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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 IncomeCountries IndustrializingcountriesPercentageofpeopleinagriculturedroppingsharplyDegreeofurbanizationincreasingHighliteracyRelativelylowwagecosts High IncomeCountries IndustrializedCountriesSustainedeconomicgrowthKnowledge basedServicesectorNewproductsandinnovations IncomeandPPP PurchasingPowerParityRealIncomeStandardofLivingTheconcentrationofincomeRegional nationally andwithinnations Triad US Canada EU andJapanIncomeinequalityindevelopingcountries ImplicationforMarketers ProfitabilityChancesandchallengesMarketing sRoleMarketpotentialevaluation EmergingMarketsEvaluation SocialandCulturalEnvironments DifferencesSimilaritiesMarketers two foldedtask RecognizedifferenceFindsimilarities Culture Cultureincludesbothconsciousandunconsciousvalues ideas attitudes andsymbolsthatshapehumanbehaviorandthataretransmittedfromonegenerationtothenext Cultureislearned notbornwith Culturecanbechanged ImplicationsforGlobalMarkers Food drinkpreferencesKFC Colgate Coco cola GreenGiantFoods andsoysauceColor flower andotherpreferencesWhite green chrysanthemum Corbie dog ConvergingglobalattitudesCulturaluniversalsBeculturallysensitive HighandLow ContextCultures Low context messagesareexplicit wordscarrymostoftheinformationinacommunication ImeanwhatIsay High context muchmoreinformationresidesinthecontextofcommunication includingbackground associations andbasicvaluesofthecommunicationsratherintheverbalmessage GuesswhatIreallymean HighandLowContextCultures CommunicationandNegotiation LanguagebarriersIt sa yes or no Youareinvitedtotakeadvantageofthechambermaid Easeyourbosoms Thiscoffeehascarefullyselectedhighqualitybeansandroastedbyouralltheexperience Theliftisbeingfixedforthenextday Duringthattimeweregretyouwillbeunbearable NonverbalcommunicationVerbalVS Nonverbal SocialBehavior Sneeze belch sharingfoodSaudi Don taskthehostaboutthehealthofhisspouse Don tshowthesolesofyourshoes Don ttouchordeliverwiththelefthand Japan Korea China IndiaVenezuela IndonesiaAfrica Madam or ma am AnalyticalApproachestoCulturalFactors Don tassumeyouknoweverything Don tjudgeothersbythecultureyouarefrom Therearenoperfectculturesinthisworld orthereisnosuchculturesuperiorthananother Trytounderstandthebeliefs values andmotivesofanothercultureBeopen beunderstanding Maslow sHierarchyofNeeds Physiological Safety Social Esteem Self actualization Hofstede sCulturalTypology PowerdistanceIndividualismorCollectivismMasculinityorFemininityUncertaintyavoidance PowerDistance Theextenttowhichthelesspowerfulmembersofasocietyacceptorexpectthatpowertobedistributedunequally HighpowerdistanceLowpowerdistance IndividualismorCollectivism Individualisticculture Eachmemberofsocietyisprimarilyconcernedwithhisorherowninterestandthoseoftheimmediatefamily Collectivistculture Allofsociety smembersareintegratedintocohesivein groups MasculinityofFemininity MasculinityAsocietyinwhichmenareexpectedtobeassertive competitive andconcernedwithmaterialsuccesswhilewomenfulfilltheroleofnurturerandtakecareofthefamilyFemininityAsocietyinwhichthesocialrolesofmenandwomenoverlap withneithergenderexhibitingoverlyambitiousorcompetitivebehavior UncertaintyAvoidance Theextenttowhichthemembersofasocietyareuncomfortablewithunclear ambiguous orunstructuredsituations EnvironmentalSensitivity Theextenttowhichproductsmustbeadaptedtotheculture specificneedsofdifferentnationalmarkets ProductAdaptation High Low EnvironmentalSensitivity Low High IntegratedCircuit Computer Food ImpactonMarketing ConsumerbehaviorCampbellinUSVSinItalyInstantcoffeeinUKVS inSwedenCakeinUSVS inUKPersonalaspectofinternationalbusiness SuggestedSolutions Stake expatriatefailureaverages 75 000 lossofbusiness 2 5billionResearchTrainingincross culturalcompetency Bootcamp Internationalexposure Workshop ThePolitical Legal andRegulatoryEnvironmentsofGlobalMarketing ThePoliticalEnvironment SovereigntyPoliticalriskTaxesDilutionofEquityControlExpropriation Sovereignty Thesupremeandindependentpoliticalauthority ControltheflowofgoodsacrossbordersStageofdevelopmentThepoliticalandeconomicalsystemProtectionism AgriculturePrivatizationdilutesthecommandportionofamixedeconomyGlobalmarketintegrationerodesnationaleconomicsovereignty PoliticalRisk Theriskofachangeingovernmentpolicythatwouldadverselyimpactacompany sabilitytooperateeffectivelyandprofitably HK