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Republic of the Philippines
City of Olongapo
GORDON COLLEGE
Olongapo City Sports Complex, East Tapinac, Olongapo City
Tel. No. (047) 224-2089 loc. 314
COLLEGE OF BUSINESS AND ACCOUNTANCY

Program: BSBA Major in
Marketing Course Code: MKT
109
COURSE DESCRIPTION
The course focuses on formulating and implementing international marketing strategies and policies
and how organizations focus their resources and competencies on global market opportunities and
threats. It gives an understanding of global marketing as a whole and focuses on the importance of
emerging nations in contemporary global marketing. The course also covers the essential aspects
of international marketing and the importance of the interplay of various driving and restraining
forces that help explain why companies go global.
COURSE LEARNING OUTCOMES
Upon completion of the course, the students can:
1 Developed skills in researching and analyzing trends in global markets and in modern
marketing practice;
2 Assess an organization’s ability to enter and compete in international markets;
3 Evaluate new technologies and trends that affect branding on a global scale.
4 Analyze different environmental variables that influence international marketing; and
5 Evaluate how marketing managers perform the functional tasks that constitute
international marketing such as marketing intelligence and “mix” adaptations.
EVALUATION & GRADING
MIDTERM FINAL
TERM
Major Examination 30% Major Examination 30%
Activities Activities
Assignments Assignments
Quizzes 70% Quizzes 70%
Online Postings Online Postings
Recitation Recitation
TOTAL 100% TENTATIVE TOTAL 100%
FINAL GRADE = 50% Midterm Grade + 50% Tentative Final Grade
International Marketing – 1st Sem. AY 2020-2021 NOT FOR SALE. EXCLUSIVE FOR GORDON
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GRADING RUBRIC FOR ESSAY
Criterion Exceeds Meets Needs Inadequate

Expectations Expectations Improve
4 (100%) 3 (75%) ment 1 (25%)
2 (50%)
Focus & There is one clear, There is one clear, There is one The topic and
Details well-focused topic. well-focused topic. topic. Main ideas main ideas are
Main ideas are Main ideas are are somewhat not clear.
clear and are well clear but are not clear.
supported by well supported by
detailed and detailed
accurate information.
information.
Organization The introduction is The introduction The introduction There is no
inviting, states the states the main states the main clear
main topic, and topic and topic. A introduction,
provides an provides an conclusion is structure, or
overview of the overview of the included. conclusion.
paper. paper. A
Information is conclusion is
relevant and included.
presented in a
logical order. The
conclusion
is strong.
Voice The author’s purpose The author’s The author’s The author’s
of writing is very purpose of writing purpose of writing purpose of
clear, is
and there is strong somewhat clear, is somewhat writing is
clear,
evidence of attention and there is some and there is unclear.
to audience. The evidence of evidence of
author’s extensive attention to attention to
knowledge and/or audience. The audience. The
experience with the author’s knowledge author’s
topic is/are evident. and/or experience knowledge and/or
with the topic is/are experience with
evident. the topic is/are
limited.
Word Choice The author uses vivid The author uses The author uses The writer uses
words and phrases. vivid words and words that a limited
The choice and phrases. The communicate vocabulary.
choice
placement of words and placement of clearly, but the Jargon or
clichés
seems accurate, words is inaccurate writing lacks may be present
natural, and not at times and/or variety. and detract
forced. seems overdone. from the
meaning.
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Sentence All sentences are Most sentences are Most sentences Sentences
well
Structure, constructed and have well-constructed are well sound awkward,
Grammar, varied structure and and have varied constructed, but are distractingly
length. The author structure and they have a repetitive, or
similar
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Mechanics, makes no errors in length. The author structure and/or are difficult to
&
Spelling grammar, mechanics, makes a few errors length. The author understand.
The
and/or spelling. in grammar, makes several author makes
mechanics, and/or errors in numerous
grammar,
spelling, but they mechanics, and/or errors in
do
not interfere with spelling that grammar,
understanding. interfere with mechanics,
understanding. and/or spelling
that interfere
with
understanding.
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LEARNING MODULE
MODULE LEARNING TOPICS TEACHING LEARNING

NUMBER OBJECTIVES AND KEY AND TASKS
AND TITLE (MOST CONCEPTS LEARNING
ESSENTIAL MATERIALS
LEARNING AND
COMPETENCIES) RESOURCES
Module 1: Discuss the Global Multimedia Self-
concepts of Marketing: What presentation Directed
INTRODUCTION global It Is and What It Handouts Learning
marketing. Internet Online
TO GLOBAL Isn’t
Classes
MARKETING Recognize the The Reflection
importance of Importance of on Learning
global Global One-
marketing. Marketing Minute
Cite and Paper
explain the Manageme
different nt
management Orientations
orientations. Forces
Enumerate Affecting
and discuss Global
the different Integration and
forces Global
affecting Marketing
global
integration
and
global marketing.
Module 2: Identify and Overview of Multimedia Self-
briefly explain the World presentation Directed
THE GLOBAL major changes Economy Handouts Learning
Internet Online
ECONOMIC in the world
Classes
ENVIRONME economy. Economi
Reflection
NT Compare and c on Learning
contrast types of Systems One-
economic Stages of Minute
systems that are Market Paper
found in the Development Oral
different regions Balance Summary
of the world. of
Explain the Payment
stages of s
economic Trade in
development Merchandise
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and identify the and Services
key Overview
emerging country of
Internationa
l Finance
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markets at each
stage of
development
Discuss the
significance of
balance of
payments for
the world’s
major
economies.
Identify the
countries that
are leading
exporters.
Briefly explain
how exchange
rates impact a
company’s
opportunities
in different
parts
around the world.
Module 3: Discuss The WTO Multimedia Self-
different global and GATT presentation Directed
REGIONAL trade Learning
MARKET organizations. Preferentia Online
Handout Classes
CHARACTERISTI identify and l Trade s Reflection
CS AND discuss the Agreement Internet on Learning
PREFERENTIAL types of s One-
TRADE agreements. North America Minute
AGREEMENTS Cite different Latin America Paper
countries and Western,
evaluate their Central, and
preferential Eastern Europe
trade The Middle East
agreements. Africa
Module 4: Discuss and Society, Multimedia Self-
understand the Culture, and presentation Directed
SOCIAL AND cultures of Global Handouts Learning
Internet Online
CULTURAL countries in Consumer
Classes
ENVIRONMEN which they will Culture Reflection
TS be doing High and Low- on Learning
business Context Class
Explain how an Cultures Solution
unconscious Hofstede’s and
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reference to Cultural Consequen
their Typology ce
own cultural The Self- Self-
Assessment
Reference
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values, or self- Criterion and

