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Lecture Principles of Marketing - Chapter 19: The global marketplace

This chapter presents the following content: Global marketing today, looking at the global marketing environment, deciding whether to go global, deciding which markets to enter, deciding how to enter the market, deciding on the global marketing program, deciding on the global marketing organization. | Chapter Nineteen The Global Marketplace 1 The Global Marketplace Global Marketing Today Looking at the Global Marketing Environment Deciding Whether to Go Global Deciding Which Markets to Enter Deciding How to Enter the Market Deciding on the Global Marketing Program Deciding on the Global Marketing Organization Topic Outline 2 Global Marketing Today A global firm Operates in more than one country Gains marketing, production, R&D, and financial advantages not available to purely domestic competitors The global firm sees the world as one market 3 Global Marketing Today Global firms ask a number of basic questions: What market position should we try to establish in our own country, in our economic region, and globally? Who will our global competitors be, and what are their strategies and resources? Where should we produce or source our product? What strategic alliances should we form with other firms around the world? 4 Looking at the Global Marketing Environment Restrictions on trade | Chapter Nineteen The Global Marketplace 1 The Global Marketplace Global Marketing Today Looking at the Global Marketing Environment Deciding Whether to Go Global Deciding Which Markets to Enter Deciding How to Enter the Market Deciding on the Global Marketing Program Deciding on the Global Marketing Organization Topic Outline 2 Global Marketing Today A global firm Operates in more than one country Gains marketing, production, R&D, and financial advantages not available to purely domestic competitors The global firm sees the world as one market 3 Global Marketing Today Global firms ask a number of basic questions: What market position should we try to establish in our own country, in our economic region, and globally? Who will our global competitors be, and what are their strategies and resources? Where should we produce or source our product? What strategic alliances should we form with other firms around the world? 4 Looking at the Global Marketing Environment Restrictions on trade between nations include: Tariffs Quotas Exchange controls Nontariff trade barriers The International Trade System Note to Instructor Foreign governments may charge tariffs, taxes on certain imported products designed to raise revenue or to protect domestic firms. For example, China slaps a 25 percent tariff on United States and other imported autos. Or they may set quotas, limits on the amount of foreign imports that they will accept in certain product categories. The purpose of a quota is to conserve on foreign exchange and to protect local industry and employment. American firms may also face exchange controls, which limit the amount of foreign exchange and the exchange rate against other currencies. 5 Looking at the Global Marketing Environment Tariffs are taxes on certain imported products designed to raise revenue or to protect domestic firms Quotas are limits on the amount of foreign imports a country will accept in certain product categories to conserve on foreign exchange and