Bài giảng Marketing - Chapter 7: Understanding and reaching global consumers and markets

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 7, YOU SHOULD BE ABLE TO:Describe the nature and scope of world trade from a global perspective and identify the major trends that have influenced world trade and global marketing.LO1Identify the environmental forces that shape global marketing efforts.LO2LO3LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 7, YOU SHOULD BE ABLE TO:Name and describe the alternative approaches companies use to enter global markets.Explain the distinction between standardization and customization when companies craft worldwide marketing programs.LO4HOW DELL, INC., BUILT A BILLION DOLLAR BUSINESS IN INDIAGlobal PerspectiveDYNAMICS OF WORLD TRADEWORLD TRADE FLOWSLO1United States PerspectiveCountertradeTrade Feedback EffectGross Domestic Product (GDP)Balance of TradeFIGURE 7-1 Leading countries in global merchandise trade in terms of imports (U.S.) and exports (China)FIGURE 7-2 Porter’s diamond of national competitive advantage: four key elements on why some industries and firms in different countries become world leadersPorter’s “Diamond”DYNAMICS OF WORLD TRADECOMPETITIVE ADVANTAGE OF NATIONSLO1Factor ConditionsDemand ConditionsCompany Strategy, Structure, and RivalryRelated and Supporting IndustriesEconomic Espionage Act (1996)Sony 3D TV and Bruno Magli ShoesWhat element of Porter’s Diamond ofNational Competitive Advantage?LO1MARKETING IN A BORDERLESS ECONOMIC WORLDTREND 1—DECLINE OF ECONOMIC PROTECTIONISMLO1ProtectionismTariffsQuotaWorld Trade Organization (WTO)General Agreement onTariffs and Trade (GATT)MAKING RESPONSIBLE DECISIONSGlobal Ethics and Global Economics—The Case of ProtectionismLO1FIGURE 7-3 Protectionism hinders world trade when countries raise prices and limit supply through tariff and quota policiesEuropean UnionEuroNorth American Free Trade Agreement (NAFTA)MARKETING IN A BORDERLESS ECONOMIC WORLDTREND 2—RISE OF ECONOMIC INTEGRATIONLO1Asian Free Trade AgreementsFIGURE 7-4 The European Union in mid-2012 consists of 27 countries with morethan 500 million consumersMARKETING IN A BORDERLESS ECONOMIC WORLDTREND 3A—GLOBAL COMPETITIONLO1Global CompetitionStrategic AlliancesFIGURE 7-A Global companies and marketing strategyInternational FirmsTransnational FirmsMultinational FirmsMultidomestic Marketing StrategyGlobal Marketing StrategyGlobal BrandMARKETING IN A BORDERLESS ECONOMIC WORLDTREND 3B—GLOBAL COMPANIESLO1Global ConsumersMARKETING IN A BORDERLESS ECONOMIC WORLDTREND 3C—GLOBAL CONSUMERSLO1MARKETING MATTERSThe Global Teenager—A Market of 2 Billion Voracious Consumers with $250 Billion to SpendLO1MARKETING IN A BORDERLESS ECONOMIC WORLDTREND 4—A NETWORKED GLOBAL MARKETPLACELO1A GLOBAL ENVIRONMENTAL SCANCULTURAL DIVERSITYLO2Foreign CorruptPractices Act (1977)Cross-Cultural AnalysisValuesCustomsFIGURE 7-B Cultural appreciationA GLOBAL ENVIRONMENTAL SCANCULTURAL DIVERSITYLO2Cultural Symbols#13SemioticsA GLOBAL ENVIRONMENTAL SCANCULTURAL DIVERSITYLO2LanguageUnintended MeaningsBack TranslationCultural EthnocentricityConsumer EthnocentrismNestléAdA GLOBAL ENVIRONMENTAL SCANECONOMIC CONSIDERATIONSLO2Stage of Economic DevelopmentDeveloped Countries: JapanDeveloping Countries Made the Move: Brazil Remain Locked: TanzaniaBottom of the PyramidA GLOBAL ENVIRONMENTAL SCANECONOMIC CONSIDERATIONSLO2Economic InfrastructureCommunicationsFinancialTransportationDistribution SystemsA GLOBAL ENVIRONMENTAL SCANECONOMIC CONSIDERATIONSLO2Consumer Income and Purchasing PowerMicrofinance: IndiaCurrency Exchange RatePolitical StabilityTrade RegulationsA GLOBAL ENVIRONMENTAL SCANPOLITICAL-REGULATORY CLIMATELO2GOING ONLINEChecking a Country’s Political Risk RatingLO2FIGURE 7-5 Alternative global market-entry strategiesExportingIndirect ExportingDirect ExportingGLOBAL MARKET-ENTRY STRATEGIESEXPORTINGLO3MARKETING MATTERSCreative Cosmetics andCreative Export Marketing in JapanLO3AdvantagesDisadvantagesFranchisingGLOBAL MARKET-ENTRY STRATEGIESLICENSINGLO3Contract ManufacturingContractAssemblyJoint VentureGLOBAL MARKET-ENTRY STRATEGIESJOINT VENTURELO3AdvantagesDisadvantagesGLOBAL MARKET-ENTRY STRATEGIESDIRECT INVESTMENTLO3AdvantagesDisadvantagesDirect InvestmentFIGURE 7-6 Five product and promotion strategies for global marketingProduct ExtensionCRAFTING A WORLDWIDEMARKETING PROGRAMPRODUCT STRATEGIESLO4Product AdaptationProduct InventionCommunication AdaptationCRAFTING A WORLDWIDEMARKETING PROGRAMPROMOTION STRATEGIESLO4Dual AdaptationIdenticalMessageNescaféChinaVideoCountries Impose Pricing ConstraintsCRAFTING A WORLDWIDEMARKETING PROGRAMDISTRIBUTION AND PRICING STRATEGIESLO4Channels Can Be Long or ShortPrices May Be Too High or Too Low DumpingGray MarketChannels