1. 21 Tapping into Global Markets

2. Chapter Questions
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 differences between marketing in a developing and a developed market?
What are the major ways of entering a foreign market?
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

3. Chapter Questions
To what extent must the company adapt its products and marketing program to each foreign country?
How do marketers influence country-of-origin effects?
How should the company manage and organize its international activities?
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

4. 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.
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

5. 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
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

6. Reasons for Pursuing Global Markets
Better profit opportunities
Larger customer base to achieve economies of scale
Less dependence on any one market
Desire to counterattack global competitors in their home markets
Customers require international service
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

7. Risks to Going Abroad Lack of knowledge of foreign culture
Lack of understanding of foreign needs
Lack of understanding of foreign regulations
Lack of managers with international expertise
Changes in the country environment
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

8. Four Stages of Internationalization
Stage 1: No regular export activities
Stage 2: Export via independent agents
Stage 3: Establish sales subsidiaries
Stage 4: Establish production facilities abroad
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

9. Momentum in Market Entry
Waterfall Approach
Sprinkler Approach
Born Global
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

10. Local Dynamos
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

11. Regional Free Trade Zones
European Union
NAFTA
MERCOSUL
APEC
ASEAN
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

12. Key Emerging Markets Brazil Russia India China Indonesia South Africa
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

13. Five Modes of Entry into Foreign Markets
Indirect exporting
Direct exporting
Licensing
Joint ventures
Direct investment
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

14. Indirect Exporting Methods
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

15. Direct Exporting Methods
Domestic-based export department
Overseas sales branch or subsidiary
Traveling export sales representatives
Foreign-based distributors or agents
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

16. Licensing
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

17. Joint Ventures
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

18. Direct Investment
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

19. Table 21.2 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
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

20. Cultural Dimensions Individualism vs. collectivism
Masculine vs. feminine
High vs. low power distance
Weak vs. strong uncertainty avoidance
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

21. 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
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

22. Commandments of Global Branding
Understand similarities and differences in the global branding landscape
Do not take shortcuts in brand building
Establish a marketing infrastructure
Embrace integrated marketing communications
Establish brand partnerships
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

23. Commandments of Global Branding
Balance standardization and customization
Balance global and local control
Establish operable guidelines
Implement a global brand-equity measurement system
Leverage brand elements
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

24. Figure 21.3 Five International Product and Communication Strategies
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

25. Levels of Product Adaptation
Production of regional product versions
Production of country versions
Production of city versions
Production of retailer versions
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

26. Price Choices Set a uniform price everywhere
Set a market-based price in each country
Set a cost-based price in each country
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

27. 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
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

28. Whole-Channel Concept for International Marketing
Seller
International headquarters
Channels between nations
Channels within nations
Final buyers
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

29. Country of Origin Effects
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

30. The Marketing Organization
Export Departments
International Divisions
Global Organization
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

31. For Review
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 differences between marketing in a developing and a developed market?
What are the major ways of entering a foreign market?
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

32. For Review
To what extent must the company adapt its products and marketing program to each foreign country?
How do marketers influence country-of-origin effects?
How should the company manage and organize its international activities?
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall