International Marketing

1
International Marketing

• Chapter 7

2
Global Trade Overview

• Two-thirds of trade from Western Europe, U.S.,
  Japan, and Canada
• Countertrading
• Trade feedback effect

3
U.S. Trading Overview

• Gross domestic product
• Balance of trade
• U.S. trends
• Trading partners
• Exporting
• Importing

4
Porters Competitive Advantage of Nations

• Factor conditions
• Demand conditions
• Related and supporting industries
• Company strategy, structure, and rivalry
• Economic Espionage Act

5
Factors Leading to Globalization

• Protectionism
• Tariffs
• Steel tariffs
• Quotas
• General Agreement on Tariffs and Trade (GATT)
• World Trade Organization
• Chicken War

6
Factors Leading to Globalization

• Rise of Economic Integration
• European Union
• North American Free Trade Agreement
• Asian Free Trade Agreement

7
Global Market

• Global competition
• Originate, produce, and market their offerings
  worldwide
• Strategic alliances
• General Mills Nestle

8
Global Market

• International firms
• Market existing products in the same way
• Multinational firms
• Product variations for each country
• Transnational firms
• Standardize across similar markets while adapting
  them to specific markets

9
Global Market

• Global consumers
• Different areas, similar tastes
• Role of the Internet

10
Environmental Factors- Social

• Cultural diversity
• Values
• Customs
• Foreign Corrupt Practices Act
• Nonverbal behavior
• Cultural symbols
• Semiotics
• Language
• Back translation
• Cultural ethnocentricity
• Consumer ethnocentrism

11
Environmental Factors- Economic

• Stage of development
• Developed v. Developing
• Economic infrastructure
• Communications, transportation, financial, and
  distribution systems
• Consumer income and purchasing power
• Government subsidies
• Currency Exchange Rates

12
Environmental Factors- Political-Regulatory
Climate

• Political stability
• Trade regulations

13
Global Market-Entry Strategies

• Four strategies
• Exporting
• Licensing
• Joint venture
• Direct investment

14
Exporting

• Indirect exporting
• Use an intermediary
• Least profit
• Direct exporting
• Sell directly to foreign country
• 60 percent of U.S. firms using this strategy have
  less than 100 employees

15
Licensing

• Advantages
• Disadvantages
• Three types
• Contract manufacturing
• Contract assembly
• Franchising

16
Joint Venture

• Two companies (one foreign, one local) go
  together to enter market
• Advantages
• Disadvantages

17
Direct Investment

• Biggest commitment
• Advantages
• Disadvantages

18
Global Marketing Mix

• Product
• Product extension
• Product adaptation
• Product invention
• Promotion
• Adapt the message

19
Global Marketing Mix

• Distribution
• Seller
• International MKT headquarters
• Channels between countries
• Channels within foreign country
• Final consumer
• Pricing
• Dumping
• Gray market