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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
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
- 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
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 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
- 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 productmessage product adaptationmessage
- change product productmessage adaptation innovation