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3-1 Chapter 3 Global Markets and Marketing 3-2 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Goals • The significance of marketing to firms and countries • The attractiveness of foreign markets • The challenges of designing international marketing strategies • The alternative organizational structures • The international marketing mix issues and concepts 3-3 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Reasons for International Trade Access to products Comparative Advantage 3-4 Role of Export Trade in Selected Countries INSERT TABLE 3.1 3-5 International Trade Balance of Payments all transactions between countries Trade Balance difference between imports and exports 3-6 Factors Affecting International Trade Consumer Preferences Marketing Capability Tax Structure 3-7 Technology Trade Barriers Subsidized Industries Why International Marketing Potential Demand Market Saturation Customer Expectations 3-8 Strategic Planning for International Marketing Global Strategy Regional Strategy Local Strategy 3-9 Market Demand Number of people Ability to buy Buying behavior 3-10 Social and Cultural Environment Family Customs and Behavior Education Language Differences 3-11 Economic Environment Level of Economic Development Infrastructure Competition 3-12 Political and Legal Forces Trade Barriers • • • • 3-13 Tariff Import quota Local-content law Local operating laws • Standards and certification • Boycott Political and Legal Forces Trade Agreements World Trade Organization European Union North American Free Trade Agreement Asia-Pacific Economic Cooperation forum Association of Southeast Asian Nations Common Market of the South 3-14 WTO EU NAFTA APEC ASEAN MERCOSUR Structures for Operating in Foreign Markets 3-15 Designing the Marketing Mix Market Research Product Planning Advertising Pricing Distribution Systems 3-16 Key Terms and Concepts • • • • • • • • • • Balance of Payments Trade balance International marketing Global Strategy Regional strategy Local strategy Infrastructure Trade barriers Tariff Import quota 3-17 McGraw-Hill/Irwin • Local-content law • Local operating laws • Standards and certification • Boycott • World Trade Organizations • European Union • North American Free Trade Agreement Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Key Terms and Concepts • Asia-Pacific Economic Cooperation forum • Association of Southeast Asian Nations • Common Market of the South • Exporting • Export merchant • Export agent • Company sales branch 3-18 McGraw-Hill/Irwin • • • • • • • • • Contracting Licensing Contract manufacturing Franchising Direct foreign investment Joint venture Strategic alliance wholly owned subsidiary Multinational corporation Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Key Terms and Concepts • • • • • • • • 3-19 McGraw-Hill/Irwin Trademark infringement Dumping Price differential Foreign exchange Countertrade or barter Cartel Gray marketing Bribes Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.