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  1. 1. Chapter 19 The Global Marketplace PRINCIPLES OF MARKETING Eighth Edition Philip Kotler and Gary Armstrong
  2. 2. Global Marketing Into the Twenty- First Century <ul><li>Global competition is intensifying and few U.S. industries are now safe from foreign competition. </li></ul><ul><li>To compete, many U.S. companies are continuously improving their products, expanding into foreign markets and becoming Global Firms . </li></ul><ul><li>Global firms face several major problems: </li></ul><ul><ul><li>Variable exchange rates, </li></ul></ul><ul><ul><li>Unstable governments, </li></ul></ul><ul><ul><li>Protectionist tariffs and trade barriers, </li></ul></ul><ul><ul><li>Corruption. </li></ul></ul>
  3. 3. Decisions in International Marketing Looking at the Global Marketing Environment Deciding Whether to Go International Deciding Which Markets to Enter Deciding How to Enter the Market Deciding on the Global Marketing Program Deciding on the Global Marketing Organization
  4. 4. Looking at the Global Marketing Environment The International Trade System The World Trade Organization and GATT Regional Free Trade Zones
  5. 5. Economic Environmental Factors Country’s Industrial Structure Subsistence Economies Raw Material Exporting Economies Industrializing Economies Industrial Economies Income Distribution
  6. 6. Political-Legal Environmental Factors Government Bureaucracy Attitudes Toward International Buying Monetary Regulations Political Stability
  7. 7. Cultural Environmental Factors How Customers Think About and Use Products Business Norms and Behavior Cultural Traditions, Preferences, and Behaviors
  8. 8. Deciding Whether to Go International <ul><li>Reasons companies might consider International expansion: </li></ul><ul><ul><li>Global competitors attacking the domestic market, </li></ul></ul><ul><ul><li>Foreign markets might offer higher profit opportunities, </li></ul></ul><ul><ul><li>Domestic markets might be shrinking, </li></ul></ul><ul><ul><li>Need an enlarged customer base to achieve economies of scale, </li></ul></ul><ul><ul><li>Reduce dependency on any one market, </li></ul></ul><ul><ul><li>Customers might be expanding abroad. </li></ul></ul><ul><li>Most companies do not act until some situation or event thrusts them into the international market. </li></ul>
  9. 9. Deciding Which Markets to Enter Marketer’s Checklist for Identifying Market 2. Geographic Characteristics. 3. Economic Factors. 4. Technological Factors. 5. Sociocultural Factors. 6. National Goals and Plans. 1. Demographic Characteristics. Potential
  10. 10. Deciding How to Enter the Market Direct Investment Joint Venturing Exporting Amount of Commitment, Risk, Control, and Profit Potential Greater Lesser
  11. 11. Deciding on the Global Marketing Program Five International Product and Promotion Strategies Straight Extension Communication Adaptation Product Adaptation Dual Adaptation Promotion Don’t Change Product Adapt Product Product Don’t Change Promotion Adapt Promotion Product Invention Develop New Product
  12. 12. Whole-Channel Concept for Distribution Seller Seller’s Headquarters Channels Between Nations Channels Within Nations Final User or Buyer
  13. 13. Deciding on the Global Marketing Organization Export Department International Division Global Organization Degree of Involvement in International Marketing Activities