978-1259446290 Chapter 8 Solution Manual

Unlock access to all the studying documents.

View Full Document

Chapter 8

Global Marketing

Tools For Instructors

Brief Chapter Outline

Learning Objectives

Extended Chapter Outline with Teaching Tips

PowerPoint Slides with Teaching Notes

Additional Teaching Tips

Brief Chapter Outline

Assessing Global Markets

Learning Objectives

LO 8-1 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

countries and adapt to those differences to ensure successful business relationships.

LO 8-2 Understand the marketing opportunities in BRIC countries.

Technology, particularly in the communication field, has facilitated the growth of global markets.

that are increasingly interested in the latest goods and services.

LO 8-3 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

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.

LO 8-4 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

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

I Growth of the Global Economy: Globalization of Marketing and Production (PPT slide

8-4)

II Assessing Global Markets (PPT slide 8-6)

A Economic Analysis Using Metrics

1 Evaluating the General Economic Environment (PPT slide 8-7)

B Analyzing Infrastructure and Technological Capabilities (PPT slide 8-10)

C Analyzing Government Actions (PPT slide 8-11)

1 Tariffs (PPT slide 8-12)

D Analyzing Sociocultural Factors (PPT slide 8-16)

A. 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 governmental actions should we be concerned about as we evaluate a

country?

3. What are five important cultural dimensions?

time orientation.

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

communist political ideals, has embraced market-oriented economic development, which

has led to startlingly rapid gains.

III Choosing a Global Entry Strategy (PPT slide 8-21)

A Exporting

E Direct Investment

Check Yourself: Several questions are offered for students to check their understanding of core

concepts. (PPT slide 8-22)

1. Which entry strategy has the least risk and why?

Answer: Exporting requires the least financial risk but also allows for only a limited

2. Which 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

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. For example, a dramatic economic downturn caused by a natural disaster,

war, political instability, or changes in the country’s laws can increase a foreign entrant’s

risk considerably.

IV Choosing a Global Marketing Strategy

A Target Market: Segmentation, Targeting, and Positioning (PPT slide 8-23)

B The Global Marketing Mix

1 Global Product or Service Strategies (PPT slide 8-24)

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