The

global economic environment

International
economic Analisis

Assessing
the development performance and potential of economies

higher risks higher returns

Economic

Systems

Organization of The Production distribution and consumption of goods

and services

Market

Economy Market Capitalism

Private

ownership

Capitalism

Privatizara Deregulation

Government

rights
protect property

Ensure fair competition

Provide general safety

Command economy

Centran Named socialism

state ownership and control

communism

government Erices
intervention no solare No private property

Mixed Clooney

Market socialism and centrally poned co



Government

private ownership

Socialism

Market driver economy with regulations

Government

intervention in anocoting resources ad Planning

Resource allocation

Market Command

Market Central Planned

capitalism capitalism

Ef

3
O

market centrarPlanned

g y socialism socialism

Economic Freedom ranking

Absolute right of property ownership tony realizedfreedoms of movements

for labor copitas and goods

Economic

indicators

For

assessing economic development

GNI Gross National income



total Value of all domestic economy production t income from other

countries

Gul Gross National Product

total value of an goods services produced within a nation t

income from citizens abroad

GDP Gross domestic Product

Total Value at all outputs produce within a nation

Comestia ad

foreign owned company

Advising Analytics

rate

of economic growth

loco ir

high

Population size

Average Gui per copita

Purchasing power Parir PP

How much money is needed to buy some products

is imperfectbecauseThere are still areas where they have

agreed con industry andsugar

Mercosur is an imperfect custom union industrybetweenBraziladArgentin

The tariff are not eliminated no

Custom union CAN comunidad andina Bolivia

Pero

Narcos ecuador

Perceived

very differently around The world Colombia



Types

of legalsystems

civilians Jurisdiction Constitution

Common locus law based os traditions paseo judicial decision

Theocratic

law based os religiousteachings no separation of churchandstate

customary com Based on norms and behaviours that

goin legitimacy

Thorough long term practice

Rule et

law Democratic system

Rule

of mar legal nights derive from the individuals uno

conmoos The powerto impose then

associated with Totalitarismo SI Sten

Culture

What
is Culture

Ways of living built up by a group of human beings that are transmite

tren

One generation to another

culture acts out in Social institutos

Fondly

Educaros

Region

Government

Business institutions

Material Culture resicolcomponents

Clothing

TOOLS

Music doce

Art in generar

Non material Culture objective abstract

Region

Perceptions

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IlToes

Beliefs

Valves

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JAPAN CHINA USA Germany

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communication poner

Importance at

background Importance of documentations

associations basic
valves of and credentials

communicate

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Leer

entre lineas what's beingsaid The message is rational verba

is not so important as how it's said and explicit

When and who

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each other

space and resent intrusions

óñonronia Ñáocharia time is money linear

everything in life

Must
be dealt within terms of one thingat a time

its own time

Subcultures may have different characteristics thanthe countrys cute type

Hofstede cultural

Dimension

poner Distance

hierarchy

Individualism

your own wellbeing peoplefocusin their own rights andgoals

Masculinity

Masculine and femenina roles

Uncertainty avoidance

How People react to Uncertain high avoidance hate Uncertainty

Longterm orientation

immediate pressure or a more longterm consions about The future

Indulgence Los included in the book

What You not to do or wont You are suposed todo

Class

Work examples

power

distance

Cercedes is used by

The brand image should not go for the prestige

everyone in germanyCin Argentina Mercedes is a simbol of stars

Germany Con poner distance

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CustomerService example Chau the customer is treated

Pd Should treat the customer as a King

Pd The customer is someone else equal treatment

Individualism Collectivism

Show why iris better to live in a greenworld

Ser a green Product

Masculinity

more competitive advertising

return productsthat are no longer use to contribute to The society

Uncertainty

avoidance

offer marrar or free trial period Customerservice

Innovate and

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longterm orientation


obstetétneTiers in a coupleyears not rodar

Highlight The effects of The Products todo

Self Reference

criterios SRC

An
obstacle that many compares hace When they want to understand

more business in another culture
no

Unconscious influence by
our own culture

How

to reduce cultural myopia

1
Define The problem or in terms of home country cultural

goal

Traits habits and norms

2
Define The problem or goal in terms of host country cultural traits

habits and norms Make no value judgments

3
Isolate the SRC influence and examine it carefully to see now it

complicates the problem

Redefine the problem without the SRC Influence and solve for the

host country market

situation

Attitude

Learned tendency to respond ir a consistent way to a giver

object or entire

Belief organized pattern of knowledge thot es individualholds tos

Tree about the world

Value belief or that a specific mode of conde

Enduring feeling

is personally or socially preferable to another mode of

conduct

it's an important source of a society's beliefs attitudesandvalue
recoger

Aesthetics

Overall sense of chotis beautiful

language

and communication

Dietary preferences

Rituals and simbas

Oreo

Homework

Global

market Share

Global Mkt mix Begin with standardization but when soles in China began
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k m Begin min s adoro rato bue when soles in China began

turned into
To

decrease they
global localization

concentration

of Mkt activities

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begging out then deletralizaros

