This document discusses factors for a company to consider when designing global market offerings. It outlines questions on reviewing factors before deciding to enter foreign markets, evaluating and selecting target markets, methods for entering markets, adapting marketing programs and products for different countries, and managing international operations. Key decisions discussed include whether, where, and how to enter foreign markets; adapting the marketing mix; and international organizational structure.

1. TARLAC STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
MASTER IN BUSINESS ADMINISTRATION
TOPIC: “DESIGNING GLOBAL MARKET OFFERINGS”
Submitted by:
MR. ALAIN D. OBERES
Submitted to:
DR. SUSAN D. RAMIREZ
MBA 505
MARKETING MANAGEMENT
January 26, 2008

2. QUESTIONS TO CONSIDER
 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?
 How should the company manage and organize its international activities?

3. COMPETING ON A GLOBAL BASIS
Although some U.S. businesses may one to eliminate foreign competition through protective legislation, the better way to compete is to
continuously improve products and at home and expand into foreign markets. Ironically, although companies need to enter and compete in foreign
markets, the risks are high: huge foreign indebtedness, shifting borders, unstable governments, foreign­exchange problems, tariffs and other trade
barriers, corruption and technological pirating. Still, we believe that companies selling in global industries have no choice but to internationalize their
operations.
Global Industry ­ is an industry in which the strategic positions of competitors in major geographic or national markets are fundamentally
affected by their overall global positions.
Global Firm ­ is a firm that operates in more than one country and captures R & D, production, logistical, marketing and financial
advantages in its cost and reputation that are not available to purely domestic competitors. Global firms plan, operate and
coordinate their activities on a worldwide basis.

4. MAJOR DECISIONS IN INTERNATIONAL MARKETING
DECIDING WHETHER TO GO ABROAD
DECIDING WHICH MARKETS TO ENTER
DECIDING HOW TO ENTER THE MARKET
DECIDING ON THE MARKETING PROGRAM
DECIDING ON THE MARKETING ORGANIZATION

5. DECIDING WHETHER TO GO ABROAD
WHY GO GLOBAL?
 Global firms offering better products or lower prices can attack the company's domestic market. The company might
want to counter attack these competitors.
 The company discovers that some foreign markets present higher profits opportunities that the domestic market.
 The company needs a larger customer base to achieve economies of scale.
 The company wants to reduce its dependence on any one market.
 The company's customers are going abroad and require international servicing.
WHY NOT GO GLOBAL?
 The company might not understand foreign customer preferences and fail to offer a competitively attractive product.
 The company might not understand the foreign country's business culture or know how to deal effectively with foreign
nationals.
 The company might underestimate foreign regulations and incur unexpected costs.
 The company might realize that it lacks managers with international experience.
 The foreign country might change its commercial laws, devalue its currency, or undergo a political revolution and
expropriate foreign property.

6. DECIDING WHICH MARKET TO ENTER
A company should consider the following:
> marketing objectives and policies­ product should possess both local and global
appeal
> what proportion of total sales will it seek?­ dependent on market share and
industry
> when going abroad­start small or venture in a bigger plans­ investing strategy
> going through the internet­ global e­commerce
HOW MANY MARKETS TO ENTER
The company must decide whether:
> to market in a few countries or many countries­ selective marketing
> determine how fast to expand­ depends on the sales outcome and market response
> attractiveness of the market­ influenced by product, geography, income and
population, political climate and other factors.
> the regional free trade zones­ EU, NAFTA, MERCOSUL AND APEC
> evaluating potential markets­ to consider high market attractiveness, low in
market risk and market should possess a competitive advantage

7. DECIDING ON THE MARKETING PROGRAM
> standardized marketing mix­ standardization of the product, advertising and
distribution channels
> adapted marketing mix­ producer adjusts the marketing­mix elements to each
target market.
DECIDING ON THE MARKETING ORGANIZATION
> export department­ is created when a company goes to international market
> international division­ is created to handle all international activity as a result of
international marketing and ventures
> global organization­ refers to several firms with worldwide operations