Transcript Chapter 21 Tapping into Global Markets

Phillip
Kevin Lane
Kotler • Keller
Marketing Management • 14e
Tapping into Global Markets
Discussion Questions
1. What factors should a company review
before deciding to go abroad?
2. How can companies evaluate and select
specific foreign markets to enter?
3. What are the differences between marketing
in a developing and a developed market?
4. What are the major ways of entering a
foreign market?
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Discussion Questions
5. To what extent must the company adapt its
products and marketing program to each
foreign country?
6. How do marketers influence country-of-origin
effects?
7. How should the company manage and
organize its international activities?
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Competing on a Global Basis
Otis Elevator
Door system – France
Small gear parts – Spain
Electronics – Germany
Motor drives – Japan
Systems integration – U.S.
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Deciding whether
to go abroad
Decisions in
International
Marketing
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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Deciding Whether to Go Abroad
Reduce single market dependency
Higher profit potential
Customers going abroad
Economies of scale
Counterattack
competitors
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Risks of Going Abroad
Lack:
• An understanding of foreign preferences
• An understanding foreign business culture
• Experienced managers
Underestimate:
• Foreign regulations
Foreign country may:
• Change commercial laws
• Devalue its currency
• Undergo political revolution
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The Internationalization Process
Independent
Representatives
Establish sales subsidiaries
Establish production facilities
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Deciding Which Markets to Enter
How many markets
Evaluating potential markets
Developed versus
developing markets
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Regional Trade Areas
NAFTA
European Union
APEC
ASEAN
MERCOSUR
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Deciding How to Enter the Market
Joint
Venture
Export
Licensing
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Direct
Investment
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Commitment, Risk, Control, and Profit Potential
Five Modes of
Entry into
Foreign Markets
Direct Investment
Joint Ventures
Licensing
Direct Exporting
Indirect Exporting
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Indirect and Direct Export
Indirect
Direct
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Licensing
Management
Contracts
Contract
Manufacturing
Franchising
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Joint Ventures & Direct Investment
Joint Venture
Direct Investment
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Deciding on the Marketing Program
Global Similarities and Differences
Marketing Adaptation
Global Product Strategies
Global Communication Strategies
Global Pricing Strategies
Global Distribution Strategies
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Standardized Marketing
Pros and Cons
Advantages
Disadvantages
Economies of scale
Lower marketing costs
Power and scope
Brand Consistency
Leverage ideas quickly and
efficiently
• Uniformity of marketing
practices
Ignores differences in:
• Consumer needs, wants,
and usage patterns
• Consumer response
• Brand and product
development
• Legal environment
• Marketing institutions
• Administrative procedures
•
•
•
•
•
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Global Similarities and Differences
Soft Drink Consumption
(8-ounce servings)
Americans
Mexicans
Brazilians
Russians
Chinese
760
674
315
149
39
Median Age
25
China, India
43
Germany, Italy, & Japan
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Cultural Differences
Masculine versus feminine
Collectivism
Individualism
Power distance
Uncertainty avoidance
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Consumer Behavior Differences
Honda Automobiles
Japan – Speed, youth, and energy
U.S. – Quality and reliability
Heineken
U.S. - Super Premium
Netherlands - Mid-tier
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Marketing Adaptation
Communications
Product
Distribution
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Price
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Global Product Strategies
Product Standardization
Product Adaptation Strategies
Brand Element Adaptation
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International Product and
Communication Strategies
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Classic Blunders in Global Marketing
Hallmark
Coca-Cola
(France)
(Spain)
Pop-Tarts
(Britain)
Phillips
(Japan)
Crest
(Mexico)
Tang
(France)
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Global Distribution Strategies
Channel Entry
Channel Differences
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Seller
Whole-Channel
Concept for
International
Marketing
Seller’s marketing
headquarters
Channels between
nations
Channels within
foreign nations
Final buyer
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Country-of-Origin Effects
Building Country Images
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Country-of-Origin Effects
Consumer Perceptions
Ford Mustang
Toyota Sienna
Ethnocentric
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Which is More American?
Ford Mustang
Toyota Sienna
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Marketing Organization
Export Department
International Division
Global Organization
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