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BUENOS DIAS

BUENOS DIAS. Globalization of Business. Understanding and Managing Markets and Marketing. Stated Goals of this Workshop. The new global paradigm Administration of global systems Implementing global strategies Managing across cultures

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BUENOS DIAS

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  1. BUENOS DIAS Changing Paradigm: Global Systems

  2. Globalization of Business Understanding and Managing Markets and Marketing

  3. Stated Goals of this Workshop • The new global paradigm • Administration of global systems • Implementing global strategies • Managing across cultures • Information technologies and organizations in global business • Negotiations in the global environment Changing Paradigm: Global Systems

  4. Your Goals for this Workshop Changing Paradigm: Global Systems

  5. Several Factors Propelling Trade • Trade Agreements • EU • NAFTA • MERCOSUR • ASEAN • APEC Changing Paradigm: Global Systems

  6. Several Factors Propelling Trade • Political Changes • Russia • Baltic • Balkans • China • India Changing Paradigm: Global Systems

  7. Several Factors Propelling Trade • Socioeconomic • Education • Wealth • Income Changing Paradigm: Global Systems

  8. Two Facilitating Technologies • Transportation/Logistics • Information Changing Paradigm: Global Systems

  9. Agenda: This Morning • Markets and Marketing • Marketing Process • Marketing Concept • Emerging Markets • International Marketing Environments • International Marketing Issues • Entry Strategies • Marketing Mix Adaptation • Logistics Introduction Changing Paradigm: Global Systems

  10. Agenda: This Afternoon • Logistics Mechanics • Trade Intermediaries • Primary Modes • Marine • Air • NAFTA • Supply Chain Management Changing Paradigm: Global Systems

  11. Markets and Marketing: Marketing Process • Population • Who they are • Where they are • What do they look like • How much do they have to spend • What do they want • How many are there Changing Paradigm: Global Systems

  12. Markets and Marketing: Marketing Process • Segment • Markets are not homogeneous • Basis • Demographic • Economic • Psychographic • Purpose Changing Paradigm: Global Systems

  13. Markets and Marketing: Marketing Process • Target • Right combination of • People • Dollars to spend • Lack of competition • Comparative Advantage Changing Paradigm: Global Systems

  14. Markets and Marketing: Marketing Process • Position • We will never have a monopoly in a target • Do not overlook • Differentiation Changing Paradigm: Global Systems

  15. Markets and Marketing: Marketing Process • Marketing Mix • Product • Price • Promotion • Place • People Changing Paradigm: Global Systems

  16. Markets and Marketing: Marketing Concept • Sustainable competitive advantage • Identifying and delivering what the customer wants • Voice of the customer • House of Quality • External environments Changing Paradigm: Global Systems

  17. Markets and Marketing: Marketing Concept Changing Paradigm: Global Systems

  18. Markets and Marketing: Emerging Markets • Demographics • Economics • Political Changes • Trade Regimes Changing Paradigm: Global Systems

  19. Markets and Marketing: Emerging Markets • Goods • Consumer • Manufacture • Services • Tourism • Banking • Consulting Changing Paradigm: Global Systems

  20. Markets and Marketing: Emerging Markets Changing Paradigm: Global Systems

  21. Markets and Marketing: Emerging Markets • Asia • India Changing Paradigm: Global Systems

  22. Markets and Marketing: Emerging Markets • Asia • 4 Tigers • China Changing Paradigm: Global Systems

  23. Markets and Marketing: Emerging Markets • Europe • EU Changing Paradigm: Global Systems

  24. Markets and Marketing: Emerging Markets • Europe • CIS Changing Paradigm: Global Systems

  25. Markets and Marketing: Emerging Markets • Central and South America • Brazil • Chile Changing Paradigm: Global Systems

  26. Markets and Marketing: Emerging Markets • Mexico Changing Paradigm: Global Systems

  27. Markets and Marketing: Marketing Environments • Financial Forces • Foreign Exchange Markets • Currency Exchange Rate Risks • Differing • Tariffs • Taxes • Fiscal and Monetary Policies • Inflation • Accounting Practices Changing Paradigm: Global Systems

  28. Markets and Marketing: Marketing Environments • Economic Forces • GNP • GNP per capita • Income Distribution • Wealth Distribution • Personal Consumption Changing Paradigm: Global Systems

  29. Markets and Marketing: Marketing Environments • Socioeconomic Forces • Total Population • Age Distribution • Population Density and Distribution • Gender Balance and Roles • Multiple Income Households Changing Paradigm: Global Systems

