Marketing Chapter 15 "Global Marketing"

What is Global Marketing
Global marketing is the process of selling a product or service to a foreign market in another country e.g: North face marketing there products in china
Why do companies go global?
Companies go global to expand their market to gain more customers and in the end receive more profit.
What are the main challenges faced by global marketers (e.g., cultural factors, economic factors, political factors, legal factors, demographic factors, and natural resources availability)?
• Cultural
o Cultural differences, some things may be offensive to some foreign countries but completely acceptable in America
• Economic
-Different currencies
• Political factors
-Corruption
• Demographic
What is ethnocentrism? What role did ethnocentrism play in the failure of Target in Canada?
• Ethnocentrism is evaluation of other cultures according to preconceptions originating in the standards and customs of one’s own culture.
• Target failed in Canada because the company was not aware of the different cultural environment in Canada.
What is a global firm?
• Operate in more than one country
• Move resources, goods, services, and skills across national boundaries
Explain the major global marketing decisions: Deciding to go global
• Attack on a company’ s home market by global competitors
• Expanding customer base in international markets
• Better opportunities for growth
Deciding which markets to enter
A company should:
• Define its international marketing objectives and policies
• Decide what volume of foreign sales it wants
• Choose in how many countries it wants to market
• Decide on the types of countries to enter – Evaluate each market
Deciding how to enter the market
• Exporting – Indirect, direct
• Joint Venturing: Licensing, Contract manufacturing, Management contracting, joint ownership
Deciding on the global marketing program
• Standardized global marketing
Using the same marketing strategy and mix in all of the companies international markets
• Adapted Global Marketing
Adjusting the marketing strategy and mix elements to each international target market Creates more costs
Produces a larger market share and return
Deciding on the global marketing organization
• Methods of managing international marketing activities:
o Organizing an export department
o Creating international divisions
Geographical organizations
World product groups
Standardized global marketing
Using the same marketing strategy and mix in all of the company’s international markets
Adapted global marketing
• Adjusting the marketing strategy and mix elements to
each international target market
• Creates more costs
• Produces a larger market share and return
Global product and communication strategies: see slides
a. Straight extension
b. Product adaptation
c. Communication adaptation
d. Dual adaptation
e. Product invention