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REACHING GLOBAL MARKETS

C HAPTER. 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. Quota.

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REACHING GLOBAL MARKETS

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  1. CHAPTER REACHING GLOBAL MARKETS

  2. Global Marketing Marketing that targets customers throughout the world. More customers=more money. Good thing, right?

  3. Hurts or Helps Domestically? • Protectionism

  4. How protectionism affects world trade Tariff Quota World Trade Organization(WTO)- “Referee” for global trade

  5. 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

  6. Examples of Economic Communities OPEC NAFTA MERCOSUR

  7. No Borders, New Rules • Global Companies • International Firm – each market is identical • Multinational Firm - each market is unique • Transnational Firm –emphasizes similarities,recognize differences

  8. Global Companies & Marketing Strategies Global Brand Multi-domestic Marketing Strategy Global Marketing Strategy

  9. Things to Consider When Going Global

  10. Economic Considerations • Economic Infrastructure - Communications Power Distribution Monetary systems • Consumer Income - Level AND buying power

  11. No private ownershipMinimal individual freedom Little central government Maximum personal freedom Political – Regulatory Climate • Political Stability • Trade Regulations-Its legal here, but is it legal there? Health Promotional Environmental

  12. GLOBAL MARKET-ENTRY STRATEGIES Joint Venture Direct Investment Exporting Licensing & Contract Mfg RISK

  13. Same Product Change Product One Product One Message Product Adaptation Same Message Message Adaptation Product Invention Change Message Product and Promotion Strategies for Global Marketing

  14. Pricing Strategy • Hurts the local businesses • Dumping – (companies) • Gray Marketor Parallel Importing – (individuals)

  15. 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

  16. Protectionism Protectionism is the practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quotas.

  17. Tariff A tariff is a government tax on goods or services entering a country, primarily serving to raise prices on imports.

  18. Quota A quota is a restriction placed on the amount of of a product allowed to enter or leave a country.

  19. 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.

  20. 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.

  21. 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.

  22. Global Brand A global brand is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.

  23. Exporting Exporting is producing goods in one country and selling them in another country.

  24. Joint Venture A joint venture is when a foreign country and a local firm invest together to create a local business.

  25. Gray Market A gray market is a situation where products are sold through unauthorized channels of distribution. Also called parallel importing.

  26. Direct Investment Direct investment entails a domestic firm actually investing in and owning a foreign subsidiary or division.

  27. Licensing Licensing is the legal process allowing the use of manufacturing, patents and/or knowledge. Direct investment entails a domestic firm actually investing in and owning a foreign subsidiary or division.

  28. Dumping Dumping is when a firm sells aproduct in a foreign country belowits domestic price or below its actual cost.

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