1. Tapping Into Global Markets21
Tapping Into Global Markets
Marketing Management, 13th ed

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 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?
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3. Nokia Nseries Sold Globally
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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.
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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
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6. Four Stages of Internationalization
No regular export activities
Export via independent agents
Establish sales subsidiaries
Establish production
facilities abroad
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7. Fiat Markets Palio in Latin American Markets
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8. Top Global Firms Based in Developing Markets
America Movil
Cemex
China Mobile
CNOOC
Embraer
Gazprom
Haier
Hisense
Huawei Technologies
Infosys Technologies
Koc Holding
Lenovo Group
MMC Norilsk Nickel
Mahindra & Mahindra
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9. Regional Free Trade Zones
European Union
NAFTA
MERCOSUL
APEC
ASEAN
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10. Key Developing Markets
Brazil
Russia
India
China
South Africa
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11. Desired Country Characteristics for Market Entry
Rank high on market attractiveness
Rank low in market risk
Possess a competitive advantage
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12. Figure 21.2 Five Modes of Entry into Foreign Markets
Indirect
exporting
Direct
exporting
Licensing
Joint
ventures
Direct
investment
Commitment, Risk, Control, Profit Potential
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13. Direct Exporting Methods
Domestic-based export department
Overseas sales branch or subsidiary
Traveling export sales representatives
Foreign-based distributors or agents
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14. McDonald’s Franchises Are Sold Worldwide
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15. 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
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16. Red Bull Has 70% of Worldwide Energy Drink Market
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17. 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
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18. Cultural Dimensions Individualism vs. Collectivism High vs. Low
Power Distance
Masculine
vs.
Feminine
Weak vs. Strong
Uncertainty
Avoidance
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19. 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
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20. Commandments of Global Branding (cont.)
Balance standardization and customization
Balance global and local control
Establish operable guidelines
Implement a global brand-equity measurement system
Leverage brand elements
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21. Figure 21.3 International Product and Communication Strategies
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22. Levels of Product Adaptation
Production of regional product versions
Production of country versions
Production of city versions
Production of retailer versions
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23. Haagen Dazs Developed a Dulce de Leche Ice Cream for Its Argentina Market
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24. Communications Communications adaptation Dual adaptation
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25. Price Choices Set a uniform price everywhere
Set a market-based price in each country
Set a cost-based price in each country
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26. 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.
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27. Figure 21.4 Whole-Channel Concept for International Marketing
Seller
International headquarters
Channels between nations
Channels within nations
Final buyers
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28. Country of Origin Effects
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29. Global Organization Strategies
World as Single Market
Multinational
“Glocal”
Click on the video icon to launch a video snippet about Nivea’s philosophy on international marketing.
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30. Marketing Debate Is the world coming closer together? Take a position:
People are becoming more and more
similar. or
2. The differences between people of
different cultures far outweigh their
similarities.
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31. Marketing Discussion Think of some of your favorite brands.
Do you know where they come from?
Where and how they are made or
provided?
Would knowing affect your perceptions
of quality or satisfaction?
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