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Chapter 7 Serving Global Markets

WHY EXPAND INTO OVERSEAS MARKETS? . the world is getting smallerexpands market sharenew, untapped marketssome raw materials cheaper/more plentifulcreates jobs . Differences in Global Marketing . 1. MARKET SIZEworld population > 6 billionwww.census.govFactors Affecting Market Potentialinco

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Chapter 7 Serving Global Markets

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    1. Chapter 7 – Serving Global Markets

    2. WHY EXPAND INTO OVERSEAS MARKETS? the world is getting smaller expands market share new, untapped markets some raw materials cheaper/more plentiful creates jobs

    3. Differences in Global Marketing 1. MARKET SIZE world population > 6 billion www.census.gov Factors Affecting Market Potential income level stage of country's economic development

    4. 2. BUYER BEHAVIOR differs by country & among market segments w/in each country need to consider local customs, tastes & living conditions ie: Snapple (sugar, foggy look) ie: EuroDisnesy (alcohol, employees look) food differences & preferences

    5. 5 Considerations Prior to Entering Foreign Market 1. Demand 2. Competition 3. Economic environment 4. Social-cultural environment 5. Political-legal environment

    6. The Environment for International Marketing 1. ECONOMIC FACTORS nations size, per capital income & stage of economic develop need to gear product to income level of country need to consider unemployment level infrastructure: transportation, communication and utilities exchange rate: how currency converts from one to another

    7. 2. SOCIAL-CULTURAL FACTORS study nations' culture incl: language, education, social values, & religious attitudes be sure about translations! ie: Gerbers baby food in India ie: Time, Lunch Hours

    8. 3. POLITICAL-LEGAL FACTORS political turmoil may need to adjust marketing strategy based on political envir.

    9. TRADE BARRIERS Tariffs revenue tariffs protective tariffs IMPORT QUOTAS - limits on imports EMBARGO - complete ban on import of certain products (Cuba) DUMPING - sell goods at lower price than domestic market price

    10. Strategies for Entering International Markets 1. EXPORTING indirect exporting direct exporting

    11. 2. Contractual Agreements: Licensing, Franchise 3. OVERSEAS MARKETING ie: foreign sales offices

    12. 4. FOREIGN PRODUCTION AND MARKETING subsidiary that is responsible for foreign production & marketing

    13. 2 Types of International Marketing Strategies 1. GLOBAL MARKETING STRATEGY standardized marketing mix w/ minimal modifications in all foreign markets 2. MULTIDOMESTIC MARKETING treats each nation separately

    14. Product & Promotional Strategies: Figure 7.8

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