Blekinge Institute of Technology SE Karlskrona MARKETING MANAGEMENT Chaudhry Muhammad Nadeem Faisal Cell: B- Url: BI: Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Blekinge Institute of Technology SE Karlskrona Tapping Into Global Markets  What factors should a company review before deciding to go abroad?  How can companies evaluate and select specific foreign markets to enter?  What are the major ways of entering a foreign market?  To what extent must the company adapt its products and marketing program to each foreign country?  How should the company manage and organize its international activities?

Blekinge Institute of Technology SE Karlskrona Tapping Into Global Markets Deciding how to Indirect to Direct Indirect Exporting Direct Exporting Licensing Joint Venture Direct Investment Commitments, Risk, Control and Profit Potential

Blekinge Institute of Technology SE Karlskrona Tapping Into Global Markets What is a Global Firm? A global firm is one 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. 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

Blekinge Institute of Technology SE Karlskrona Tapping Into Global Markets Four Stages of Internationalization  No regular export activities  Export via independent agents  Establish sales subsidiaries  Establish production facilities abroad Top Global Firms Based in Developing Markets  Huawei Technologies  Infosys Technologies  Koc Holding  Lenovo Group  MMC Norilsk Nickel  Mahindra & Mahindra  America Movil  Cemex  China Mobile  CNOOC  Embraer  Gazprom  Haier  Hisense

Blekinge Institute of Technology SE Karlskrona Tapping Into Global Markets Regional Free Trade Zones  European Union  NAFTA (South Asia Free Trade Area)  MERCOSUL (Latin America)  APEC (Asia Pacific Economic Corporation )  ASEAN (Association of Southeast Asian nations) Key developing market  Brazil  Russia  India  China  South Africa

Blekinge Institute of Technology SE Karlskrona Tapping Into Global Markets Desired Country Characteristics for Market Entry  Rank high on market attractiveness  Rank low in market risk  Possess a competitive advantage Five Modes of Entry into Foreign Markets  Indirect exporting  Direct exporting  Licensing  Joint ventures  Direct investment

Blekinge Institute of Technology SE Karlskrona Tapping Into Global Markets Direct Exporting Methods  Domestic-based export department  Overseas sales branch or subsidiary  Traveling export sales representatives  Foreign-based distributors or agents

Blekinge Institute of Technology SE Karlskrona Tapping Into Global Markets Global Marketing Advantages  Economies of scale  Lower marketing costs  Power and scope  Consistency in brand image  Ability to leverage  Uniformity of marketing practices Disadvantages  Differences in consumer needs, wants, usage patterns  Differences in consumer response to marketing mix  Differences in brand development process  Differences in environment

Blekinge Institute of Technology SE Karlskrona Tapping Into Global Markets What Marketing Aspects Might Be Adapted for International Marketing?  Product features  Labeling  Colors  Materials  Sales promotion  Advertising media  Brand name  Packaging  Advertising execution  Prices  Advertising themes

Blekinge Institute of Technology SE Karlskrona Tapping Into Global Markets Cultural Dimensions  Individualism vs. collectivism  Masculine vs. feminine  High vs. low power distance  Weak vs. strong uncertainty avoidance Commandments of Global Branding  Understand similarities and differences in the global branding landscape  Do not take shortcuts in brand building  Establish a marketing infrastructure

Blekinge Institute of Technology SE Karlskrona Tapping Into Global Markets  Embrace integrated marketing communications  Establish brand partnerships  Balance standardization and customization  Balance global and local control  Establish operable guidelines  Implement a global brand-equity measurement system  Leverage brand elements

Blekinge Institute of Technology SE Karlskrona Tapping Into Global Markets Levels of Product Adaptation  Production of regional product versions  Production of country versions  Production of city versions  Production of retailer versions Communications  Communications adaptation  Dual adaptation Straight Extensions Communication Adaptation Product Adaptation Dual Adaptation Product Invention Product Don’t Change Product Adapt Product Develop New Product Don’t Change Communication Adapt Communication

Blekinge Institute of Technology SE Karlskrona Tapping Into Global Markets Price Choices  Set a uniform price everywhere  Set a market-based price in each country  Set a cost-based price in each country What is a Gray Market? A gray market consists of branded products diverted from normal or authorized distributions channels in the country of product origin or cross international borders; dealers in lower priced countries sell products in higher priced countries

Blekinge Institute of Technology SE Karlskrona Tapping Into Global Markets Whole-Channel Concept for International Marketing  Seller  International headquarters  Channels between nations  Channels within nations  Final buyers Final Buyers Channel within foreign nations Chanel within nation Seller International marketing headquarters Seller

Blekinge Institute of Technology SE Karlskrona Tapping Into Global Markets Global Organization Strategies  World as single market  Multinational  Global

Blekinge Institute of Technology SE Karlskrona Managing Retailing, Wholesaling & Market logistics Thanks

Blekinge Institute of Technology SE Karlskrona Managing Retailing, Wholesaling & Market logistics References  P. Kotler, Marketing Management, 13 th ed, Pearson,  2 Publication form business research council (for support)   Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall