Marketing 5

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Marketing 5
2012-02-12 18:10:43

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  1. Global Marketing
    marketing that targets markets throughout the world
  2. Global Vision
    process of recognizing and reacting to international marketing opportunities
  3. International Marketing vs. Domestic Marketing
    • 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
  4. Globalization
    • 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
  5. External Environment Facing Global Marketers (5)
    • 1) culture
    • 2) economic+technological development
    • 3) policitcal structure
    • 4) demographic makeup
    • 5) natural resources
  6. Culture
    system of values and norms shared among a group of people, and when taken together, constitute a design for living
  7. Cross-Cultural Misunderstanding (4)
    • 1) spoken language
    • 2) unspoken language
    • 3) Color
    • 4) interesting cultural differences
  8. Economic and Technological Development
    developed country- complex, sophisticated industries

    less developed country- basic industries
  9. Political Structure
    no private ownership, minimal individual freedom OR little central govt. maximum personal freedom
  10. tariff
    tax levied on goods entering a country
  11. quota
    limit on the amount of a product entering a country
  12. boycott
    exclusion of products from a country
  13. exchange control
    foreign exchange must be sold to a control agency
  14. market grouping
    common trade alliance
  15. trade agreement
    an agreement to stimulate international trade
  16. Examples of trade agreements (4)
    • 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
  17. Declining Trade Barriers
    • -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.
  18. Demographic Makeup (4)
    • marketing considerations:
    • 1) population density
    • 2) urban or rural
    • 3) personal income
    • 4) age
  19. Why Go Global? (6)
    • 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
  20. Global Marketing Mix
    • -product
    • -place
    • -promotion
    • -pricing: dumping, exchange rate, countertrade
  21. export
    sell domestically produced products to buyers in other countries
  22. licensing
    legal process allowing use of manufacturing/patents/knowledge
  23. contract manufacturing
    private label manufacturing by a foreign country
  24. joint venture
    domestic firm buys/joins a foreign company to create a new entity
  25. direct investment
    active ownership of a foreign company/manufacturing facility