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MARKETING MANAGEMENT 12th edition KotlerKeller 21 Tapping Into Global Markets 1 Chapter Questions nWhat factors should a company review before deciding to go abroad? nHow can companies evaluate and select specific foreign markets to enter? nWhat are the major ways of entering a foreign market? nTo what extent must the company adapt its products and marketing program to each foreign country? nHow should the company manage and organize its international activities? 2 Global Firm A firm that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors. 3 Major Decisions in International Marketing Deciding whether to go Deciding which markets to enter Deciding how to enter Deciding on the marketing program Deciding on the marketing organization 4 Four Stages of Internationalization No regular export activities Export via independent agents Establish sales subsidiaries Establish production facilities abroad 5 Regional Free Trade Zones nEuropean Union nNAFTA nMERCOSUL nAPEC 6 Five Modes of Entry into Foreign Markets nIndirect exporting nDirect exporting nLicensing nJoint venture nDirect investment 7 Direct Exporting Methods nDomestic-based export department nOverseas sales branch or subsidiary nTraveling export sales representatives nForeign-based distributors or agents 8 Table 21.1 Global Marketing Advantages nEconomies of scale nLower marketing costs nPower and scope nConsistency in brand image nAbility to leverage nUniformity of marketing practices Disadvantages nDifferences in consumer needs, wants, usage patterns nDifferences in consumer response to marketing mix nDifferences in brand development process nDifferences in environment 9 Cultural Dimensions nIndividualism vs. collectivism nHigh vs. lower power distance nMasculine vs. feminine nWeak vs. strong uncertainty avoidance 10 International Product and Communication Strategies nStraight extension nCommunication adaptation nProduct adaptation nDual adaptation nProduct invention 11 Price Choices Set a uniform price everywhere Set a market-based price in each country Set a cost-based price in each country 12 Whole-Channel Concept for International Marketing Seller International headquarters Channels between nation
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