Principles of Marketing

1. 8-1
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
CHAPTER
Global
Marketing
8
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

2. 8-2
L E A R N I N G O B J E C T I V E S
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Economic Analysis
General Economic Environment
Gross
domestic
product
Gross national
income
Purchasing
power parity
Human
development
index
NationMaster Website

5. 8-5
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Evaluating Market Size
and Population Growth Rate
Population 2002
Population 2050
REUTERS/Arko Datta/Corbis.

6. 8-6
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Analyzing Infrastructure
and Technological Capabilities
Communication
Commerce
Transportation
Distribution Channel
Stockdisc
©MIXA/PunchStock
Royalty-Free/CORBIS
PhotoLink/GettyImages

8. 8-8
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Analyzing Government Actions
Government
actions
Quota
Exchange
control
Trade
agreement
Tariff

9. 8-9
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Analyzing Sociocultural Factors
CulturePower distance
Uncertainty
avoidance
Individualism
Masculinity
Time
orientation

10. 8-10
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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?

11. 8-11
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Choosing a Global Entry Strategy
Risk
Control
Direct
Investment
Export
Joint
Venture
Strategic
Alliance
Franchising

12. 8-12
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
CHECK YOURSELF
1. Which global entry strategy has the least risk
and why?
2. Which global entry strategy has the most risk
and why?

13. 8-13
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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.

14. 8-14
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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

15. 8-15
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Global Marketing Mix:
Pricing Strategies
PriceTariffs
Quotas
Anti-dumping
Policies
Economic
Conditions
Competitive
factors

16. 8-16
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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.
Courtesy of CJ Tucker, NASA/GSFC

17. 8-17
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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

18. 8-18
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
CHECK YOURSELF
1. What are the components of a global
marketing strategy?
2. What are the three global product strategies?

19. 8-19
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
A boycott pertains to a group’s refusal to deal
commercially with some organization to protest
against its policies.
Glossary

20. 8-20
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Cultural imperialism is the belief that one’s own
culture is superior to that of other nations.
Glossary

21. 8-21
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Exchange control refers to the regulation of a
country’s currency exchange rate, the measure
of how much one currency is worth in relation to
another.
Glossary

22. 8-22
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The purpose of the General Agreement on
Tariffs and Trade (GATT) was to lower trade
barriers such as high tariffs on imported goods
and restrictions on the number and types of
imported products that inhibited the free flow of
goods across borders.
Glossary

23. 8-23
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Infrastructure is the basic facilities, services, and
installations needed for a community or society
to function.
Glossary

24. 8-24
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A quota designates the maximum quantity of a
product that may be brought into a country
during a specified time period.
Glossary

25. 8-25
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A tariff is a tax levied on a good imported into a
country.
Glossary

26. 8-26
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
A trade agreement is an intergovernmental
agreement designed to manage and promote
trade activities for a specific region.
Glossary