Ps this is business not economic
@pearson etect \\G chegg Study iGux x GGToPage 8 Of GGoToPage 8 Of ook/launche Text.dovalues bookiD 14761:platform 1030-bookPageN Nonvoke Type: ims: launchState go. Welcome ThuyNgayen BUS-231-OL 1 Gobal Business1 Prnt! Setingsl Ha! Signot REDUCES MARKETING CoSTS Companies that sell global products can reduce costs by standardizing certain marketing activities. A company selling a global consumer good, such as shampoo, can make an identical product for the global market and then simply design different packaging to account for the language spoken in each market. Companies can achieve further cost savings by keeping an ad\'s visual component the same for all markets but dubbing TV ads and translating print ads into local languages CREATES NEW MARKET OPPORTUNITIES A company that sells a global product can explore opportunities abroad if its bome market is s potential for e-business with more than 500 million Internet users, which is greater than the population of the entire United States. But while more than 70 percent of people in the United States actively surf the web, only around 38 percent of people in China do. So as time goes on, more and more Chinese citizens will go online to research and purchase products. The appeal of reaching such a vast audience drives firms from relatively small countries to explore doing business in the Chinese market. mall or becomes saturated. China holds enormous LEVELS UNEVEN INCOME STREAMS A company that sells a product with universal, but seasonal appeal can use international sales to level its income stream. By supplementing domestic sales with international sales, the company can reduce or climinate wide variations in sales between seasons and steady its cash flow. For example, a firm that produces suntan and sunblock lotions can match product distribution with the summer seasons in the northern and southern hemispheres in alternating fashion thercby steadying its income from these globhall, yet highly seasonal, products LOCAL BUYERS\' NEEDS Despite the potential benefits of global markets, managers must constantly monitor the match between the firm\'s products and markets in order not to overlook the needs of buyers. The benefit of serving customers with an adapted product may outweigh the benefit of a standardized one. For instance, soft drinks, fast food, and other consumer goods are global products that continue to penetrate products requir (www.cocacola.com) sweetens its traditional formula to compete with the sweeter-tasting Pepsi (www.pepsi.com). In India, where cows are sacred markets around the world. But sometimes these e small modifications to better suit local tastes. In southem Japan, Coca-Cola and the consumption of beef is taboo, McDonald\'s (www.mcdonalds.com) markets the \"Maharaja Mac\"- two all-mution sesame-seed bun with all the usual toppings.
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Reduce Marketing cost- Adidas has a global market and the products offered by the company are synonymous across the markets except for the changes in the design. And in this case the company can create one standard add campaign, by picking up one international athlete and market it across the globe with change in packaging or the tagging.
Creates new market opportunities- By selling globally Adidas makes loads of money as, buying shoes are a basic needs and with the people across globe becoming more fitness conscious it becomes imperative upon them to buy good shoes and hence the company automatically creates a bigger and new market.
Level uneven income streams- If the income from one market is uneven or is decreasing the company can clearly increase the income from other small or new markets by following aggressive strategies.
Local buyer needs- By identifying new markets globally Adidas can categorize and identify needs of several buyers based on the region, age country etc. By doing so the company will be able to service to local buyers needs and also offer variety of products as the offering will increase with the market and the categorization.
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