1. Chapter Questions
What factors should a company review before deciding to expand?
How can companies evaluate and select specific markets to enter?
What are the main ways to enter a new market?
Should the company adapt its products and marketing program to each new market?
How should the company evaluate and control its activities?

2. Global Firm A firm 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.

3. Regional Free Trade Zones
European Union
NAFTA
MERCOSUL
APEC

4. Major Decisions in Marketing Expansion
Deciding whether to go
Deciding which markets to enter
Deciding how to enter
Deciding on the
marketing program
Deciding on the
marketing organization

5. Choosing markets strategically
3 main criteria:
market attractiveness,
risk, and
competitive advantage
Developing markets and countries offer a unique set of opportunities and risks.

6. Four Stages of Internationalization
No regular export activities
Export via independent agents
Establish sales subsidiaries
Establish production
facilities abroad

7. Nescafe Markets in Russia

8. Five Modes of Entry into Foreign Markets
Indirect
exporting
Direct
exporting
Licensing
Joint
ventures
Direct
investment
Commitment, Risk, Control, Profit Potential

9. Indirect Exporting
Contract with an import/export company to manage the flow of goods and money

10. Direct Exporting Methods
Domestic-based export department
Overseas sales branch or subsidiary
Traveling export sales representatives
Foreign-based distributors or agents

11. Licensing

12. Global Marketing Advantages Disadvantages Economies of scale
Lower marketing costs
Power and scope
Consistency in brand image
Ability to leverage
Uniformity of marketing practices
Disadvantages
Differences in environment
Differences in consumer needs, wants, usage patterns
Differences in brand development process

13. Price Choices Set a uniform price everywhere
Set a market-based price in each country
Set a cost-based price in each country

14. Whole-Channel Concept
Seller
International headquarters
Channels between nations
Channels within nations
Final buyers

15. Global Organization Strategies
World as Single Market
Multinational
“Global”
Click on the video icon to launch a video snippet about Nivea’s philosophy on international marketing.

16. Marketing Audit Comprehensive examination of the
marketing environment, objectives,
strategies and activities
to determine problems and opportunities,
and a plan of action to improve
the company’s marketing performance
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