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21-1
Chapter Questions
• What factors should a company review before deciding to expand?
• How can companies evaluate and select specific markets to enter?
• What are the main ways to enter a new market?
• Should the company adapt its products and marketing program to each new market?
• How should the company evaluate and control its activities?
21-2
Global Firm
A firm that operates in more than onecountry and captures R&D, production,
logistical, marketing, and financial advantages in its costs and
reputation that are not available to purelydomestic competitors.
21-3
Regional Free Trade Zones
• European Union
• NAFTA
• MERCOSUL
• APEC
21-4
Major Decisions in Marketing Expansion
Deciding whether to go
Deciding which markets to enter
Deciding how to enter
Deciding on the
marketing program
Deciding on the
marketing organization
21-5
Choosing markets strategically
• 3 main criteria:
– market attractiveness,
– risk, and
– competitive advantage
• Developing markets and countries offer a
unique set of opportunities and risks.
21-6
Four Stages of Internationalization
No regular export activities
Export via independent agents
Establish sales subsidiaries
Establish production
facilities abroad
21-7
Nescafe Markets in Russia
21-8
Five Modes of Entry into Foreign Markets
Indirect
exporting
Direct
exportingLicensing
Joint
ventures
Direct
investment
Commitment, Risk, Control, Profit Potential
21-9
Indirect Exporting
• Contract with an import/export
company to manage the flow of goods
and money
21-10
Direct Exporting Methods
• Domestic-based export department
• Overseas sales branch or subsidiary
• Traveling export sales representatives
• Foreign-based distributors or agents
21-11
Licensing
21-12
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
environment
• Differences in consumer needs, wants, usage patterns
• Differences in brand development process
21-13
Price Choices
• Set a uniform price everywhere
• Set a market-based price in each country
• Set a cost-based price in each country
21-14
Whole-Channel Concept
Seller
International headquarters
Channels between nations
Channels within nations
Final buyers
21-15
Global Organization Strategies
World as Single MarketWorld as Single Market
MultinationalMultinational
“Global”“Global”
18-16
Marketing Audit
Comprehensive examination of the
marketing environment, objectives,
strategies and activities
to determine problems and opportunities,
and a plan of action to improve
the company’s marketing performance
•© Copyright 2008 Pearson Education Canada