reference Perception
criterion, may Diffusion Theory
influence their Marketing
perception of the Implications
market of Social and
Incorporate the Cultural
understanding Environment
of social and s
cultural
environments
into the
marketing
planning process.
Module 5: Discuss each The Multimedia Self-
nations’ laws Political presentation Directed
THE POLITICAL, and regulations Environme Handouts Learning
LEGAL, AND with respect to nt Internet Online
Classes
REGULATORY the cross- International Law
Reflection
ENVIRONMENTS border Sidestepping on Learning
OF GLOBAL movement of Legal Class
MARKETING services, Problems: Solution and
people, money, Important Consequenc
and know-how. Business e
Analyze the Issues
important Conflict
business issues Resolution,
in international Dispute
marketing. Settlement,
and Litigation
The Regulatory
Environment
Module 6: Explain what Global Multimedia Self-
market Market presentation Directed
SEGMENTATION, segmentation Segmentatio Handouts Learning
is and when to n Internet Online
TARGETING,
Classes
AND use it. Assessing
Reflection
POSITIONING Cite and Market on Learning
discuss the five Potential and One-
steps involved Choosing Minute
in segmenting Target Markets Paper
and targeting or Segments Class
market. Product- Solution and
Consequenc
Recognize Market
e
the bases Decisions
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used to Target Market
segment Strategy
consumer and Options
Concentrated
Global Marketing
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organizational
(business)
markets.
Explain how
marketing
managers position
products in
the marketplace.
Module 7: Discuss Export Multimedia Self-
what Selling and presentation Directed
IMPORTING, importing Export Handouts Learning
and Marketing Internet Online
EXPORTING,
Classes
AND SOURCING exporting Organizational
Reflection
are. Export on Learning
Analyze Activities One-
why National Minute
companies Policies Paper
export. Governing Class
Explain the Exports and Solution and
Consequenc
main Imports
e Self-
contractual and Tariff Systems Assesseme
investment Key nt
entry modes. Export
Discuss what Participant
countertrade s
is and Organizing for
recognize Exporting in
why the
companies Manufacturer’
engage in s Country
countertrade. Organizing for
Discuss what Exporting in
global sourcing the Market
is. Country
Explain what Export
comprises the Financing and
best practices Methods of
in global Payment
sourcing. Additional
Recognize the Export and
difference Import Issues
between Sourcing
outsourcing
and
global sourcing.
Module 8: Cite and Licensing Multimedia Self-
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discuss the Investment presentation Directed
GLOBAL different global Global Handouts Learning
MARKET ENTRY market entry Strategic Internet Online
Classes
STRATEGIES: strategies. Partnerships
Reflection
LICENSING, Discuss the The Nature of on Learning
INVESTMENT, advantages and Global One-Minute
AND limitations of Strategic Paper
Partnerships
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STRATEGIC licensing, Success

ALLIANC investment, and Factors of
ES strategic Global
alliances. Strategic
Evaluate the Partnerships
factors
resulting to
success of
global
partnerships.
Module 9: Discuss the Basic Multimedia Self-
basic product Product presentation Directed
BRAND concepts in Concepts Handouts Learning
AND global “Country of Internet Online
Classes
PRODUCT marketing. Origin” as
Reflection
DECISIONS Explain the Brand Element on Learning
IN GLOBAL importance of Packaging One-
MARKETIN brand Product Minute
G elements. Warranties Paper
Discuss how Extend, Adapt, Class
packaging and Solution and
Create:
Consequenc
product Strategic e
warranties Alternatives in Self-
contribute to Global Assessment
the competitive Marketing
advantage.
Analyze the
strategic
alternatives
in
global marketing.
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MODULE NO. 1: INTRODUCTION TO GLOBAL MARKETING
INTRODUCTION
The global marketplace finds expression in many ways. As an example, you may have noticed more
multilanguage labeling on your favorite products and brands. Global marketing's growing importance
is one aspect of a sweeping transformation that profoundly affected many nations' people and
industries over a hundred years. Almost four decades ago, the phrase 'global marketing' did not
even exist. Today, savvy businesspeople utilize global marketing for the realization of their
companies' full commercial potential.
Companies that engage in global marketing frequently encounter unique or peculiar features in
specific countries or regions. A thriving global marketer must understand the particular concepts and
has a broad and deep understanding of the world's varied business environments and strategies that,
skillfully implemented in conjunction with universal marketing fundamentals, increase the likelihood
of market success.
LEARNING OBJECTIVES
After studying this module, you should be able to:

Discuss the concepts of global marketing;
Recognize the importance of global marketing;
Cite and explain the different management orientations; and
Enumerate and discuss the different forces affecting global integration and global marketing.
TOPICS AND KEY CONCEPTS
OVERVIEW OF GLOBAL MARKETING
Competitive Advantage
The result of a match between a firm’s distinctive competencies and the factors critical for
creating superior customer value in an industry.
Globalization
Inexorable integration of markets, nation-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 father, faster, deeper and cheaper than ever before, and in a way that is enabling the
world to reach into individuals, corporations and nation-states father, faster, deeper and
cheaper than ever before. (Thomas Friedman)
Focus
The concentration of attention on a core business or competence.
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Global Industry
An industry in which competitive advantage can be achieved by integrating and leveraging
operations on a worldwide scale.
Global Marketing
The commitment of organizational resources to pursuing global market opportunities and
responding to environmental threats in the global marketplace.
Global Marketing Strategy (GMS)

A firm’s blueprint for pursuing global market opportunities that addresses four issues: whether a
standardization approach or localization approach will be used; whether key marketing
activities will be concentrated in relatively few countries or widely dispersed around the
globe; guidelines for coordinating marketing activities around the globe; and the scope of
global market participation.
Global Market Participation

Extent to which a company has operations in major world markets.
Standardization versus Adaptation

The extent to which each marketing mix element can be standardized (i.e., executed the
same way) or adapted (i.e., executed in different ways) in various country markets.
Concentration of Marketing Activities

The extent to which activities related to the marketing mix (e.g., promotional campaigns of
pricing decisions) are performed in one or a few country locations.
Coordination of Marketing Activities

Extent to which marketing activities related to the marketing mix are planned and executed
interdependently around the globe.
Integration of Competitive Moves

The extent to which a firm’s competitive marketing tactics in different parts of the world are
interdependent.
Single-Country Marketing Strategy Global Marketing Strategy

Target Market Strategy Global Market Penetration
Marketing Mix Development Marketing Mix Development
Product Product adaptation or standardization
Price Price adaptation or standardization
Promotio Promotion adaptation or
n Place standardization Place adaptation or
standardization
Concentration of Marketing Activities
Coordination of Marketing Activities
Integration of Competitive Moves
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Global Localization
The idea that a successful marketer must have the ability to “think globally and act locally.”
EPRG Framework
A developmental framework for analyzing organizations in terms of four successive
management orientations: ethnocentric, polycentric, regiocentric, and geocentric.
Management Orientations
1. Ethnocentric Orientation – the conscious or unconscious belief that one’s home country is
superior.
2. Polycentric Orientation – the view that each country in which a company does business is
unique. In global marketing, this orientation results in high levels of marketing mix
adaptation, often implemented by autonomous local managers in each country market.
3. Regiocentric Orientation – the view that similarities as well as differences characterize
specific regions of the world. In global marketing, this orientation is evident when a company
develops an integrated strategy for a particular geographic area.
4. Geocentric Orientation – the understanding that the company should seek market
opportunities throughout the world. Management also recognizes that country markets may
be characterized by both similarities and differences.
FORCES AFFECTING GLOBAL INTEGRATION AND GLOBAL MARKETING
Driving Forces
1. Regional economic agreements
2. Converging market needs and wants
3. Technology advances
4. Transportation and communication improvements
5. Product costs
6. Quality
7. World economic trends
8. Leverage
Restraining Forces
1. Market differences
2. Management myopia
3. Organizational culture
4. National controls
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TEACHING AND LEARNING MATERIALS AND RESOURCES
In this module, you will be given handouts or a copy of the slides summarizing the essential details of
the topics. The use of the Internet for file sharing, collaborating, and in depth-study is also
encouraged.
LEARNING TASK
Discussion Questions
 What is globalization and how it affects global marketing?

