Krishna kr. Maurya Miss Sakshi Bajpai Anchal Jaiswal
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Objectives
Understand global marketing strategy
Analyze forces affecting international marketing efforts Understand important trade agreements Identify methods of international market entry Examine forms of global organizational structures Examine use of marketing mix internationally
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The Nature of Global Marketing Strategy International Marketing Developing and performing marketing activities across national boundaries.
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Environmental Forces In Global Markets
Competitive Economic
Sociocultural Political
Technological Legal &
Regulatory Copyright Houghton Mifflin Company. All rights reserved. 7|4 Competitive Forces Internationally Attend to competitive forces in target countries Identify the interdependence of global competitors Be mindful of global customer
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The Most Competitive Countries
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Economic Forces Internationally
Import tariff duty on goods bought outside the
country and brought in Quota limit on amount of goods an importing country will accept Embargo government suspension of trade Exchange Controls government restrictions on amount of particular currency
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Economic Forces Internationally contd Balance of Trade difference in value between nations imports and exports Gross Domestic Product (GDP) measure of overall economic standing based on total output of goods and services
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Political, Legal and Regulatory Forces Internationally Legal and regulatory infrastructure as a direct reflection on the political climate CIBERs (Centers for International Business Education and Research) International import barriers Differing standard of ethics (U.S.s Foreign Corrupt Practices Act)
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Sociocultural Forces Internationally Issues predominant cultural focus of marketing within global market Language Symbols Social norms, values, perceptions Negotiations and decision-making
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Technological Forces Internationally Advances in technology have advanced international marketing
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Global Ethical and Social Responsibility Issues Dumping selling products in domestic markets at higher prices than in foreign markets Cultural relativism defining business practices as right or wrong based on differing moralities within particular cultures
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Stages Of International Entry Modes 1) No regular export activities 2) Export via independent representatives or agents 3) Establish one/more sales subsidiaries internationally 4) Establish international production or manufacturing facilities
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Importing and Exporting
Importing the purchase of products
from a foreign source Exporting the sale of products to foreign markets
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Trading Company
A company that links buyers and sellers in
different countries.
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Licensing and Franchising
Licensing an alternative to direct investment
requiring a license to pay commissions on sales or supplies used in manufacturing Franchising a form of licensing in which a franchiser grants a franchisee the right to market its product in accordance with the franchisers standards.
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International Franchising- Benefits To Franchiser Does not have to put up large capital investment Revenue stream is fairly consistent Retains control of name and increases global penetration Agreements ensure standard of behavior from franchisees
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Contract Manufacturing
The practice of hiring a foreign firm to
produce a designated volume of the domestic firms product or a component of it to specification; the final product carries the domestic firms name.
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Specific Forms of Contract Manufacturing Outsourcing Offshoring Offshore outsourcing
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Joint Ventures
Joint Venture partnership between
domestic and foreign firms Strategic Alliances partnerships formed to create competitive advantage on a worldwide basis
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Direct Ownership
Direct ownership a company owns
subsidiaries or other facilities overseas Multinational enterprise firm has operations in many countries
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Global Organizational Structure
Organizational Structure the way in
which a firm divides its operations and coordinates its activities.
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Organizational Architecture
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Global Organizational Structures contd Export Departments International Divisions Internationally Integrated Structures
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International Marketing Mix
Customization vs. Globalization
Customization: customizing marketing strategy to meet different marketing mixes Globalization: development of marketing strategies that treat the world markets as a single entity
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Marketing Mix Issues Product Element
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Marketing Mix Issues Distribution Element
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Marketing Mix Issues Promotion Element
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Marketing Mix Issues Pricing Element
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Business markets allow for customized global marketing solutions
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THANK YOU
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