Chap 18 global market strategies

CHAPTER 18: Global Market Strategies 119 Chapter 18 Global Market Strategies A Globalization Forces (TM 18-1) B Identifying Target Markets Major Markets (TM 18-2) Emerging Markets (TM 18-3) Triad Market (TM 18-4) C Entry Strategies (TM 18-5) D Global Market Environment Culture (TM 18-6) Politics (TM 18-7) Legal Environment (TM 18-8) Commercial Practices (TM 18-9) Economic Climate (TM 18-10) E Strategy for Global Marketing Programs Localized Strategy (TM 18-11) Standardized Strategy (TM 18-12) F Marketing in Global Business Strategy (TM 18-13) 120 CHAPTER 18: Global Market Strategies 18-1 FORCES LEADING TO GLOBALIZATION OF MARKETS • Growing similarity of countries • Falling tariff barriers • Strategic role of technology CHAPTER 18: Global Market Strategies 121 18-2 MAJOR MARKETS • United States • Japan • China • Russia • India • Germany • Italy • France • United Kingdom • Brazil • Mexico • Canada 122 CHAPTER 18: Global Market Strategies 18-3 EMERGING MARKETS In recent years, developing countries have begun to show viable market potential: • Asian/Pacific countries • Latin American countries CHAPTER 18: Global Market Strategies 123 18-4 TRIAD MARKET Triad countries are truly the principal markets: • United States • Western Europe • Japan 124 CHAPTER 18: Global Market Strategies 18-5 ENTRY STRATEGIES Four different modes of entry into foreign markets are: • Exporting • Contractual agreements • Joint ventures • Manufacturing CHAPTER 18: Global Market Strategies 125 18-6 CULTURE Culture refers to learned behavior over time, passed on from generation to generation Five elements of culture are: • Material culture • Social institutions • Man and universe • Aesthetics • Language 126 CHAPTER 18: Global Market Strategies 18-7 POLITICS Even in democratic societies, governments exercise a pervasive influence on business decisions Therefore, to be successful overseas, a global marketer should determine the most favorable political climates and exploit those opportunities first CHAPTER 18: Global Market Strategies 127 18-8 LEGAL ENVIRONMENT Despite the best intentions, differences may reasonably arise between parties doing business What recourse exists for the resolution of differences and whose laws will apply are of vital concern to global marketers 128 CHAPTER 18: Global Market Strategies 18-9 COMMERCIAL PRACTICES An international marketer must be thoroughly familiar with the business customs and practices in effect in overseas markets Important factors here are: • Business structures • Management attitudes and behavior • Patterns of competition • Mode of doing business CHAPTER 18: Global Market Strategies 129 18-10 ECONOMIC CLIMATE Level of economic development of a country constitutes an important determinant of market potential Economic environment can be viewed from two angles: • Macro view • Micro view 130 CHAPTER 18: Global Market Strategies 18-11 LOCALIZED STRATEGY Due to cultural and other differences among countries, marketing programs should be tailormade for each country CHAPTER 18: Global Market Strategies 131 18-12 STANDARDIZED STRATEGY The worldwide marketplace has become so homogenized that multinational corporations can use identical strategies to market standardized products and services all over the world, thus lowering their costs and earning higher margins 132 CHAPTER 18: Global Market Strategies 18-13 MARKETING IN GLOBAL BUSINESS STRATEGY International marketing strategy is significant in formulating global business strategy in three different ways: • Configuration of marketing activities • International marketing coordination • Marketing’s linkage to nonmarketing activities [...]... CHAPTER 18: Global Market Strategies 131 18- 12 STANDARDIZED STRATEGY The worldwide marketplace has become so homogenized that multinational corporations can use identical strategies to market standardized products and services all over the world, thus lowering their costs and earning higher margins 132 CHAPTER 18: Global Market Strategies 18- 13 MARKETING IN GLOBAL BUSINESS STRATEGY International marketing...CHAPTER 18: Global Market Strategies 129 18- 10 ECONOMIC CLIMATE Level of economic development of a country constitutes an important determinant of market potential Economic environment can be viewed from two angles: • Macro view • Micro view 130 CHAPTER 18: Global Market Strategies 18- 11 LOCALIZED STRATEGY Due to cultural and other differences among countries, marketing programs... Market Strategies 18- 13 MARKETING IN GLOBAL BUSINESS STRATEGY International marketing strategy is significant in formulating global business strategy in three different ways: • Configuration of marketing activities • International marketing coordination • Marketing’s linkage to nonmarketing activities ...120 CHAPTER 18: Global Market Strategies 18- 1 FORCES LEADING TO GLOBALIZATION OF MARKETS • Growing similarity of countries • Falling tariff barriers • Strategic role of technology CHAPTER 18: Global. .. Global Market Strategies 123 18- 4 TRIAD MARKET Triad countries are truly the principal markets: • United States • Western Europe • Japan 124 CHAPTER 18: Global Market Strategies 18- 5 ENTRY STRATEGIES. .. identical strategies to market standardized products and services all over the world, thus lowering their costs and earning higher margins 132 CHAPTER 18: Global Market Strategies 18- 13 MARKETING IN GLOBAL