 What are the basic goals of marketing? Are these goals relevant to global marketing?
 What is meant by “global localization”? Cite example.
 Identify and briefly describe some of the forces that have resulted in increased global
integration and the growing importance of global marketing.
REFERENCE
Keegan, W. J., & Green, M. C. (2016). Global Marketing (9th ed.). Pearson.
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MODULE NO. 2: THE GLOBAL ECONOMIC ENVIRONMENT
INTRODUCTION
The world economic environment has become increasingly dynamic; change has been dramatic and
far- reaching. Perhaps the most fundamental change in the world economy since World War II is the
emergence of global markets which gives new opportunities as global competitors have steadily
displaced or absorbed local competitors. The integration of the world economy has increased
significantly and is particularly striking in the European Union (EU) and the North American Free
Trade Area (NAFTA).
LEARNING OBJECTIVES

Identify and briefly explain major changes in the world economy;
Compare and contrast types of economic systems that are found in the different
regions of the world;
Explain the stages of economic development and identify the key emerging country
markets at each stage of development;
Discuss the significance of balance of payments for the world’s major economies;
Identify the countries that are leading exporters; and
Briefly explain how exchange rates impact a company’s opportunities in different parts
around the world.
THE WORLD ECONOMY: AN OVERVIEW
Gross Domestic Product (GDP)

Total market value of final goods and services produced within a nation’s borders; it is a measure of
economic output.
Gross National Income (GNI)

Compromised of GDP plus income generated from nonresident resources.
Economic Systems
1. Market Capitalism – individuals and firms allocate resources and production resources are
privately owned.
2. Centrally Planned Socialism – the state has broad powers to serve the public interest as it
sees fit; characterized by command resource allocation and state resource ownership.
3. Centrally Planned Capitalism – characterized by command resource allocation and private
resource ownership.
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4. Market Socialism – characterized by limited market resource allocation within an overall

environment of state ownership.
BRIC (Brazil, Russia, India, and China)

Four fast growing markets that represent important opportunities.
Stages of Market Development

1. Low-Income Countries – have a GNI per capita of less than $825.
Characteristics:
 Limited industrialization and a high percentage of the population engaged in
agriculture and subsistence farming.
 High birth rates
 Low literacy rates
 Heavy reliance on foreign aid
 Political instability and unrest
 Concentration in Africa south of the Sahara
2. Lower-Middle-Income Countries – have a GNI per capita between $826 and $3,255.
Characteristics:
 Rapidly expanding consumer markets
 Cheap labor
 Mature, standardized, labor-intensive industries like textiles and toys
3. Upper-Middle-Income Countries – also known as industrializing or developing countries
are those with GNI per capita ranging from $3,256 to $10,065.
Characteristics:
 Rapidly industrializing, less agricultural employment
 Increasing urbanization
 Rising wages
 High literacy rates and advanced education
 Lower wage cost than advanced countries
4. High-Income Countries – also known as advanced, developed, industrialized, or

postindustrial countries are those with GNI per capita of $10,066 or higher.
Characteristics:
 Sustained economic growth through disciplined innovation
 Service sector is more than 50% of GNI
 Importance of information processing and exchange
 Ascendancy of knowledge over capital, intellectual over machine technology,
scientists and professionals over engineers and semi-skilled workers
 Future oriented
 Importance of interpersonal relationships
Group of Eight (G-8)

Eight nations – the United States, Japan, Germany, France, Great Britain, Canada, Italy, and
Russia (1998) – whose representatives meet regularly to deal with global economic issues,
global economic stability and prosperity.
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Organization for Economic Cooperation and Development (OECD)

A group of 30 nations that work together to aid in the development of economic systems
based on the market capitalism and pluralistic democracy.
The Triad
The three regions of Japan, Western Europe, and the United States, which represented the
dominant economic centers of the world.
Represents 75% of world income.
Expanded Triad includes all of North America and the Pacific Rim and most of Eastern Europe.
BALANCE OF PAYMENTS
Balance of Payments
The record of all economic transactions between the residents of a country and the rest of the
world.
Division of Balance of Payments

1. Current Account – a record of all recurring trade in merchandise and services, private gifts,
and public aid transactions between countries.
Trade Deficit – a negative number in the balance of payments showing that the value
of a country’s imports exceeds the value of its exports.
Trade Surplus – a positive number in the balance of payments showing that the value
of a country’s exports exceeds the value of its imports.
2. Capital Account – a record of all long-term direct investment, portfolio investment, and
other short- and long-term capital flows.
OVERVIEW OF INTERNATIONAL FINANCE
Devaluation
The decline in value of a currency relative to other currencies.
Revaluation
The adjustment of the exchange rate of a country’s currency.
Purchasing Power Parity (PPP)

A concept that permits adjustment of national income measurements in various countries to
reflect what a unit of each country’s currency can actually buy.
Economic Exposure
The impact of currency fluctuations on the present value of a company’s expected future cash
flows.
Techniques in Managing Exchange Rate Exposure

1. Hedging – an investment made to protect a company from possible financial losses due to
fluctuating currency exchange rates.
2. Forward Market – a mechanism for buying and selling currencies at a present price for future
delivery.
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encouraged.
LEARNING TASK
 Explain the different economic systems and give an example of country that illustrate each
type.
 Why is BRIC highlighted in this module/discussion?
 A manufacturer of satellite dishes is assessing the world market potential for his products.
He asks you if he should consider developing countries as potential markets. How would
you advise him?
REFERENCE
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MODULE NO. 3:
REGIONAL MARKET CHARACTERISTICS & PREFERENTIAL TRADE
AGREEMENTS
INTRODUCTION
Some multilateral trade negotiations among members of the WTO aimed at promoting economic
growth in developing countries by reducing subsidies and tariffs. Trade negotiations can be quite
broad in scope. Alternatively, negotiations can be limited to as few as two nations and result in
bilateral agreements. There has been a tremendous interest among nations in furthering the cause
of economic cooperation. The role of the WTO and its predecessor, the GATT, as well as several
types of preferential trade agreements will provide insight on the significant contribution it gives to
individual countries in the world’s major market regions.
LEARNING OBJECTIVES