Coordination

of Mkt activities At The DefiningThere was no coordination but

Then

TheProductscreated in China where sei inCanada Korea aro Australia

negation of competitive moves

about forces
Nothing

restraining

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material Culture Dietary preferences

less sweet than the American Oreo and the

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a

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Confuage

aro Physical appearance el tra actor

The

label

Innovations
Adoption Process

Awareness

1
Evaluation

pie

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Diffusion Of innovation Model

Characteristics of innovations

Relative advantage my service has an advantage

Compatibility with the Context of the market

Leconomy cultural


C o
D
complex

harder to COMPLEXITY
atraduce

it in the market

Divisibility Est try bit of it free samples
a

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how

easy or dificuit Communicobility

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Global

local
t
information

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µ ya ya ya y g g

Marketing

Information system

Gathering

Analyzing

Classifying

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Updating

Storing

Comparing

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Multicultural Research challenges

Results comparability and equivalence

Lack of official data or aut of date

Reliable sources

a
People's attitude about providinginformation

Research design and method adaptation

Language skins Cuerno and non verbal

careful ofThis

the research

cultural winnarren

barriers

M ARG Mi Monoger

s ta y

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y a E e Research
R

000

r ai

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no competitors.cat
generai
acarreas

bisseisieresas

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How to success in International Research

