Chapter 5 Global Markets and International Marketing

1
Chapter 5Global Markets and International
Marketing

• MARKETING

Text by William M. Pride O. C. Ferrell Multimedia
Slides by Milton M. Pressley Univ. of New Orleans

• 2000e

2
Objectives

• To Understand the Nature of Global Markets and
  International Marketing
• To Analyze the Environmental Forces Affecting
  International Marketing Efforts
• To Be Able to Identify Several Important Regional
  Trade Alliances, Markets, and Agreements
• To Learn About Methods of Involvement in
  International Marketing Activities
• To Recognize that International Marketing
  Strategies Fall Along a Continuum from
  Customization to Globalization

3
The Nature of International Marketing

• International Marketing

4
Environmental Forces in International Markets

• Cultural, Social, and Ethical

5
Environmental Forces in International Markets

• Cultural, Social, and Ethical
• Economic
• Import Tariff
• Quota
• Embargo
• Exchange Controls
• Balance of Trade
• Gross Domestic Product (GDP)

6
A Comparative Economic Analysis of Canada,
Switzerland, and the United States
Source U.S. Bureau of the Census, Statistical
Abstract of the United States, 1997, 117th ed.
(Washington D.C. U.S. Government Printing
Office, 1997), pp. 829-831, 839, 845.
7
Environmental Forces in International Markets

• Cultural, Social, and Ethical
• Economic
• Import Tariff
• Quota
• Embargo
• Exchange Controls
• Balance of Trade
• Gross Domestic Product (GDP)
• Political and Legal

8
Environmental Forces in International Markets

• Cultural, Social, and Ethical
• Economic
• Import Tariff
• Quota
• Embargo
• Exchange Controls
• Balance of Trade
• Gross Domestic Product (GDP)
• Political and Legal
• Technological

9
Regional Trade Alliances, Markets, and Agreements
The North American Free Trade Agreement (NAFTA)
10
Regional Trade Alliances, Markets, and Agreements
The European Union (EU)
EU Country
Neutral
11
Regional Trade Alliances, Markets, and Agreements
Pacific Rim Nations
12
Regional Trade Alliances, Markets, and Agreements

• General Agreement on Tariffs and Trade (GATT)
• Dumping
• World Trade Organization (WTO)

13
International Involvement
Domestic Marketing
14
International Involvement
Domestic Marketing
Limited Exporting
15
International Involvement
Domestic Marketing
Limited Exporting
International Marketing
16
International Involvement
Domestic Marketing
Limited Exporting
International Marketing
Globalized Marketing
17
International Involvement

• Importing and Exporting
• Trading Companies
• Licensing and Franchising
• Contract Manufacturing
• Joint Ventures
• Strategic Alliances
• Direct Ownership
• Multinational Enterprise

18
International Involvement

• Importing and Exporting
• Trading Companies
• Licensing and Franchising
• Contract Manufacturing
• Joint Ventures
• Strategic Alliances
• Direct Ownership
• Multinational Enterprise

19
International Involvement

• Importing and Exporting
• Trading Companies
• Licensing and Franchising
• Contract Manufacturing
• Joint Ventures
• Strategic Alliances
• Direct Ownership
• Multinational Enterprise

20
The Fifteen Largest Global Public Corporations
Company Country Business Revenue (
mil.)

• General Electric United States Electrical
  Equip. 90,840
• HSBC Group United Kingdom Banking 48,404
• Royal Dutch/Shell Group Netherlands Energy 128,1
  08
• Ford Motor Company United States Autos
  Trucks 145,348
• General Motors United States Autos
  Trucks 178,174
• Exxon United States International Oil 120,279
• Toyota Japan Automobiles 95,181
• IBM United States Computer Syst. 78,505
• Travelers Group United States Insurance
  37,609
• Citicorp United States Banking 34,697
• Nippon Tel Tel Japan Telecomm. 77,019
• Chase Manhattan United States Banking 30,381
• ING Group Netherlands Financial Serv. 38,724
• ATT United States Telecomm. 51,319
• Philip Morris United States Tobacco 56,114

Composite ranking based on revenues, assets,
profits, and market value. Source The World
Super Fifty, Forbes, July 27, 1998, p. 118.
21
Customization Versus Globalization of
International Marketing Strategies

• Globalization

22
Customization Versus Globalization of
International Marketing Strategies

• Customization

23
TO REVIEW YOU SHOULD . . .

• Understand the Nature of Global Markets and
  International Marketing
• Be Able to Analyze the Environmental Forces
  Affecting International Marketing Efforts
• Be Able to Identify Several Important Regional
  Trade Alliances, Markets, and Agreements
• Have Learned About Methods of Involvement in
  International Marketing Activities
• Recognize that International Marketing Strategies
  Fall Along a Continuum from Customization to
  Globalization