Chapter 21 of Marketing Management by Philip Kotler and Kevin Lane Keller

1. Creating Successful Long-term Growth
TAPPING INTO GLOBAL MARKETS
(Globetrotters, Inc.)
Arvin Toledo
Group 3
TS MARKMA R17
ajefarm@gmail.com

2. Questions and Objective:
Going global:
1. What should a company consider before going
abroad?
2. How should a company pick a foreign market?
3. How does a company sell in a developing market?
4. How does a company enter a different country?
ajefarm@gmail.com

3. Questions and Objective:
Going global:
5. How much should a company change for a foreign
market?
6. What does a company do for its country’s image?
7. How should a company manage internationally?
ajefarm@gmail.com

4. Outline:
Go global…
1. If it means more profits.
2. If the market is attractive, the risk is acceptable,
and you have the competitive advantage.
3. If you can sell to both developed and developing
markets.
4. If you can do any of the following: indirect/direct
exporting, licensing, joint ventures, direct
investment.
ajefarm@gmail.com

5. Outline:
Go global…
5. If you can adapt to a foreign culture without losing
revenue.
6. If your country’s image will benefit from your
brand.
7. If you can manage an export department,
international division, or global organization.
ajefarm@gmail.com

6. 1. What factors should a company review before deciding to go abroad?
Why you should work abroad:
To make more money…through:
1. Better profit opportunities vs domestic
2. Achieving economies of scale
3. Reduction of dependence on any one market
4. Counterattacking global competitors
5. Customers requiring international service

7. 1. What factors should a company review before deciding to go abroad?
Why you shouldn’t work abroad:
You could earn less…because of:
1. Foreign preferences
2. Foreign regulations
3. Foreign business culture
4. Managers without international expertise
5. Foreign country’s social/political/economic stability

8. 2. How can companies evaluate and select specific foreign markets to enter?
Work abroad!
If…
1. The market is attractive enough.
2. The risk is worth it.
3. You have the competitive advantage.

9. 3. What are the differences between marketing in a developing and a developed market?
Selling to the Developing
With…
1. Smaller packaging and lower prices.
2. Smaller retail outlets.
3. Products and services that improve standard of
living.
4. Cheaper, no frill products.

10. 4. What are the major ways of entering a foreign market?
How to Make an Entrance
1. Indirect exporting
- exporting through
independent intermediaries
- export merchants, export
agents/trading companies,
cooperative organizations,
export management
companies

11. 4. What are the major ways of entering a foreign market?
How to Make an Entrance
2. Direct exporting
- company handles their own
exports
- export department/overseas
sales branch/traveling export
sales representatives/foreign-
based distributors

12. 4. What are the major ways of entering a foreign market?
How to Make an Entrance
3. Licensing
- licensor issues a license
to a foreign company to
use a manufacturing
process, trademark,
patent, trade secret, or
other item of value for a
fee or royalty.

13. 4. What are the major ways of entering a foreign market?
How to Make an Entrance
4. Joint Ventures
- foreign and local investors own and control a
company together

14. 4. What are the major ways of entering a foreign market?
How to Make an Entrance
5. Direct Investment
- a foreign company buys part or full interest in a
local company or builds its own manufacturing or
service facilities.

15. 5. To what extent must the company adapt its products and marketing program to each foreign country?
How Much Change is Enough
“Think Global, Act Local”
-be consistent in theme but
reflect significant differences
(i.e. consumer behavior, brand
development, competitive
forces, and legal/political
environment).
“Adaptation should add more revenue than cost.”

16. 6. How do marketers influence country-of-origin effects?
Being Part of a Whole
*Country-of-origin perceptions – mental associations
and beliefs triggered by a country
brand/company image = perception of country
- company reputation can reflect traits associated with
a country

17. 7. How should the company manage and organize its international activities?
I, Globetrotter
1. Export Department
- for a company that just
ships out its goods
- consists of a manager
and assistants

18. 7. How should the company manage and organize its international activities?
I, Globetrotter
2. International Division
- for a company that engages in
several international markets
and ventures
- has a division president for
international activities

19. 7. How should the company manage and organize its international activities?
I, Globetrotter
3. Global Organization
- for a company with
worldwide
manufacturing/service
facilities
- global operating units
report directly to the chief
executive or executive
committee

20. Summary:
Go global…
1. If it means more profits.
2. If the market is attractive, the risk is acceptable,
and you have the competitive advantage.
3. If you can sell to both developed and developing
markets.
4. If you can do any of the following: indirect/direct
exporting, licensing, joint ventures, direct
investment.
ajefarm@gmail.com

21. Outline:
Go global…
5. If you can adapt to a foreign culture without losing
revenue.
6. If your country’s image will benefit from your
brand.
7. If you can manage an export department,
international division, or global organization.
ajefarm@gmail.com

22. Creating Successful Long-term Growth
TAPPING INTO GLOBAL MARKETS
(Globetrotters, Inc.)
Arvin Toledo
Group 3
TS MARKMA R17
ajefarm@gmail.com