Active role of local staff and globalmanagers

Customized Indicators

Observation of Patterns behaviours

Comparative assessment

Triangulation

Headquarters control emia us eric analysis

Segmentation Targetingand positioning

Segmentation

The process of identifying specific segments of potential

customers with homogeneous attributes who

are likely to respond ir a similor way to a siecific

Marketing mix

Segmentation criteria

Social class connectedonly to income

would be Demographic if notPsicographic

Demographic
hard variables

hard varables

Geographic

The consumeras a person

Psycograppi

Soft variables

The consumer as consumer

Behavioural_

Conventional us unconvential

countries are

different global segments differences

within a country

focused

in general cultural Focused inspecificcultural

differences differences

National segmentation Micro segmentation

segments within a country Micro segments coithin a

not so important Country MOST IMPORTA

Assessing Market potential

Current segment size Growth potential

Current potential competition

Feasibility compatibility companyresources Design invest

Target Marketing strategies



Standardized global marketing

Concentrated global marketing Global niche

Differentiated global marketing Gettin

offeringdifferentgenres

Position

Through

Attributes

benefits

Price

quality

user frond

character

brand positioning The Place The brand hovein the miad

Of The Customer

What the brand wants the Customer to think about it

Possibilities to Passion our brand linked to consumer cultures

FCCP

Foreign culture consumer positioning

Gol global culture consumer positioning

Lace local Culture consumer positioning

 La I Col culto e e r y

Morag

Top of mind first brand That comes to mind whenthinking

of a category

different

markets

diversified

econotnies

Pay to import

Marvel cose

Mal limit ofProductsThatcan be imported for aPeriodof

time

on14 buyforspecific
countries

compensatorytariffs
forbides components


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WTO

Programs to teach companies to trade

duri Tariff

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specificamountPer

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combine

ad valoren
Specificduty

Global

market entre

strategy

Which strategy

should we use

Vision

Attitude Towards risk

Available Investment Capital

Sought

Control

Licencing

Contractual
arrangement whereby one company Chelicensor

Makes

a legally Protected asset available to another

company

the
licensees in exchange for royalties licensefees

or some other forms of

compensations

Advantages


Loco investment profits Rol

high

Avoid import tariffs

Brand rapid global expansion

Disadvantages

Limited

market control

Licensee
develops its own know how becomes competitor

Contract

manufaturing

Licensor

provides technical specifications to a

Subcontractor or local manufacturer

Specialize
in Product While
design and
marketing

Transferring responsibility

for ownership of manufacturing

facilities

Rapid Strategy
entre

subcontractor problem

Franchising

contract between company

a parent tronchiser no

a franchisee that allows the franchisee to operate

businessdeveloped by the franchises in return fora

fee and adherence to franchise wide

policies and

practices


Investment

Partial or fun ownership of operations

outside The home country

Joint Ventures

Equity stake

full ownership

Joint venture

Partners share ownership of a newly created

business entity combining different value chain

strengths ARCOR BAGLEY DANONE

Equity stake or fun ownership

Minority Stake

Majority Stake

foul ownership

Greenfield Estar tul new

Merger or
acquisition


Market exposition strategies

Oit Products

Alliances

between

companies

that remain

independent

but sometime

for
specificpurposes

They

Worktogether

Arcor

cose study 1.41.37 mins

Global nut mix Product and promotion

Adaptation or standardization

What is a Product

services

ideas People organizations tangibleobjects apps Places

Con

piel combination of tangible and intangibleelements

Positioning

functioning

Physical features

Design

Country of origin

Attributes

Brand image


Product Decisions in global marketing

Individual Product

Technical Support

Valued attributes Clavar color

Communication

Culture aesthetics

con cenar

Packaging Csize

Label IT Horatio

Brad

Design

Brand

Brand

Complex bundle of image and experiences in the Customer'smind

Brand image

Perceptions about a brand as reflected by brand associations that

consumers hold in their memories

Brand

equity

Assets That represents the value createdby the relationship between

The brand and customers over time

Brand

sponsorship

Manufacturer brand

for Y XPERIA cocacola life

Private brand four brand toanother producerproduct Día



co branding Enodonald orco

Maslow's hierarchy of needs

realization

esteem

Belonging

safety

physiological

Product

Mix

Add Products

Remove products

Product life Cycle

Strategies for Products and Brands



alfavor

Jorgito local Product Bonds inca cara

aight International Products Brands club social

Global Products Bonos nike

apple

mcdonalds

Product

Brand matrix for global Marketing

local Product Gobal Product

Local brand localproduct localbrand

global Product local brand

Global brand local product globalbrand global

Product
global brad

How to choose the beststrategy

Benefits

functions

Product

Market Costs

preferences Adoration
score

customer needs

Behaviours


Promotion

Integrate marketing

communication

Advertising

Personal Selling

Direct marketing

Promotion

Public relations

communication planning

1
Target audience Global nacional regional who am I talkingto

2
Communication

goals improvingloyalty of consumers maintainbrandimage

3
Creative strategy Rational emotionalappeal
Message Creative execution Art direction COPY

4

Media Regulations on advertising Patterns of mediaconsumption

availability of media

5
Feedback evaluation how we will evaluate and controlThecompany

sucess

Obstacles in Global communication

The to the intended recipient

message may not get through dia
o The message may reach the target audience but may not be

Understood Encoding
The may reach target audience and may be understood
the
message
but still not compel the recipient to take action Culture
Noise con affect the effectiveness of the message

Pattern advertisingglobal localization but in The communicotio

5 OPTIONS
Dual extension some product and communication Nessires
Product extension communication adaptation differentcommunication coca col

Product adaptation communicationextension differentproduct Mcdonalds

Dual adaptation Dif Product oit communication Oreo

Innovation Develop of a new Product

Arcor question 7 8,9 Toms

 Marketing Global
Primer Parcial – Caso de estudio:
Expansión internacional de Starbucks, Home Depot y Best Buy
Noviembre de 2012

