Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 8
Global Marketing
Tools For Instructors
Brief Chapter Outline
Learning Objectives
Chapter Overview (“Summing Up”)
Extended Chapter Outline with Teaching Tips
PowerPoint Slides with Teaching Notes
Answers to End of Chapter Learning Aids
Chapter Case Study
Additional Teaching Tips
Brief Chapter Outline
Assessing Global Markets
Choosing a Global Entry Strategy
Choosing a Global Marketing Strategy
Summing Up
End of Chapter Learning Aids
Chapter Case Study: The Globalization of the Most Ubiquitous of American Cuisines: The
Hamburger
Learning Objectives
LO1 Describe the components of a country market assessment.
LO2 Understand the marketing opportunities in BRIC countries.
LO3 Identify the various market entry strategies.
LO4 Highlight the similarities and differences between a domestic marketing strategy and a
global marketing strategy.
Chapter Overview (“Summing Up”)
LO1 Describe the components of a country market assessment.
First, firms must assess the general economic environment. For instance, countries with a trade
surplus, strong domestic and national products, growing populations, and income growth
generally are relatively more favorable prospects. ¬Second, firms should assess a country’s
infrastructure. To be successful in a particular country, the firm must have access to adequate
transportation, distribution channels, and communications. Third, firms must determine whether
the proposed country has a political and legal environment that favors business. Fourth, firms
should be cognizant of the cultural and sociological differences between their home and host
countries and adapt to those differences to ensure successful business relationships.
LO2 Understand the marketing opportunities in BRIC countries.
Technology, particularly in the communication field, has facilitated the growth of global markets.
Firms can communicate with their suppliers and customers instantaneously, easily take
advantage of production efficiencies in other countries, and bring together parts and finished
goods from all over the globe. Four countries that provide tremendous marketing opportunities
are the BRIC nations—Brazil, Russia, India and China. These countries have large populations
that are increasingly interested in the latest goods and services.
LO3 Identify the various market entry strategies.
Firms have several options for entering a new country, each with a different level of risk and
involvement. Direct investment is the most risky but potentially the most lucrative. Firms that
engage in a joint venture with other firms already operating in the host country share the risk and
obtain knowledge about the market and how to do business there. A strategic alliance is similar
to a joint venture, but the relationship is not as formal. A less risky method of entering a new
market is franchising, in which, as in domestic franchise agreements, the franchisor allows the
franchisee to operate a business using its name and strategy in return for a fee. The least risky
method of entering another country is simply exporting.
LO4 Highlight the similarities and differences between a domestic marketing strategy
and a global marketing strategy.
The essence of a global marketing strategy is no different from that of a domestic strategy. The
firm starts by identifying its target markets, chooses specific markets to pursue, and crafts a
strategy to meet the needs of those markets. However, additional issues make global expansion
more problematic. For instance, should the product or service be altered to fit the new market
better? Does the firm need to change the way it prices its products in different countries? What is
the best way to get the product or service to the new customers? How should the firm publicize
its product or service offering in various countries?
Extended Chapter Outline With Teaching Tips
Growth Of The Global Economy: Globalization Of Marketing And Production (PPT slide
8-4)
Assessing Global Markets (PPT slide 8-6)
Economic Analysis Using Metrics
Evaluating the General Economic Environment (PPT slide 8-7)
Evaluating Market Size and Population Growth Rate (PPT slide 8-8)
Evaluating Real Income (PPT slide 8-9)
Analyzing Infrastructure and Technological Capabilities (PPT slide 8-10)
Analyzing Government Actions (PPT slide 8-11)
Tariffs (PPT slide 8-12)
Quotas (PPT slide 8-12)
Exchange Control (PPT slide 8-13)
Trade Agreements (PPT slide 8-13)
Analyzing Sociocultural Factors (PPT slide 8-16)
The Appeal of the BRIC Countries (PPT slide 8-19)
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 8-20)
1. What metrics can help analyze the economic environment of a country?
2. What types of government actions should we be concerned about as we evaluate a
country?
3. What are five important cultural developments?
4. Why are each of the BRIC countries viewed as potential candidates for global
expansion??
Answer: Brazil’s ability to weather, and even thrive during, the most recent economic
storm, has transformed it into a global contender. Russia has undergone multiple up- and
Choosing A Global Entry Strategy (PPT slide 8-21)
Exporting
Franchising
Strategic Alliance
Joint Venture
Direct Investment
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 8-22)
1. Which global entry strategy has the least risk and why?
Answer: Exporting requires the least financial risk but also allows for only a limited
2. Which global entry strategy has the most risk and why?
Answer: Direct investment requires a firm to maintain 100 percent ownership of its
plants, operation facilities, and offices in a foreign country, often through the formation
Choosing A Global Marketing Strategy
Target Market: Segmentation, Targeting, and Positioning (PPT slide 8-23)
The Global Marketing Mix
Global Product or Service Strategies (PPT slide 8-24)
Global Pricing Strategies (PPT slide 8-25)
Global Distribution Strategies (PPT slide 8-26)
Global Communication Strategies (PPT slide 8-27)
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 8-29)
1. What are the components of a global marketing strategy?
Answer: A global marketing strategy includes two components: determining the target
2. What are the three global product strategies?
Answer: The three potential global product strategies are: Sell the same product or
