Global Market Offerings Chapter 12 Designing Global Market Offerings Marketing Management Tenth Edition Philip Kotler

Objectives Factors to Consider Before Going Global Selecting Foreign Markets Foreign Market Entry Product Adaption for Global Marketing Management & Organization of Global Activities

Major Decisions in International Marketing Deciding whether to go abroad Deciding which markets to enter Deciding how to enter the market Deciding on the marketing program Deciding on the marketing organization

Challenges in Going Global Shifting borders Unstable governments Foreign-exchange Corruption Technological pirating

Criteria for Entry Market Attractiveness Risk Competitive Advantage

Five Models of Entry Into Foreign Markets Indirect Exporting Direct exporting Licensing Joint ventures Direct invest- ment Amount of commitment, risk, control, and profit potential

Joint Venture Licensing: Sell rights to name brand. Contract Manufacturing: make item in host country; manufacturer of product only. Management Contracting: hired as Mgmt. Consultant to host company Joint Ownership: truly partnering with a company in host country, to share expertise and mutual gains.

Internationalization Process No Export Export via Agents Sales Subsidiaries Production Abroad

Five International Product and Promotion Strategies Straight extension Do not change product promotion Develop new product Product invention Product adaptation Adapt product Communi- cation adaptation Adapt promotion Dual adaptation

Pricing Challenges $ >Price Escalation >Transfer prices >Dumping charges >Gray markets

Whole-channel Concept for International Marketing Seller Seller’s international marketing headquarters Channels between nations Channels within foreign nations Final buyers

Marketing Organization Export Department International Division Global Organization

Review Factors to Consider Before Going Global Selecting Foreign Markets Foreign Market Entry Product Adaption for Global Marketing Management & Organization of Global Activities