List the basic elements involved in developing a global marketing mix. A firm's major consideration is how much it will adjust the four Ps-product, promotion, place (distribution), and price-within each country. One strategy is to use one product and one promotion message worldwide. A second strategy is to create new products for global markets.

A third strategy is to keep the product basically the same but alter the promotional message. A fourth strategy is to slightly alter the product to meet local conditions.

1. The sale of cigarettes in many developed countries either has peaked or is declining. However, the developing markets represent major growth markets. Should U.S. tobacco companies capitalize on this opportunity?

2. Describe at least three situations where an American company might want to keep the product the same but alter the promotion. Also, give three examples where the product must be altered.

3. Explain how exchange rates can affect a firm's global sales.