Lecture Marketing (12/e): Chapter 7 – Kerin, Hartley, Rudelius

Chapter 7 – Understanding and reaching global consumers and markets. After reading chapter 7, you should be able to: Describe the nature and scope of world trade from a global perspective and identify the major trends that have influenced world trade and global marketing, identify the environmental forces that shape global marketing efforts, name and describe the alternative approaches companies use to enter global markets, explain the distinction between standardization and customization when companies craft worldwide marketing programs.

Copyright © 2015 McGraw­Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw­Hill Education LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 7, YOU SHOULD BE ABLE TO: LO 7-1 LO 7-2 Describe the nature and scope of world trade from a global perspective and identify the major trends that have influenced world trade and global marketing Identify the environmental forces that shape global marketing efforts 7­2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 7, YOU SHOULD BE ABLE TO: LO 7-3 LO 7-4 Name and describe the alternative approaches companies use to enter global markets Explain the distinction between standardization and customization when companies craft worldwide marketing programs 7­3 BUILDING A BILLION DOLLAR BUSINESS IN INDIA THE DELL INC WAY 7­4 LO 7-1  DYNAMICS OF WORLD TRADE WORLD TRADE FLOWS Global Perspective • Trade Feedback Effect • Countertrade  United States Perspective • Gross Domestic Product (GDP) • Balance of Trade 7­5 FIGURE 7-1 Leading countries in global merchandise trade in terms of imports (U.S.) and exports (China) 7­6 LO 7-1  DYNAMICS OF WORLD TRADE COMPETITIVE ADVANTAGE OF NATIONS Porter’s “Diamond” • Factor Conditions • Demand Conditions • Related and Supporting Industries • Company Strategy, Structure, and Rivalry  Economic Espionage Act (1996) 7­7 FIGURE 7-2 Porter’s diamond of national competitive advantage has four key elements on why some industries and firms in different countries become world leaders 7­8 Sony Bravia 3D HDTV and Bruno Magli Shoes LO 7-1 What element of Porter’s Diamond of National Competitive Strategy? 7­9 LO 7-1 MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 1—DECLINE OF ECONOMIC PROTECTIONISM  Protectionism  Tariffs  Quota  General Agreement on Tariffs and Trade (GATT)  World Trade Organization (WTO) 7­10 LO 7-2 A GLOBAL ENVIRONMENTAL SCAN POLITICAL-REGULATORY CLIMATE  Political Stability  Trade Regulations 7­28 LO 7-2 MARKETING INSITE Checking a Country’s Political Risk Rating 7­29 FIGURE 7-5 Alternative global market-entry strategies 7­30 LO 7-3  GLOBAL MARKET-ENTRY STRATEGIES EXPORTING Exporting • Indirect Exporting • Direct Exporting 7­31 LO 7-3 MARKETING MATTERS Creative Cosmetics and Creative Export Marketing in Japan 7­32 LO 7-3 GLOBAL MARKET-ENTRY STRATEGIES LICENSING  Advantages  Disadvantages  Contract Manufacturing  Contract Assembly  Franchising 7­33 LO 7-3  GLOBAL MARKET-ENTRY STRATEGIES JOINT VENTURE Joint Venture • Advantages • Disadvantages 7­34 LO 7-3  GLOBAL MARKET-ENTRY STRATEGIES JOINT VENTURE Direct Investment • Advantages • Disadvantages 7­35 FIGURE 7-6 Five product and promotion strategies for global marketing 7­36 LO 7-4 CRAFTING A WORLDWIDE MARKETING PROGRAM PRODUCT STRATEGIES  Product Extension  Product Adaptation  Product Invention 7­37 LO 7-4 CRAFTING A WORLDWIDE MARKETING PROGRAM PROMOTION STRATEGIES  Identical Message  Communication Adaptation  Nescafé China Video Dual Adaptation 7­38 LO 7-4 CRAFTING A WORLDWIDE MARKETING PROGRAM DISTRIBUTION AND PRICING STRATEGIES  Channels and Economic Development  Channels Can Be Long or Short  Countries Impose Pricing Constraints  Prices May Be Too High or Too Low • Dumping • Gray Market 7­39 FIGURE 7-7 Channels of distribution in global marketing 7­40 VIDEO CASE MARY KAY, INC.: BUILDING A BRAND IN INDIA 7­41 FIGURE Social and economic statistics for India in 2007 and China in 1995 7­42 ... Marketing Strategy  Transnational Firms • Global Marketing Strategy • Global Brand 7 17 LO 7- 1 MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 3C—GLOBAL CONSUMERS  Global Consumers 7 18 LO 7- 1... Corrupt Practices Act (1 977 ) 7 21 FIGURE 7- B Cultural appreciation 7 22 LO 7- 2  A GLOBAL ENVIRONMENTAL SCAN CULTURAL DIVERSITY Cultural Symbols • Semiotics #13 7 23 LO 7- 2 A GLOBAL ENVIRONMENTAL... trade and global marketing Identify the environmental forces that shape global marketing efforts 7 2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 7, YOU SHOULD BE ABLE TO: LO 7- 3 LO 7- 4 Name and