  30. Markets and Marketing: Marketing Environments • Physical and Environmental Forces • Most basic of all forces • Topography • Climate • Geography • Location • Natural Resources Changing Paradigm: Global Systems

  31. Markets and Marketing: Marketing Environments • Sociocultural Forces • Aesthetics • Attitudes and Beliefs • Religion • Material Culture • Education • Language • Societal Organizations Changing Paradigm: Global Systems

  32. Markets and Marketing: Marketing Environments • Political and Legal Forces • Open or Closed • Receptivity to Trade and Investment • Taxation Changing Paradigm: Global Systems

  33. Markets and Marketing: Marketing Environments • Political and Legal Forces • Trade Regimes • Documentation • SED • Certificate of Origin • Export License • Import License • Tax Preferred • Agreements • FTZ • Customs Bonded Changing Paradigm: Global Systems

  34. Markets and Marketing: Marketing Issues – Entry Strategies • Exporting • direct or indirect • advantages • disadvantages Changing Paradigm: Global Systems

  35. Markets and Marketing: Marketing Issues – Entry Strategies • Licensing • mfr., process, trademark, know-how, technical assistance, merchandising knowledge • advantages • disadvantages Changing Paradigm: Global Systems

  36. Markets and Marketing: Marketing Issues – Entry Strategies • Joint Venture • equity position in foreign company • advantages • disadvantages Changing Paradigm: Global Systems

  37. Markets and Marketing: Marketing Issues – Entry Strategies • Direct Ownership • complete ownership of foreign subsidiary • advantages • disadvantages Changing Paradigm: Global Systems

  38. Markets and Marketing: Marketing Issues – Entry Strategies • Countertrade • part of payment made in goods instead of money • types • barter • buyback Changing Paradigm: Global Systems

  39. Markets and Marketing: Marketing Issues – Mix Adaptation • Product • Total Product Concept • Tangible, core • Tangible, related • Intangible benefit • May Require Adaptation • Income/Discretionary • Cultural/Necessity Changing Paradigm: Global Systems

  40. Markets and Marketing: Marketing Issues – Mix Adaptation • Promotion • Communication • Message • Sender • Encoding • Channel • Decode • Receiver • Feedback • Noise Changing Paradigm: Global Systems

  41. Markets and Marketing: Marketing Issues – Mix Adaptation • Promotion • Problems • Encoding/Decoding • Channel • Noise Changing Paradigm: Global Systems

  42. Markets and Marketing: Marketing Issues – Mix Adaptation • Price • Total Landed Cost • Cost Build Up Changing Paradigm: Global Systems

  43. Markets and Marketing: Marketing Issues – Mix Adaptation • Price • Sales Terms INCO Terms Setting the Parameters Changing Paradigm: Global Systems

  44. Four Categories • E Term • Ex Works • C Terms • CFR: Cost and Freight (named port of destination) • CIF: Cost, Insurance, and Freight, (named port of destination) Changing Paradigm: Global Systems

  45. Four Categories • C Terms (continued) • CPT: Carriage Paid To (named place of destination) • CIP: Carriage and Insurance Paid To (named place of destination) Changing Paradigm: Global Systems

  46. Four Categories • D Terms • DAF: Delivered At Frontier (named place) • DES: Delivered Ex Ship (named port of destination) • DEQ: Delivered Ex Quay (named port of destination) • DDU: Delivered Duty Unpaid (named place of destination) • DDP: Delivered Duty Paid (named place of destination) Changing Paradigm: Global Systems

  47. Four Categories • F Terms • FCA: Free Carrier (named place) • FAS: Free Alongside Ship (named port of shipment) • FOB: Free On Board (named port of shipment) Changing Paradigm: Global Systems

  48. Applicability • Any Mode • EXW • FCA • CPT • CIP • DAF • DDU • DDP • Marine Only (other than RoRo) • EXW • FAS • FOB • CFR • CIF • DES • DEQ • DDU/DDP Changing Paradigm: Global Systems

  49. Markets and Marketing: Marketing Issues – Mix Adaptation • Price • Getting Paid • Cash • Open Account • Letters of Credit • Drafts Changing Paradigm: Global Systems

  50. Markets and Marketing: Marketing Issues – Mix Adaptation • Place • Channels of Distribution • Entry Strategies • Other Market Considerations • Logistics Changing Paradigm: Global Systems

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