Ch. 1 Introduction to Global Marketing

explain the importance of global marketing
-even high international trade statistics underestimate international marketing operations
-locally manufactured and locally sold products produced by foreign investors are not included in world trade figures
-sales of overseas subsidiaries for US companies are estimated to be 3 times the value of these companies’ exports
why firms seek global markets
-react to inquiry from abroad
-seek more sales and profits
-little or no growth at home
-respond to a domestic competitive shock
-follow major customers abroad
-leverage economies of scale and scope
list the development of global marketing
-domestic marketing
-export marketing
-international marketing
-multidomestic marketing
-pan-regional marketing
-global marketing
define domestic marketing
primary marketplace is where you originally open up and start
define export marketing
involves a company simply shipping product elsewhere
define international marketing
significant involvement in another marketplace
define multidomestic marketing
existing in multiple marketplaces and treating each as its own entity
define pan-regional marketing
organize yourself as a business selling in multiple places at once
define global marketing
unified country across borders yet understand different markets and make adjustments
A global marketing strategy involves _______________________
the creation of a single strategy for a product, service, or company for the entire global market
What is the international marketing challenge?
standardization or adaptation
Explain the factors affecting standardization
-similar tastes in diverse countries
-strong country of origin image
-scale economies in production, R&D, marketing
-high cost of adaptation
Explain the factors affecting adaptation
-variations in consumer needs and conditions of use
-variations in consumer income and ability to buy
-strong cultural differences affecting produce and use
-difference in technical standards
-difference in government regulations affecting the product
Explain the tiers of environmental pressures for adaptation
inner circle: the firm
middle circle: national – political, economic, cultural, and legal environment
outer circle: supranational – political, economic, cultural, and legal environment