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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%GrowthoftradeandGDP195996,GDP,GDP,Effectsofglobalizationonbusiness,CheapoffshoreproductionReducedtransportcostsVirtualcommunicationStandardizationoflogisticsGlobalmarketing,ExportMorecomplicated: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,Managementsassumptionsorbeliefs-bothconsciousandunconscious-aboutthenatureoftheworldEthnocentricPolycentricRegiocentricGeocentric,Ethnocentric,Homecountryissuperior.DomesticCompany:Noopportunitiesoutsidethehomecountry;InternationalCompanyProductsandpracticesthatsucceedinthehomecountrywillbesuccessfulanywhere;ForeignoperationsaresecondaryorsubordinateNissan,Polycentric,Eachcountryisunique.MultinationalCompany:Eachsubsidiaryshoulddevelopitsownbusinessandmarketingstrategiesaccordingtothespecificsituationinthatcountry.Problem:Cost,control,headquarteroutofgame,RegiocentricUsageofasinglecurrency-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:ElectronicDataInterchangeBenetonsMISTimely,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.PrimemoveadvantagePProfit:0.54billion.Changhong:unitsale7,500,000Toshiba:unitsale500,000Profit:equal,HighTechPositioning,BasedontechnologicalfeaturesComputers,videoandstereoequipments,automobilesTechnicalproductsSpecial-interestproductsProductsthatdemonstratewell,High-TouchPositioning,Lessemphasisonspecializedinformation,moreonimageProductsthatsolveacommonproblemGlobalvillageproductsGlobalbrandsProductsthatuseuniversalthemesMaterialism,heroism,recreation,procreation,Sourcing:ExportingandImporting,ExportSellingorExportMarketing,ExportsellingDoesnotinvolvetailoringthemarketingmixtosuittherequirementsofglobalmarkets,only“place”ischangedExportmarketingTargetsthecustomerinthecontextofthetotalmarketenvironment.,ExportMarketing,AnunderstandingofthetargetmarketenvironmentTheuseofmarketingresearchandtheidentificationofmarketpotentialDecisionsconcerningwitheveryelementsofthemarketingmix,BuyChinese,NationalismCustomervalueHarleyDavidson,RolesofGlobalMarketingStrategy,ConfigurationofmarketingCoordinationofmarketingactivitiesacrosscountriesTappingopportunitiesinproductdevelopmentandRWFOE(whollyforeignownedenterprise)AcquisitionVS.directexpansion,ExpansionStrategies,Concentration,Diversification,Concentration,Diversification,Market,Country,AlternativeStrategies,StagesofdevelopmentDomesticInternationalMultinationalGlobalTransnational,CompetitiveAnalysisRecruitingandtrainingdistributors;Evaluation,negotiation,andsigningcontracts;Terminaldesignanddevelopment;Promotion,salesassistance,terminalmaintenance;Management,training,adjustment,reward,andimprovement,Selection,HomecountrystradedepartmentHomecountrysembassyorconsulateinthehostcountry,BusinessCounselorLocalchamberofcommerceorlocaltradeorganizationsLocaldistributorcommitment,Selection,Networkresource;coverage,depth;Controloverprice,assortmentTerminalandsalesforcemanagement;Credibility;paymentreliability;Servicecapability;Financialresources;WarehousingandtransportationCommitmenttotheproductisthekey.,TermsandResponsibilities,PricepolicyPricelist,scheduleofdiscounts,allowancesConditionsofsalesPaymentterms,producerguarantees,DistributorsterritorialrightsPerformanceandcancellationMutualservicesandresponsibilities,DistributorEvaluation,SalesvolumeSalesincreasespeedPercentageofproductsalesofthetotaldistributorsales;SellingcostagainstsalesInventorylevelNumberofproductlinescarriedTerminaldisplayandpriceexecutionServiceprovidedtodownstreamdistributorsandcustomers,MotivatingChannelMembers,CoercivepowerRewardpowerLegitimatepowerExpertpowerReferentpower,ProducerDistributorRelationships,EnemiesCustomersorclientsPartners,ConflictCompetitionCooperation,TrendsInGlobalDistribution,FlattenedchannelInvolveasfewintermediariesaspossibleShortchannelpreferredChannelpowermovingfromproducerstoretailers;Boomingofsuper-largeretailchainsanddisappearanceofsmallstoresApplicationofhigh-techinphysicaldistributionofgoodsorservices,GlobalPromotion,Promotion,Functionofinforming,persuading,andinfluencingtheconsumerspurchasedecision.,ObjectivesofPromotion,Provideinformationtoconsumersandothers;Increasedemand;PrimarydemandSelectivedemandDifferentiateaproduct;Accentuateaproductsvalue;Buildupbrandequity,ThePromotionalMix,Blendofpersonalsellingandnonpersonalsellingdesignedtoachievepromotionalobjectives.Personalselling:Interpersonalpromotionalprocessinvolvingasellersperson-to-personpresentationtoaprospectivebuyer.Salespresentation,salesmeeting,samples,fairsandtradeshowsNonpersonalselling:Advertising,salespromotion,directmarketing,andpublicrelations,IMCIntegratedMarketingCommunication,Transmissionfromasendertoareceiverofamessagedealingwiththebuyer-sellerrelationship.IMC:IntegratedMarketingCommunicationCoordinationofallpromotionalactivities-mediaadvertising,directmail,personalselling,salespromotion,andpublicrelations-toproduceaunified,customer-focusedpromotionalmessage.,Communication,WhyIntegrated?,Informationalcontradictionamongdifferentsources;Increaseinmediaoptionscreatesinformationoverload;Uncoordinatedpromotionaleffortswithinthefirm;In-houseresourcesandoutsidevendorsCost,Howtointegrate?,GlobalvisionCustomerorientedinsteadofproduct,brandororganizationoriented;Intensiveheadquarterplanning;Regularevaluation;Horizontalandverticalcommunicationamongsubsidiaries,andbetweendepartments;Teamwork;Databasemarketing,TheCommunicationProcess,EncodingDecoding:Transformingthesendersmessagebackintothought;,Response,FeedbackFrance:12minutesperhourperchannel,Switzerland,Germany,Austria:20minutesGermany:Adtimemustbereservedandpaidayearinadvance,LegalRestrictioninSaudiArabia,Horoscope,fortune-tellingUseoffearUseofnewsorofficialstatementUseofcomparativeadvertisingAppearanceofwomen,MediaVehiclesandExpenditures,Per-capitaadvertisingexpenditureAvailabilityofmediavehiclesindifferentcountriesOwnershipofTV,radio,newpaperTargetaudiencemediapreference,MediaStrategy,Reach,frequency,andimpactSelectingmajormediatypesSelectingspecificmediavehiclesMediatimingGeographicalmediaallocation,Reach,Frequency,Impact,Reach(R)Thenumberofdifferentpersonsorhouseholdsexposedtoaparticularmediascheduleatleastonceduringaspecifiedtimeperiod;Frequency(F)Thenumberoftimeswithinthespecifiedtimeperiodthatanaveragepersonorhouseholdisexposedtothemessage;Impact(I)Thequalitativevalueofanexposurethroughagivenmedium,ChoosingtheRightMedia,TelevisionCombinessound,sight,andmotion,highattention,highreach,highmediaimageHighabsolutecost,highclutter,fleetingexposure,lessaudienceselectivityRadioHighgeographicanddemographicselectivity,lowcost,flexibility,mobilityAudioonly,lowerattention,ChoosingtheRightMedia,NewspaperFlexibility,timeliness,localmarketcoverage,broadacceptance,highbelievabilityShortlife,poorreproductionquality,smallpass-alongaudience,hastyreadingMagazineHighgeographicanddemographicselectivity,credibility,highqualityreproduction,longlife,goodpass-alongreadershipLackofflexibility,ChoosingtheRightMedia,DirectmailAudienceselectivity,flexibility,nocompetingmessage,detailed,intensecoverage“JunkMail”image,lowreach,mailinglistqualityOutdooradvertisingPosters,billboards,street-lightposter,neonlights,Repetition,localcoverage,lowcostLimitedaudienceselectivity,brevityofmessage,lowattentionrate,ChoosingtheRightMedia,Intera
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