Global marketing management

PART IIINTERNATIONAL MARKETING

The planning process

Planning is essential to success

First time?- What products? - In which market? - What level of resource commitment?

Already committed?- Allocating efforts and resources - New or old market segments? - Keep or drop products?Systematic guide to

plan operations in several countries

Phase 1: Preliminary analysis and screening

It is essential to evaluate potential markets, no matter the previous involvement of the company in international marketing operations.

First countries screening to

eliminate those that do not offer

sufficient potential.

Establish screening criteria. Depends

on company’s objectives.

Analysis of the environment

(Home & Host countries)

Provide basic information to evaluate the potential of

markets.

Standardized or adapted marketing

mix?

Company VS Country’s constraining factors and

potential.

Phase 2: Defining target markets and adapting the

marketing mixDetailed examination of the

marketing mix elements.

Marketing mix is evaluated in light of the data

generated in Phase 1, avoiding mistakes on 4P.

Country fact book (5 Types of information)

Search for similar segments across

countries.

Opportunities for economies of scale in marketing programs.

Are there market segments that allow common marketing mix tactics across countries?

Which environmental adaptations are necessary for successful acceptance?

Will adaptation costs allow profitable market entry?

Phase 3: Developing the marketing plan

Marketing plan is developed for the target market.

Single country

Global market

AnalysisAction

program for the market

Selection of an entry mode

What? By whom? How? When?

Phase 4: Implementation and control

Any plan requires coordination and control during the period of implementation.

Coordinating and controlling the complexities of

international marketing.

Continuous monitoring.

Metrics of performance.

Alternative market-entry strategies

Exporting Contractual agreements

Strategic alliances Foreign direct investment

Classified by degree of equity.

Risk Return Control

A company may employ a variety of entry modes in

several markets.

ExportingDirect exporting Indirect exporting

First international step when a company sells to

a customer in another country.

A company sells to an importer/distributor in

the home country which in turns export the

product.

Internet(Virtual stores) Direct sales

Contractual agreements Transfer of knowledge

rather tan equityLong-term, non equity associations between a

company and another in a foreign market.

Licensing Franchising

For small and medium sized companies where the capital is

scarce. Viewed as a supplement. Patent rights, trademark rights and

the rights to use technological processes.

Form of licensing in which Franchiser provides a standard

package of products, systems and management services and

Franchisee provides market knowledge and capital. Combination of skills.

Strategic alliances Strategic international

allianceInternational joint

ventures

Business relationship established by two or more companies to

cooperate out of mutual need and to share risk in achieving a

common objective.

Rapid expansion, Access to new technology, innovation, reduced

marketing costs, etc.

Partnership of two or more participating companies that have joined forces to create a separate

legal entity.

Consortia

Could be classified as IJV except for two unique characteristics:

- Involve a large number of participants.

- Frequently operate in a country where none of the participants is currently active.

Foreign direct investment Investment within a foreign country.

◦ Why? Low cost labor, avoid high import taxes, reduce costs of transportation, gain access to technology or raw materials.

Firms may: Invest in or buy local companies Establish new operations facilities.