GlobalMarketing Spring2003 SomeAbouts AboutmeAboutthiscourseAbouttheprojectAbouttheexaminationAboutgrading TextStructure IntroductiontoglobalmarketingTheglobalmarketingenvironmentGlobalmarketopportunitiesGlobalmarketingstrategyGlobalmarketingprogramGlobalmarketingmanagement ListofQuestions Whatisglobalmarketing Dowehavetogoglobal Why Whereshallwego Whatshallweknowbeforeplungingourselvesintothestormingsea Howcanwesurviveandthriveinaforeignmarket GlobalMarketing Introduction WhatisGlobalMarketing Whatismarketing Theprocessofplanningandexecutingtheconception pricing promotion anddistributionofideas goods services organizations andeventstocreateandmaintainrelationshipsthatwillsatisfyindividualandorganizationalobjectives TheThreePrinciplesofMarketing CustomerValueValueEquation V B PDifferentialAdvantageFocus Whatisglobalmarketing Practicingmarketingintheglobalenvironment Anorganizationthatengagesinglobalmarketingfocusesitsresourcesonglobalmarketopportunitiesandthreats Globalization AnopeneconomicsystemNon discriminationGlobalbrandsGlobalstructures Exports shareofworldproduction Annual GrowthoftradeandGDP1959 96 GDP GDP Effectsofglobalizationonbusiness CheapoffshoreproductionReducedtransportcostsVirtualcommunicationStandardizationoflogisticsGlobalmarketing Export ImportByRegions2002 01 10 CorporateGlobalization China sCase WalmartWorldWomenBasketBallGamesHaierinUSATsingdaoBeer GlobalMarketingVSDomesticMarketing Moredifficult language law culture tradeandnon tradebarriers marketresearch andcommunication Morecomplicated currency measuresandweights customs monetaryexchange transportation insurance andcounter claimMorerisky credibility currencyexchange politicalrisk transportation andpricingMoreopportunitiesandmoreprofitable hopefully Shouldwegoglobal InternalanalysisResources managerialmindset strengths weaknesses etc ExternalanalysisCompetition opportunities threats benefits risks etc CostVSIncome ManagementOrientation Management sassumptionsorbeliefs bothconsciousandunconscious aboutthenatureoftheworldEthnocentricPolycentricRegiocentricGeocentric Ethnocentric Homecountryissuperior DomesticCompany Noopportunitiesoutsidethehomecountry InternationalCompanyProductsandpracticesthatsucceedinthehomecountrywillbesuccessfulanywhere ForeignoperationsaresecondaryorsubordinateNissan Polycentric Eachcountryisunique MultinationalCompany Eachsubsidiaryshoulddevelopitsownbusinessandmarketingstrategiesaccordingtothespecificsituationinthatcountry Problem Cost control headquarteroutofgame Regiocentric Geocentric Regiocentric Eachregionisuniqueandanintegratedregionalstrategyistobedevelopedtoservethatregion Geocentric Theentireworldisapotentialmarketandintegratedworldmarketstrategiesshouldbedeveloped Globalortransnationalcompany GlobalLocalization Thinkglobally actlocally PhilipsVSMatsushita PhilipsElectronicsPolycentric 7modelsofTVbasedon4chassis VarietyMatsushitaGeocentric globalstrategy 2modelsofTVbasedonasinglechassis lowprice DrivingandRestrainingForcesAffectingGlobalIntegrationandGlobalMarketing DrivingForces TechnologyInternet SatelliteDish GlobeSpanningTVRegionalEconomicAgreementsNAFTA EU ASEAN GCC APECMarketNeedsandWantsConverging GlobalBrand TransportationandCommunicationImprovementsJetPlane LargeCargoShip email fax videoconferencing costdeduction DrivingForcesCont ProductdevelopmentcostsQualityWorldEconomicTrendsMoreopportunitiesLessresistanceWorld widederegulationandprivatization DrivingForcesCont LeverageExperiencetransfersScaleeconomiesResourceutilizationGlobalstrategyTheGlobal TransnationalCorporation RestrainingForces ManagementMyopiaOrganizationCultureIntegrateglobalvisionandperspectivewithlocalmarketinitiativeandinputMutualrespectNationalcontrolsandbarriersTariffbarriersandnon tariffbarriers TheGlobalEconomicEnvironment ChangesinTheWorldEconomy EmergenceofglobalmarketsEconomicintegrationGlobalcompanies globalbrandsCapitalmovementsfarexceedthevolumeofglobalmerchandiseandservicestrade 4trillionVS LondonEurodollarMarket 100trillion VS Foreignexchange 250trillion ChangesinTheWorldEconomy ProductivityVS EmploymentApplicationofnewtechnologiesIncreaseinproductionefficiencyPlantemigrationInternalreforms ChangesinTheWorldEconomy WorldeconomybecomesthedominanteconomicunitTheendofthecoldwarCollapseofUSSR ISC E EuropeanChina Vietnam Cuba NorthKorea EconomicSystems MarketAllocationMarketeconomyRoleofthestateCommandAllocationPlannedeconomyRoleofthestateMixedSystemWhichplaystheleadingrole StagesofMarketDevelopmentBasedonGNPPerCapita Lower IncomeCountries 2000Upper Middle IncomeCountries 3036 9386High IncomeCountries 9386 Low IncomeCountries Preindustrialcountries lessthan 766Limitedindustrialization highpercentageofpopulationinagricultureandfarmingHighbirthratesLowliteracyratesHeavyrelianceonforeignaidPoliticalinstabilityandunrestAfrica southofSahara Lower Middle IncomeCountries Lessdevelopedcountries LDC EarlystageofindustrializationConsumermarketsexpandingLowlaborcostLabor intensiveproductsmanufacturing Upper Middle IncomeCountri