Transcript Slide 1

Welcome to MKGT 376:Global
Marketing Strategy!
 Introduction to the
course
– Overview of course
issues
– Approach
– Projects
MKTG 376
INTRODUCTION
Lars Perner, Instructor 1
Instructor: Lars Perner
 Education:
– Ph.D. in marketing, University of Southern California, 1998
– M.B.A., B.A. (political science and psychology), Cal Poly, San Luis
Obispo
 Research interests: consumer behavior, consumer
bargain hunting, pricing, branding, measurement
individual differences, cross cultural marketing issues
 Teaching interests: consumer behavior,
international, principles, distribution, retailing,
research methods
 Country of birth: Denmark—immigrated at age 14
 Previous teaching experience: USC, Cal State
L.A., Loyola Marymount, U of Maryland, George
Washington University, U.C. Riverside
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INTRODUCTION
Lars Perner, Instructor 2
Course philosophy
 Why take this course?
 DO “stop and think about tomorrow. Yesterday’s
gone!”
 Business problems are usually not neatly
structured!
 Expectations:
– Hard work
– Individual analysis, evaluation, innovation, and
application
 Evaluating quality of work
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INTRODUCTION
Lars Perner, Instructor 3
SCOPE AND CHALLENGES OF
INTERNATIONAL MARKETING
 Marketing decision factors
 The marketing environment
– Domestic
– Foreign
 Trade policy
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Lars Perner, Instructor 4
Internationalization of Marketing
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Global products
Global brands
Leading markets
The Product Life Cycle
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Lars Perner, Instructor 5
The International Product Life Cycle
 Product categories will tend
to spread first in developed
countries
 Resale of capital products
 Country of origin effects over
time
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Lars Perner, Instructor 6
The International Marketing Task
 Marketing Decision Factors
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–
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Price
Promotion
Product
Distribution
 The Domestic Environment
 The Foreign Environment
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Lars Perner, Instructor 7
Environments
 Domestic
– Political/legal
forces
– Competitive
structure
– Economic
climate
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 Foreign
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Political/legal
Economic
Culture
Geography/
infrastructure
– Distribution
– Competition
– Technology
INTRODUCTION
Lars Perner, Instructor 8
Obstacles to Trade:
Protectionism
 Differing interests of consumers and
manufacturers
 Benefits of trade tend to be more diffused
than benefits to specific groups of
protectionism
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INTRODUCTION
Lars Perner, Instructor 9
Approaches to Protectionism
 Tariffs
 Quotas
 “Voluntary” export
restrictions
 Subsidies to domestic
producers/exporters
 Non-tariff barriers
– legal obstacles
– differential treatment
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INTRODUCTION
Lars Perner, Instructor 10
U.S. Protectionism--justified or
not...
 Defense industry
 Agricultural products--e.g., beef,
sugar
 Textiles
 Automobiles (“voluntary” import
restrictions)
 Steel
MKTG 376
INTRODUCTION
Lars Perner, Instructor 11
Justifications for Protectionism
 Protect infant industry
 Resist “unfair” or inappropriate competition
 Protect home market (ensure that product
can be produced domestically)--defense
 Intervene into temporary imbalance
 Maintain domestic living standards
 Preserve jobs
 Bargaining power/retaliation (Super-301
provision in U.S.)
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INTRODUCTION
Lars Perner, Instructor 12
Effects of Protectionism
 Reduced competition ---> inflation
 More tariffs
 Weaken balance of payments (have to pay
more in own currency)
 Reduce choice to consumers
 May induce global trade wars (vicious cycle)
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Lars Perner, Instructor 13
Stages in Globalization
 Across country economies
 For the individual firm
– Customers
– Competition
– Suppliers
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Lars Perner, Instructor 14
Drivers of Globalization
 Market Drivers
– Global Customers and
needs
– Global channels
– Opportunities for marketing
transfer
 Competitive Drivers
 Cost Drivers
– Economies of
 Scale
 Scope
– Sourcing
– Labor costs
– Environmental regulations
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INTRODUCTION
Lars Perner, Instructor 15
More Drivers
 Technology
 Governmental
– Increasing speed of
Product Life Cycles
– Internet
– Lower costs of entry
into some markets
– Improved transportation
and communication
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– Trade agreements
INTRODUCTION
 WTO
 NAFTA
 Regional agreements
Lars Perner, Instructor 16
Essential Global Marketing Assets
 Products
– Existing
– New
 Models of existing
product lines
 Extensions
 Advertising/Promotion
 Distribution
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Lars Perner, Instructor 17
Perspectives on International Trade
 Traditional economic
perspective—based
mostly on labor costs
– Absolute advantage
– Relative advantage
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 Country Specific
Advantages
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Labor costs
Labor skill
Infrastructure
Legal and political
stability
– Government policy and
regulations
– Natural resources
INTRODUCTION
Lars Perner, Instructor 18
Firm Specific Advantages (FSAs)
 Knowledge-Based
 Marketing
– Brand image
– Distribution
– Knowledge of markets
 Transferability of FSAs
 The value chain
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INTRODUCTION
Lars Perner, Instructor 19