Discuss different global trade organizations;
Identify and discuss the types of agreements; and
Cite different countries and evaluate their preferential trade agreements.
GATT (General Agreement on Tariffs and Trade)

Handled trade disputes
Lacked enforcement power
Replaced by World Trade Organization in 1995
WTO (World Trade Organization)

Forum for trade-related negotiations among 164 members
Based in Geneva, Switzerland
Serves as dispute mediator through DSB
Has enforcement power and can impose sanctions
Preferential Trade Agreements

Many countries seek to lower barriers to trade within their regions
PTAs gives partners special treatment and may discriminate against others
Free Trade Area

Two or more countries agree to abolish tariffs and other barriers to trade amongst themselves
Countries continue independent trade policies with countries outside agreement
Rules of origin requirements restrict transshipment of goods from the country with the
lowest tariff to another
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Customs Union
Evolution of Free Trade Area
Includes the elimination of internal barriers to trade (as in FTA)
AND establishes common external barriers to trade
Examples: The EU and Turkey, the Andean Community, Mercosur, CARICOM, Central
American Integration System (SICA)
Common Market
Includes the elimination of internal barriers to trade (as in free trade area).
Establishes common external barriers to trade (as in customs union).
Allows for the free movement of factors of production, such as labor, capital, and information.
Economic Union
Includes the elimination of internal barriers to trade (as in free trade area)
Establishes common external barriers to trade (as in customs union)
Allows foe the free movement of factors of production, such as labor, capital, and
information (as in common market)
Coordinates and harmonizes economic and social policy within the union
Full evolution of economic union includes the creation of unified central bank, use of single
currency, common policies on issues such as agriculture, social policy, transport,
competition, mergers, taxation, requires extensive political unity and would lead to a central
government in time.
North America -NAFTA

Canada, United States, Mexico
NAFTA established free trade area which includes three nations pledge to promote
economic growth through tariff reductions and expanded trade and investment, no common
external tariffs, and gives restrictions on labor and other movements.
Latin America: SICA, Andean Community, Mercosur, CAIRCOM

Includes the Caribbean, Central and South America
History of no growth, inflation, debt, and protectionism has given way to free
markets, open economies and deregulation.
Some concern for further growth with the rise of left-leaning politicians.
Central American Integration System (SICA)

Includes El Salvador, Honduras, Guatemala, Nicaragua, Costa Rica, and Panama
Moving towards a common market
Retains tariffs on goods also produced in importing country
Andean Community
Bolivia, Colombia, Ecuador, Peru
Customs Union
Abolished foreign exchange, financial and fiscal incentives, and export subsidies.
Established common external tariffs.
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Common Market of the South (Mercosur)

Argentina, Brazil, Paraguay, Uruguay & subsequently joined by Venezuela
Customs union, seeks to become common market where internal tariffs were eliminated
and in time, factors of production will move freely through member countries
Bolivia, Chile, Colombia, Ecuador, Guyana, Peru, Suriname are associate members
and they participate in free trade area but not customs union.
Caribbean Community and Common Market (CARICOM)

Includes Antigua, Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana,
Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent, the Grenadines,
Trinidad and Tobago
Replaced Caribbean Free Trade Association
Asia-Pacific: The Association of Southeast Asian Nations (ASEAN)

Includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore,
Thailand, Vietnam
Trading partners U.S., EU, China
Geographically close; historically divided
“ASEAN plus Three” (Japan, China, S. Korea)
Has expanded to include Australia, New Zealand, India, Russia, & U.S.
Working towards an economic community
EU (European Union)
Initially began with the 1958 Treaty of Rome
Objective to harmonize national laws and regulations so that goods, services, people
and money could flow freely across national boundaries
1991 Maastricht Treaty set stage for transition to an economic union with a central bank
and single currency (the Euro)
Middle East
Includes Bahrain, Cyprus, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Northern
Cyprus, Oman, State of Palestine, Qatar, Saudi Arabia, Syria, Turkey, United Arab
Emirates, Yemen
Primarily Arab, some Persian and Jews
95% Muslim, 5% Christian and Jewish
Includes 3 key regional organizations namely Gulf Cooperation Council, Arab Maghreb
Union and Arab Cooperation Council
Africa
54 nations over three distinct areas (Republic of South Africa, North Africa, and Black
Africa or sub- Saharan Africa)
Regional agreements include the Economic Community of West African States,
East African Cooperation, and South African Development Community.
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encouraged.
LEARNING TASK
 What is the role of WTO?

 Describe the similarities and differences between a free trade area, a customs union, a
common market, an economic union. Cite example of each.
REFERENCE
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MODULE NO. 4: SOCIAL AND CULTURAL ENVIRONMENTS
INTRODUCTION
Social and Cultural Environment is critical in studying global marketing. Differences and similarities
characterize the world's cultures, meaning both differences and similarities represent the world’s
cultures, meaning that the international marketer's task is twofold. First, marketers must study and
understand the countries' cultures in which they will be doing business. Second, they must
incorporate this understanding into the marketing planning process. In some instances, strategies
and marketing programs will have to be adapted; however, marketers should also take advantage of
shared cultural characteristics and avoid unneeded and costly adaptations of the marketing mix.
LEARNING OBJECTIVES

Discuss the cultures of countries in which they will be doing business;
Explain how an unconscious reference to their own cultural values, or self-reference
criterion, may influence their perception of the market; and
Incorporate the understanding of social and cultural environments into the marketing
planning process.
SOCIETY, CULTURE, AND GLOBAL CONSUMER CULTURE
Task of Global Marketers

1. Study and understand the cultures of countries in which they will be doing business.
2. Understand how an unconscious reference to their own cultural values, or self-reference
criterion, may influence their perception of the market.
3. Incorporate this understanding into the marketing planning process.
Culture
Ways of living, built up by a group of human beings that are transmitted from one generation
to another.
Has both conscious or unconscious values, ideas, attitudes, and symbols.
Is acted out in social institutions.
Is both physical (clothing and tools) and nonphysical (religion, attitudes, beliefs, and values).
The collective programming of the mind that distinguishes the members of one category of
people from those of another. (Geert Hofstede)
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Material and Nonmaterial Culture

Social Institutions Physical Component or Subjective or abstract Culture
Physical Culture
 Family  Clothing  Religion
 Education  Tools  Perceptions
 Religion  Decorative art  Attitudes
 Government  Body adornment  Beliefs
 Business  Homes  Values
Attitudes
Learned tendency to respond in a consistent way to a given object or entity.
Beliefs
Organized pattern of knowledge that an individual holds to be true about the world.
Values
Enduring belief of feeling that a specific mode of conduct is personally or socially preferable to
another mode of conduct.
Religion
One important source of a society’s beliefs, attitudes, and values.
Religious tenets, practices, holidays, and history impact global marketing activities.
World’s Major Religion

1. Buddhism
2. Hinduism
3. Islam
4. Judaism
5. Christianity (comprised of Roman Catholicism and numerous Protestant denominations)
Aesthetics
Sense of what is beautiful and what is not beautiful.
That represents good taste as opposed to tastelessness or even obscenity
Types of Aesthetics
1. Visual Aesthetics – embodied in the color or shape of a product, label, or package.
2. Aesthetic Styles – various digress of complexity, for example, are perceived differently
around the world.
Dietary Preferences
Concerns with food preparation and consumption patterns and habits.
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Language and Communication

Crucial tool for communicating with customers, channel intermediaries, and others.
Main Areas of Spoken or Verbal Language:

1. Syntax – rules of sentence formation.
2. Semantics – system of meaning.
3. Phonology – system of sound patterns.
4. Morphology – word formation.
Marketing’s Impact on Culture

1. Universal aspects of the cultural environment represent opportunities to standardize
elements of a marketing program.
2. Increasing travel and improved communications have contributed to a convergence of tastes
and preferences in a number of product categories.
HIGH- AND LOW-CONTEXT CULTURES
High-Context Low-Context
 Information resides in context  Messages are explicit and specific
 Emphasis on background, basic values,  Words carry all information
societal status  Reliance on legal paperwork
 Less emphasis on legal paperwork  Focus on non-personal documentation
 Focus on personal reputation of credibility
 Saudi Arabia, Japan  Switzerland, U.S., Germany
MARKETING IMPLICATIONS OF SOCIAL AND CULTURAL ENVIRONMENTS
Marketing Implications
1. Cultural factors must be considered when marketing consumer and industrial products.
2. Environmental sensitivity reflects the extent to which products must be adapted to the culture-
specific needs of different national markets.
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encouraged.
LEARNING TASK
 What are some of the elements that make up culture? How are these expressed in your
native culture?
 What is the difference between a low-context culture and a high-context culture? Give an
example of a country that is an example of each type.
 Compare and contrast United States and Japan in terms of traditions and organizational
behavior and norms.
REFERENCE
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MODULE NO. 5:
THE POLITICAL, LEGAL, & REGULATORY ENVIRONMENTS OF
GLOBAL MARKETING
INTRODUCTION
International trade and global marketing activities have always been impacted by the political, legal,
and regulatory environment. Each of the world's national governments regulates trade and
commerce with other countries and attempts to control outside enterprises' access to national
resources. Each country has its own unique legal and regulatory system that affects the global
enterprise's operations and activities. Laws and regulations constrain the cross-border movement of
products, services, people, money, and know-how.
LEARNING OBJECTIVES

Discuss each nations’ laws and regulations with respect to the cross-border movement of
services, people, money, and know-how.
Analyze the important business issues in international marketing.
THE POLITICAL ENVIRONMENT
Political Environment
Made up of governmental institutions, political parties, and organizations that rulers and
people use to wield power.
Political Culture
Reflects the relative importance of the government and legal system and provides a context
within which individuals and corporations understand their relationship to the political
system.
Issues for Foreign Investors

1. Sovereignty - supreme and independent political authority.
2. Political Risk – the possibility of a change in a country’s political environment or government
policy that would adversely affect a company’s ability to operate effectively and profitably.
Examples of Political Risk:
 War
 Social unrest
 Politically motivated violence
 Transparency
 Social conditions (population density and wealth distribution)
 Corruption, nepotism
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Crime
 Labor costs
 Tax discrimination
3.
Taxe Issues:
s  Government taxation policies (High taxation can lead to black market
growth and cross-border shopping)
  Corporate taxation (Companies attempt to limit tax liability by shifting
location of income)
4. Seizure of Assets – the ultimate threat a government can pose toward a company.
Expropriation – governmental action to dispossess a foreign company or
investor. Compensation – should be provided in a “prompt, effective, and
adequate manner Confiscation – occurs when no compensation is
provided.
Nationalization – occurs when the government takes control of some or all
the enterprises in a particular industry. This is acceptable according to the
international law if:
 Satisfies public purpose
 Includes compensation
Creeping Expropriation – limits economic activities of foreign firms. This may
include:
 Limits on repatriation of profits, dividends, or royalties,
 Technical assistance fees
 Increased local content laws
 Quotas for hiring local nationals
 Price controls
 Discriminatory tariff and nontariff barriers
 Discriminatory laws on patents and trademarks
INTERNATIONAL LAW
International Law
The rules and principles that nation-states consider binding upon themselves.
Private International Law

The body of law that applies to disputes arising from commercial transactions between
companies of different nations.
Common Law Country Civil Law Country

Disputes are decided by reliance on Legal system reflects the structural
the authority of past judicial concepts and principles of Roman
decisions Empire
Companies are legally incorporated by Companies are formed by contract
state authority between two or more parties who are
Code law is used in few areas; the US fully liable for the actions of the
Uniform Commercial Code company
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Islamic Law
Legal system in many Middle Eastern countries.
Sharia
A comprehensive code governing Muslim conduct in all areas of life, including business.
SIDESTEPPING LEGAL ISSUES
Sidestepping Legal Issues

1. Jurisdiction – a court’s authority to rule on particular types of issues arising outside of a
nation’s borders or to exercise power over individuals or entities from different countries.
2. Intellectual Property Protection – the aspect of a country’s legal environment pertaining to
patent, trademark, and copyright protection. Intellectual property must be registered in each
country where business is located.
Patent – a formal legal document that gives an inventor the exclusive right to
make, use, and sell an invention for a specified period of time.
Trademark – a distinctive mark, motto, device, or emblem that a manufacturer
affixes to a particular product or package to distinguish it from goods
produced by other manufacturers.
Copyright - the establishment of ownership of a written, recorded,
performed, or filmed creative work.
Infringement of Intellectual Property

Counterfeiting – unauthorized copying and production of a product.
Associative Counterfeiting/Imitation – uses a product name that differs
slightly form a well-known brand but is close enough that consumers will
associate it with the genuine product.
Piracy - the unauthorized publication or reproduction of copyrighted work.
3. Antitrust – laws are designed to combat restrictive business practices and to encourage
competition.
4. Licensing and Trade Secrets
Licensing – a contractual agreement in which a licensor allows a licensee to
use patents, trademarks, trade secrets, technology, or other intangible assets
in return for royalty payments or other forms of compensation.
Trade Secrets – confidential information or knowledge that has commercial
value and is not in public domain and for which steps have been taken to
keep it secret.
5. Bribery and Corruption
Bribery – the corrupt business practice of demanding or offering some type
of consideration – typically cash payment – when negotiating a cross-border
deal.
CONFLICT RESOLUTION, DISPUTE SETTLEMENT, AND LITIGATION
Conflict Resolution
1. Litigation
2. Formal Arbitration – a negotiation process between two or more parties to settle a disputes
outside of the court system.
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THE REGULATORY ENVIRONMENT
Regulatory Environment
Consists of agencies, both governmental and nongovernmental, that enforce laws or set
guidelines for conducting business.
encouraged.
LEARNING TASK
 What is sovereignty and why it is an important consideration in the political environment of

global marketing?
 Describe some of the sources of political risk.
 Identify and describe several legal issues that relate to global commerce.
REFERENCE
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MODULE NO. 6: SEGMENTATION, TARGETING, AND
INTRODUCTION
Market segmentation represents an effort to identify and categorize groups of customers and
countries according to common characteristics. Targeting is the process of evaluating the segments
and focusing marketing efforts on a country, region, or group of people that has significant potential
to respond. Such targeting reflects the reality that a company should identify those consumers it can
reach most effectively, efficiently, and profitably. Lastly, proper positioning is required to differentiate
the product or brand in the minds of target customers.
LEARNING OBJECTIVES

