A、The business is established in all major world markets. B、The brand name or names are international. C、The business has a glob

Good morning, everyone. I’m going to give a brief summary of the transition from export marketing to global marketing. Basically, there are three phases in this transition. These are: export marketing, international marketing, and global marketing.
   Let’s describe the first phase, which is export marketing. Export marketing has four main characteristics. First, with export marketing there is home-based production and home-based management. Secondly, there is direct selling to the export markets. Next, it’s common to use agents and distributors. Finally, it’s possible that there arc sales centers in overseas markets. Overall, the investment costs are low with export marketing because almost everything, especially production and management, is still centered on the home base.
   Now let’s look at the second phase, international marketing. Here I identify three main characteristics. The first is that production has expanded to overseas markets. This is very important. Next, there is local management. This means you have local cost centers, individually responsible for making a profit. Finally, there is much more local employment of staff and management. Altogether, this means there is more investment, so investment with international marketing is high.
   Now we come to the third phase, which is global marketing, with at least four main characteristics. The most important is that the brand name, or brand names, are international, like IBM or Coca-Cola. Secondly, the business is established in all major world markets. This means, and this is the third point, that the business has a global identity. Next, the business has cost centers in all major markets. The fourth and final point is that the production is often complex, with parts made and transported all over the world between various centers. An example here is a laptop, where perhaps the chips, the circuit board, the case, the screen, the packaging, the documentation, are all made in different locations around the world. Maybe Singapore, Brazil, Italy or South Africa. The result is that the global marketing phase involves very high levels of investment, higher than the other two phases.
   That is a good summary of the stages between export marketing and global marketing. Does anyone have any questions or need clarification on any point?
Question No. 16 What’s the main topic of this talk?
Question No. 17 Which of the following is TRUE with the phase of export marketing?
Question No. 18 What do we know about the phase of international marketing?
Question No. 19 What is the most important characteristic of global marketing?
Question No. 20 Which of the following phases involves the highest levels of investment?