country â—Ź Allow for that country's product to maintain percentage of the marketplace.
- 5. Global Trade continued.. âž” World Trade Organization â—† Formed in 1995 because of tariffs and quotas â—† to help reduce trade barriers and address other global trade issues. âž” North American Free Trade Agreement (NAFTA) â—† Established in 1994 â—† Trade agreement between the United States, Canada, and Mexico â—† Eliminate trade restrictions between the three countries.
- 6. NAFTA- Pros and Cons PROS âž” Free quadrupled trade between Canada, Mexico, and the United States. âž” Greater trade increased economic output. NAFTA boosted U.S. growth by as much as 0.5 percent a year. âž” The agreement helped with government spending âž” Lowered prices. U.S. oil imports from Mexico cost less because NAFTA got rid of tariffs.
- 7. NAFTA- Pros and Cons CONS âž” Job migration suppressed wages. Companies threatened to move to Mexico to keep workers from joining unions. âž” Put Mexican farmers out of business âž” it led to the loss of 500,000-750,000 U.S. jobs. âž” U.S. companies degraded the Mexican environment to keep costs low.
- 8. Global Entry Marketing âž” Once an organization has made the decision to sell globally, they must then decide how to enter the market. âž” There are four basic strategies: â—† exporting, â—† licensing, â—† joint venture and â—† direct investment.
- 9. Global Entry Marketing Strategies âž” Exporting â—† Producing goods in one country to sell in another country âž” Licensing â—† For a fee allowing another organization to use intellectual property âž” Joint Venture â—† Two organization joining together to share ownership & control âž” Direct investment â—† Investing or owning foreign division
- 10. Thank You!