global markets marketing management mba 2011-13

8/2/2019 Global Markets Marketing Management Mba 2011-13

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MARKETING MANAGEMENT

Tapping Into

Global Markets


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Chapter Questions

What factors should a company review beforedeciding to go abroad?

How can companies evaluate and select specificforeign markets to enter?

What are the major ways of entering a foreignmarket?

To what extent must the company adapt its productsand marketing program to each foreign country?

How should the company manage and organize itsinternational activities?


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Nokia Nseries Sold Globally


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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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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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Four Stages of Internationalization

No regular export activities

Export via independent agents

Establish sales subsidiaries

Establish production

facilities abroad


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Fiat Markets Palio in

Latin American Markets


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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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Regional Free Trade Zones

European Union

NAFTA

MERCOSUL APEC

ASEAN

SAFTA


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Key Developing Markets

Brazil

Russia

India

China

South Africa


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Desired Country

Characteristics for Market Entry

Rank high on market

attractiveness

Rank low in market risk

Possess a competitive

advantage


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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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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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The Reva Electric Car Company

has actively pursued

opportunities in export markets.


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Table 21.2 Global Marketing

Advantages

Economies of scale

Lower marketing costs

Power and scope

Consistency in brand image

Ability to leverage

Uniformity of marketingpractices

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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Red Bull Has 70% of Worldwide Energy Drink

Market
http://www.redbull.com/


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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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Cultural Dimensions

Individualism

vs.

Collectivism

Weak vs. StrongUncertainty

Avoidance

High vs. Low

Power Distance

Masculinevs.

Feminine


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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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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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Figure 21.3 International Product and

Communication Strategies


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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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Haagen Dazs Developed a

Dulce de Leche Ice Cream

for Its Argentina Market


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Communications

Communications adaptation Dual adaptation


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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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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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Figure 21.4 Whole-Channel Concept for

International Marketing

Seller

International headquarters

Channels between nations

Channels within nations

Final buyers


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Country of Origin Effects


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Global Organization Strategies

World as Single Market

Multinational

Glocal
http://www.nivea.com/


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Marketing Debate

Is the world coming closer together?

Take a position:

1. People are becoming more and moresimilar.

or

2. The differences between people of

different cultures far outweigh their

similarities.


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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?

global markets marketing management mba 2011-13

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