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Ch 7 GLOBAL MARKETING (CRAFTING A WORLDWIDE MARKETING PROGRAM (Product…
Ch 7 GLOBAL MARKETING
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Benefits Global Trade
Licensing: Can license people who want a business and prepared to work hard but cannot survive it alone ex: McD 2nd lowest profit potential
Exporting: Can expand market size from 300m to 7 billion people around the world Lowest profit potential
Joint Ventures:share investment and benefits. might night have enough resources or regulations in other countries will not allow you to do it on your own so you have to join ventures 2nd best profit potential
Direct Investments: foreign company goes into a host company and invests in one of those businesses
Best profit potential
Marketing without Borders: If there is a market, you have access to it
2 Organizations that made it possible: 1. World Trade Organization(open markets for all), 2. European Union (made it easier to do trades in Europe)
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Channels of Distribution
- Seller, Seller's international marketing headquarters, channels between nations, Channels within foreign nation, Final Consumer
What is more important? Import or Export, or balance? Balance between import and export
Protectionism
- Shielding one or more industries within a country economy from foreign competition
Tariffs and quotas discourage world trade - try to regulate the markets, discourage people from trading in certain industry
great regulatory tool but can sometimes be uses in improper ways
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Nationalizing industries
- Markets are more controlled, more regulations for export and import and can make their products at a lower price than competition
- usually do this if need an industry to be good,part of country vision, can get it cheaper in another country but cannot rely on them for something like that. ex Oil
2 Different flows, shows we are living in a world that has
- global competition,
- gobble consumers and
- global companies - prepared to provide Product and services
What to do so that everyone benefits equally? Exporting, Licensing, Joint Ventures Direct Investment
What is important to cultural Diversity:* Values, Customers, Cultural symbols, Language, Ethnocentricity
Back Translation : one translator that goes from ex english to arabic, another translator that translates from arabic to english, to make sure they mean the same
ECONOMIC CONSIDERATIONS
- Economic infrastructure - allows you to do business there or not
- Consumer income and purchasing power - how much money they can spend on certain products
- Currency exchange rate - make prices different and product could become in competitive given the exchange rates, or the other way around