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Global Marketing Goals
Chapter Thirteen Global Marketing Goals Global
Marketing Issues Strategic Alternatives Factors
Fostering Global Strategy Marketing Research
Issues Economic and Political Considerations Inves
tment Considerations Global Strategies The Authors

• To compete with foreign companies on their own
  turf
• Have access to technical innovations in other
  countries
• Take advantage of differences in operating costs
• Preempt competitors global moves
• Not be locked out of future markets by arriving
  too late

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Global Marketing Issues
Chapter Thirteen Global Marketing Goals Global
Marketing Issues Strategic Alternatives Factors
Fostering Global Strategy Marketing Research
Issues Economic and Political Considerations Inves
tment Considerations Global Strategies The Authors
Cultural Misunderstanding
Marketing managers often use their own frames of
reference time, space, roles, individuality, etc.
rather than adopt the foreign ones.
Acculturation must occur to be effective.
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Global Marketing Issues
Chapter Thirteen Global Marketing Goals Global
Marketing Issues Strategic Alternatives Factors
Fostering Global Strategy Marketing Research
Issues Economic and Political Considerations Inves
tment Considerations Global Strategies The Authors
Political Uncertainty
Social unrest and conflict can do great harm to
any current or future initiatives and involve
great risk.
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Global Marketing Issues
Chapter Thirteen Global Marketing Goals Global
Marketing Issues Strategic Alternatives Factors
Fostering Global Strategy Marketing Research
Issues Economic and Political Considerations Inves
tment Considerations Global Strategies The Authors
Import Restrictions
Tariffs, quotas and other types of restrictions
hinder global business. Designed to promote
self-sufficiency, they can be a huge roadblock
for multinational firms.
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Global Marketing Issues
Chapter Thirteen Global Marketing Goals Global
Marketing Issues Strategic Alternatives Factors
Fostering Global Strategy Marketing Research
Issues Economic and Political Considerations Inves
tment Considerations Global Strategies The Authors
Exchange Controls and Ownership Restrictions
Some nations restrict the amount of earned and
invested funds than can be withdrawn from
it. Some require that majority ownership lie
within the country.
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Global Marketing Issues
Chapter Thirteen Global Marketing Goals Global
Marketing Issues Strategic Alternatives Factors
Fostering Global Strategy Marketing Research
Issues Economic and Political Considerations Inves
tment Considerations Global Strategies The Authors
Economic Conditions
Although global economies are more intertwined,
political upheavals and social unrest can do
significant harm to the economy.
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Strategic Alternatives
Chapter Thirteen Global Marketing Goals Global
Marketing Issues Strategic Alternatives Factors
Fostering Global Strategy Marketing Research
Issues Economic and Political Considerations Inves
tment Considerations Global Strategies The Authors

• Worldwide product divisions each responsible for
  selling its own products throughout the world
• Divisions responsible for all product within a
  geographic region
• A matrix system that involves components of both
  systems

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Factors Fostering Global Strategy
Chapter Thirteen Global Marketing Goals Global
Marketing Issues Strategic Alternatives Factors
Fostering Global Strategy Marketing Research
Issues Economic and Political Considerations Inves
tment Considerations Global Strategies The Authors
EXTERNAL

• Market Factors degree of homogeneous market
  needs, transferable brands, ability to globalize
  distribution channels
• Economic Factors worldwide economies of scale.
  learning curves, global resourcing
• Environmental Factors communications ability,
  favorable governmental policies
• Competitive Factors global moves by
  competitors, preemptive strikes

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Factors Fostering Global Strategy
Chapter Thirteen Global Marketing Goals Global
Marketing Issues Strategic Alternatives Factors
Fostering Global Strategy Marketing Research
Issues Economic and Political Considerations Inves
tment Considerations Global Strategies The Authors
INTERNAL

• Structure ease of installing a centralized
  global authority
• Management processes capabilities and resources
  available to perform operational functions on a
  global scale
• Culture ability to project a global identity,
  increased tolerance
• People availability of foreign nationals,
  frequent travel, commitments to multi-country
  careers

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Marketing Research Issues
Chapter Thirteen Global Marketing Goals Global
Marketing Issues Strategic Alternatives Factors
Fostering Global Strategy Marketing Research
Issues Economic and Political Considerations Inves
tment Considerations Global Strategies The Authors

• Language barriersmeaning of questions and
  responses lacks precision in meaning
• Data content some nations may omit data viewed
  as important by marketers
• Timeliness census data infrequent and even
  abandoned by some nations
• Availability in the U.S. data may need to be
  gathered within the nation

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Economic and Political Considerations
Chapter Thirteen Global Marketing Goals Global
Marketing Issues Strategic Alternatives Factors
Fostering Global Strategy Marketing Research
Issues Economic and Political Considerations Inves
tment Considerations Global Strategies The Authors

• What is the foreign debt service expense as a
  percentage of hard currency foreign exchange
  earnings?
• What is the inflation rate?
• How substantial are raw material reserves that
  can be converted to hard currency?
• Are state subsidies, cheap credits and tax
  concessions for state enterprises being phased
  out?

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Economic and Political Considerations
Chapter Thirteen Global Marketing Goals Global
Marketing Issues Strategic Alternatives Factors
Fostering Global Strategy Marketing Research
Issues Economic and Political Considerations Inves
tment Considerations Global Strategies The Authors

• Does the government intend to sell stakes in
  state enterprises to foreign investors?
• Is there an emerging capital market based on real
  interest rates?
• What progress is being made toward developing a
  code of company law?
• Is the political decision-making authority
  centralized or fragmented?
• How rapid and substantial is continued progress
  toward democracy and a free market economy?

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from Quelch, Joachimsthaler, and Nueno
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Investment Considerations
Chapter Thirteen Global Marketing Goals Global
Marketing Issues Strategic Alternatives Factors
Fostering Global Strategy Marketing Research
Issues Economic and Political Considerations Inves
tment Considerations Global Strategies The Authors

• What percentage of ownership may foreign
  companies have in joint ventures?
• Is private ownership of property recognized?
• Are intellectual property rights upheld?
• Can foreign investors obtain premises easily?
• Can initial capital investment be held in hard
  currency?
• Can a foreign investor sell its stake in a joint
  venture?
• Can hard currency be used to pay for imported raw
  materials?
• What is the tax rate on business enterprise
  profits?

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from Quelch, Joachimsthaler, and Nueno
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Global Strategies
Chapter Thirteen Global Marketing Goals Global
Marketing Issues Strategic Alternatives Factors
Fostering Global Strategy Marketing Research
Issues Economic and Political Considerations Inves
tment Considerations Global Strategies The Authors

• Firms considering global expansion can consider
  selecting a strategy including . . .
• Exporting
• Licensing
• Franchising
• Joint Ventures
• Strategic Alliances
• Direct Ownership

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Chapter Thirteen Global Marketing Goals Global
Marketing Issues Strategic Alternatives Factors
Fostering Global Strategy Marketing Research
Issues Economic and Political Considerations Inves
tment Considerations Global Strategies The Authors
The Authors
J. Paul Peter, Ph.D. University of Wisconsin
Madison
3Click image to go to authors web site
James H. Donnelly, Jr., Ph.D. University of
Kentucky Lexington
3Click image to go to authors web site
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Marketing Management 7th Edition McGraw-Hill
3Click on the book to go to the book site
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School of Management of DeVry University