Transcript DEVELOPING A GLOBAL VISION

DEVELOPING
A GLOBAL VISION
AGENDA
Deciding whether to enter International
Markets
Environmental Analysis Issues in
Global Markets
Ways of entering global marketplace
The Global Marketing Mix
External Environment
Facing Global Marketers
External Environment: Social
Culture: Set of values shared by group
that determine what is socially
acceptable, including
social structure
assumptions and attitudes
personal beliefs and assumptions
interpersonal relationships
Issues from scan of social
environment
Cultural influences on buying
behavior
Language differences
Population size and distribution
Socioeconomic status
Ethical issues
Economic Environment
Buying Power
 Gross National Product Per capita income-
Currency
 Exchange rate-price of currency in
terms of another country
Economic Environment (cont.)
Stages of Development
Traditional Society
Pre-Industrial Society
Takeoff Economy
Industrialising/Developing
Fully Industrialised Society
Political and Legal Environment:
Questions to ask about Political Systems
How much control exerted over private
organisations?
Attitude toward foreign business?
Political Stability
Political and Legal Environment:
Laws
Tax charged on imported
goods/services
limit on amount of product that can be
bought in
limits on amount of money that may be
exchanged for other currency
Regulating Business operating in host nations
General Agreement on Tariffs and Trade
Technological Environment
Levels of Technological
Development
Available Infrastructure
Competitive Environment
Degree of government involvement
in competition
Ownership of competitors
local
foreign
government
Natural Environment
Resources Available
Methods of Entry and Risk Levels for
Global Marketing
High Control/High Risk/ High Return
Direct
Ownership
Joint
Ventures
Licensing
Exporting
Little Control/Low Risk/ Low Return
Methods of Entering the Global
Marketplace - Export
+ simple
+ minimal financial risk
- may be less profitable than
other mechanisms
Methods of Entering the Global
Marketplace: Licensing
+ minimal capital outlay
+ useful for serving countries
with export restrictions
- difficult to control licensee
- when licensing agreement
ends, licensee may become
competitor
- may be less profitable than
other mechanisms
Methods of Entering the Global
Marketplace: Joint Venture
 Joint Venturing: Domestic firm buys or joins
with a foreign company to create a new
entity
+ risk limited to organizations share in venture
+ foreign partner contributes expertise the
organization lacks
+ useful when host country limits foreign
ownership
- share control with venture partner
- partner may learn technology or secrets
Methods of Entering the
Global Marketplace: Direct
Ownership
+ maximum control over foreign
operations
+ are close to customers
- expensive to set up
- requires extensive knowledge of
foreign markets and contacts overseas
Global Marketing Standardisation
Some multinational corporations moving
toward a degree of global marketing
standardisation
Based on assumption that
markets throughout the world are becoming
more alike
globally standardised products can be sold the
same way all over the world
uniform production creates lower production &
marketing costs and greater profits
DEVELOPING A GLOBAL
MARKETING MIX
Product
Extension
Adaptation
Invention
Price
Dumping
Level
uniform
market based
cost based
Bribery
Developing a Global Marketing Mix
Distribution
Promotion