class 31 - global marketing

global marketing

process of conceptualizing, creating, placing, and managing marketing strategies in a worldwide marketplace

globalization

how businesses develop international influence or start operating in more than one country

macroenvironmental factors of global marketing

demographic factors and shifts, economic factors, political/legal factors, cultural environments, and cross-cultural differences

tariffs

duties or taxes on imports meant to protect domestic industries

quotas and exchange controls

limits on imports or foreign business operations

“nontariff” trade barriers

biases against foreign bids, restrictive product standards, excessive regulations or enforcement

standardized global marketing

using the same marketing strategy and mix in all of the company’s international markets

adapted global marketing

adjusting the marketing strategy and mix elements to each international target market

straight product extension

entering a foreign market without making any changes to the product

product adaptation

involves adapting a product to meet local conditions or wants in foreign markets

product invention

consists of creating something new to meet the needs of consumers in a given country

communication adaptation

the strategy of adapting advertising messages and channels to global markets

market entry

making strategic decisions about commitment, risks, and partnerships to maximize the likelihood of success in a new country

indirect exporting

the company is not on the ground in the foreign market and does not work with any overseas marketing organizations

direct exporting

the company handles their own exports

joint venturing

refers to partnering with a foreign company to produce or market products/services in their country

licensing

developing an agreement with a licensee or franchisee in the foreign market

contract manufacturing

working with manufacturers in a foreign market to produce products or provide services

management contracting

a local firm provides information, consulting services, or operations for the company’s business in the foreign market and sometimes in a foreign countries own market

joint ownership

a company shares control and risk with a company locally present in the foreign market

direct investment

refers to a company setting up or acquiring its own business offices, factories, distribution networks, or retail locations in a foreign market