Powerpoint Slides With Teaching Notes
Power Point Slide Teaching Notes
8-1: Global Marketing
8-2: Learning Objectives These are the learning objectives for this
chapter.
8-3: Coca-Cola Ask students: Why has Coca-Cola been
successful in global markets?
Coca-Cola has learned that they many
complexities when entering global
markets.
Ask students: How should Coca-Cola
increase beverage consumption in India?
8-4: Growth of Global Market As the text notes, countries such as India
have benefited extensively from the
globalization of production.
With a large, educated workforce India has
been able to attract firms from across the
world to locate operations there.
These operations represent a wide variety
of industries from banking to medicine and
include insurance, accounting,
radiography, etc.
Globalization of production refers to the
manufacturer’s procurement of goods and
services from around the globe.
8-5: Hiring Overseas This clip examines the seasonal labor
shortage of the hotel industry and how
foreign workers are hired to improve
customer service.
Note: Please make sure that the video file
is located in the same folder as the
PowerPoint slides.
8-6: Assessing Global Markets Any entry into a new market, especially
into a new country, requires careful
planning.
A formal market assessment prevents firms
from making costly mistakes.
8-7: Economic Analysis General Economic
Environment
Each of these standardized measures allow
for comparisons across countries.
The use of each depends on specific
circumstances. Many reports now feature
GNI rather than GDP, because it includes
the economic impact of firms that earn
income from their global operations,
unlike GDP, which dramatically
undercounts the impact of those activities
on the economy of the firms’ home
markets.
The human development index is
interesting to students.
Ask students what it might include as an
indicator of quality of life in the country.
It includes life expectancy at birth,
educational attainment and whether
average incomes are sufficient to meet the
basic needs of life in that country.
The web link brings you to the current
index which can be viewed as a map OR as
a bar chart.
8-8: Evaluating Market Size and Population
Growth Rate
Ask students: is it in the best interest of a
rapidly developing country to encourage
foreign retailers to stimulate the economy
even though they might harm small family
owned businesses?
Students are likely to reflect on the
landscape of the U.S. retail industry and
notice the harm of some large retailers.
8-9: Evaluating Real Income Group activity: Break students into
groups. Have each group choose a less
developed country for a new marketing
venture.
Then have each group represent a firm
considering marketing a new product or
service in that country.
What adjustments would they have to
make to their marketing strategy to be
successful with their new venture?
There is more detail on this activity on the
following slide…
8-10: Analyzing Infrastructure and
Technological Capabilities
A firm’s ability to conduct business in a
particular country is in large measure
determined by that country’s infrastructure.
Group activity: Continue with the group
activity above.
Have students assess how the current
infrastructure in their chosen country will
affect the success of their new venture.
8-11: Analyzing Government Actions Remind students that this category
includes not just the impact of
governmental actions but also those of
non-governmental organizations (NGOs).
8-12: Tariff and Quotas Trade negotiations often revolve around
reducing or eliminating tariffs, quotas, or
similar impediments to trade.
Discuss the recent trade battles between
the United States and foreign agriculture
producers (e.g., sugar, corn).
Many foreign producers accuse the United
States of limiting market access through
unfair tariffs and quotas, whereas the
United States insists that it must protect
United States agriculture.
Ask students: What do you think? Which
side would you take in this debate?
8-13: Exchange Control The Central Bank of a country generally
regulates its currency.
Many countries try to keep their markets
attractive to foreign investors while
simultaneously making their goods
attractive to foreign buyers through
exchange control.
Ask students: If the value of the U.S.
dollar goes up compared to other
currencies, what happens to international
trade?
Answer: U.S. businesses and consumers
will buy more imports, but since the dollar
is worth more, exports will go down.
8-14: Trade Agreements Ask students: What trade agreements
have you heard of?
Can you think of an existing trading bloc?
What benefits does belonging to a trading
bloc offer members?
8-15: The European Union (EU) Group activity: Brainstorm about how the
introduction of a single currency affected
various marketing aspects in the EU.
The conversion to the Euro presented
serious concerns for marketers, most of
which have been resolved.
But in France, retailers still list prices in
both Euros and the now defunct French
Franc, which allows consumers, especially
older consumers, to make better
purchasing decisions.
Since the Euro is used across all EU
countries, it makes pricing a challenge.
Many items do not sell for the same price
across the EU.
Will different Euro prices irritate
consumers?
However, having one currency across all
EU countries does facilitate trade.
For instance, tourists across the EU find it
easier to gauge value when everything is
priced in Euros.
8-16: Analyzing Sociocultural Factors Perhaps no other aspect of globalization
has posed more difficulties to marketers
than culture.
Outsiders often have trouble understanding
the detailed meanings associated with
proper communication in a foreign culture.
8-17: Country Clusters Hofstede’s cultural dimensions offer an
effective understanding of the subtle
elements of a culture.
