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Chapter eight global marketing 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 1 Global Marketing LO 8-1 Describe the components of a country market assessment. LO 8-2 Understand the marketing opportunities in BRIC countries. LO 8-3 Identify the various market entry strategies. LO 8-4 Highlight the similarities and differences between

a domestic marketing strategy and a global marketing strategy. 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2 Coca-Cola 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 3 STR/AFP/Getty Images Growth of Global Market

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 4 Hiring Overseas Click on number to watch the video 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 5 Assessing Global Markets General economic environment Market size and population growth

Real income Power distance Uncertainty avoidance Individualism Masculinity Time orientation Transportation Channels Communication Commerce Economic analysis using metrics Infrastructure

and technology Sociocultural analysis Government actions Tariff Quota Exchange control Trade agreement 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 6

Economic Analysis General Economic Environment Gross domestic product Gross national income Purchasing power parity Human development index

NationMaster 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 Evaluating Market Size and Population Growth Rate Population 2002 Population 2050 REUTERS/Arko Datta/Corbis. 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 8

REUTERS/Fayza Kabli Firms can make adjustments to an existing product or change the price to meet the unique needs of a particular country market. Narinder Nanu/AFP/Getty Images Evaluating Real Income 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 9

Royalty-Free/CORBIS Distribution Channel MIXA/PunchStock Transportation Communication PhotoLink/Getty Images Stockdisc Analyzing Infrastructure and Technological Capabilities Commerce

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 10 Analyzing Government Actions Tariff Trade agreement Government actions Quota

Exchange control 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 11 Tariffs and Quotas Tariffs Tax Artificially raises prices Lowers demand Quotas Maximum limit

Reduces availability of imported goods Both benefit domestically made products because they reduce foreign competition 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12 Exchange Control Exchange rate Countertrade Image Source/Alamy

Stockbyte/Punchstock Images 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 13 Trade Agreements Name Countries European Union There are 28 member countries of the EU: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland,

Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. There are five official candidate countries to join the EU: Macedonia, Serbia, Turkey, Iceland, and Montenegro. NAFTA United States, Canada, and Mexico. CAFTA United States, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua. Mercosur Full members: Argentina, Brazil, Paraguay, Uruguay, and Venezuela.

ASEAN Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 14 The European Union (EU) Monetary and Trade Union Euro Membership does not consist of Croatia, Macedonia, Turkey and

several others 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 15 Analyzing Sociocultural Factors Individualism Masculinity Uncertainty avoidance Power distance

Time orientation Culture 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Indulgence 16 Country Clusters 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 17

Country Clusters Using Geert Hofstedes cultural dimensions concept, what type of cultural difference is affecting the person in the picture? McGraw-Hill Companies, Inc. Mark Dierker, photographer. Uncertainty Avoidance 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 18

The Appeal of the BRIC Countries Great potential for growth in the global community Brazil Russia India China 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

19 check yourself 1. What metrics can help analyze the economic environment of a country? 2. What types of governmental actions should we be concerned about as we evaluate a country? 3. What are five important cultural dimensions? 4. Why are each of the BRIC countries viewed as potential candidates for global expansion? 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 20

Choosing a Global Entry Strategy Control Direct Investment Joint Venture Strategic Alliance Franchising Export Risk 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 21

check yourself 1. Which entry strategy has the least risk and why? 2. Which entry strategy has the most risk and why? 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 22 Choosing a Global Marketing Strategy: Target Market (STP) Cultural nuances Subcultures

View of product and consumer role Different positioning Adaptation Courtesy Ford India Pvt. Ltd. Single positioning strategy 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 23 The Global Marketing Mix: Product or Service Strategies Sell the same

product or service in both the home country market and host country Sell a product or service similar to that sold in home country but include minor adaptations Sell totally new products or services 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

24 Global Marketing Mix: Pricing Strategies Antidumping Policies Quotas Tariffs Price Economic Conditions Competitive factors

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 25 Global Marketing Mix: Global Distribution Strategies Some global channels are very long and complex. Consumers shop at small local stores. Suppliers must be creative in delivering to these outlets. 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

26 Global Marketing Mix: Global Communication Strategies Literacy levels vary by country Firms choose whether to adapt to language differences Cultural and religious differences also matter Photo by Jeff Kravitz/FilmMagic/Getty Images 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

27 Spanish Ad Courtesy Nestl SA 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 28 check yourself 1. What are the components of a global marketing strategy?

2. What are the three global product strategies? 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 29

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