Tapping Into Global Markets (Chapter 21) Trends World is shrinking: faster communication, transportation, and financial flows Products from one country readily accepted in other countries: ____________________ Competition is intensifying

Challenges in Entering Global Markets Can company ________ to other countries’ business cultures, consumer behavior, regulations, political environments, etc.? Costs of entering global markets Costs of not entering global markets

Criteria for Entering Which countries (potential markets)? Infrastructure, government regulations, trade barriers Quality of labor pool, welcoming environment Geographically close Psychic proximity

Deciding How to Enter the Market Figure 21.2: Five Modes of Entry into Foreign Markets Commitment Risk Control Profit Potential

Product Planning for Global Markets Straight product extension (p. 678): introduce product in foreign market without any change; do foreign consumers use this product and how much? Advantage: no additional cost of product development, manufacturing changes, or new promotion: Disadvantage: fail to meet foreign customer needs

Product Planning for Global Markets Product adaptation: alter product to meet local conditions or preferences Gerber: baby food in Japan includes flounder and spinach stew, cod roe spaghetti, and sardines ground up in white radish sauce.

Product Planning for Global Markets Product invention: creating something new; forward invention – creating a new product to meet a need in another country

Promotion Planning for Global Markets Communication adaptation: altering the advertising and promotion campaigns for each local market Austria and Italy regulate TV advertising to children; Saudi Arabia does not want advertisers to use women in ads

Key Issues in Developing a Marketing Program Standardization vs Adaptation (p. 679) Standardized marketing mix: involves no change in marketing mix, therefore assumes lowest cost; _____________________ Adapted marketing mix: marketing mix adapted to each target market; increases ________________________________

Key Issues in Developing a Marketing Program To what extent should marketing mix be adapted or standardized? Review elements of marketing mix and determine which would add more revenue than cost StandardizedAdapted

Key Issues in Developing a Marketing Program Elements of Marketing Mix: which will add more revenue than costs (p. 679)? Product features, prices, brand name, labeling, packaging, colors, materials, advertising, etc. Ex: Coca-Cola Classic is sold worldwide, but in some countries it is less carbonated and less sweet.

Managing a Holistic Marketing Organization (Chapter 22) Requires that everyone in the organization buy into the concepts and goals of marketing and engage in choosing, providing and communicating customer value Issues: Departments (functions) define company problems and goals from their viewpoint, so conflicts of interest are unavoidable; stereotypes; prejudice; communication breakdowns

Internal Marketing Challenges: Departments (functions) define company problems and goals from their viewpoint, so conflicts of interest are unavoidable; stereotypes; prejudice; communication breakdowns. Possible solution: function-to-function meeting with departments where greater understanding and collaboration is warranted (p. 704).

Internal Marketing Building a Creative Marketing Organization (p. 704) Company must be customer-oriented and ______________ Ex: If marketers pay too much attention to consumers say they need or want, marketers will simply make products similar to those that already exist. It is the marketer’s job to go beyond what customer’s say they want (Marketing Insight, p. 706) Ability to capitalize on trends

Socially Responsible Marketing Need to practice higher level of corporate social responsibility: rising customer expectations, changing employee expectations, government legislation and pressure, investor interest in social criteria, and changing business procurement practices (p. 706).

Marketing Implementation A brilliant strategic marketing plan counts for little if it is not implemented properly (p. 715) Skills necessary - Diagnostic skills – poor strategy or poor implementation? Implementation skills – allocating (budgeting); organizing; interaction (motivate others) Evaluation skills – track and evaluate actions

Future of Marketing Marketing must be holistic and less departmental Must continuously create new ideas if the company is to prosper in a hypercompetitive economy Must build brands through performance, more than promotion Succeed through superior information and communication systems

Future of Marketing Marketing management is largely an artistic exercise and therefore highly subjective vs. Marketing management is largely a scientific exercise with well-established guidelines and criteria