Explain what market segmentation is and when to use it;
Cite and discuss the five steps involved in segmenting and targeting market;
Recognize the bases used to segment consumer and organizational (business) markets; and
Explain how marketing managers position products in the marketplace.
GLOBAL MARKET SEGMENTATION
Market Segmentation
Represents an effort to identify and categorize groups of customers and countries according
to common characteristics.
Targeting
The process of identifying segments and focusing marketing efforts on a country, region, or
group of people that has significant potential to respond.
Focus on the segments that can be reached most effectively, efficiently, and profitably.
Positioning
Is required to differentiate the product or brand in the minds of the target market.
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Contrasting Views of Global Segmentation

Conventional Wisdom Unconventional Wisdom
 Assumes heterogeneity between  Assumes the emergence of segments
countries. that transcend national boundaries.
 Assumes homogeneity within any  Acknowledges the existence of
given country. within- country differences.
 Focuses heavily on cultural differences  Emphasizes differences and
of a macro level. commonalities in microlevel values,
consumption patterns, etc.
 Segmentation relies heavily on  Segmentation relies on grouping
clustering of national markets. micromarkets within a country or
between
countries.
 Within-country microsegments  Microsegments based on
are assigned secondary priority. consumer behavior are
assigned high priority.
Global Market Segmentation
1. Demographic Segmentation - based on measurable characteristics of populations such as

income, population, age distribution, gender, education, and occupation.
Age Segmentation
Global Teens - young people between the ages 12 and 19.
Global Elite - affluent consumers who are well traveled and have the money
to spend on prestigious products with an image of exclusivity.
2. Psychographic Segmentation -involves grouping people in terms of their attitudes, values,

and lifestyles.
The Euroconsumer
Successful Idealist – comprises of 5% to 20% of the population;, consists of
persons who have achieved professional and material success while
maintaining commitment to abstract or socially responsible ideals.
Affluent Materialist – status-conscious ‘up-and-comers’ – many of whom are
business professionals – use conspicuous consumption to communicate their
success to others.
Comfortable Belongers - comprises of 25% to 50% of a country’s
population, is conservative, and most comfortable with the familiar. Contented
with the comfort of home, family, friends, and community.
Disaffected Survivors – lacking power and affluence, this segment harbors
little hope for upward mobility and tends to be either resentful or resigned.
This segment is concentrated in the high-crime urban inner-city type
neighborhoods. Attitudes tend to affect the rest of society.
3. Behavior Segmentation - focuses on whether or not people buy and use a product, as well
as how often and how much they use to consume.
4. Benefit Segmentation - focuses on the value equation: Value = Benefits/ Price.
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5. Ethnic Segmentation – the population of many countries includes ethnic groups of

significant size. 3 main groups in the U.S. include African-Americans, Asian-Americans, and
Hispanic Americans.
ASSESSING MARKET POTENTIAL AND CHOOSING TARGET MARKETS OR SEGMENTS
Basic Criteria for Assessing Opportunity in the Global Target Markets

1. Current size of the segment and anticipated growth potential
2. Competition
3. Compatibility with company’s overall objectives and the feasibility of successfully reaching the
target audience
Framework for Selecting Target Markets

1. Demographic information is a starting point but not the decision factor.
2. Product-Market must be considered.
3. Marketing model drivers must be considered.
4. Identify if there are any enabling conditions present.
TARGET MARKET STRATEGY OPTIONS
Categories of Target Marketing Strategies
Standardized Global Concentrated Global Differentiated Global

Marketing Marketing Marketing
 Mass marketing on  Niche marketing  Multi-segment targeting
a global scale  Single segment of  Two or more
 Undifferentiated global market distinct markets
target marketing  Look for global  Wider market coverage
 Standardized depth rather than
marketing mix national breadth
 Minimal
product
adaptation
 Intensive distribution
POSITIONING
Positioning
Locating a brand in consumers’ minds over and against competitors in terms of attributes and
benefits that the brand does and does not offer.
Positioning Strategies
1. Positioning by Attribute or Benefit
2. Positioning by Quality and Price
3. Positioning by Use or User
4. Positioning by Competition
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Other Strategic Positioning Options

1. Global Consumer Culture Positioning (GCCP) - strategy that identifies the brand as a
symbol of a particular global culture or segment.
2. Foreign Consumer Culture Positioning (FCCP) – strategy that associates the brand’s
users, use occasions, or product origins with a foreign country or culture.
3. Local Consumer Culture Positioning (LCCP) – strategy that associates the brand with
local cultural meanings, reflects the local culture’s norms, portrays the brand as consumed by
local people in the national culture, or depicts the product as locally produced for local
consumers.
encouraged.
LEARNING TASK
 Explain the difference between segmenting and targeting.

 What is positioning?
 Compare and contrast standardized, concentrated, and differentiated global marketing.
Illustrate each strategy with an example from a global company.
REFERENCE
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MODULE NO. 7: IMPORTING, EXPORTING, AND SOURCING
INTRODUCTION
Exporting or importing is usually the first business dealings of a company outside the home country.
The government uses various programs such as tax incentives, subsidies, and export assistance to
support exports. The Harmonized Tariff System (HTS) has been adopted by most countries actively
involved in export-import trade. Governments may impose particular types of duties such as anti-
dumping duties imposed on products whose prices government officials deem too low and
countervailing duties to offset government subsidies. Exporting and importing is also directly related
to management's decisions regarding sourcing as numerous factors determine whether a company
makes or buys the products it markets and where it makes or buys.
LEARNING OBJECTIVES

Discuss what importing and exporting are;
Analyze why companies export;
Explain the main contractual and investment entry modes;
Discuss what countertrade is and recognize why companies engage in countertrade;
Discuss what global sourcing is;
Explain what comprises the best practices in global sourcing; and
Recognize the difference between outsourcing and global sourcing.
EXPORT SELLING AND EXPORT MARKETING

Export Selling
Involves selling the same product, at the same price, with the same promotional tools in a
different place.
Export Marketing
Tailors the marketing mix to international customers.
Requirements for Export Marketing

1. An understanding of the target market environment
2. The use of marketing research and identification of market potential
3. Decisions concerning product design, pricing, distribution and channels, advertising, and
communications
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Potential Export Problems

