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2005PrenticeHall,-,1-1,Chapter1IntroductiontoGlobalMarketing,PowerPointbyKristopherBlanchardNorthCentralUniversity,2005PrenticeHall,-,1-2,1.Marketingandglobalmarketing,MarketingProcessofplanningandexecutingtheconceptionpricing,promotionanddistributionofideas,goodsandservicestocreateexchangesthatsatisfyindividualandorganizationgoals,GlobalMarketingFocusesresourcesonglobalmarketopportunitiesandthreats;themaindifferenceisthescopeofactivitiesbecauseglobalmarketingoccursinmarketsoutsidetheorganizationshomecountry,2005PrenticeHall,-,1-3,ReasonsforGlobalMarketing,GrowthAccesstonewmarketsAccesstoresourcesSurvivalAgainstcompetitorswithlowercosts(duetoincreasedaccesstoresources),2005PrenticeHall,-,1-4,2.OverviewofMarketing,OneofthefunctionalareasofabusinessthatisdistinctfromfinanceandoperationsPrimarytoolsinmarketingareproduct,price,place,andpromotionMarketingisanactivitythatcomprisesthefirmsvaluechainCurrenttrendistoinvolvemarketersinallvalue-relateddecisionscalledboundarylessmarketing,2005PrenticeHall,-,1-5,BoundarylessMarketing,GoalistoeliminatecommunicationbarriersbetweenmarketingandotherbusinessfunctionalareasProperlyimplementeditensuresthatamarketorientationpermeatesallvaluecreatingactivities,2005PrenticeHall,-,1-6,GoalofMarketing,SurpassthecompetitionatthetaskofcreatingperceivedvalueforcustomersTheGuidelineisthevalueequationValue=Benefits/Price(Money,Time,Effort,Etc.),2005PrenticeHall,-,1-7,ValueChainandBoundarylessMarketing,2005PrenticeHall,-,1-8,CompetitiveAdvantage,SuccessovercompetitioninindustryatvaluecreationAchievedbyintegratingandleveraging杠杆作用operationsonaworldwidescale,2005PrenticeHall,-,1-9,Globalization,Globalizationistheinexorableintegrationofmarkets,nation-states,andtechnologiestoadegreeneverwitnessedbefore-inawaythatisenablingindividuals,corporations,andnation-statestoreacharoundtheworldfarther,faster,deeperandcheaperthaneverbefore,andinawaythatisenablingtheworldtoreachintoindividuals,corporations,andnation-statesfarther,faster,deeper,andcheaperthaneverbefore,2005PrenticeHall,-,1-10,GlobalIndustries,Aglobalindustryisoneinwhichcompetitiveadvantagecanbeachievedbyintegratingandleveragingoperationsonaworldwidescale.Indicatorsofglobalization:Ratioofcross-bordertradetototalworldwideproductionRatioofcross-borderinvestmenttototalcapitalinvestmentProportionofindustryrevenuegeneratedbycompaniesthatcompeteinkeyworldregions,2005PrenticeHall,-,1-11,CompetitiveAdvantage,GlobalizationandGlobalIndustries,FocusConcentrationandattentiononcorebusinessandcompetenceNestleisfocused:Wearefoodandbeverages.Wearenotrunningbicycleshops.Eveninfoodwearenotinallfields.Therearecertainareaswedonottouch.WehavenosoftdrinksbecauseIhavesaidwewilleitherbuyCoca-Colaorweleaveitalone.Thisisfocus.,2005PrenticeHall,-,1-12,3.Globalmarketing:whatitisandwhatitisnt,Animportanttaskinglobalmarketingislearningtorecognizetheextenttowhichmarketingplansandprogramscaneextendedworldwide,aswellastheextenttowhichtheymustbeadapted.Globalmarketingstrategy(GMS)addressestwofundamentalissues:globalmarketparticipation,standardizationversusadaptation.,2005PrenticeHall,-,1-13,GMShasthreeadditionaldimensionsthatpertaintomarketingmanagement.Concentrationofmarketingactivitiesistheextenttowhichactivitiesrelatedtothemarketingmixareperformedinoneorafewcountrylocations.Coordinationofmarketingactivitiesreferstotheextenttowhichmarketingactivitiesrelatedtothemarketingmixareplannedandexecutedinterdependentlyaroundtheglobe.Integrationofcompetitivemovesistheextenttowhichafirmscompetitivemarketingtacticsindifferentpartsoftheworldareinterdependent.,2005PrenticeHall,-,1-14,StandardizationversusAdaptation,Globalization(Standardization)DevelopingstandardizedproductsmarketedworldwidewithastandardizedmarketingmixEssenceofmassmarketingGloballocalization(Adaptation)MixingstandardizationandcustomizationinawaythatminimizescostswhilemaximizingsatisfactionEssenceofsegmentationThinkglobally,actlocally,2005PrenticeHall,-,1-15,StandardizationversusAdaptation,2005PrenticeHall,-,1-16,TheImportanceofGlobalMarketing,ForUS-basedcompanies,75%ofsalespotentialisoutsidetheUS.About90%ofCoca-ColasoperatingincomeisgeneratedoutsidetheUS.ForJapanesecompanies,85%ofpotentialisoutsideJapan.ForGermanandEUcompanies,94%ofpotentialisoutsideGermany.,2005PrenticeHall,-,1-17,4.Managementorientations,Ethnocentricorientation:Homecountryissuperior,SeessimilaritiesinforeignCountries.,Regiocentricorientation:Seessimilaritiesanddifferencesinaworldregion;isethnocentricorpolycentricinitsviewoftherestoftheworld,Geocentricorientation:worldview,seessimilaritiesanddifferencesinhomeandhostcountries.,Polycentricorientation:Eachhostcountryisunique,SeesdifferencesinforeignCountries.,2005PrenticeHall,-,1-18,EthnocentricorientationApersonwhoassumesthathisorherhomecountryissuperiortotherestoftheworldissaidtohaveanethnocentricorientation.Companypersonnelwithanethnocentricorientationseeonlysimilaritiesinmarkets,andassumethatproductsandpracticesthatsucceedinthehomecountrywillbesuccessfulanywhere.Suchcompaniesarecalleddomesticcompanies.Ethnocentriccompaniesthatconductbusinessoutsidethehomecountrycanbedescribedasinternationalcompanies;theyadheretothenotionthattheproductsthatsucceedinthehomecountryaresuperior.Thispointofviewleadstoastandardizedorextensionapproachtomarketing.,2005PrenticeHall,-,1-19,PolycentricorientationThetermpolycentricdescribesmanagementsbelieforassumptionthateachcountryinwhichacompanydoesbusinessisunique.Thispointofviewleadstoalocalizedoradaptationapproachthatassumesproductsmustbeadaptedinresponsetodifferentmarketconditions.multinationalcompany.,2005PrenticeHall,-,1-20,RegiocentricorientationandGeocentricorientationInacompanywitharegiocentricorientationaregionbecomestherelevantgeographicunit;managementsgoalistodevelopanintegratedregionalstrategy.Acompanywithageocentricorientationviewstheentireworldasapotentialmarketandstrivestodevelopintegratedworldmarketstrategies.AglobalortransnationalcompanyTheregiocentricandgeocentriccompaniesareintegratedonaregionalandglobalscale.,2005PrenticeHall,-,1-21,AglobalortransnationalcompanyAglobalcompanycanbedescribedasonethatpursueseitherastrategyofservingworldmarketsfromasinglecountry,orthatsourcesgloballyforthepurposesoffocusingonselectcountrymarkets.Inaddition,globalcompaniestendtoretaintheirassociationwithaparticularheadquarterscountry.Transnationalcompaniesbothserveglobalmarketsandsourceglobally;inaddition,thereisoftenablurringofnationalidentity.,2005PrenticeHall,-,1-22,c)Atglobalandtransnationalcompanies,managementusesacombinationofstandardizedandlocalizedelementsinthemarketingprogram.Inaddition,globaloperationsareintegratedandcoordinated.d)Onewaytoassesstheextenttowhichacompanyistransnationalistocomputeanaverageofthreefigures:salesoutsidethehomecountrytototalsales;assetsoutsidethehomecountrytototalassets;andemployeesoutsidethehomecountrytototalemployees.,2005PrenticeHall,-,1-23,5.Forcesaffectingglobalintegrationandglobalmarketing,Drivingforces,GlobalIntegrationAndGlobalmarketing,Restrainingforces,2005PrenticeHall,-,1-24,Drivingforces,Regionaleconomicagreements:NAFTA,EU,etc.Convergingmarketneedsandwantsadtheinformationrevolution:thecommonelementsinhumannatureprovideanunderlyingbasisfortheopportunitytocreateandserveglobalmarkets.TransportationandcommunicationimprovementsProductdevelopmentcostsQuality,2005PrenticeHall,-,1-25,WorldeconomictrendsEconomicgrowthinkeydevelopingcountrieshascreatedmarketopportunitiesthatprovideamajorincentiveforcompaniestoexpandglobally.Economicgrowthhasreducedresistancethatmightotherwisehavedevelopedinresponsetotheentryofforeignfirmsintodomesticeconomies.Theworldwidemovementtowardfreemarkets,deregulation,andprivatization,2005PrenticeHall,-,1-26,Leverage:leveragemeanssometypeofadvantagethatacompanyenjoysbyvirtueofthefactthatithasexperienceinmorethanonecountry.ExperiencetransfersScaleeconomiesResourceutilizationGlobalstrategy:aglobalstrategyisbuiltonaninformationsystemthatscanstheworldbusinessenvironmenttoidentifyopportunities,trends,threats,andresources.Butaglobalstrategyisnoguaranteeofongoingorganizationalsuccess.,2005PrenticeHall,-,1-27,Restrainingforces,ThemarketdifferencesManagementmyopiaandorganizationalcultureNationalcontrolsOppositiontoglobalization,-,1-28,Chapter2TheGlobalEconomicEnvironment,PowerPointbyKristopherBlanchardNorthCentralUniversity,-,1-29,IntroductiontoChapter,MarketdefinitionPeopleororganizationswithneedsandwants;bothhavethewillingnessandabilitytobuyorsellTheglobaleconomicenvironmentplaysalargeroleinthedevelopmentofnewmarketsfororganizations,-,1-30,TheWorldEconomyAnOverview,Thenewrealities:CapitalmovementshavereplacedtradeasthedrivingforceoftheworldeconomyProductionhasbecomeuncoupledfromemploymentTheworldeconomy,notindividualcountries,isthedominatingfactor,-,1-31,TheWorldEconomyAnOverview,Thenewrealitiescontinued:75-yearstrugglebetweencapitalismandsocialismhasalmostendedE-Commercediminishestheimportanceofnationalbarriersandforcescompaniestore-evaluatebusinessmodels,-,1-32,EconomicSystems,4maintypesofeconomicsystemsMarketCapitalismCentrallyplannedsocialismCentrallyplannedcapitalismMarketsocialism,-,1-33,EconomicSystems,MarketCommand,MarketCapitalism,CentrallyPlannedCapitalism,MarketSocialism,CentrallyPlannedSocialism,PrivateResourceOwnershipState,ResourceAllocation,-,1-34,EconomicFreedom,RankingsofeconomicfreedomamongcountriesRangesfrom“free”to“repressed”Variablesconsideredincludesuchthingsas:TradepolicyTaxationpolicyBankingpolicyWageandpricecontrolsPropertyrights,-,1-35,EconomicFreedom,FreeHongKongSingaporeIrelandNewZealandUnitedStatesUnitedKingdomNetherlandsAustraliaSwitzerland,RepressedBosniaVietnamLaosIranCubaIraqLibyaNorthKoreaCongo,-,1-36,StagesofMarketDevelopment,WorldBankhasdefinedfourcategoriesofdevelopmentHigh-incomecountriesUpper-middleincomecountriesLower-middleincomecountriesLow-incomecountriesBaseduponGrossNationalProduct(GNP),-,1-37,StagesofMarketDevelopment,-,2-38,BigEmergingMarkets,ChinaIndiaIndonesiaSouthKoreaBrazilMexicoArgentinaSouthAfricaPolandTurkey,-,1-39,MarketingOpportunitiesinLDCs,CharacterizedbyashortageofgoodsandservicesLong-termopportunitiesmustbenurturedinthesecountriesLookbeyondpercapitaGNPConsidertheLDCscollectivelyratherthanindividuallyConsiderfirstmoveradvantageSetrealisticDeadlines,-,1-40,InfluencingtheWorldEconomy,GroupofSeven(G-7)OrganizationforEconomicCooperationandDevelopmentTheTriad,-,1-41,MarketingImplicationsoftheStagesofDevelopment,ProductSaturationLevelsThepercentageofpotentialbuyersorhouseholdsthatownaparticularproductGraphshowsthatinIndiaaprivatephoneisownedby1%ofthepopulation,-,1-42,BalanceofPayments,RecordofalleconomictransactionsbetweentheresidentsofacountryandtherestoftheworldCurrentaccountrecordofallrecurringtradeinmerchandiseandservices,privategifts,andpublicaidbetweencountriestradedeficittradesurplusCapitalaccountrecordofalllong-termdirectinvestment,portfolioinvestment,andcapitalflows,-,2-43,BalanceofPayments,U.S.balanceofpaymentsstatisticsfortheperiod1999to2003,-,1-44,OverviewofInternationalFinance,ForeignexchangemakesitpossibletodobusinessacrosstheboundaryofanationalcurrencyCurrencyofvariouscountriesaretradedforbothimmediate(spot)andfuture(forward)deliveryIncreasestherisktoorganizationsthatareinvolvedinglobalmarketing,-,1-45,ManagedDirtyFloat?,DefinitionsFloatreferstothesystemoffluctuatingexchangeratesManagedreferstothespecificuseoffiscalandmonetarypolicybygovernmentstoinfluenceexchangeratesDevaluationisareductioninthevalueofthelocalcurrencyagainstothercurrencies,-,1-46,ManagedDirtyFloat?,DefinitionsDirtyreferstothefactthatcentralbanks,aswellascurrencytraders,buyandsellcurrencytoinfluenceexchangerates,-,1-47,ForeignExchangeMarketDynamics,SupplyandDemandinteractionCountrysellsmoregoods/servicesthanitbuysThereisagreaterdemandforthecurrencyThecurrencywillappreciateinvalue,-,2-48,PurchasingPowerParity(PPP)TheBigMacIndex,Isacertaincurrencyover/under-valuedcomparedtoanother?AssumptionisthattheBigMacinanycountryshouldequalthepriceoftheBigMacintheUSafterbeingconvertedtoadollarprice,-,1-49,ManagingEconomicExposure,EconomicexposurereferstotheimpactofcurrencyfluctuationsonthepresentvalueofthecompanysfuturecashflowsTransactionexposureisfromsales/purchasesRealoperatingexposureariseswhencurrencyfluctuations,togetherwithpricechanges,alteracompanysfuturerevenuesandcosts,-,1-50,ManagingEconomicExposure,NumeroustechniquesandstrategieshavebeendevelopedtoreduceexchangerateriskHedginginvolvesbalancingtheriskoflossinonecurrencywithacorrespondinggaininanothercurrencyForwardContractssetthepriceoftheexchangerateatsomepointinthefuturetoeliminatesomerisk,-,1-51,LookingAhead,Chapter3TheGlobalTradeEnvironment:RegionalMarketCharacteristicsandPreferentialTradeAgreements,-,1-52,MarketCapitalism,IndividualsandfirmsallocateresourcesProductionresourcesareprivatelyownedDrivenbyconsumersGovernmentshouldpromotecompetitionamongfirmsandensureconsumerprotection,Return,-,1-53,CentrallyPlannedSocialism,OppositeofmarketcapitalismStateholdsbroadpowerstoservethepublicinterest;decideswhatgoodsandservicesareproducedandinwhatquantitiesConsumerscanspendonwhatisavailableGovernmentownsentireindustriesDemandtypicallyexceedssupplyLittlerelianceonproductdifferentiation,advertising,pricingstrategy,Return,-,1-54,Centrally-PlannedCapitalism,EconomicsysteminwhichcommandresourceallocationisusedextensivelyinanenvironmentofprivateresourceownershipExamples:SwedenJapan,Return,-,1-55,MarketSocialism,EconomicsysteminwhichmarketallocationpoliciesarepermittedwithinanoverallenvironmentofstateownershipExamples:ChinaIndia,Return,-,1-56,Low-IncomeCountries,GNPpercapitaof$785orlessCharacteristicsLimitedindustrializationHighpercentageofpopulationinvolvedinfarmingHighbirthratesLowliteracyratesHeavyrelianceonforeignaidPoliticalinstabilityandunrestOfthese,onlyChinaandIndiaareBEMs,Return,-,1-57,Lower-Middle-IncomeCountries,GNPpercapitabetween$786and$3,125Sometimescalledless-developedcountries(LDCs)CharacteristicsEarlystagesofindustrializationCheaplabormarketsFactoriessupplyitemssuchasclothing,tires,buildingmaterials,andpackagedfoods3BEMs:Poland,Turkey,Indonesia,Return,-,1-58,Upper-Middle-IncomeCountries,GNPpercapitabetween$3,126to$9,655CharacteristicsRapidlyindustrializingRisingwagesHighratesofliteracyandadvancededucationLowerwagecoststhanadvancedcountriesSometimescallednewlyindustrializingeconomies(NIEs)3BEMs:Argentina,Brazil,Mexico,SouthAfrica,Return,-,1-59,High-IncomeCountries,GNPpercapitaabove$9,656Sometimesreferredtoaspost-industrialcountriesCharacteristicsImportanceofservicesector,informationprocessingandexchange,andintellectualtechnologyKnowledgeaskeystrategicresourceOrientationtowardthefuture,Return,-,1-60,GroupofSeven(G-7),LeadersfromthesehighincomecountriesworktoestablishprosperityandensuremonetarystabilityUnitedStatesJapanGermanyFranceBritainCanadaItaly,Return,-,1-61,OrganizationforEconomicCooperationandDevelopment,30nationseachwithmarket-allocationeconomicsystemsMission:,Return,-,1-62,TheTriad,DominanteconomiccentersoftheworldJapanWesternEuropeUnitedStatesExpandedTriadPacificRegionNorthAmericaEuropeanUnion,Return,2005PrenticeHall,-,1-63,Chapter3TheGlobalTradeEnvironment:RegionalMarketCharacteristicsandPreferentialTradeAgreements,PowerPointbyKristopherBlanchardNorthCentralUniversity,2005PrenticeHall,-,1-64,GATT,GeneralAgreementonTariffsandTradetreatyamongnationstopromotetradeamongmembersHandledtradedisputesLackedenforcementpowerReplacedbyWorldTradeOrganizationin1995,2005PrenticeHall,-,1-65,TheWorldTradeOrganization,Providesforumfortrade-relatednegotiationsamong141membersbasedinGenevaservesasdisputemediatorsempoweredwithabilitytoenforcerulingsCountriesfoundinviolationofWTOrulesareexpectedtochangepoliciesorelsefacesanctions,2005PrenticeHall,-,1-66,RecentWTOCases,2005PrenticeHall,-,1-67,PreferentialTradeAgreements,ManycountriesseektolowerbarrierstotradewithintheirregionsFreeTradeAreasCustomsUnionsCommonMarketEconomicUnions,2005PrenticeHall,-,1-68,NorthAmerica,Canada,UnitedStates,MexicoNAFTAestablishedfreetradeareaallthreenationspledgetopromoteeconomicgrowththroughtariffreductionsandexpandedtradeandinvestmentnocommonexternaltariffsrestrictionsonlaborandothermovementsremain,2005PrenticeHall,-,1-69,NAFTAIncomeandPopulation,2005PrenticeHall,-,1-70,LatinAmerica,Caribbean,Central,andSouthAmerica4preferentialtradeagreementsinplaceCentralAmericanIntegrationSystemAndeanCommunityCommonMarketoftheSouthCaribbeanCommunityandCommonMarket,-,2-71,AndeanCommunity,Bolivia,Colombia,Ecuador,Peru,VenezuelaCustomsunionAgreementabolishedforeignexchange,financialandfiscalincentives,andexportsubsidiesCommonexternaltariffswereestablished,2005PrenticeHall,-,1-72,CommonMarketoftheSouth(Mercosur),Argentina,Brazil,Paraguay,UruguayCustomsunion,seekstobecomecommonmarketinternaltariffseliminatedcommonexternaltariffsupto20%establishedintime,factorsofproductionwillmovefreelythroughmembercountriesChileandBolivia-associatemembersparticipationinfreetradeareabutnotcustomsunion,2005PrenticeHall,-,1-73,CaribbeanCommunityandCommonMarket(CARICOM),Antigua,Barbuda,Bahamas,Barbados,Belize,Dominica,Grenada,Guyana,Haiti,Jamaica,Montserrat,St.Kitts,St.Lucia,St.Vincent,theGrenadines,Trinidad,TobagoReplacedCaribbeanFreeTradeAssociationAgreedtoestablisheconomicunionwithcommoncurrencyin1998,2005PrenticeHall,-,1-74,Asia-Pacific,Includes23countriesand56%ofworldpopulationJapanNewlyindustrializingeconomiesAssociationofSoutheastAsianNations,2005PrenticeHall,-,1-75,Japan,Generates14%ofworldsGNPKeyfactorspopulationdensitygeographicisolationRecenteconomicstrugglesdespitestatusashighincomecountryStrongculturerequiresflexibilityandcommitmentfromglobalmarketers,2005PrenticeHall,-,1-76,NewlyIndustrializingEconomies(NIEs),Strongeconomicgrowthinrecentdecadesforeigninvestmentexport-drivenindustrialdevelopmentSometimescalledthe4TigersofAsiaSouthKoreaTaiwanSingaporeHongKong,2005PrenticeHall,-,1-77,AssociationofSoutheastAsianNations(ASEAN),Brunei,Indonesia,Mal

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