Understanding the global marketing environment
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Understanding the Global Marketing Environment. Class 4. “Every American company is international, at least to the extent that its business performance is conditioned in part by events that occur abroad”. Trends in Global Business. Internationalization of U.S. Markets

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Understanding the global marketing environment

Understanding the Global Marketing Environment

Class 4


Understanding the global marketing environment

“Every American company is international, at least to the extent that its business performance is conditioned in part by events that occur abroad”


Trends in global business

Trends in Global Business

Internationalization of U.S. Markets

Internationalization of U.S. Business

Growth of Regional Trade Areas

EU, NAFTA, AFTA, APEC

Move toward free market system by countries in

Latin America, Asia, Eastern Europe

Large Emerging Markets such as

Argentina, China, South Korea, Poland, India

Evolving global middle income households

GATT and World Trade Organization

The TRIAD


Globalization of business and markets

Globalization of Business and Markets

  • Until recently, competition for U.S. markets was only among U.S. businesses with the same relative cost of money, labor and product

    è U.S market now includes competitors from all over the world


Why internationalization

Why internationalization?

  • Saturation of U.S. markets


Foreign acquisitions of u s companies

Foreign Acquisitions of U.S. Companies

U.S. CompanyForeign Owner

Keebler (Cookies and other foods)Britain

J. Walter Thompson (Advertising)Britain

Spiegal (Catalog retailing)Germany

Mack Trucks (Automotive)France

Giant Food Stores (Supermarkets)Netherlands

Pillsbury, Burger King, Pearle VisionBritain

CBS Records (Music and Entertainment)Japan

Carnation (Coffee-Mate, Friskies pet food)Switzerland

Chesebrough-Pond’s (Vaseline)Netherlands

SOURCE: Adapted from “The 100 Largest Foreign Investments

in the U.S.,” Forbes, July 18, 1994, pp. 266-270.


Why internationalization1

Why internationalization?

  • Saturation of U.S. markets

  • Higher ROI in foreign markets


Why internationalization2

Why internationalization?

  • Saturation of U.S. markets

  • Higher ROI in foreign markets

  • Establish early position in world markets


Invented here made elsewhere

Invented Here, Made Elsewhere

U.S. Invented Technology

9 0%

Phonographs

1%

9 0%

Color TVs

1 0%

1 9 7 0

4 0%

Audiotape Recorders

0%

N O W

1 0%

Videotape Recorders

1%

9 9%

Machine Tools

3 5%

Telephones

9 9%

2 5%

8 9%

Semiconductors

6 4%

9 8%

Computers

7 4%

0

20

40

60

80

100


Definition of international marketing

Definition of International Marketing

  • The performance of business activities that direct the flow of a company’s goods and services to consumers or users in more than nation for profit.


What s the difference between international marketing and domestic marketing

What’s the difference between international marketing and domestic marketing?

  • The environment in which marketing strategies have to be implemented


The international marketing task

The International Marketing Task

7

Foreign environment

(uncontrollable)

1

Economic

forces

Political/legal

forces

Domestic environment

(uncontrollable)

2

7

Competitive

structure

Political/

legal

forces

Competitive

Forces

(controllable)

Cultural

forces

Environmental

uncontrollables

country market A

Price

Product

3

Channels of

distribution

Promotion

Environmental

uncontrollables

country

market B

6

Level of

Technology

Geography

and

Infrastructure

Economic climate

Environmental

uncontrollables

country

market C

4

5

Structure of

distribution


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