1. Designing Global Market Offerings
Otterbein College Winter 2000

2. Objectives Factors to Consider Before Going Global
Selecting Foreign Markets
Foreign Market Entry
Product Adaption for Global Marketing
Management & Organization of Global Activities
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3. 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
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4. Challenges in Going Global
Shifting borders
Unstable governments
Foreign-exchange
Corruption
Technological pirating
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5. Criteria for Entry Market Attractiveness Risk Competitive Advantage
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6. Five Models of Entry Into Foreign Markets
Direct
invest-
ment
Joint
ventures
Licensing
exporting
Indirect
Exporting
Amount of commitment, risk, control, and profit potential
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7. 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.
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8. Internationalization Process
No Export
Export via Agents
Sales Subsidiaries
Production Abroad
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9. 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
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10. Pricing Challenges $ Price Escalation Transfer Prices Dumping Charges
Gray Markets $
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11. Whole-channel Concept for International Marketing
Seller
Seller’s international
marketing headquarters
Channels between
nations
Channels within
foreign nations
Final buyers
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12. Marketing Organization
Export Department
International Division
Global Organization
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13. Next Week... Shaping the Market Offering:
Products, Branding, Packaging
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