Chapter 17 Global Marketing Copyright © 2013 Pearson Canada Inc.

Chapter 17Global Marketing

Copyright © 2013 Pearson Canada Inc.

What is the population of

Canada?• A) 3 million• B) 3.4 Million• C) 35 Million• D) 340 Million

USA?•A) 30 million•B) 300 Million•C) 310 Million•D) 319 Million

Mexico?1 Million10 Million100 Million122 Million

What is the population of The European Union?

• It has 27 member countries

• A) 503 Million• B) 50 Million• C) 100 Million• D) 5 Million

Totals• Canada 35 M• USA 319 M• Mexico 122 M

• Total 476M• EU 503 M

• Total 979 M• The West – Less than 1 Billion

World Population?

• 3 Billion?• 4 Billion?• 5 Billion?• 6 Billion?• 7 Billion?• 7.2 Billion?

How fast is it growing?• 75,000,000 people were added to the

earth this year.• 350,000 people will be born today• 151,600 people will die today• In Canada –

• 2011 - there were 377,636 births in Canada, • 2010 - 377,213 were born. • 2009 - 380,863 births.

What is the population of China?

• A) 1.3 Million• B) 130 Million• C) 1.36 Billion• D) 333 gazillion

What is the population of Latin America?

• Everything south of Mexico

• A) 4 million• B) 40 Million• C) 44 Million• D) 440 Million• E) 588 Million

What is the population of African Nations?

• A continent with 57 countries

• A) 1 million• B) 10 Million• C) 100 Million• D) 1.1 Billion

What is the population of India?

• A) 300 million• B) 900 million• C) 1 Billion• D) 1.4 Billion

Last one…

What is the population of Russia?• A) 4 million• B) 40 Million• C) 100 Million• D) 142 Million

Top 20 Largest Countries by Population

1 China 1,388,931,132 11 Mexico 122,932,758

2 India 1,258,388,498 12 Philippines

99,090,766

3 USA 321,087,466 13 Ethiopia 95,085,862

4 Indonesia

251,071,514 14 Vietnam 92,034,784

5 Brazil 201,046,206 15 Germany

82,695,640

6 Pakistan 183,366,552 16 Egypt 82,601,220

7 Nigeria 175,621,707 17 Iran 77,865,483

8 Bangladesh

157,379,948 18 Turkey 75,303,185

9 Russia 142,683,922 19 Congo 68,270,259

10

Japan 127,084,187 20 Thailand 67,097,005

Where is the worlds biggest business opportunity?

• A) China• B) EU• C) Latin America• D) Russia• E) India• F) Anywhere other than North America

Canadian International Trade

Copyright © 2013 Pearson Canada Inc. 17-14

Analyzing Global Market Opportunities


The external environments of foreign markets must be analyzed before deciding to enter.

• Economic• Consumers• Political• Legal/Regulatory• Technical• Competition

_________________

Economic Environment


Economic variables such as natural resources, population, income distribution, employment and education are evaluated.

Growth rates are varying broadly across the world

There are three broad classifications of economies:

1.Government-Controlled Economy

2.Market-Controlled Economy

3.Mixed Economy

Government-Controlled Economy

• Strong central government• Makes economic decisions• Less product choice for consumers• Government controls industries and

companies• Difficult market to enter

Market-Controlled Economy

• Market operates by voluntary exchange• Range of products for consumer choice• Law of supply and demand prevail• Effective marketing essential for company

growth

Mixed Economy • Simultaneous operations of publicly and

privately owned companies• Some government control to protect local

industries and workers• Laws of supply and demand prevail• Possible barriers to entry for foreign

companies

Consumer Environment


Variations is culture and language creates a need for diverse marketing strategies in foreign markets. Even within foreign countries a marketer should examine differences in :

• Culture

• Language

• Needs and Motivation

Political Environment


Government policies, laws and regulations must be abided by. New governments can change the rules.

Example: In the 1970s the government of India ordered Coca-Cola to dilute its investment there and to turn over its secret formula; Coca-Cola had no choice but to pull out completely. Coca-Cola did not return until 1993, when a more liberalized government was in power.

Trade Barriers


To protect local industries a country may resort to any number of tactics.

Tariff Quota Local Content Law Embargo Boycott

Legal and Regulatory Environment


Marketers must know what they can and cannot do with a product in a foreign country. Awareness of local laws for packaging and advertising are essential.

Examples:

•Contract and corporate law vary from country to country. Enforcement of transactions can be difficult.

•Canadian food companies must have separate packaging for the U.S. market due to differences in food labeling laws and nutritional guidelines.

Technology Environment


Technology presents opportunities for developing new products and how marketing activities are performed.

An organization must ensure that a foreign country has the technology and skill required to make and market its products. Examples: Car ManufacturingWhen Japanese and South Korean auto companies began producing in Canada the skills existed but Canadian employees had to be educated in their management style and way of doing business; these are non-union companies in a unionized industry.

Technology• Internet Penetration

– Canada - 86.8%– China – 42.3%– Sweden - 94%

• Cell Phone Penetration– Canada - 75%– Hong Kong - 236%– http://en.wikipedia.org/wiki/List_of_countries_by_number_of_mobile_phones_in_use

http://en.wikipedia.org/wiki/List_of_countries_by_number_of_mobile_phones_in_use

Technology and Standardization

Competitive Environment


A company must be aware of certain developments that affect the global economy.

Cartel Firms or countries band together to conduct trade in a manner of a monopoly (Milk Marketing Board).

Orderly MarketAgreement

Barriers eliminated among partner countries; others face barriers (NAFTA).

CommonMarket

Trade agreement among a geographical group of countries (EU).

Market Entry Strategies


Several alternatives are available:

Export

Joint Venture

Direct Investment

Export directly by own means or via distributors.

Licensing, International franchising, and contract manufacturing.

Start own operation or acquire existing operation.

Entry Strategy: Applied


To enter China, International franchising is a popular strategy among North-American-based quick serve restaurants.

The Think Marketing box on p. 361 examines a different entry strategy for another Canadian company.

Marketing Strategy for Global Markets


The assessment of the external environment leads to a marketing strategy decision.

GlobalStrategy

Country-CenteredStrategy

Same marketing strategy in all foreign markets

Unique marketing strategy for each foreign market

Product Strategy


There are three commonly used product strategies:

StandardizedProduct

Adapted Product

LocalProduct

Same product offered in all foreign markets.

Product altered to local tastes; common in fast food industry.

Evaluate local tastes and develop accordingly.

Price Strategy


Foreign market conditions influence price strategy.

• Local competition

• Value of currency

• Trade restrictions in placeDumping: selling goods at a much lower price in a foreign market; dumping is often an issue among local competitors.

Marketing Communications Strategy


A common marketing communications strategy is difficult to implement globally, though some companies do have success.

When devising a communications strategy a marketer must assess:

•Cultural Differences

•Language Differences

KFC has a famous slogan: “Finger-lickin good.” The Chinese translation is: “So good you will eat your fingers off.”

Distribution Strategy


An organization can use existing channels or develop new ones.

Visual Model


Chapter 17 Global Marketing Copyright © 2013 Pearson Canada Inc.

Documents

Transcript of Chapter 17 Global Marketing Copyright © 2013 Pearson Canada Inc.