Marketing 5

marketing that targets markets throughout the world

process of recognizing and reacting to international marketing opportunities

• 1)countries are different
• 2)problems are more complex
• 3)must work within govt. regulations
• 4)currency conversion presents unique problems
• 196 countries in world

• shift toward a more integrated and interdependent world economy.
• EX: competition between coke and pepsi is a global market.
• global production refers to shoes being made in U.S. or not

• 1) culture
• 2) economic+technological development
• 3) policitcal structure
• 4) demographic makeup
• 5) natural resources

system of values and norms shared among a group of people, and when taken together, constitute a design for living

• 1) spoken language
• 2) unspoken language
• 3) Color
• 4) interesting cultural differences

developed country- complex, sophisticated industries

less developed country- basic industries

no private ownership, minimal individual freedom OR little central govt. maximum personal freedom

tax levied on goods entering a country

limit on the amount of a product entering a country

exclusion of products from a country

foreign exchange must be sold to a control agency

common trade alliance

an agreement to stimulate international trade

• NAFTA- North American Free Trade Agreement
• CAFTA- Central American Free Trade Agreement
• Mercosur- Argentina, Brazil, Chile, Uruguay
• Europen Union- aka common market established WW2, 27 countries

• -General agreement on tariffs and trade. Member states (151) in 8 negotiating 'rounds' worked to lower barriers to the free flow of goods and services
• -in the Uruguay Round, nations agreed to enhanced patent, copyright and trademark protections and established the World Trade Org.

• marketing considerations:
• 1) population density
• 2) urban or rural
• 3) personal income
• 4) age

• 1) earn additional profits
• 2) leverage a unique product or technological advantage
• 3) possess exclusive market info
• 4) saturated domestic markets
• 5) excess capacity
• 6) utilize economies of scale

• -product
• -place
• -promotion
• -pricing: dumping, exchange rate, countertrade

sell domestically produced products to buyers in other countries

legal process allowing use of manufacturing/patents/knowledge

private label manufacturing by a foreign country

domestic firm buys/joins a foreign company to create a new entity

active ownership of a foreign company/manufacturing facility