Designing Global Market Offerings Otterbein College Winter 2000

Objectives Factors to Consider Before Going Global Selecting Foreign Markets Foreign Market Entry Product Adaption for Global Marketing Management & Organization of Global Activities 4/23/2017

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 4/23/2017

Challenges in Going Global Shifting borders Unstable governments Foreign-exchange Corruption Technological pirating 4/23/2017

Criteria for Entry Market Attractiveness Risk Competitive Advantage 4/23/2017

Five Models of Entry Into Foreign Markets Direct invest- ment Joint ventures Licensing exporting Indirect Exporting Amount of commitment, risk, control, and profit potential 4/23/2017

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 company in host country; share expertise & mutual gains. 4/23/2017

Internationalization Process No Export Export via Agents Sales Subsidiaries Production Abroad 4/23/2017

Five International Product and Promotion Strategies Adapt product Do not change Develop new Communi- cation adaptation Dual Product Straight extension invention Do not change promotion Adapt Promotion 4/23/2017

Pricing Challenges $ Price Escalation Transfer Prices Dumping Charges Gray Markets $ 4/23/2017

Whole-channel Concept for International Marketing Seller Seller’s international marketing headquarters Channels between nations Channels within foreign nations Final buyers 4/23/2017

Marketing Organization Export Department International Division Global Organization 4/23/2017

Next Week... Shaping the Market Offering: Products, Branding, Packaging 4/23/2017