Chapter 4
Page 1: Developing a Global Vision
Page 2: Rewards of Global Marketing
Global Marketing
Definition: Marketing that targets throughout the world.
Global Vision
Definition: Recognition of and reaction to international marketing opportunities using effective global marketing.
Gross Domestic Product (GDP)
Definition: The total market value of all goods and services produced in a country for a given period.
Outsourcing
Definition: The practice of using an outside supplier for goods or services.
Inshoring
Definition: Returning jobs to Canada from abroad.
Exports
Reference page 50 for specific details.
Benefits of Globalization
Facilitates market expansion, access to resources, and economic growth.
Page 3: Multinational Firms
Multinational Corporation (MNC)
Definition: Companies heavily engaged in international trade beyond merely exporting and importing.
Capital Intensive
Definition: Production processes that require more capital investment than labor.
Global Marketing Standardization
Definition: The production of uniform products that can be sold similarly across global markets.
Page 4: External Environment Facing Global Marketers
Culture
Significant aspect influencing international marketing strategies.
Gross National Income (GNI) per Capital
A measure of the purchasing power of a country’s citizens.
Trade Agreements
GATT: General Agreement on Tariffs and Trade.
NAFTA (1988): Trade agreement including the US, Canada, and Mexico.
Canada and Free Trade Agreement: Ratified in October 2016.
European Union (EU): A political and economic union of 28 member countries.
Natural Resources
Key resources influencing trade and economy.
Economic and Technological Development
Critical factors in global market participation.
Political Structure and Actions
Impact of political conditions on international trade.
Legal Considerations
Regulations and laws governing international business operations.
World Trade Agreements
Uruguay Round and Doha Round discussions aimed at promoting global trade.
WTO (World Trade Organization)
International body regulating trade between nations.
World Bank and G20
Institutions that facilitate global economic stability and cooperation.
Page 5: Global Marketing by the Individual Firm
Exporting
Fundamental approach to enter global markets.
Licensing and Franchising
Strategies for extending brand reach internationally.
Contract Manufacturing
Outsourcing production to third-party companies.
Joint Venture
Partnership with foreign entities to share resources and risks.
Direct Investment
Active ownership of foreign companies or overseas manufacturing/marketing facilities.
Page 6: Product Decisions
The Global Marketing Mix
Structure for marketing strategy involving product, price, place, and promotion.
Dumping
Selling products at an unfairly low price.
Counter Trade
Trade in which goods and services are exchanged for other goods and services.
Floating Exchange Rate
A currency valuation that is determined by market forces.
Product Strategies
One Product, One Message: Uniform product offering globally.
Product Invention: Creating new products for specific markets.
Product Adaptation: Modifying existing products for different markets.
Promotion Adaptation
Adjusting marketing messages to fit local cultures and preferences.
Place and Price
Distribution strategy and pricing mechanics tailored for global markets.
Page 7: Impact of the Internet
Social Media and Global Marketing
Exploring the relationship between the rise of social media and marketing strategies on a global scale.