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Front 1

Global Firm

Back 1

frim that operates in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that re not available to purely domestic competitors

Front 2

What are the major international marketing decisions? (6)

Back 2

1)looking at the global marketing environment

2)deciding whether to go international

3)deciding which markets to enter

4)deciding how to enter the market

5)deciding on the global marketing program

6)deciding on the global marketing organization

Front 3

tariff

Back 3

a tax levied by a govn. against certain imported products

Front 4

quota

Back 4

limit on the amount of goods that an importing country will accept in certain product categories

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embargo

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ban on the import of a certain product

Front 6

exchange controls

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govn. limits on the amount of foreign exchange with other countries and on the exchangre rate against other currencies

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Nontariff Trade Barriers

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non monetary barriers to foreign products, such as biases against a foreign company's bids or product standards that go against a foreign companie's product features

Front 8

Looking at the Global Marketing environment

What is the International Trade System?

Back 8

restrictions-- tariffs, quotas, embargos, exchange controls, and non-tariff trade barriers

Front 9

Looking at the Global marketing environment

What is the World Trade Organization and GATT?

Back 9

helps trade--reduces tariffs and other international trade barriers

Front 10

Looking at the global marketing environment

What are Regional Free trade zones?

Back 10

groups of nations organized to work toward common goals in the regulation of international trade

ex. NAFTA, European Union

Front 11

Economic environment

what are the types of industrial structure?

Back 11

subsistence economies
raw material exporting econs.
industrializing econs.
industrial econs.

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subsistence econs

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majority of their income comes from simple agriculture

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raw material exporting econs.

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rich in one or more resources but poor in others (south Africa;diamonds)

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Industrializing econs

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manufacturing accounts for 10-20% of econ

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industrial econs.

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major exporters (US)

Front 16

Political-Legal environment

What 4 political-legal facors should be considered when looking at the global marketing environment?

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1) Attitudes toward international buying

2)Government bureaucracy

3)Political Stability

4)Monetary regulations

Front 17

Monetary regulations

what is counter trade?

Back 17

international trade involving the direct or indirect exchange of goods for other goods instead of cash--include barter, compensation (buy back), and counter purchase

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counter purchase?

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receive full payment in cash, but agrees to spend some percent in that country, straight purchase

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Economic community

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group of nations organized to work toward common goals in the regulation of international trade

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Cultural environment

What 3 things must a seller examine before deciding to go international with a given country?

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1)How customers thing about and use products

2)Cultural traditions, preferences, and behaviors

3)business norms and behavior

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Deciding whether to go global

Reasons to consider going global:

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1)foreign attacks on domestic markets

2)foreign markets might offer higher profit opport.

3)domestic markets might be shrinking

4)reduce dependency on single market

5)follow customers who are expanding

6)need larger customer base to achieve economies of scale

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Deciding which markets to enter

what should co do before going abroad?

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Before going abroad to co. should define orgs. marketing objectives and policies

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what are some of the orgs. marketing objectives and policies?

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What volume of sales is desired?

How many countries to market in?

What types of countries to enter?

-rank based on market size and market growth, cost of doing business, competetive advantage, and risk level

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Deciding how to enter the Market

How involved in the market do you want to be (left least, right most)

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Exporting>joint venturing>direct investment

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Exporting (far left)

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entering a foreign market by selling goods produced in the company's home country often with little modification

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joint venturing (middle)

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entering foreign markets by joining with foreign co's to produce or market a product or service

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Forms of joint venturing

Licensing?

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entering into a foreign market with an agreement with a licensee in the foreign market, offering the right to use a manufacturing process, trademark, patent, trade secret or other item of value for a fee or royalty

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Forms of joint venturing

Contract manufacturing

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joint venture where co contract with manufacturers in a foreign marktet to produce the product or provide its service

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Forms of joint venturing

Management contracting

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joint venture where domestic firm supplies the management know-how to a foreign co. that supplies the capital, the domestic firm exports management services rather than products

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Forms of joint venturing

Joint ownership

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joint venture where a co. joins investors in a foreign market to create a local bus. in which the co. shares joint ownership and control

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Direct investment (far right)

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entering a foreign market by developing foreign-based assembly or maufacturing facilities

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Deciding on the global marketing program

Standardized marketing mix?

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selling largely the same products and using the same marketing approaches worldwide

ex. coca-cola

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Deciding on the global marketing program

Adapted marketing mix?

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producer adjusts the marketing mix elements to each target market, baring more costs but hoping for a larger share and return

-changes in product advertising, distribution channels, and price

ex. Japanese Barbie

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Five global product and promotion strategies

1)straight extension

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don't change product or promotion in foreign market

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Five global product and promotion strategies

2)product adaptation

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don't change promotion, but adapt product to meet local conditions or wants in foreign markets

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Five global product and promotion strategies

3)communication adaption

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don't change product but fully adapting advertising messages and promotion to local markets

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Five global product and promotion strategies

4)Dual adaption

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adapt promotion and adapt product at same tim

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Five global product and promotion strategies

5)product invention

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creating new products or services for foreign markets

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Whole-channel concept for international marketing

What necessary links need to be made to sell the product?

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design international channels that take into account all of the necessary links in distributing the seller's products to final buyers including the seller's headquarters organization, channels between nations, channels within nations, and th final buyer

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Deciding on the global Marketing organization

What do you need to do? (3)

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1)organize an export department

2)create international divisons
-geographic orgs
-world product groups
-international subsidiaries
3)become a global organization