Argentina Venezuela Taxes DiversegeographicactivitiesofMNCHostcountrytaxavoidanceBilateraltaxtreaties DilutionofEquityControl Controlownershipofforeign ownedcompanies EquitypercentageinlocalprojectsorjointventuresBecomeaninsider Expropriation Governmentalactiontodispossessacompanyorinvestor CompensationNationalization Ownershipofthepropertyorassetsinquestionistransferredtothehostgovernment Confiscation Expropriation Creepingexpropriation limitationsonrepatriationofprofits dividends royalties ortechnicalassistancefeesfromlocalinvestmentsortechnologyarrangements Tariffandnon tariffbarriersIntellectualpropertyrestrictionsRemedies buyinsurance followthelaw InternationalLaw Rulesandprinciplesthatnation statesconsiderbindinguponthemselves Publiclaw internationalcommerciallawCommonlawVScodelaw WhichLawApplies BeexplicitinthecontractTheplaceofthedomicileorprincipalplaceofbusinessofoneofthepartiesTheplacewherethecontractwasenteredTheplaceofperformanceofthecontract IntellectualProperty PatentsandTrademarksRegistrationProtectionCounterfeiting Theunauthorizedcopyingandproductofaproduct Imitation Useofaproductnamethatdiffersslightlyfromawell knownbrandPiracy Theunauthorizedpublicationorreproductionofcopyrightedwork IntellectualPropertyProtection TheParisUnion InternationalConventionfortheProtectionofIndustrialProperty ThePatentCooperationTreatyEuropeanPatentConventionTRIPs TradeRelatedIntellectualPropertyRights Antitrust Tocombatrestrictivebusinesspracticesandtoencouragecompetition Consten scase GrundigRuling Territorialprotectionprovedtobeparticularlydamagingtotherealizationofthecommonmarket IBMandMicrosoftinEurope Licensing Licensingisacontractualagreementinwhichalicensorallowsalicenseetousepatents trademarks tradesecrets technology orotherintangibleassetsinreturnforroyaltypaymentsorotherformsofcompensation Whatassets Atwhatprice Therightto make use or sell Sublicense Exclusiveornonexclusive Creationofcompetitor TradeSecrets Confidentialinformationorknowledgethathascommercialvalue TRIPsrequiressignatorycountriestoprotectagainstacquisition disclosure oruseoftradesecretsinamannercontrarytohonestcommercialpractices BriberyandCorruption AWorld wideproblem Conflictresolution LitigationDifferencesinlanguage legalsystems currencies traditionalbusinesscustomsandpatterns discoveryprocedure andenforcement Complex timeconsuming costly Arbitration InternationalChamberofCommerceTheNewYorkConventionAAAandChinaBeijing sConciliationCenter SwedishArbitrationInstituteInternationalCouncilforCommercialArbitrationUNConferenceonInternationalTradeLaw TheRegulatoryEnvironment GovernmentalandnongovernmentalInternationalEconomicOrganizationsPricecontrol valuationofimportsandexports tradepractices labeling foodanddrugregulations employmentconditions collectivebargaining advertisingcontent competitivepractices etc RegionalEconomicOrganizations WTOEUNAFTA GlobalMarketsandBuyers TrendsofGlobalMarket Marketsinalmosteveryworldregionareexpectedgrowing Thefastestgrowingmarketsarethedevelopingcountries ThefastestgrowingregionsinthedevelopingworldareEastAsiaThefastestgrowingcountryinEastAsiaisChina TheBoom EconomicCooperation PreferentialTradeArrangements InternationaleconomiccooperationFreeTradeArea FTA CustomsUnionCommonMarketEconomicUnionWTOandGATT RegionalTradeAreas FreeTradeArea FTA Agroupofcountriesthathaveagreedtoabolishallinternalbarrierstotradeamongthemselves Certificatesoforigin CustomsUnion Membercountriesagreetotheestablishmentofcommonexternalbarriers TheCentralAmericanCommonMarket SouthernConeCommonMarket Mercosur andtheAndeanGroup CommonMarket RemovalofinternalbarriersEstablishmentofexternalbarriersEliminationofbarrierstoflowoffactors laborandcapital withinthemarketFreemarketsnotonlyforproduct butalsoforservicesandcapital EconomicUnion Creationofaunifiedcentralbank Usageofasinglecurrency astruggle Commonpoliciesonagriculture socialservicesandwelfare regionaldevelopment transportation taxation competitionandmergersPoliticalunity acentralgovernment FromGATTtoWTO GATT Atreatybetween125nationswhoagreedtopromotetradeamongmembers Trade disputessettlement nopowerofenforcementWTO Aforumfortrade relatednegotiations AsystemtosettletradedisputesServiceindustry Market entrybarriersinbanking insurance telecommunications etc RegionalEconomicOrganizations APEC AsianPacificEconomicCooperationNorthAmericanFreeTradeAgreementCentralAmericanCommonMarketAndeanGroupSouthernConeCommonMarketCaribbeanCommunityandCommonMarket