Starbucks, un éxito mundial

Con más de 14,000 ubicaciones en los EE. UU. y otras 14,000 ubicaciones a nivel internacional,
Starbucks se ha convertido en sinónimo de café y la experiencia informal de café en todo el mundo.
Después de casi 14 años de su ingreso en el mercado chino intentando que los consumidores acepten
su cultura de café extranjero, Starbucks apunta a adaptarse a la cultura china como parte de sus
planes de rápida expansión en el país. Sin embargo, la complejidad de su estrategia es mantener la
esencia de la marca (colores y logotipo de marca, calidad en el servicio al cliente, procesos
estandarizados y rápida atención).
Belinda Wong, directora general de Starbucks China, manifestó que la empresa tiene como meta
inaugurar 800 tiendas propias en ese país en los próximos tres años, que se sumarían a las 700 ya
existentes que desde el comienzo operan como franquicias. Durante ese período, el número de
empleados aumentará desde los actuales 12.000 a más de 30.000.
China sigue siendo un país que prefiere el té, pero las ventas de café crecieron 20% en 2011 respecto
al año previo para alcanzar 6.250 millones de yuanes, unos US$995 millones, según la firma de
mercado Euromonitor International.
Starbucks apunta a capturar un mayor mercado ofreciendo productos más vinculados con la cultura
local y aplicando lo que ha aprendido acerca de las características culturales, señaló Wong. Por
ejemplo, mientras las tiendas pequeñas funcionan bien en EE.UU., donde los trabajadores eligen por
la mañana sándwiches de queso camino al trabajo, Starbucks advirtió que los consumidores chinos
valoran el espacio amplio y los sofás.
La empresa está incorporando algunas tiendas de casi 350 metros cuadrados y ofreciendo asientos a
los consumidores que llegan en grupos de amigos o con colegas del trabajo. Asimismo, Starbucks ha
descubierto que los gustos chinos por el café tienen sus límites y planea introducir sabores de
inspiración local a partir de los favoritos ya existentes, como los frapuchinos de grano rojo.
El tamaño de la tienda no es lo único que es más grande en China, los precios también lo son. De
hecho, Starbucks China cobra hasta un 20% más que sus homólogos internacionales, consolidando
su condición de marca premium. ¿Por qué? Debido a que el estado y la reputación son indicadores
importantes de éxito en China, por este motivo las marcas extranjeras visibles a menudo se
consideran de alta estima. Starbucks capitalizó al posicionarse como una marca premium, abriendo
ubicaciones en distritos de alta gama, áreas metropolitanas más grandes y lugares emblemáticos
cercanos para una mayor visibilidad entre los ricos.
Como resultado, Starbucks ha logrado despertar el interés de sus clientes chinos que buscan una
auténtica experiencia de café estadounidense, al tiempo que respetan los valores de la cultura, la
sociedad y las tradiciones chinas.
Wong, la ejecutiva de Starbucks, manifestó que la compañía de Seattle entiende las complejidades
de operar en un país donde los consumidores en las ciudades más pequeñas recién están tomando
sus primeras tazas de Starbucks y donde los bebedores de café ya establecidos en las grandes
ciudades necesitan mejores tiendas.
Starbucks también está dándose cuenta de que las expectativas de las familias tendrán un impacto
clave en su desempeño. Para retener a sus empleados, cuyos padres preferirían que sus hijos
trabajaran en sucursales bancarias antes que sirviendo café con leche, Starbucks lanzó a principios
de año un foro familiar, invitando a los padres a escuchar los testimonios de los gerentes que han
ascendido y hecho carrera en la compañía.
"Nosotros no tenemos un modelo único para todo el mundo", insiste Wong, señalando que en los
últimos dos años Starbucks ha inaugurado un centro de diseño chino para colaborar con las nuevas
tiendas y ha instalado un centro de investigación y desarrollo para proveer productos adaptados al
gusto local. De esta forma, la empresa logra encajar perfectamente en la cultura China, aunque
mantiene su mismo modelo de negocio, y ofrece ciertos productos icónicos globales que la
caracterizan en el mundo entero. Starbucks no sería Starbucks sin sus típicos frapucchinos, por
ejemplo, que están presentes en todo el mundo.

No todas las empresas comprenden el mercado chino: Home Depot y Best Buy
Las empresas que no han conseguido comprender la cultura local de China no han despegado. Home
Depot Inc es una empresa minorista estadounidense de mejoramiento del hogar, ferretería, bricolaje
y materiales de construcción. Es el primer minorista de bricolaje del mundo, sin embargo cerró en
septiembre las siete megatiendas que aún conservaba en China. Luego de años de pérdidas, la
empresa se dio cuenta de que el modelo de mejoras para el hogar realizadas por el propio dueño de
casa no funciona bien en la cultura china. Best Buy Co., especializada en venta de productos
electrónicos y originaria de Estados Unidos, cerró nueve tiendas en China en febrero de 2011,
después de advertir que los consumidores necesitaban máquinas lavadoras de ropa antes que
cafeteras y equipos de sonido. Ambas empresas han investigado el mercado, pero aún así no han
logrado comprender correctamente las diferencias culturales, en parte debido a sus propios valores
estadounidenses.
Home Depot señaló que ahora está concentrándose en locales especializados en China, después de
abrir recientemente una tienda de pintura y pisos y otra de decoraciones para el hogar. Best Buy está
trabajando con su filial china, Jiangsu Five Star Ltd., para vender más electrodomésticos. Five Star
es una cadena de Nankín (capital de la provincia oriental de Jiangsu, al norte de Shanghái) que fue
adquirida por Best Buy en 2005 para ingresar al mercado chino, y pasó en aquel momento a ser
controlada en su totalidad como una filial de la empresa estadounidense. Best Buy anunció que
buscará abrir nuevas tiendas para relanzar su marca pero bajo la gestión y la estrategia de la filial
china, quien realizará mayores adaptaciones del modelo de negocio a la cultura de ese país. El
presidente ejecutivo de la filial local explicó que las nuevas tiendas de Best Buy en China no tendrán
ninguna relación con las de EE.U., serán una completa adaptación al mercado local y contarán con
nuevos servicios y categorías de producto que harán la experiencia de compra más atractiva para los
consumidores chinos.