Transcript Kotler Keller 21

21
Tapping Into
Global Markets
Marketing Management, 13th ed
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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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
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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
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European Union
NAFTA
MERCOSUL
APEC
ASEAN
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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
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Domestic-based export department
Overseas sales branch or subsidiary
Traveling export sales representatives
Foreign-based distributors or agents
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McDonald’s Franchises
Are Sold Worldwide
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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 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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Red Bull Has 70% of Worldwide
Energy Drink Market
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What Marketing Aspects Might Be
Adapted for International Marketing?
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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
High vs. Low
Power Distance
Masculine
vs.
Feminine
Weak vs. Strong
Uncertainty
Avoidance
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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.)
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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
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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”
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Marketing Debate
 Is the world coming closer together?
Take a position:
1. People are becoming more and more
similar.
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?
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