19-1
19-1
Chapter 19
Chapter 19
The Global
Marketplace
PRINCIPLES OF MARKETING
Eighth Edition
19-2
19-2
Global Marketing Into the
Twenty-First Century
Global Marketing Into the
Twenty-First Century
• Global competition is intensifying and few U.S. industries are now safe from foreign competition.
• To compete, many U.S. companies are continuously improving their products, expanding into foreign markets and becoming
Global Firms Global Firms.
• Global firms face several major problems:
– Variable exchange rates,
– Unstable governments,
– Protectionist tariffs and trade barriers,
19-3
19-3
Decisions in International Marketing
Decisions in International Marketing
Looking at the Global Marketing Environment
Looking at the Global Marketing Environment
Deciding Whether to Go International
Deciding Whether to Go International
Deciding Which Markets to Enter
Deciding Which Markets to Enter
Deciding How to Enter the Market
Deciding How to Enter the Market
Deciding on the Global Marketing Program
Deciding on the Global Marketing Program
Deciding on the Global Marketing Organization
19-4
19-4
Looking at the Global Marketing
Environment
Looking at the Global Marketing
Environment
The International Trade System
The International Trade System
The World Trade Organization and GATT
The World Trade Organization and GATT
Regional Free Trade Zones
19-5
19-5
Economic Environmental Factors
Economic Environmental Factors
Country’s
Industrial
Structure
Country’s
Industrial
Structure
Subsistence
Economies
Subsistence
Economies
Raw Material
Exporting
Economies
Raw Material
Exporting
Economies
Industrializing
Economies
Industrializing
Economies
Industrial
Economies
Industrial
Economies
19-6
19-6
Political-Legal Environmental Factors
Political-Legal Environmental Factors
Government
Bureaucracy
Government
Bureaucracy
Attitudes Toward
International
Buying
Attitudes Toward
International
Buying
Monetary
Regulations
Monetary
19-7
19-7
Cultural Environmental Factors
Cultural Environmental Factors
How
Customers
Think About
and
Use
Products
How
Customers
Think About
and
Use
Products
Business
Norms and
Behavior
Business
Norms and
Behavior
Cultural
Traditions,
Preferences,
and
Behaviors
Cultural
Traditions,
Preferences,
and
19-8
19-8
Deciding Whether to Go
International
Deciding Whether to Go
International
•
Reasons companies might consider International
expansion:
–Global competitors attacking the domestic market,
–Foreign markets might offer higher profit
opportunities,
–Domestic markets might be shrinking,
–Need an enlarged customer base to achieve economies of scale,
–Reduce dependency on any one market,
–Customers might be expanding abroad.
19-9
19-9
Deciding Which Markets to Enter
Deciding Which Markets to Enter
Marketer’s Checklist for Identifying Market
2. Geographic Characteristics. 3. Economic Factors.
4. Technological Factors. 5. Sociocultural Factors.
6. National Goals and Plans.
19-10
19-10
Deciding How to Enter the Market
Deciding How to Enter the Market
19-11
19-11
Deciding on the Global Marketing
Program
Deciding on the Global Marketing
Program
Straight Extension
Communication Adaptation
Product Adaptation
Dual
Adaptation
P
ro
m
o
ti
o
n
Don’t Change
Product ProductAdapt
Product
Don’t Change Promotion
Adapt Promotion
Product Invention
Develop New Product
19-12
19-12
Whole-Channel Concept for Distribution
Whole-Channel Concept for Distribution
Seller
Seller
Seller’s Headquarters
Seller’s Headquarters
Channels Between Nations
Channels Between Nations
19-13
19-13
Deciding on the Global Marketing
Organization
