MARKETING MANAGEMENT
12th edition21
Tapping Into
Global Markets
21-2
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?
21-4
Global Firm
A firm 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
21-5
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
21-6
Four Stages of Internationalization
No regular export activities
Export via independent agents
Establish sales subsidiaries
21-8
Regional Free Trade Zones
• European Union
• NAFTA
21-9
Figure 21.2 Five Modes of Entry into
Foreign Markets
Indirect exporting Direct exporting Licensing Joint ventures Direct investment21-10
Direct Exporting Methods
21-11
21-12
Table 21.1 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
21-13
Cultural Dimensions
Individualism
vs.
Collectivism
Weak vs. Strong
Uncertainty
Avoidance
High vs. Low
Power Distance
Masculine
vs.
21-14
21-15
Communications
• Communications
adaptation
21-16
Price Choices
• Set a uniform price
everywhere
• Set a market-based
price in each
country
• Set a cost-based
price in each
21-17
Figure 21.4 Whole-Channel Concept
for International Marketing
Seller
International headquarters
Channels between nations
Channels within nations
21-20
Global Organization Strategies
World as Single Market World as Single Market
Multinational Multinational
21-21
Marketing Debate
Is the world coming closer together?
Take a position:
1. People are becoming more and more similar.
21-22
Marketing Discussion
Think of some of your favorite
brands. Do you know where they
come from? Where and how they
are made or provided? Do you
