International Marketing Outline Ch 1

Chapter 1 Outline

1/21/13

Introduction to Global Marketing

Global marketing focus its resources and competencies on global market opportunity and threats.

When companies are developing growth strategies some pursue a market development strategy; this involves seeking new customers by introducing existing products or services in a new geographical area.

Global marketing can also take the form of diversification strategy (i.e. South Korea’s LG Electronics in America)

Product/Market Growth Matrix

| | Product Orientation | |

| | Existing Products | New Products |

Market Orientation | Existing Markets | 1. Market penetration strategy | 2. Product development strategy |

| New Markets | 3. Market development strategy | 4. Diversification strategy |

Principles of Marketing: A review

Marketing can also be thought of as a set of activities and processes that, along with product design, manufacturing, and transportation logistics makes up a company’s value chain.

Value = Benefits/Price (money, time, effort, ect.)

Value as the customer perceives it can be markets can offer customers an improved bundle of benefits or lower prices.

When a company successes in creating more value for its customers then its competitors that company can enjoy a competitive advantage.

a) Competitive advantage is measured relative to rivals in a given industry.

The transformation of formerly local or national industries into global ones is part of a broader process of globalization.

a) Globalization is the inexorable integration of markets, national-states, and technologies to a degree never witnessed before- in a way that is enabling individuals, corporations and nation-states to reach around the world farther, faster, deeper, and cheaper than ever before.

A global industry is one which competitive advantage can be achieved by integrating and leveraging operations on a worldwide scale.

a) Indicators of globalization include the ratio of...