Global Marketing Strategy
Global Marketing Strategy BA 4590
Utah State University
Popular in Course
verified elite notetaker
Popular in Business Administration
Marian Kertzmann DVM
verified elite notetaker
This 6 page Class Notes was uploaded by Dr. Mellie Heidenreich on Wednesday October 28, 2015. The Class Notes belongs to BA 4590 at Utah State University taught by Staff in Fall. Since its upload, it has received 18 views. For similar materials see /class/230436/ba-4590-utah-state-university in Business Administration at Utah State University.
Reviews for Global Marketing Strategy
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 10/28/15
Political and Legal Environments Learning Objectives 1 The political legal risks of global 2 How to reduce the effect of politicallegal vulnerability Global Perspective International law recognizes the sovereign right of a nation to grant or withhold permission to do business within its political boundaries and to control where its citizens conduct business Assessing Political Environment of the Host Country What is the political structure 2 What attitudes does the host government have toward foreign investment or companies 3 What actions are likely to ow from the host government 4 Are my business activities in con ict with its national interest A Sampling of Government Types Insert Exhibit 61 National Interests and Impacts on Businesses 1 Sovereignty and Selfpreservation Limiting foreign ownership of media National security Infrastructure and essential resources Defense and telecommunication Prosperity Import restriction Role of local or regional government Enhancing Prestige Eg French s suspense of sale of Thomson to the Lagardere Group Cultural identity E g Europe advocates curbs on foreign television Eg F orbidding Starbucks Host Country Pressure Groups Eg McDonald s raise wages in China N E 4 V39 0 Host Government Actions Jawboning the informal intervention of governments in the business process often without a legal basis Buylocal Restrictions Local businesses are preferred over foreign companies Nontariff Barriers Subsidies one way to support local industries N 5 WTO outlaws direct export direct subsidies but do not prohibit indirect subsidies 5 Localcontent laws Countries often require a portion of any product sold within the country to have local content 6 Ownership Conditions 7 Boycotts barring companies completely from a given markets 8 Takeovers Con scation 7 the seizing of a company s assets without payment Expropriation 7 where the government seizes an investment but some reimbursement for the assets is made Domestication 7 when host countries gradually cause the transfer of foreign investments to national control and ownership through a series of government decrees by mandating local ownership and greater national involvement in a company s management Lessening Political Vulnerability Local partners Invaluable status Local borrowing Minimizing fixed assets Political risk insurance Elk WP Marketing Laws All countries have laws regulating marketing activities Promotion Product development Labeling Pricing Channels of distribution competitions Counterfeiting and Piracy Possible responses Coopt the distributors through acquisition or licensing Educate consumers about the value of the original product through advertising Investigate and bring legal actions Join coalitions which brings pressures on governments Use advanced technologies Continue product improvement Laws Against Bribery and Corrupt Practices Foreign Corrupt Practices Act Makes it illegal for companies to pay bribes to foreign officials candidates or political parties Jurisdiction in International Legal Disputes N0 judicial body exists to deal with legal commercial problems arising between citizens of different countries The most clearcut decisions can be made when the contracts or legal documents supporting a business transactions include a jurisdictional clause Legal disputes can arise in three situations Between governments Between a company and a government Between two companies Managing Global Distribution Channels Distribution Channel Analysis Selecting Channel Members Gaining Access to Distribution Channels Global Logistics Global Trends in Distribution Distribution Density I The number of sales outlets required for the efficient marketing of f1rm s products Channel Length In uenced by I A product s distribution density I The average order quantity I The availability of channel members Comparison of Distribution Channels between the United States and Japan Insert Exhibit 141 Japanese Distribution Structure A structure dominated by many small middlemen dealing with many small retailers Channel control by manufacturers A business philosophy shaped by a unique culture emphasis on loyalty harmony and friendship Laws that protect the foundation of the system High Density of Middlemen In Japan small stores account for 577 percent of retail food sales In the US small stores generate 192 percent of food sales Large Scale Retail Store Law Daitenho 7 the LargeScale Retail Store Law I Large stores must have approval from the prefecture government I All proposals first judged by the Ministry of International Trade and Industry MITI I Then if all local retailers unanimously agreed the plan was approved I Could be a lengthy process I Applied to both domestic and foreign companies I Replaced by the LargeScale Retail Store Location Act of June 2000 Channel Alignment Ensure that various channel members coordinate their actions so that a uni ed approach to the marketing can be achieved I Channel captain I Move from wholesaler dominant to retail dominant Factors In uencing the Selection of Channel Members I Cost I Initial cost I Maintenance cost I Logistics costs Merchandise line I Shelf life I Technical nature of the product Control whollyowned vs thirdparty SynergyCompatibility I Expertise I Knowledge about the retailer s management style Global Logistics Planning implementing and controlling the physical ow of materials and nished products from points of origin to points of use Global Logistics Marks amp Spencer I Increase retail operating efficiency and eliminate stockroom with increased delivery frequency I Use thirdparty contractor to replace inhouse logistics system saving big on distribution cost Logistics Decision Area Transportation Management I Choice of Mode of transportation I Lead time I Cost Logistics Decision Area Inventory control Order Processing Material handling and processing Factors that affect Inventory Level Demand forecast Service level intended Replenishment frequency Lead time Shipping cost Quantity discount Retailers Sourcing Dilemma Global Trends in Distribution The growth of larger scale retailers The popularity of international retailers Proliferation of direct marketing International Grey Market De nition I involves the selling of trademarked products through channels of distribution that are not authorized by the trademark holder It can occur within or across markets International Grey Market Causes I exchange rate uctuate I freeride I price variations across countries Advantages and Disadvantages I increase sales in short run I lose control of the distribution channel
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'