DEVELOPING A GLOBAL VISION Deciding whether to enter International Markets . Environmental Analysis Issues in Global Markets Deciding Which Markets to Enter Ways of entering global marketplace . The Global marketing Mix
DEVELOPING A GLOBAL VISION •Deciding whether to enter International Markets •Environmental Analysis Issues in Global Markets •Deciding Which Markets to Enter •Ways of entering global marketplace •The Global Marketing Mix
External Environment Facing Global Marketers
External Environment Facing Global Marketers
External Environment: Social Culture: Set of values shared by group that determine what is socially acceptable, including social structure assum ptions and attitudes personal beliefs and assumptions interpersonal relationships
External Environment: Social Culture: Set of values shared by group that determine what is socially acceptable, including social structure assumptions and attitudes personal beliefs and assumptions interpersonal relationships
Economic Environment Stages of Development Buying power Traditional Society Gross National product- total value of Pre-Industrial Society goods and services produced in a particular country Takeoff Economy Per capita income- income per person Industrializing/Developing in a particular country Fully Industrialized Society Currency Exchange rate- price of currency in terms of another country
Economic Environment • Stages of Development – Traditional Society – Pre-Industrial Society – Takeoff Economy – Industrializing/Developing – Fully Industrialized Society • Buying Power – Gross National Product- total value of goods and services produced in a particular country – Per capita income- income per person in a particular country • Currency – Exchange rate-price of currency in terms of another country
Other Environments Political and legal environment How much control exerted over private organizations? Attitude toward foreign business? Political Stability? echnological Environment Levels of technological Development Available Infrastructure
Other Environments • Political and Legal Environment: – How much control exerted over private organizations? – Attitude toward foreign business? – Political Stability? • Technological Environment – Levels of Technological Development – Available Infrastructure
Other Environments Competitive Environment Government involvement in competition Ownership of competitors: local, foreign, government · Natural Environment Resources Available
Other Environments • Competitive Environment – Government involvement in competition – Ownership of competitors: local, foreign, government • Natural Environment – Resources Available
Deciding Which Markets to Enter Need to first define international marketing objectives and policies Generally, company should enter fewer countries with a deeper commitment and penetration in each when market entry control costs high product communication adaptation costs high population, incomesize growth high in initial countries chosen Dominant foreign firms establish high barriers to entry
Deciding Which Markets to Enter • Need to first define international marketing objectives and policies • Generally, company should enter fewer countries with a deeper commitment and penetration in each when – market entry & control costs high – product & communication adaptation costs high – population, income size & growth high in initial countries chosen – Dominant foreign firms establish high barriers to entry
More about deciding which markets to enter Some groups of countries to consider Triad Markets: United States, Western Europe and Far East Regional Free Trade Zones >)European Union--offers trade opportunities for US and other non-European nations > NAFTA--includes us, Canada and mexico, but will likely expand to include South American countries
More about deciding which markets to enter • Some groups of countries to consider – Triad Markets: United States, Western Europe and Far East – Regional Free Trade Zones » European Union--offers trade opportunities for US and other non-European nations » NAFTA--includes US, Canada and Mexico, but will likely expand to include South American countries
More about deciding which markets to enter: Consider Markets that have psychic proximity · Markets that are high on market attractiveness low in market risk in which company possesses competitive advantage
More about deciding which markets to enter: Consider • Markets that have psychic proximity • Markets that are – high on market attractiveness – low in market risk – in which company possesses competitive advantage
Methods of Entry and Risk Levels for global Marketing High Control/High Risk/ High Return Direct Ownership Joint Ventures Licensing Exporting Little Control/low risk/ low return
Methods of Entry and Risk Levels for global Marketing Direct Ownership Joint Ventures Licensing Exporting High Control/High Risk/ High Return Little Control/Low Risk/ Low Return