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5. GLOBAL MARKETING
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What is global marketing?
Individuals and organizations having a global vision to effectively market goods/services across national boundaries.
Importance of global marketing
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
Downside of globalization
job outsourcing
loss of skill, technology & manufacturing facilities
Benefits of globalization
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
Components of external environment facing global marketers
culture
economin & technological development
political & legal considerations
demographic makeup
natural resources
Culture is...
...
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
Economic factors for globalization are?
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 factors
political structure
government regulations
resurgin nationalism (some foreign-owned capital becomes taken by the government)
Legal factors in globalization?
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)
Demographic makeup and globalization
population density
urban or rural
young vs. old
purchasing power, education
Natural resources
Crucial factor due to shortage in natural recources.
differences create international dependencies
Methods of entry (5) are?
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
Global marketing standardization vs. adaptation
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
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Author
romana
ID
171560
Card Set
5. GLOBAL MARKETING
Description
globalization
Updated
2012-09-21T01:27:48Z
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