KOTCHA19.ppt 135KB Sep 15 2006 07:08:52 PM

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PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong

Chapter
Chapter 19
19
The Global
Marketplace

 Copyright 1999 Prentice Hall

Global
Global Marketing
Marketing Into
Into the
the TwentyTwentyFirst
First Century

Century

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• Global competition is intensifying and few U.S. industries are
now safe from foreign competition.
• To compete, many U.S. companies are continuously improving
their products, expanding into foreign markets and becoming
Global Firms.
Firms
• Global firms face several major problems:





Variable exchange rates,
Unstable governments,
Protectionist tariffs and trade barriers,

Corruption.

 Copyright 1999 Prentice Hall

Decisions
Decisions in
in International
International Marketing
Marketing
Looking
Lookingat
atthe
the Global
Global
Marketing
Marketing Environment
Environment
Deciding
Deciding Whether
Whether to

to
Go
GoInternational
International
Deciding
Deciding Which
Which Markets
Markets
to
toEnter
Enter
Deciding
DecidingHow
How to
to Enter
Enter
the
theMarket
Market
Deciding

Deciding on
on the
theGlobal
Global
Marketing
Marketing Program
Program
Deciding
Decidingon
onthe
the Global
Global
Marketing
Marketing Organization
Organization
  Copyright 1999 Prentice Hall

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Looking
Looking at
at the
the Global
Global Marketing
Marketing
Environment
Environment
The
The International
International Trade
Trade System
System

The
The World
World Trade
Trade Organization
Organization and
and GATT

GATT

Regional
Regional Free
Free Trade
Trade Zones
Zones

  Copyright 1999 Prentice Hall

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Economic
Economic Environmental
Environmental Factors
Factors

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Subsistence
Subsistence
Economies
Economies

Industrial
Industrial
Economies
Economies

Country’s
Country’s
Industrial
Industrial
Structure
Structure
Industrializing
Industrializing
Economies

Economies
Income Distribution
  Copyright 1999 Prentice Hall

Raw
Raw Material
Material
Exporting
Exporting
Economies
Economies

Political-Legal
Political-Legal Environmental
Environmental Factors
Factors

Attitudes
Attitudes Toward
Toward

International
International
Buying
Buying

Government
Government
Bureaucracy
Bureaucracy

Monetary
Monetary
Regulations
Regulations

Political
Political
Stability
Stability


  Copyright 1999 Prentice Hall

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Cultural
Cultural Environmental
Environmental Factors
Factors
How
How
Customers
Customers
Business
Business
Think
About
Think About
Norms
and

Norms
and
and
and
Behavior
Behavior
Use
Use
Products
Products
Cultural
Cultural
Traditions,
Traditions,
Preferences,
Preferences,
and
and
Behaviors
Behaviors
  Copyright 1999 Prentice Hall

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Deciding
Deciding Whether
Whether to
to Go
Go
International
International

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• Reasons companies might consider International
expansion:
– Global competitors attacking the domestic market,
– Foreign markets might offer higher profit
opportunities,
– Domestic markets might be shrinking,
– Need an enlarged customer base to achieve economies
of scale,
– Reduce dependency on any one market,
– Customers might be expanding abroad.

• Most companies do not act until some situation or
event thrusts them into the international market.

 Copyright 1999 Prentice Hall

Deciding
Deciding Which
Which Markets
Markets to
to Enter
Enter

Marketer’s Checklist for Identifying 
Potential
Market
1.  Demographic Characteristics.
2.  Geographic Characteristics.
3.  Economic Factors.
4.  Technological Factors.
5.  Sociocultural Factors.
6.  National Goals and Plans.

 Copyright 1999 Prentice Hall

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Deciding
Deciding How
How to
to Enter
Enter the
the Market
Market
Amount of Commitment, Risk, Control,
and Profit Potential

Greater
Greater

Direct
Direct Investment
Investment

Joint
Joint Venturing
Venturing

Exporting
Exporting

Lesser
Lesser
 Copyright 1999 Prentice Hall

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Deciding
Deciding on
on the
the Global
Global Marketing
Marketing
Program
Program

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Five International Product and Promotion Strategies

Promotion

Product

Don’t
Change
Promotion

Adapt
Promotion

Don’t Change
Product

Adapt
Product

Straight
Extension

Product
Adaptation

Communication
Adaptation

Dual
Adaptation

Product Invention
Develop New Product
 Copyright 1999 Prentice Hall

Whole-Channel
Whole-Channel Concept
Concept for
for Distribution
Distribution
Seller
Seller
Seller’s
Seller’s Headquarters
Headquarters
Channels
Channels Between
Between Nations
Nations
Channels
Channels Within
Within Nations
Nations
Final
Final User
User or
or Buyer
Buyer
 Copyright 1999 Prentice Hall

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Degree of Involvement in
International Marketing Activities

Deciding
Deciding on
on the
the Global
Global Marketing
Marketing
Organization
Organization

Export
Export Department
Department
International
International Division
Division
Global
Global Organization
Organization

 Copyright 1999 Prentice Hall

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