Lecture Marketing (12/e): Chapter 7 – Kerin, Hartley, Rudelius

Copyright © 2015 McGraw­Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw­Hill Education.


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

LO 7-1

LO 7-2

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.

7­2


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

LO 7-3

LO 7-4

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.

7­3


BUILDING A BILLION DOLLAR BUSINESS
IN INDIA THE DELL INC. WAY

7­4


LO 7-1



DYNAMICS OF WORLD TRADE
WORLD TRADE FLOWS

Global Perspective
• Trade Feedback Effect
• Countertrade



United States Perspective
• Gross Domestic Product (GDP)
• Balance of Trade

7­5


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

7­6


LO 7-1



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)
7­7

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

7­8


Sony Bravia 3D HDTV and Bruno Magli Shoes
LO 7-1

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

7­9


LO 7-1

MARKETING IN A BORDERLESS
ECONOMIC WORLD
TREND 1—DECLINE OF ECONOMIC PROTECTIONISM



Protectionism



Tariffs



Quota



General Agreement on
Tariffs and Trade (GATT)



World Trade Organization (WTO)
7­10


LO 7-1

MAKING RESPONSIBLE DECISIONS
GLOBAL ETHICS AND GLOBAL ECONOMICS—
THE CASE OF PROTECTIONISM

7­11


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

7­12

LO 7-1

MARKETING IN A BORDERLESS
ECONOMIC WORLD
TREND 2—RISE OF ECONOMIC INTEGRATION



European Union
• Euro



North American Free Trade
Agreement (NAFTA)



Asian Free Trade Agreements
7­13


FIGURE 7-4 The European Union in late-2013
consists of 28 countries with more than 500
million consumers

7­14

LO 7-1

MARKETING IN A BORDERLESS
ECONOMIC WORLD
TREND 3A—GLOBAL COMPETITION



Global Competition



Strategic Alliances
7­15


FIGURE 7-A Global companies and marketing
strategy

7­16


LO 7-1

MARKETING IN A BORDERLESS
ECONOMIC WORLD
TREND 3B—GLOBAL COMPANIES



International Firms



Multinational Firms
• Multidomestic Marketing Strategy



Transnational Firms
• Global Marketing Strategy
• Global Brand
7­17


LO 7-1

MARKETING IN A BORDERLESS
ECONOMIC WORLD
TREND 3C—GLOBAL CONSUMERS



Global Consumers

7­18


LO 7-1

MARKETING MATTERS
The Global Teenager—A Market of
2 Billion Voracious Consumers

7­19


LO 7-1

MARKETING IN A BORDERLESS
ECONOMIC WORLD
TREND 4—A NETWORKED GLOBAL MARKETPLACE

7­20


LO 7-2

A GLOBAL ENVIRONMENTAL SCAN
CULTURAL DIVERSITY



Cross-Cultural Analysis



Values



Customs
• Foreign Corrupt
Practices Act (1977)
7­21


FIGURE 7-B Cultural appreciation

7­22


LO 7-2



A GLOBAL ENVIRONMENTAL SCAN
CULTURAL DIVERSITY

Cultural Symbols

• Semiotics

#13
7­23


LO 7-2

A GLOBAL ENVIRONMENTAL SCAN
CULTURAL DIVERSITY

Language



• Unintended Meanings

Nestlé
Ad

• Back Translation


Cultural Ethnocentricity
• Consumer Ethnocentrism
7­24


LO 7-2



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
7­25