1

TAPPING INTO GLOBAL MARKETS

Maria Ellaine Grace UyAteneo School of Medicine and Public

Health

May 12, 2010

Top 10 Concepts: Chapter 21

Outline: Tapping into global markets

1. Global firms2. Decisions in international

marketing3. Product and communication

adaptation4. Country of origin perception

Concept 1:

Global firms plan, operate and coordinate their activities on a worldwide basis.

+ +

Global Firms..

Kotler: Nokia Local: San Miguel Corporation Medical: Pharmaceutical

companies (Pfizer)

Concept 2:

Deciding whether to go abroad…

FACTORS:

Profit Customers

Competitors

RISKS:

1. Culture2. Preferences

3. Foreign Regulation

Deciding whether to go abroad…

Kotler: Billabong Local: Liwayway Marketing

Corporation Medical: Pharmaceutical

companies (Pfizer)

Concept 3:

Deciding which markets to enter through marketing objectives and

policies.

(1) Rank high on market attractiveness

(1) Low in market risk

(1) Competitive Advantage

Concept 3:

Deciding which markets to enter…

Kotler: Bechtel Corporation Local: Jollibee Foods Corporation Medical: Pharmaceutical

companies; Medical equipment companies

Concept 4:

Fives modes of entry into foreign markets

(1)Indirect exporting

(1)Direct exporting

(1)Licensing

(1)Joint ventures

(1) Direct investment

Com

mitm

en

t, Ris

k, C

on

trol a

nd

P

rofi

t Pote

ntia

l

Concept 4:

Fives modes of entry into foreign markets: Licensing

Kotler: KFC Local: Mang Inasal Medical: Pharmaceutical

companies

Concept 5:

Deciding on the Marketing Program: A mix of culture and preferences

WANTS ?

CULTURE

MARKET TRENDS

Add revenue?

Add cost?

Concept 5:

Deciding on the Marketing Program: A mix of culture and preferences

Kotler: Red Bull, Coca Cola, Western Union

Local: LBC Medical: Marketing health (Medical

City)

Concept 6:

Communicate the message to consumers.

Concept 6:

Communicate the message to consumers.

Kotler: Acopia Networks Local: LBC Medical: Frenzy Condom

Concept 7:

Set a globally competitive price.

UNIFORM

MARKET-BASED

COST-BASED

Concept 7:

Set a globally competitive price.

Kotler: Coca-cola, Microsoft Local: Export goods Medical: Doctor fee

Concept 8:

Companies should decide on how much a product should adapt in a local market.

Com

mu

nic

atio

ns

PRODUCT

Do not change Adapt Develop new product

Do not change

Straight extension Product adaptation Product invention

Adapt Communication adaptation

Dual adaptation

Concept 8:

Companies should decide on how much a product should adapt in a local market.

Kotler: Haagen-Dazs, Clairol Local: Selecta Medical: Belo Medical Group

Concept 9:

Country of origin perceptions have value in commerce.

Concept 9:

Country of origin perceptions have value in commerce.

Kotler: Japan for automobiles Local: Export furniture from Cebu Medical: Medical service provision

(Nurses in demand), Medical tourism

Concept 10:

Deciding on marketing organizations in three ways:

(1) Export Department

(2) International Division

(3) Global Organization

Concept 10:

Deciding on marketing organizations in three ways:

Kotler: Coca-Cola Local: ABS-CBN Broadcasting

Corporation Medical: Medical City

23

TAPPING INTO GLOBAL MARKETS

Maria Ellaine Grace UyAteneo School of Medicine and Public

Health

May 12, 2010

Top 10 Concepts: Chapter 21