5. GLOBAL MARKETING
Card Set Information
5. GLOBAL MARKETING
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
on interantional commerce
2. exports represent 13% of U.S. GDP
3. one third of profits comes from int. trade
for over 10 mill. Americans
Downside of globalization
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
of inefficient and protected domestic producers
higher labor standards
faster growth, reduces poverty
Components of external environment facing global marketers
economin & technological development
political & legal considerations
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?
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.
resurgin nationalism (some foreign-owned capital becomes taken by the government)
Legal factors in globalization?
levied on goods that enter the country)
on amount of goods imported)
trade agreement (an agree. to
stimulate the trade
market grouping (
common trade alliance
of certain products)
Demographic makeup and globalization
urban or rural
young vs. old
purchasing power, education
Crucial factor due to shortage in natural recources.
differences create international dependencies
Methods of entry (5) are?
sell domestically to other countries
- legal process allowing use of product, patent & knowledge
- private label manufacturing by a foreign Co.
- domestic Co buys or joins a foreign Co to create a new entity
- 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