5. GLOBAL MARKETING

Individuals and organizations having a global vision to effectively market goods/services across national boundaries. 

• 1. many countries depend on interantional commerce
• 2. exports represent 13% of U.S. GDP
• 3. one third of profits comes from int. trade
• 4. exports create jobs for over 10 mill. Americans

job outsourcing

loss of skill, technology & manufacturing facilities

• expands economic freedom
• raises poductivity and living standard of countries that open themselves to global trade
• offers access to foreign investments and advanced technologies
• breaks the monopoly of inefficient and protected domestic producers
• promotes higher labor standards
• faster growth, reduces poverty
• encourages democratization

• culture
• economin & technological development
• political & legal considerations
• demographic makeup
• natural resources

• ...common set of values shared by its citizens that determine what is socially acceptable.
• It is present in family, education system, religion & the social class system.
• It affects people's preferences
• language and knowing the culture essential for business

• level of economic development
• GNI per capita is a measure of citizens' ability to buy various goods/services.
• also important the cost of doing business in a specific country.

• political structure
• government regulations
• resurgin nationalism (some foreign-owned capital becomes taken by the government)

• tariff (tax levied on goods that enter the country)
• quota (limit on amount of goods imported)
• trade agreement (an agree. to stimulate the trade)
• market grouping (common trade alliance)
• boycott (exclusion of certain products)

• population density
• urban or rural
• young vs. old
• purchasing power, education

• Crucial factor due to shortage in natural recources.
• differences create international dependencies

• EXPORT - sell domestically to other countries
• LICENSING - legal process allowing use of product, patent & knowledge
• CONTRACT MANUFACTURING - private label manufacturing by a foreign Co.
• JOINT VENTURE - domestic Co buys or joins a foreign Co to create a new entity
• DIRECT INVESTMENT - active ownership of a foregin Co or a manufact. facility

• Standardization - production of uniform products that can be sold the same way all over the world
• Adaptation - implement some changes

                         same product          change product

• same                   one                           product
• message           product                     adaptation
• message

• change              product                      product
• message         adaptation                   innovation