CHAPTER

REACHING
GLOBAL
MARKETS

Global Marketing

Marketing that targets

customers throughout

the world.

More customers=more money. Good thing, right?

Hurts or Helps Domestically?

Protectionism

How protectionism affects world trade

Tariff

World Trade Organization (WTO)Referee for global trade

Quota

Lets Make Domestic Bigger!

Economic community
An organization of nations formed to promote the free
movement of resources and products among its
members and to create common economic policies

Examples of Economic Communities

OPEC

MERCOSUR

NAFTA

No Borders, New Rules

Global Companies
International Firm each market is identical
Multinational Firm - each market is unique
Transnational Firm emphasizes similarities,recognize differences

Global Companies & Marketing Strategies

Global Brand

Multi-domestic
Marketing Strategy
Global Marketing
Strategy

Things to Consider When Going Global

Economic Considerations
Economic Infrastructure Communications
Power
Distribution
Monetary systems

Consumer Income Level AND buying power

Political Regulatory Climate

No private ownership
Minimal individual freedom

Political Stability

Little central government

Maximum personal freedom

Trade Regulations-Its legal here, but is it legal there?

Health
Promotional
Environmental

GLOBAL MARKET-ENTRY STRATEGIES

Exporting

Licensing &
Contract Mfg
RISK

Joint
Venture

Direct
Investment

Product and Promotion Strategies for

Global Marketing

Same
Message

Change
Message

Same
Product

Change
Product

One Product
One Message

Product
Adaptation

Message
Adaptation

Product
Invention

Pricing Strategy
Dumping (companies)
Hurts the local businesses
Gray Market or
Parallel Importing
(individuals)

Pricing Strategy

Countertrade - a form of trade in which

the payment for goods and services is in
the form of other goods and services
Hurts the local governments

Protectionism

Protectionism is the practice of shielding

one or more industries within a countrys
economy from foreign competition
through the use of tariffs or quotas.

Tariff

A tariff is a government tax on goods or

services entering a country, primarily
serving to raise prices on imports.

Quota

A quota is a restriction placed on the

amount of of a product allowed to enter or
leave a country.

World Trade Organization

The World Trade Organization (WTO)

is a permanent institution that sets rules
governing trade between its members
through panels of trade experts who
decide on trade disputes between
members and issue binding decisions.

Multidomestic Marketing
Strategy
A multidomestic marketing strategy is
used by multinational firms that have as
many different product variations, brand
names, and advertising programs as
countries in which they do business.

Global Marketing Strategy

A global marketing strategy is used by

transnational firms that employ the
practice of standardizing marketing
activities when there are cultural
similarities and adapting them when
cultures differ.

Global Brand

A global brand is a brand marketed under

the same name in multiple countries with
similar and centrally coordinated
marketing programs.

Exporting

Exporting is producing goods in one

country and selling them in another
country.

Joint Venture

A joint venture is when a foreign country

and a local firm invest together to create a
local business.

Gray Market

A gray market is a situation where

products are sold through unauthorized
channels of distribution. Also called
parallel importing.

Direct Investment

Direct investment entails a domestic firm

actually investing in and owning a foreign
subsidiary or division.

Licensing

Licensing is the legal process allowing the

investment patents
entails aand/or
domestic
useDirect
of manufacturing,
firm actually investing in and owning a
knowledge.
foreign subsidiary or division.

Dumping

Dumping is when a firm sells a

product in a foreign country below
its domestic price or below its actual cost.