Transcript global marketing - Eastview Business

GLOBAL MARKETING
The world is shrinking because of:
•
faster communication
• transportation
• financial flows
GLOBAL MARKETING
ENVIRONMENT
North American Free Trade Agreement: This agreement
also commonly known as NAFTA became effective in 1994
and lifted many trade barriers between Canada, the United
States and Mexico.
Protectionism: This is the practice of shielding one or
more sectors in the country’s economy from foreign
competition through the use of tariffs, quotas or embargos.
The World Trade Organization: An international agency
which encourages trade between member nations,
administers global trade agreements and resolves disputes
when they arise.
-helps trade and reduces tariffs and other international trade
barriers
Understanding the Global
Environment
Political – Legal Environment:
• attitudes toward international buying
• government bureaucracy
• political stability
• monetary regulations
CULTURAL ENVIRONMENT
•Sellers must examine the ways consumers
in different countries think about and use
products and tailor their marketing activities
toward that country’s consumer preferences
•Business norms vary from country to
country
•Companies that understand cultural
differences can position their products to an
international market
Reasons for Going Global
• some foreign markets have higher profit
opportunities
•Shrinking domestic markets company needs
a larger customer base
• customer base expand to international
market
• reduce dependency on a single market
How to Decide to Go International
• what volume of foreign sales is desired?
• what countries to market in?
• what types of countries to enter?
COMPARISON SHOP WHEN LOOKING AT
COUNTRIES
• Market size
• Market growth
• Risk Level
• Cost of doing business
• Competitive Advantage
Market Entry Strategy
EXPORTING:
Indirect:
work through a international
wholesaler
Direct:
export your product yourself
Market Strategy
Standardization vs Adaptation
Global Marketing Standardization
• world markets are becoming more alike and therefore
standardized products can be sold the same way
worldwide
Global Marketing Adaptation
•
more and more companies realizes they must adapt
their product to meet the needs and wants of the target
market within the country they are selling their product in.
Why Global Marketing is Important
• the internet and electronic commerce are
changing the ways companies operate
worldwide
• competitive pressure and expanding market
opportunities
Research
International Planning Process
Phase 1
Preliminary
Analysis –
matching
company
and
country
needs
Phase 2
Phase 3
Phase 4
Adapt the
marketing
mix to the
target
market
Develop a
marketing
plan
Implement
And
control