MKT607 – lectureaid_8

MKT607 – lectureaid_8 - MKT607 Marketing...

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MKT607 – Marketing Management Study aid: Lecture 8 Introduction The world has changed dramatically over the past few decades and now has a global economy. The advent of the World-Wide-Web has accelerated the global marketplace so much so that the study of marketing would not be complete without reviewing the opportunities and challenges of marketing goods internationally. Many companies look to other markets to expand their customer base. This is not done without risk. In this module, discussion focuses on the importance of marketers performing their due diligence prior to going to distance shores. Organizing for Global Marketing Global marketing plays a major role in U.S. businesses today. Multinational companies have been on the increase over the past several years. There are a number of reasons why these companies invest in foreign markets, namely "to (1) increase long-term growth and profit prospects, (2) maximize total sales revenue, (3) take advantage of economies of scale, and (4) improve overall market position" (Peter & Donnelly, 2007, p. 189). These reasons are categorized as achieving offensive goals . As many domestic markets become saturated, U.S. firms are seeking foreign markets to be sources for new customers, to increase profit margin, and to improve returns on investments. Along with these targets is the desire to achieve defensive goals , which include (1) competing with foreign companies on their own territory instead of the US, (2) gaining access to technological innovations developed in other countries, (3) taking advantage of significant differences in operating costs, (4) preempting global moves of competitors, and (5) not getting locked out of future markets by arriving too late (Peter & Donnelly, 2007). There are many reasons why companies are looking to sell their products overseas. Some include a relaxation of trade barriers, and an opportunity to dispose of excess inventories overseas. The push for economic freedom over the past 25 years has increased the environment for openness to expand. One of the major catalysts for moving global business forward is technology. Technology has transformed the world
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MKT607 – lectureaid_8 - MKT607 Marketing...

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