mkt
oMarket penetration:
§Starbucks building loyalty card/rewards in US with smartphone app for pay.
oMarket development:
§Starbucks entering INDIA via alliance with Tatta Group.
oProduct development:
§Created new coffee brand, VIA, for office and home brewed. After success in US, they rolled out in G.B., Japan, S. Korea and other Asia countries.
oProduct Diversification:
§In 2011 Starbucks dropped coffee from logo- Evolution fresh (juicer), Bay Bread, Teavana
·What is global marketing
oThe scope of activities outside the home market.
o25 percent of the total world market for all products and services
·Standardization vs. adaptation
oGlobalization (Standardization)
oGlobal localization (Adaptation)
oThink globally, act locally
·As pointed out, adaptation involves modifying a product so as to meet the local requirements and customs. … Adaptions also demand the use of different marketing and selling strategies in the foreign market. With standardization, however, the products are neither modified nor are the marketing approach changed
·Factors affecting global marketing
·Why is going global important:
oU.S. companies that wish to achieve maximum growth potential must “go global,” because 75 percent of world market potential is outside their home country.
Ch. 2 –Global Economic Environment
Review the types of economic systems (4)
oMarket capitalism: is an economic system in which individuals and firms allocate resources and production resources are privately owned.
ocentrally planned socialism: At the opposite end of the spectrum from market capitalism is centrally planned socialism. In this type of economic system, the state has broad powers to serve the public interest as it sees fit.
ocentrally planned capitalism & Market socialism: In reality, market capitalism and centrally planned socialism do not exist in “pure” form.
oWhat’s economic freedom
oRankings of economic freedom among countries
o“free” “mostly free” “mostly unfree” “repressed”
ois the ability of people of a society to take economic actions.
oOne approach to economic freedom comes from the liberal tradition emphasizing free markets, free trade, and private property under free enterprise.
oWhat’s is the TRIAD
oU.S., Western Europe, and Japan
oRepresents 75% of world income
oExpanded Triad includes all of North America and the Pacific Rim and most of Eastern Europe
oGlobal companies should be equally strong in each part
Ch. 3 Global Trade
(only these points- other information is reference on the slides)
·The WTO
oGeneral Agreement on Tariffs and Trade: Treaty among nations to promote trade among members established in 1947
oHandled trade disputes
oLacked enforcement power; nicknamed the General Agreement to Talk and Talk
oDisputes lasted for years
oReplaced by World Trade Organization in 1995 based in Geneva, Switzerland
o160 members
oServes as dispute mediator through D S B
oHas enforcement power and can impose sanctions
·What are preferential trade agreements, free trade agreements etc.
oPreferential trade arrangements (PTAs) in the WTO
are unilateral trade preferences. They include Generalized System of
Preferences schemes (under which developed countries grant preferential tariffs
to imports from developing countries), as well as other non-reciprocal
preferential schemes granted a waiver by the General Council.
·What’s a common market:
A common market is the next level of economic integration. In addition to the removal of in- ternal barriers to trade and the establishment of common external tariffs, the common market allows for free movement of factors of production, including labor and capital. The Andean Community, the SICA, and the CARICOM, which currently function as customs unions, may ultimately evolve into true common markets.
·Economic Union?
An economic union builds upon the elimination of internal tariff barriers, the establishment of common external barriers, and the free flow of factors. It seeks to coordinate and harmonize economic and social policies within the union to facilitate the free flow of capital, labor, and goods and services from country to country
Ch. 4- Social and Cultural Environments
·What is culture
ois the characteristics and knowledge of a particular group of people, encompassing language, religion, cuisine, social habits, music and arts.
·What are social institutions and why important
oSocial Institutions are the establishment in a society that makes the society function, Without the social institutions a society cannot achieve fulfilment in terms of economy, academy or relationships.
·How do aesthetics, music and food diffuse culture
oIs the sense of what is beautiful and what is NOT beautiful.
oColors can describe different things in each country.
oFood culture
·Spoken or Verbal language- nonverbal
oSemiotics: Study of signs and their meanings- spoken and unspoken
·What are high and low context cultures
oHigh context refers to societies or groups where people have close connections over a long period of time. Many aspects of cultural behavior are not made explicit because most members know what to do and what to think from years of interaction with each other. Your family is probably an example of a high context environment. Also, a party with friends…
oLow context refers to societies where people tend to have many connections but of shorter duration or for some specific reason. In these societies, cultural behavior and beliefs may need to be spelled out explicitly so that those coming into the cultural environment know how to behave. Large US airports can be an example of a low context environment.
·What are the dimensions of national culture per Hofstede
o6 dimensions
·What is the self-criterion perception
ois an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions.
Ch. 6- Market Research
·What are the steps in formal market research
oThere are six steps of formal market research
§Define the Objective & Your “Problem”
§Determine Your “Research Design”
§Design & Prepare Your “Research Instrument”
§Collect Your Data.
§Analyze Your Data.
§Visualize Your Data and Communicate Results.
·What are some issues in data collection?
oStandardization versus. Extension of Marketing Mix?
oDemand & profit potential may depend on whether the market is existing or potential
oExisting Markets are being served by one or more companies
oPotential Markets
·Current issues in Global marketing research
oComparability means that research can be used for valid comparisons between countries
oEmic analysis studies a culture from within
oEtic analysis is detached & used in multi-country studies