and Economic DevelopmentFIGURE 7-7 Channels of distribution in global marketingVIDEO CASE 7CNS BREATHE RIGHT STRIPS:GOING GLOBALVIDEO CASE 7CNS1. What are the advantages and disadvantages for CNS taking Breathe Right strips into international markets?VIDEO CASE 7CNS2. What are the advantages toCNS of (a) using its three-stage process to enter new global markets and (b) having specific criteria to move through the stages?VIDEO CASE 7CNSVIDEO CASE 7CNS3. Using the CNS criteria, with what you know, which countries should have highest priority for CNS?VIDEO CASE 7CNS4. Which single segment of potential Breathe Right strip users would you target to enter new markets?VIDEO CASE 7CNS5. Which marketing mix variables should CNS emphasize the most to succeed in a global arena? Why?CountertradeCountertrade is the practice of using barter rather than moneyfor making global sales.Gross Domestic Product (GDP)Gross domestic product (GDP) is the monetary value of all goods and services produced in a country during one year.Balance of TradeBalance of trade is the difference between the monetary value of a nation’s exports and imports.Economic Espionage Act (1996)The Economic Espionage Act (1996) is a law that makes the theft of trade secrets by foreign entities a federal crime in the United States.ProtectionismProtectionism is the practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quotas.TariffsTariffs are government taxes on goods or services entering a country that primarily serve toraise prices on imports.QuotaA quota is a restriction placed on the amount of a product allowedto enter or leave a country.World Trade Organization (WTO)The World Trade Organization (WTO) is a permanent institution that sets rules governing trade betweenits members through panels of trade experts who decide on trade disputes between members and issue binding decisions.Global CompetitionGlobal competition exists when firms originate, produce, and market their products andservices worldwide.Strategic AlliancesStrategic alliances are agreements among two or more independent firms to cooperatefor the purpose of achieving common goals.Multidomestic Marketing StrategyA multidomestic marketing strategy involves multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.Global Marketing StrategyA global marketing strategy involves transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.Global BrandA global brand is a brand marketed under the same namein multiple countries with similar and centrally coordinated marketing programs.Global ConsumersGlobal consumers are consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services.Cross-Cultural AnalysisCross-cultural analysis involves the study of similarities and differences among consumers in two or more nations or societies.ValuesValues are a society’s personally or socially preferable modes of conduct or states of existencethat tend to persist over time.CustomsCustoms are what is considered normal and expected about the way people do things in a specific country.Foreign Corrupt Practices Act (1977)The Foreign Corrupt Practices Act (1977) is a law, amended by the International Anti-Dumping and Fair Competition Act (1998), that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.Cultural SymbolsCultural symbols are things that represent ideas and concepts.SemioticsSemiotics is a field of study that examines the correspondence between symbols and their rolein the assignment of meaning for people.Back TranslationBack translation is the practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors.Consumer EthnocentrismConsumer ethnocentrism is the tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products.Bottom of the PyramidBottom of the pyramid is the largest, but poorest, socio-economic group in the world.MicrofinanceMicrofinance is the practice of offering small, collateral-freeloans to individuals who otherwise would not have access to the capital necessary to begin small businesses or other income-generating activities.Currency Exchange RateA currency exchange rate isthe price of one country’s currency expressed in terms of another country’s currency.ExportingExporting is a global market-entry strategy in which a company produces goods in one country and sells them in another country.Joint VentureJoint venture is a global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company.Direct InvestmentDirect investment is a global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division.DumpingDumping occurs when a firmsells a product in a foreign country below its domestic price or below its actual cost.Gray MarketA gray market is a situation where products are sold through unauthorized channels of distribution. Also called parallel importing.