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Copyright 1999 Prentice Hall
19-119-1
Chapter 19
Chapter 19
The Global
Marketplace
PRINCIPLES OF MARKETINGEighth Edition
Philip Kotler and Gary Armstrong
Copyright 1999 Prentice Hall
19-219-2
Global Marketing Into the Twenty-First Century Global Marketing Into the Twenty-First Century
• Global competition is intensifying and few U.S. industries are now safe from foreign competition.
• To compete, many U.S. companies are continuously improving their products, expanding into foreign markets and becoming Global FirmsGlobal Firms.
• Global firms face several major problems:– Variable exchange rates,
– Unstable governments,
– Protectionist tariffs and trade barriers,
– Corruption.
Copyright 1999 Prentice Hall
19-319-3
Decisions in International MarketingDecisions in International Marketing
Looking at the GlobalMarketing Environment
Looking at the GlobalMarketing Environment
Deciding Whether toGo International
Deciding Whether toGo International
Deciding Which Marketsto Enter
Deciding Which Marketsto Enter
Deciding How to Enterthe Market
Deciding How to Enterthe Market
Deciding on the GlobalMarketing Program
Deciding on the GlobalMarketing Program
Deciding on the GlobalMarketing Organization
Deciding on the GlobalMarketing Organization
Copyright 1999 Prentice Hall
19-419-4
Looking at the Global MarketingEnvironmentLooking at the Global MarketingEnvironment
The International Trade SystemThe International Trade System
The World Trade Organization and GATTThe World Trade Organization and GATT
Regional Free Trade ZonesRegional Free Trade Zones
Copyright 1999 Prentice Hall
19-519-5
Economic Environmental FactorsEconomic Environmental Factors
Country’sIndustrial Structure
Country’sIndustrial Structure
Subsistence Economies
Subsistence Economies
Raw MaterialExporting
Economies
Raw MaterialExporting
Economies
IndustrializingEconomies
IndustrializingEconomies
IndustrialEconomiesIndustrial
Economies
Income Distribution
Copyright 1999 Prentice Hall
19-619-6Political-Legal Environmental FactorsPolitical-Legal Environmental Factors
GovernmentBureaucracyGovernmentBureaucracy
Attitudes TowardInternational
Buying
Attitudes TowardInternational
Buying
Monetary RegulationsMonetary
RegulationsPoliticalStabilityPoliticalStability
Copyright 1999 Prentice Hall
19-719-7
Cultural Environmental FactorsCultural Environmental Factors
HowCustomers
Think About andUse
Products
HowCustomers
Think About andUse
Products
BusinessNorms andBehavior
BusinessNorms andBehavior
Cultural Traditions,
Preferences, and
Behaviors
Cultural Traditions,
Preferences, and
Behaviors
Copyright 1999 Prentice Hall
19-819-8
Deciding Whether to Go InternationalDeciding Whether to Go International
• Reasons companies might consider International expansion:–Global competitors attacking the domestic market,
–Foreign markets might offer higher profit opportunities,
–Domestic markets might be shrinking,
–Need an enlarged customer base to achieve economies of scale,
–Reduce dependency on any one market,
–Customers might be expanding abroad.
• Most companies do not act until some situation or event thrusts them into the international market.
Copyright 1999 Prentice Hall
19-919-9
Deciding Which Markets to EnterDeciding Which Markets to Enter
Marketer’s Checklist for Identifying Market
2. Geographic Characteristics.
3. Economic Factors.
4. Technological Factors.
5. Sociocultural Factors.
6. National Goals and Plans.
1. Demographic Characteristics.Potential
Copyright 1999 Prentice Hall
19-1019-10
Deciding How to Enter the MarketDeciding How to Enter the Market
Direct InvestmentDirect Investment
Joint VenturingJoint Venturing
ExportingExportingAm
ou
nt
of
Co
mm
itm
en
t, R
isk,
Co
ntr
ol,
an
d P
rofi
t P
ote
nti
al
GreaterGreater
LesserLesser
Copyright 1999 Prentice Hall
19-1119-11
Deciding on the Global MarketingProgramDeciding on the Global MarketingProgram
StraightExtension
CommunicationAdaptation
ProductAdaptation
DualAdaptation
Pro
mo
tio
n
Don’t ChangeProduct
AdaptProduct
Product
Don’tChange
Promotion
AdaptPromotion
Product InventionDevelop New Product
Five International Product and Promotion Strategies
Copyright 1999 Prentice Hall
19-1219-12Whole-Channel Concept for DistributionWhole-Channel Concept for Distribution
SellerSeller
Seller’s HeadquartersSeller’s Headquarters
Channels Between NationsChannels Between Nations
Channels Within NationsChannels Within Nations
Final User or BuyerFinal User or Buyer
Copyright 1999 Prentice Hall
19-1319-13Deciding on the Global Marketing
Organization
Deciding on the Global Marketing
Organization
Export DepartmentExport Department
International DivisionInternational Division
Global OrganizationGlobal Organization
Deg
ree
of
Invo
lvem
ent
in
Inte
rnat
ion
al M
arke
tin
g A
ctiv
itie
s
