Ch. 16 Global Marketing

globalization

refers to the increased flow of goods, services, people, technology, capital, information, and ideas around the world. has economical, political social, cultural, and environmental impacts

factors used to assess a countries market

PEST

• political

• economic

• sociocultural analysis

• technology and infrastructure

political - tariff (or duty)

tax levied on good imported into a country

political - quota

designates the maximum quantity of a product that may be brought into a country during a specified time period

political - boycott

a groups refusal to deal commercially with some organization to protest against its policies

political - trade sanctions

penalties or restrictions imposed by one country for importing and exporting of goods, services, and investments

political - exchange control

refers to the regulation of a country’s currency exchange rate

political - trade agreement

intergovernmental agreement designed to manage and promote trade activities for specific regions

political - trading bloc

consists of countries that have a particular trade agreement

economic considerations

• market size and population growth

• real income

• general economic environment: GDP, trade surplus or deficit, purchasing power parity, human development index

analyzing sociocultural factors

culture:

• power distance

• uncertainty avoidance

• individualism

• masculinity

• tie orientation

• indulgence

analyzing technology and infrastructure capabilities

key elements of country’s infrastructure:

• transportation

• distribution channels

• communications

• commerce

appeal of BRICS countries

• Brazil, Russia, India, China, South Africa

• goal: strengthen cultural, political, financial, and economic cooperation

• significant influence on regional and global affairs, rapidly growing economies

choosing a global marketing strategy

• cultural nuances

• subcultures

• view of product and consumer role

• different positioning

• product adaptation

• alter marketing mix as need

glocalization

when firms offer standardized products globally and change promotional campaigns geared to local markets

global pricing strategies

• tariffs

• quotas

• anti-dumping policies

• currency exchange policies

cultural imperialism

belief that one’s own culture is superior to that of other nations