Transcript wk12p - Management Class

Looking at the Global
Marketing Environment
Deciding Whether to
Go International
Outlines:
Deciding Which Markets
to Enter
Deciding How to Enter
the Market
Deciding on the Global
Marketing Program
The International Environment
International
Trade System
Cultural
Environment
Considerations
in the Global
Environment
Political-Legal
Environment
Economic
Environment
Whether to go abroad & why?

Motives for internationalization:
–
–
–
–
–
–
saturated domestic mkt
market seeking
client following
competitor following
diversification
enjoy eco of scale/scope
Deciding
Which
Markets
to Enter
Marketer’s Checklist for
Identifying Markets to Enter
1. Demographic
Characteristics.
2. Geographic
Characteristics.
3. Economic Factors.
4. Technological Factors.
5. Sociocultural Factors.
6. National Goals and Plans.
Market Entry Strategies
Amount of Commitment, Risk, Control,
and Profit Potential
Greater
Lesser
Direct Investment
Joint Venturing
Exporting
Entry Strategy (1)
Export: direct & indirect
 Licensing: licenser & licensee enter into
agreement, offering the right to use a
manufacturing process, trademark, trade
secret for a fee or loyalty
 Contract manufacturing/international
subcontracting: a company in one country
place an order, with specification to
products required, with a firm in another

Entry Strategy (2)
Management contracting: an arrangement
under which the domestic firm supplies the
mgt know-how to a foreign co. that supplies
the K
 Joint venture:

– contractual JV
– equity JV

Direct investment/wholly owned
subsidiaries:
– green field/acquisition
Choice: depends on control,
risk, commitment, nature of
product
The Global Marketing Program
Promotion
Product
Don’t Change
Adapt
Don’t
Change
Straight
Extension
Product
Adaptation
Adapt
Communication
Adaptation
Dual
Adaptation
Product Invention
Develop New Product