RegionalEconomicOrganizations AssociationofSoutheastAsianNationsTheEuropeanUnionCooperationCouncilfortheArabStatesoftheGulfEconomiccommunityofWestAfricanStatesSouthAfricanDevelopmentCoordinationConference GlobalMarketingInformationSystemsandResearch AcquireGlobalInformation SuperabundanceindevelopedcountriesScarcityinLDCandunderdevelopedcountriesWhereandhowtogettherightinformationScanning GlobalMarketingInformationSystem MISdefinedGathering analyzing classifying storing retrieving andreportingEDI ElectronicDataInterchangeBeneton sMISTimely cost efficiently actionable SubjectAgendaforaGlobalMIS MarketsCompetitionForeignexchangePrescriptiveinformationResourceinformationGeneralconditions Markets DemandestimatesConsumerbehaviorProductsChannelsCommunicationmediaavailabilityandcostMarketresponsiveness Competition CorporatestrategiesBusinessstrategiesFunctionalstrategies ForeignExchange BalanceofpaymentsInterestratesAttractivenessofcountrycurrencyExpectationsofanalysts PrescriptiveInformation Laws regulations rulingsconcerningtaxes earnings dividendsinbothhosecountriesandhomecountry ResourceInformation Availabilityofhuman financial information andphysicalresources GeneralConditions Overallreviewofsociocultural political technologicalenvironments ScanningModes SurveillanceInformalinformationgatheringViewingandmonitoringSearchFormalinformationgatheringInvestigationandResearch RuleofThumb CreateanefficientandeffectivescanningsysteminboththehomecountryandthehostcountriesCreateaMISsystemExpandinginformationcoveragetootherregionsoftheworld SourcesofMarketingInformation HumansourcesOverseasexecutivesFriends acquaintances professionalcolleagues consultants andprospectivenewemployeesPersonalrelationshipDirectperceptionSeeing feeling hearing smelling ortastingThedesignofLexus FormalMarketingResearch Project specific systematicgatheringofdatainthesearchscanningmode IdentifytheresearchproblemDeveloparesearchplanCollectdataAnalyzedataInterpretandreportfindings Step1 ProblemDefinition Aproblemwelldefinedishalfsolved Assessthenatureofthemarketopportunity ExistingPotential ExistingMarket Marketsize levelofdemand rateofproductconsumptionSelf evaluation competitiveness productappeal price distribution promotionalcoverageandeffectiveness PotentialMarket LatentmarketUndiscoveredsegment PrimemoveadvantageP GinChinaIncipientmarketMarketboomswhenaparticulareconomic technological political orsocioculturaltrendcontinues Step2 DevelopingaResearchPlan HowmuchcanIgetfromtheinformation HowmuchdoIhavetospendfortheinformation Researchobjective methodologies budgets time Step3 DataCollection PrimarydataObservationSurveyresearchExperimentSecondarydataInternal external ObservationMethod CountingWatchingPeoplemeterVideotapingVirtualreality SurveyMethod InterviewsandQuestionnairesTelephoneInterviewsFocusGroupsMailSurveysFaxSurveysOnlineSurveys TelephoneInterviews SpokeninsteadofvisualQuick inexpensiveResultscouldbebiasedRandomdialingAnsweringmachinesandcallerID PersonalInterviews FacetofaceinteractionDetailedinformationSensitivequestionSlowExpensiveMallintercepts FocusGroups Information gatheringprocedureinmarketingresearchthattypicallybringstogether8to12individualstodiscussagivensubject QuickandinexpensiveParticipantsinteractionModeratorVideotaping one waymirror videoconferencing MailSurveys Low cost AnonymityLowresponserate slowNotsuitablecomplexquestionsWhofilledoutthequestionnaire Biasduetodifferencebetweenrespondentsandnonrespondents FaxSurveys Similartomailsurveys OnlineSurveys WebSurveyEmailSurveyOnlinefocusgroupSpeedy higherresponserates costreduction truthfulanswersProbabilitysample GroupsunderrepresentedontheInternet ownershipofcomputersAuthenticityoftherespondent ExperimentalMethod Scientificinvestigationinwhicharesearchermanipulatesatestgroup s andcomparestheresultswiththoseofacontrolgroupthatdidnotreceivetheexperimentalcontrolsormanipulations TestmarketingExperimentgroupVSControlgroup Sampling ProbabilitysampleNonprobabilitysampleSamplesizeStandardstatisticaltest Step4 DataAnalysis DemandpatternanalysisIncomeelasticitymeasurementsEngels LawMarketestimationbyanalogyComparativeanalysisIntra companycross nationalcomparisonClusteranalysis MarketEstimationbyAnalogy Cross sectionalanalysisXa Ya Xb YbXa demandforproductXincountryaYa fa

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