Logisti Servicing
Arranging transportation Providing parts
Transport rate determination availability
Handling documentation Providing repair service
Obtaining financial Providing technical
information Distribution advice
coordination Packaging Advertising
Obtaining insurance Sales effort
Legal Marketing
Government red tape Foreign Market
Product liability Locating markets
Licensing Trade restrictions
Customs and Competition
duty Contract
Agent-Distributor
A t
Government Programs that Support Exports
1. Tax incentives
2. Subsidies
3. Governmental assistance
4. Free trade zones
Governmental Actions to Discourage Imports and Block Market Access

1. Tariffs – the “3 R’s” of global business: rules, rate schedules (duties), and regulations of
individual countries.
Duties – taxes that punish individuals for making choices of which their governments
disapprove.
2. Import controls – an action taken by a government to limit the number of goods that can be
brought into a country from abroad to sell.
3. Nontariff barriers (NTB) –any measure other than a tariff that is a deterrent or obstacle to
the sale of products in a foreign market. Also known as hidden trade barriers.
Quotas – a government-imposed limit or restriction on the number of units or the total
value of a particular product or product category that can be imported.
- generally designed to protect domestic producers.
Discriminatory procurement policies – can take the form of government rules and
administrative regulations specifying that local vendors or suppliers receive priority
consideration.
Customs procedures – considered restrictive if they are administered in a way that
makes compliance difficult and expensive.
Arbitrary monetary policies – distort trade in much the same way as selective
import duties and export subsidies.
Restrictive regulations – may take the form of antidumping regulations, product
size regulations, and safety and health regulations.
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Tariff Systems
1. Single-Column Tariff – the simplest type of tariff; a schedule of duties in which the rate
applies to imports from all countries on the same basis.
2. Two--Column Tariff – general duties plus special duties apply
Preferential Tariff
A reduced tariff rate applied to imports from certain countries.
Categories of Customs Duties

1. Ad Valorem Duty - expressed as percentage of value of goods
2. Specific Duty - expressed as specific amount of currency per unit of weight, volume, length,
or other units of measurement
Other Duties and Import Charges

1. Anti-dumping Duties
Dumping - the sale of merchandise in export markets at unfair prices.
2. Countervailing duties
3. Variable Import Levies
4. Temporary Surcharges
Key Export Participants

1. Foreign purchasing agents
2. Export brokers
3. Export merchants
4. Export management companies
5. Export distributor
6. Export commission representative
7. Cooperative exporter
8. Freight forwarders
9. Manufacturer’s export representatives
Export Financing and Methods of Payment

1. Documentary credits (letter of credit)
2. Documentary collections (bill of exchange)
3. Cash in advance
4. Sales on open account
5. Sales on consignment basis
SOURCING
Factors that Affect Sourcing

1. Management vision 5. Country infrastructure
2. Factor costs and conditions 6. Political risk
3. Customer needs 7. Exchange rate, availability, and convertibility of local money
4. Logistics
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encouraged.
LEARNING TASK
 What is the difference between export marketing and export selling?

 Describe the stages a company typically goes through as it learns about exporting?
 What are the various types of duties that export marketers should be aware of?
 What criteria should company management consider when making sourcing decisions?
REFERENCE
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MODULE NO. 8:
GLOBAL MARKET ENTRY
STRATEGIES: LICENSING, INVESTMENT, AND
INTRODUCTION
Other than exporting and importing, there are different ways to exploit global market opportunities.
Several additional entry mode options form a continuum. The level of involvement, risk, and
financial reward increases as a company move from market entry strategies such as licensing to joint
ventures and, ultimately, various investment forms. Formulating a market entry strategy means that
management must decide which option to use in pursuing opportunities outside the home country.
LEARNING OBJECTIVES

Cite and discuss the different global market entry strategies;
Discuss the advantages and limitations of licensing, investment, and strategic alliances. and
Evaluate the factors resulting to success of global partnerships.
LICENSING
Involvement/Risk/Reward of Market Entry Strategies
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Licensing
A contractual agreement whereby one company (the licensor) makes an asset available to
another company (the licensee) in exchange for royalties, license fees, or some other form
of compensation. Licensed asset may be:
Patent
Trade secret
Brand name
Product formulations
Disadvantages to Licensing
1. Limited participation
2. Returns may be lost
3. Lack of control
4. Licensee may become competitor
5. Licensee may exploit company resources
Special Licensing Arrangements

1. Contract Manufacturing - company provides technical specifications to a subcontractor or
local manufacturer. Allows company to specialize in product design while contractors accept
responsibility for manufacturing facilities
2. Franchising - contract between a parent company-franchisor and a franchisee that allows
the franchisee to operate a business developed by the franchisor in return for a fee and
adherence to franchise-wide policies.
INVESTMENT
Investment
Partial or full ownership of operations outside of home country
Foreign Direct Investment (FDI)

Reflect investment flows out of the home country as companies invest in or acquire plants,
equipment, or other assets.
Forms of Investment
1. Joint ventures – entry strategy for a single target country in which the partners share
ownership of a newly created business entity.
Advantages Disadvantages
Allows for sharing of risk (both Requires more investment than a
financial and political) licensing agreement
Provides opportunity to learn new Must share rewards as well as risks
environment Requires strong coordination
Provides opportunity to achieve Potential for conflict among partners
synergy by combining strengths of Partner may become a competitor
partners
May be the only way to enter market
given barriers to entry
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2. Minority or majority equity stakes

Investment via Ownership or Equity Stake
Start-up of new operations
o Greenfield operations or
o Greenfield investment
Merger with an existing enterprise
Acquisition of an existing enterprise
3. Outright acquisition
GLOBAL STRATEGIC PARTNERSHIPS
Global Strategic Partnerships (GSP)

1. Collaborative agreements
2. Strategic alliances
3. Strategic international alliances
4. Global strategic partnerships
The Nature of Global Strategic Partnerships

1. Participants remain independent following formation of the alliance
2. Participants share benefits of alliance as well as control over performance of assigned tasks
3. Participants make ongoing contributions in technology, products, and other key strategic areas
Success Factors of Global Strategic Partnerships

1. Mission
2. Strategy
3. Governance
4. Culture
5. Organization
6. Management
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encouraged.
LEARNING TASK
 What are the advantages and disadvantages of using licensing as a market entry tool?
 Give examples of companies from different countries that use licensing as a global
marketing strategy.
 What strategic options for market entry or expansion would a small company be likely to
pursue? A large company?
 In what ways does global strategic partnership differ from more traditional forms of market
entry strategies such as joint ventures?
REFERENCE
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MODULE NO. 9:
BRAND AND PRODUCT DECISIONS IN GLOBAL MARKETING
INTRODUCTION
The most important element of a company's marketing program is the product. It is a challenge for
global marketers to formulate coherent product and brand strategies on a worldwide basis. Through
global brand leadership, companies can create strong brands in all markets. As global competition
intensifies, companies are pressured to excel at developing standardized product platforms. Today,
many new products are launched in multiple national markets as product development cycles
shorten and product development costs soar.
LEARNING OBJECTIVES

