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.