Chapter 8 - Global Marketing

Why do big American businesses fail in China?
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Terms in this set (48)
Organizations involved in World TradeGATT IMF WTO World Bank GroupGATTGeneral Agreements on Tariffs & Trade - Found in 1948 - Exists in 23 countries - A document, later turned into the WTO - Goal: to lower trade barriersIMFInternational Monetary Fund - Originally part of GATT - Promotes international monetary cooperationWTOWorld Trade Organization - Goal: to lower trade barriers - A concept taken from the GATT documentWorld Bank GroupThe bank who provides loans to developing nationsEconomic Analysis General Economic Environment- Gross Domestic Product - Purchasing Power Party - Gross National Income - Human Development IndexEvaluating Real IncomeFirm makes adjustment to an existing product to meet the unique needs of a particular country's marketAnalyzing Infrastructure & Technological CapabilitiesTransportation, Communication, Distribution Channel, CommerceAnalyzing Government Actions- Quota - Boycott - Exchange control - Trade agreement - TariffTariffs- Tax - Artificially raises prices - Lowers demandQuotas- Maximum limits - Reduces availability of impacted goodsTariffs & Quotas BOTHbenefit domestically made products because they reduce foreign competitionWhen the dollar increases in value:- imports are cheaper - exporting is more expensiveTrade AgreementsEuropean Union NAFTAEuropean Union27 countriesNAFTAUS, Canada, MexicoHofestede's DimensionsCULTURE: - Uncertainty Avoidance - Individualism - Masculinity - Time Orientation - Power DistanceUncertainty AvoidanceDegree of ambiguity that your culture acceptsIndividualism"It's all about me" - opposite of collectivismMasculinityDistribution of gender roles in a societyTime OrientationIs your society long term or shot term oriented?Power DistanceScale in which you accept the power is not equalExamples of global marketing gone poorlyPuffs Tissues - means "brothel" Mineral Water - "drug dealer" in SpanishChoosing a Global Marketing StrategyTarget Market (STP)Target Market (STP)- Cultural nuances - Subcultures - View of products & consumer role - Different positioning - Adaption - Single positioning strategiesGlobal Marketing Mix : Product/ Service Strategies1. Sell the same in both home market & host country market 2. Same product with minor adaptions 3. Sell totally new products/ servicesGlobal Marketing Mix: Pricing Strategies- Tariffs - Quotas - Anti dumping policies - Economic conditions - Competitive factorsTariffsQuotasAnti- Dumping PoliciesEconomic ConditionsCompetitive FactorsChoosing a global entry strategy- Export - Franchising - Strategic Alliance - Joint Venture - Direct InvestmentExportFranchisingStrategic AllianceJoint VentureDirect Investment