Lecture Marketing (11/e): Chapter 7 – Kerin, Hartley, Rudelius

McGraw­Hill/Irwin                                                                                                                                                     Copyright  © 2013 by The McGraw­Hill Companies, Inc.  All rights reserved.

7-1


LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 7, YOU SHOULD BE ABLE TO:

LO1

LO2

Describe the nature and scope of world
trade from a global perspective and
identify the major trends that have
influenced world trade and global
marketing.
Identify the environmental forces that
shape global marketing efforts.

7-2


LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 7, YOU SHOULD BE ABLE TO:

LO3

LO4

Name and describe the alternative

approaches companies use to enter
global markets.
Explain the distinction between
standardization and customization
when companies craft worldwide
marketing programs.

7-3


HOW DELL, INC., BUILT A BILLION
DOLLAR BUSINESS IN INDIA

7-4


LO1



DYNAMICS OF WORLD TRADE
WORLD TRADE FLOWS

Global Perspective
• Trade Feedback Effect
• Countertrade



United States Perspective

• Gross Domestic Product (GDP)
• Balance of Trade
7-5


FIGURE 7-1 Leading countries in global
merchandise trade in terms of imports (U.S.)
and exports (China)

7-6


FIGURE 7-2 Porter’s diamond of national
competitive advantage: four key elements
on why some industries and firms in
different countries become world leaders

7-7


LO1



DYNAMICS OF WORLD TRADE
COMPETITIVE ADVANTAGE OF NATIONS

Porter’s “Diamond”
• Factor Conditions
• Demand Conditions

• Related and Supporting Industries
• Company Strategy, Structure, and Rivalry



Economic Espionage Act (1996)
7-8


Sony 3D TV and Bruno Magli Shoes
LO1

What element of Porter’s Diamond of
National Competitive Advantage?

7-9


MARKETING IN A BORDERLESS ECONOMIC WORLD
LO1

TREND 1—DECLINE OF ECONOMIC PROTECTIONISM



Protectionism



Tariffs



Quota



General Agreement on
Tariffs and Trade (GATT)



World Trade Organization (WTO)
7-10


LO1

MAKING RESPONSIBLE DECISIONS
Global Ethics and Global Economics—
The Case of Protectionism

7-11


FIGURE 7-3 Protectionism hinders world
trade when countries raise prices and limit
supply through tariff and quota policies

7-12

MARKETING IN A BORDERLESS ECONOMIC WORLD
LO1

TREND 2—RISE OF ECONOMIC INTEGRATION



European Union
• Euro



North American Free Trade
Agreement (NAFTA)



Asian Free Trade Agreements
7-13


FIGURE 7-4 The European Union in mid2012 consists of 27 countries with more
than 500 million consumers

7-14


MARKETING IN A BORDERLESS ECONOMIC WORLD

LO1

TREND 3A—GLOBAL COMPETITION



Global Competition



Strategic Alliances
7-15


FIGURE 7-A Global companies and
marketing strategy

7-16


MARKETING IN A BORDERLESS ECONOMIC WORLD
LO1

TREND 3B—GLOBAL COMPANIES



International Firms



Multinational Firms
• Multidomestic Marketing Strategy



Transnational Firms
• Global Marketing Strategy
• Global Brand
7-17


MARKETING IN A BORDERLESS ECONOMIC WORLD
LO1

TREND 3C—GLOBAL CONSUMERS



Global Consumers

7-18


MARKETING MATTERS
The Global Teenager—A Market of 2 Billion
Voracious Consumers with $250 Billion to Spend

LO1

7-19


MARKETING IN A BORDERLESS ECONOMIC WORLD
LO1

TREND 4—A NETWORKED GLOBAL MARKETPLACE

7-20


LO2

A GLOBAL ENVIRONMENTAL SCAN
CULTURAL DIVERSITY



Cross-Cultural Analysis



Values



Customs
• Foreign Corrupt
Practices Act (1977)
7-21

FIGURE 7-B Cultural appreciation

7-22


LO2



A GLOBAL ENVIRONMENTAL SCAN
CULTURAL DIVERSITY

Cultural Symbols

• Semiotics

#13
7-23


A GLOBAL ENVIRONMENTAL SCAN

LO2

CULTURAL DIVERSITY

Language



• Unintended Meanings

Nestlé
Ad

• Back Translation


Cultural Ethnocentricity
• Consumer Ethnocentrism
7-24


LO2



A GLOBAL ENVIRONMENTAL SCAN
ECONOMIC CONSIDERATIONS

Stage of Economic
Development
• Developed Countries: Japan
• Developing Countries
 Made the Move:

 Remain Locked:

Brazil

Tanzania

• Bottom of the Pyramid
7-25