Taken together, these dimensions enable
marketers to group countries together
according to their similarity on these
dimensions and therefore engage in more
efficient planning.
Ask students: How would you
characterize American culture on these
dimensions?
How would you characterize other cultures
with which you are familiar?
8-18: Country Clusters Ask students: Using the Geert Hofstede’s
cultural dimensions concept, what type of
cultural difference is affecting the person
in the picture?
Hofstede’s cultural dimensions offer an
effective understanding of the subtle
elements of a culture.
The person in the picture is gathering as
much information as possible in order to
make the best decision.
8-19: The Appeal of the BRIC Countries Perhaps the greatest change facing the
global community in recent years has been
the growth and expansion of four countries
that together have come to be known as the
BRIC countries: Brazil, Russia, India, and
China.
8-20: Check Yourself 1. The general economic environment,
the market size and population growth
rate, and real income.
2. Tariffs, quotas, boycotts, exchange
controls, and trade agreements
3. Cultural Dimensions include power
distance, uncertainty avoidance,
individualism, masculinity and time
orientation
4. 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 downturns
in its economy. However, its overall
growth prospects appear promising,
especially as a consumer market. With
more than 1.1 billion people, or
approximately 15 percent of the
world’s population, together with
expanding middle and upper classes,
India is one of the world’s fastest
growing markets. China’s leadership,
while maintaining communist political
ideals, has embraced market-oriented
economic development, which has led
to startlingly rapid gains.
8-21: Choosing a Global Entry Strategy Ask students: Why do you think most
firms try exporting first? In each strategy,
the risks and rewards change.
As risk increases, so do the potential
rewards.
Exporting represents the lowest risk level
for the firm.
Group activity: Divide into groups that
represent different firms.
Each group should outline its product
offering and the entry strategy it would
choose for its global strategy.
Ask students: Why is your chosen entry
strategy appropriate for your offering?
What criteria did you use to determine
your strategy?
What risks does your strategy entail, and
are the potential rewards worth those
risks?
8-22: Check Yourself 1. This entry strategy requires the least
financial risk but also allows for only a
limited return to the exporting firm.
Global expansion often begins when a
firm receives an order for its product or
service from another country, in which
case it faces little risk because it has no
investment in people, capital
equipment, buildings, on infrastructure.
2. 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 of wholly owned
subsidiaries. This entry strategy
requires the highest level of investment
and exposes the firm to significant
risks, including the loss of its operating
and/or initial investments
8-23: Choosing a Global Marketing Strategy:
Target Market (STP)
Adjusting the marketing mix and
positioning strategy to meet the needs of a
new market may represent the most
complex topic for global marketing.
Chapter 8 discusses segmentation,
targeting, and positioning in greater detail.
Group Activity: Divide the class into
groups. Have them choose a product that
they want to introduce into another
country. (It may be the same product/firm
they used in previous group activity).
Have students consider how they would
adapt their positioning strategy in the new
country.
8-24: The Global Marketing Mix: Product or
Service Strategies
Ask Students: What products are the
easiest to standardize?
What makes these products easy to
standardize?
Products at the extreme ends of high tech
(i.e., electronics, computers, software
versus paper and pencil) or high touch
(i.e., luxury goods, jewelry versus staple
products) continuums are easy to
standardize, but those in the middle
generally require varying levels of
adaptation to local markets.
8-25: Global Marketing Mix: Pricing Strategies In addition to competitive, cost, and other
considerations, global pricing involves
additional dimensions that increase its
complexity.
8-26: Global Marketing Mix: Global
Distribution Strategies
Delivering products to local retailers can
be incredibly difficult and frustrating.
Infrastructure issues often prevent
traditional distribution methods and
require creative adjustments.
Global firms must find distribution
strategies that enable them to reach even
really remote markets.
For instance, Avon sells and delivers
cosmetics to customers using canoes.
This example could also prompt an ethical
discussion on whether or not firms should
be marketing hedonic products or services
to consumers with very little disposable
income.
This YouTube ad (always check before
class) is for FedEx and shows how it
international distribution can be difficult
for many companies.
8-27: Global Marketing Mix: Global
Communication Strategies
Ask students: How do firms market their
products in countries with very low
literacy levels?
Imagine you are promoting a new soft
drink.
How would you do it without written
communication?
8-28: Spanish Ad Ask students – given their awareness of
Spanish culture – why might this ad be
effective?
How is it different than a U.S. ad?
The answer is that it is not that different at
all.
8-29: Check Yourself 1. Determining the target markets to
pursue and developing a marketing mix
that will sustain a competitive
advantage over time.
2. Global product strategies:
a. Sell the same product or service in
both the home country market and
the host country.
b. Sell a product or service similar to
that sold in home country but
include minor adaptations.
c. Sell totally new products or
services.