Understanding the Global Marketplace: Analyzing Government Actions, Sociocultural Factors, and Infrastructure

1. Launch your PollEV session: Text: UWMBUSINESS to 37607 *Text LEAVE at the end of class* Alternate #: (747) 444-3548

4. B2B Buying Process The CONSUMER Buying decision process

5. Understanding the Marketplace – Global Marketing Ref: Text, chapter 8

9. Global marketing • “Globalization” – the processes by which goods, services, capital, people, information, and ideas flow across national borders

11. Complex supply chains

13. (US Per Capita = $58,000) Per capita income: $1751 $10 838 taka (Bangladesh)

14. Single-use shampoo

15. Assessing Global Markets

16. II. Analyzing Infrastructure and Technological Capabilities • Infrastructure – the basic facilities, services, and installations needed for a community or society to function • Transportation • Communications systems • Distribution channels • Commercial infrastructure

17. Assessing Global Markets

18. III. Analyzing Government Actions • government actions can significantly influence firms’ ability to sell products; • they can result in laws or regulations that promote growth of the global market or inhibit growth by closing off the country

19. III. Analyzing Government Actions • Tariffs (“duty”) • A tax levied on a product imported into a country • Intended to make imported goods more expensive and thus less competitive with domestic products

20. Tariffs make imported goods costly

21. Tariffs & Reciprocal tariffs

22. Tariffs & reciprocal tariffs

24. III. Analyzing Government Actions • Quotas • A quota designates the maximum quantity of a product that may be brought into a country in a given time period

27. III. Analyzing Government Actions • Quotas • A quota designates the maximum quantity of a product that may be brought into a country in a given time period

29. Tariffs Quotas • Both benefit domestically made products because they reduce foreign competition • Tax • Artificially raises prices • Lowers demand • Maximum limit • Reduces availability of imported goods

30. III. Analyzing Government Actions • Exchange Control • This refers to the regulation of a country’s currency exchange rate (the measure of how much one currency is worth in relation to another)

32. A strong US$ = Happy Tourists, Sad Exporters

33. III. Analyzing Government Actions • Trade Agreements • Intergovernmental agreements designed to manage and promote trade activities for a given region. Trading bloc • the European Union (EU), North American Free Trade Association (NAFTA),USMCA,Central American Free Trade Agreement (CAFTA), Mercosur (the Southern Common Market), Association of South-East Asian Nations (ASEAN)

34. Trade Agreements “USMCA”

35. Trade agreements = Cheap tomatoes for consumers

37. Assessing Global Markets

38. IV. Analyzing Sociocultural Factors • Understanding and adapting to another country’s culture is crucial to the success of any global marketing

40. Soy sauce, chilli sauce • in Indonesia • Banana-flavored • ketchup in the Philippines

41. IV. Analyzing Sociocultural Factors • The visible artifacts of a culture (e.g., dress, food, behavior, physical settings) are fairly easy to identify • but the intangible underlying valuesare very difficult to understand

42. IV. Analyzing Sociocultural Factors • Hofstede’s cultural dimensions concept, according to which, cultures differ on 6 dimensions: • Power distance • Uncertainty avoidance • Individualism • Masculinity • Time orientation • Indulgence

43. Hofstede’s Cultural Dimensions

45. Analyzing cultural differences using Hofstede’s concept

46. Individualism Community

49. Analyzing cultural differences using Hofstede’s concept