GLOBAL MARKETING GLOBAL MARKETING AND WORLD TRADEAND WORLD TRADE

Trends that have affected world Trends that have affected world tradetrade

1.1. The decline of economic The decline of economic protectionismprotectionism

2.2. Increase in economic integration Increase in economic integration and free tradeand free trade

3.3. Global competition among global Global competition among global companies for global consumerscompanies for global consumers

PP5-3 How Protectionism Affects PP5-3 How Protectionism Affects World TradeWorld Trade

ProtectionismProtectionism

Decreased Global Trade

Decreased Global Trade

Increase Prices

Increase Prices

TariffsTariffs QuotasQuotas

LimitSupply

LimitSupply

Global ConsumersGlobal Consumers

Global Consumers consist of

customer groups living in many

countries or regions of the world

who have similar needs or seek

similar features and benefits from

products and services.

Global Environmental ScanGlobal Environmental Scan

Cultural AppreciationCultural Appreciation

Aspects ofculture

Values

Customs

Symbols

Language

Economic ConsiderationsEconomic Considerations

• Stage of Economic Development

• Economic Infrastructure

• Consumer Income and Purchasing Power

• Currency Exchange Rates

Global Market Entry StrategiesGlobal Market Entry Strategies

Market EntryMarket Entry

• Indirect ExporterIndirect Exporter.

Market EntryMarket Entry

• Direct ExportingDirect Exporting.

Market EntryMarket Entry

• Foreign Production– Licensing– Franchising– Contract Manufacturing– Assembly– Fully Integrated Production

• Ownership Strategies– Joint Ventures– Alliances– Acquisitions

Worldwide Marketing EffortWorldwide Marketing Effort

Crafting a Worldwide Marketing EffortCrafting a Worldwide Marketing Effort

• Product and Promotion Strategies

Selling Products Globally

1. Product Extension

2. Product Adaptation

3. Product Invention

• By recognizing cultural and buying motive differences, firms can sell the same products to different countries by using a communication adaptation strategy.

• Some companies use dual adaptation, which means modifying both product and promotion messages.