Discuss the basic product concepts in global marketing;
Explain the importance of brand elements;
Discuss how packaging and product warranties contribute to the competitive advantage; and
Analyze the strategic alternatives in global marketing.
BASIC PRODUCT CONCEPTS
Product
A good, service, or idea with both tangible and intangible attributes that collectively create
value for a buyer or user.
Brand
A complex bundle of images and experiences in the customer’s mind.
Perform two basic functions. First, a brand represents a promise by a particular company
about a particular product; it is a sort of quality certification. Second, brands enable
customers to better organize their shopping experience by helping them seek out and find
particular product.
Brand Image
A single—but often complex – mental image about both the product itself and the company
that markets it.
Brand Equity
Represents the total value that accrues to a product as a result of a company’s cumulative
investments in the marketing of the brand.
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Local Product or Local Brands

One that has achieved success in a single national market.
International Products and International Brands

Offered in several markets in a particular region.
Global Products
Meets the wants and needs of a global market. A true global product is offered in all world
regions, including the Triad and in countries at every stage of development.
Global Brand
A brand that has the same name and a similar image and positioning throughout the world.
Characteristics of Global Brands

1. Quality Signal – global brands compete fiercely with each other to provide world-class quality.
2. Global Myth – global brands are symbols of cultural ideals.
3. Social Responsibility – customers evaluate companies and brands in terms of how they
address social problems and how they conduct business.
Tiered Branding
A strategy in which a corporate name is combined with a product brand name; also called
combination or umbrella branding.
Co-Branding
A variation of tiered branding in which two or more different company or product brands are
featured prominently on product packaging or in advertising.
Brand Extensions
Strategy which entails using an established brand name as an umbrella when entering new
businesses or developing new product lines that represent new categories to the company.
Global Brand Leadership

The act of allocating brand-building resources globally with the goal of creating global
synergies and developing a global brand strategy that coordinates and leverages country
brand strategies.
“COUNTRY OF ORIGIN” AS BRAND ELEMENT
Country-of-Origin Effect
Perceptions of, or attitudes toward, products or brands on the basis of the country of origin
or manufacture.
Packaging
An integral element of product-related decisions.
An important consideration for products that are shipped to markets in far-flung corners of the
world.
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Packaging Issues
1. Labeling
2. Aesthetics
Express Warranty
A written guarantee that assures the buyer is getting what he or she has paid for or that
provides recourse in case a product’s performance falls short of expectations.
STRATEGIC ALTERNATIVES IN GLOBAL MARKETING
Strategic Alternatives in Global Marketing

1. Extension Strategy – offering a product virtually unchanged (i.e., “extending” it) in markets
outside the home country.
2. Adaptation Strategy – involves changing elements of design, function, or packaging in
response to needs or conditions in particular country markets.
3. Innovation Strategy – entails developing new products “from the ground up” with the world
market in mind.
Strategic Alternatives to Companies Pursuing Geographic Expansion

1. Product-Communication Extension (Dual Extension)- strategy for pursuing opportunities
outside the home market.
2. Product Extension/Communication Adaptation – the strategy of marketing an identical
product by adapting in the marketing communications program.
3. Product Adaptation-Communication Extension Strategy – a strategy of extending,
without change, the basic home-market communications strategy while adapting the product
to local use or preference conditions.
4. Product- Communication Adaptation (Dual Adaptation) –a dual-adaptation strategy that
uses a combination of marketing conditions.
5. Product Invention – developing new products with the word market on mind.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
encouraged.
LEARNING TASK
 What is the difference between a product and a brand?

 How do local, international, and global products differ? Cite examples.
 How can a buyer attitude about a product’s country of origin affect marketing strategy?
 Identify several global brands. What are some of the reasons for the global success of the
brands you chose?
REFERENCE
PREPARED BY:
MS. CARLA MAY DIMEN- ESTEBAN

Program Coordinator - MKT
College of Business & Accountancy
Gordon College
Olongapo City
dimen.carlamay@gordoncollege.edu.ph

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Republic of the Philippines

COLLEGE OF BUSINESS AND ACCOUNTANCY

COURSE LEARNING OUTCOMES

Upon completion of the course, the students can:

EVALUATION & GRADING

FINAL GRADE = 50% Midterm Grade + 50% Tentative Final Grade

GRADING RUBRIC FOR ESSAY

Criterion Exceeds Meets Needs Inadequate

MODULE LEARNING TOPICS TEACHING LEARNING

values, or self- Criterion and

STRATEGIC licensing, Success

MODULE NO. 1: INTRODUCTION TO GLOBAL MARKETING

After studying this module, you should be able to:

TOPICS AND KEY CONCEPTS

OVERVIEW OF GLOBAL MARKETING

Global Marketing Strategy (GMS)

Global Market Participation

Standardization versus Adaptation

Concentration of Marketing Activities

Coordination of Marketing Activities

Integration of Competitive Moves

Single-Country Marketing Strategy Global Marketing Strategy

FORCES AFFECTING GLOBAL INTEGRATION AND GLOBAL MARKETING

TEACHING AND LEARNING MATERIALS AND RESOURCES

 What is globalization and how it affects global marketing?

MODULE NO. 2: THE GLOBAL ECONOMIC ENVIRONMENT

After studying this module, you should be able to:

TOPICS AND KEY CONCEPTS

THE WORLD ECONOMY: AN OVERVIEW

Gross Domestic Product (GDP)

Gross National Income (GNI)

4. Market Socialism – characterized by limited market resource allocation within an overall

BRIC (Brazil, Russia, India, and China)

Stages of Market Development

4. High-Income Countries – also known as advanced, developed, industrialized, or

Group of Eight (G-8)

Organization for Economic Cooperation and Development (OECD)

Division of Balance of Payments

OVERVIEW OF INTERNATIONAL FINANCE

Purchasing Power Parity (PPP)

Techniques in Managing Exchange Rate Exposure

TEACHING AND LEARNING MATERIALS AND RESOURCES

After studying this module, you should be able to:

TOPICS AND KEY CONCEPTS

GATT (General Agreement on Tariffs and Trade)

WTO (World Trade Organization)

Preferential Trade Agreements

Free Trade Area

North America -NAFTA

Latin America: SICA, Andean Community, Mercosur, CAIRCOM

Central American Integration System (SICA)

Common Market of the South (Mercosur)

Caribbean Community and Common Market (CARICOM)

Asia-Pacific: The Association of Southeast Asian Nations (ASEAN)

TEACHING AND LEARNING MATERIALS AND RESOURCES

 What is the role of WTO?

MODULE NO. 4: SOCIAL AND CULTURAL ENVIRONMENTS

After studying this module, you should be able to:

TOPICS AND KEY CONCEPTS

SOCIETY, CULTURE, AND GLOBAL CONSUMER CULTURE

Task of Global Marketers

Material and Nonmaterial Culture

World’s Major Religion

Language and Communication