Marketing summary chapter 19
The global marketplace
Global market today
The world is shrinking rapidly with the advent of faster communication, transportation
and financial flows. International trade has boomed over the past three decades. But as
global trade grows, global competition is also intensifying. Foreign firms are expanding
aggressively into new international markets, and home markets are no longer as rich in
opportunity. If companies delay taking steps toward internationalising, they risk being
shut out of growing markets in North and South America, China and the Pacific Rim,
Russia, India and elsewhere.
Global firm a firm that, by operating in more than one country, gains R&D,
production, marketing, and financial advantages in its costs and reputation that are not
available to purely domestic competitors.
Sees the world as one market
Minimises importance of national boundaries and develops global brands
Raises capital, obtains materials and components, and manufactures and markets
its goods wherever it can do the best job.
The rapid move toward globalisation means that all companies will have to answer some
basic questions:
What market position should we try to establish in our country, in our economic
region and globally?
Who will our global competitors be and what are their strategies and resources?
Where should we produce or source our products?
What strategic alliances should we form with other firms around the world?
Major international marketing decisions:
1. Looking at the global marketing environment
2. Deciding whether to go global
3. Deciding which markets to enter
4. Deciding how to enter the market
5. Deciding on the global marketing programme
6. Deciding on the global marketing organisation
Looking at the global marketing environment
The international trade system
Companies looking abroad must start by understanding the international trade system.
When selling to another country, affirm may face restrictions on trade between nations.
Governments may charge tariffs
Taxes on certain imported products designed to raise revenue or protect domestic
firms.
Countries may set quotas, limits on the amount of foreign imports that they will
accept in certain product categories.
A company also may face non-tariff trade barriers, such as biases against its bids,
restrictive product standards or excessive host-country regulations.
The global marketplace
Global market today
The world is shrinking rapidly with the advent of faster communication, transportation
and financial flows. International trade has boomed over the past three decades. But as
global trade grows, global competition is also intensifying. Foreign firms are expanding
aggressively into new international markets, and home markets are no longer as rich in
opportunity. If companies delay taking steps toward internationalising, they risk being
shut out of growing markets in North and South America, China and the Pacific Rim,
Russia, India and elsewhere.
Global firm a firm that, by operating in more than one country, gains R&D,
production, marketing, and financial advantages in its costs and reputation that are not
available to purely domestic competitors.
Sees the world as one market
Minimises importance of national boundaries and develops global brands
Raises capital, obtains materials and components, and manufactures and markets
its goods wherever it can do the best job.
The rapid move toward globalisation means that all companies will have to answer some
basic questions:
What market position should we try to establish in our country, in our economic
region and globally?
Who will our global competitors be and what are their strategies and resources?
Where should we produce or source our products?
What strategic alliances should we form with other firms around the world?
Major international marketing decisions:
1. Looking at the global marketing environment
2. Deciding whether to go global
3. Deciding which markets to enter
4. Deciding how to enter the market
5. Deciding on the global marketing programme
6. Deciding on the global marketing organisation
Looking at the global marketing environment
The international trade system
Companies looking abroad must start by understanding the international trade system.
When selling to another country, affirm may face restrictions on trade between nations.
Governments may charge tariffs
Taxes on certain imported products designed to raise revenue or protect domestic
firms.
Countries may set quotas, limits on the amount of foreign imports that they will
accept in certain product categories.
A company also may face non-tariff trade barriers, such as biases against its bids,
restrictive product standards or excessive host-country regulations.
