2. Global Marketing Into the Twenty-
First Century
Global competition is intensifying
and few industries are now safe from
foreign competition.
To compete, many companies are
continuously improving their
products, expanding into foreign
markets and becoming Global Firms.
3. Global Marketing In 21st Century
A Global Firm is one that, by operating in
more than one country, gains marketing,
production, R&D, and financial
advantages that are not available to
purely domestic competitors.
Export
International
Global
4. Decisions in International Marketing
Looking at the Global
Marketing Environment
Deciding Whether to
Go International
Deciding Which Markets
to Enter
Deciding How to Enter
the Market
Deciding on the Global
Marketing Program
Deciding on the Global
Marketing Organization
6. Environmental Factors…….
Huge foreign indebtedness
Unstable governments
exchange instability
Foreign government entry requirements
Tariffs and other trade barriers
Corruption
Technological pirating
High cost of product
Problems on communication adaptation
8. U.S. Demographic Trends
Changing Age Structure
Population is getting older
Changing Family Structure
Marrying later, fewer children,
working women, and nonfamily households
Geographic Shifts
Moving to the Sunbelt and suburbs
Increased Education
Increased college attendance
and white-collar workers
Growing Ethnic and Racial Diversity
72% Caucasian, 13% African-American,
11% Hispanic & 3% Asian
9. The Co’s Micro-environment
Company’s Internal Environment
functional areas such as top management,
finance, and manufacturing, etc.
Suppliers
provide the resources needed to produce
goods and services and are an important
link in the “value delivery system”.
Marketing Intermediaries
help the company to promote, sell, and
distribute its goods to final buyers.
10. Reasons to study Environment
Market entry and market control costs are high
Product and communication adaptation costs
are high
Population and income size and growth are
high in the initial countries chosen
Dominant foreign firms can establish high
barriers to entry
11. Types of Customer Markets
Company
Consumer
Markets
International
Markets
Government
Markets
Business
Markets
Reseller
Markets
14. Technological Environment
Rapid Pace of
Change
Unlimited
Opportunities
Increased
Regulation
Practical, Affordable
Products
Issues in the Technological
Environment
18. Deciding Whether to Go Global
Reasons companies might consider
International expansion:
– Global competitors attacking the domestic
market,
– Foreign markets might offer higher profit
opportunities,
– Domestic markets might be shrinking,
– Need an enlarged customer base to achieve
economies of scale,
– Reduce dependency on any one market,
– Customers might be expanding abroad.
19. Deciding Whether to Go Global
Most companies do not act until
some situation or event thrusts
them into the international market.
21. Deciding Which Markets to
Enter
Marketer’s Checklist for Identifying
2. Volume of Foreign Sales Desired?
3. How Many Countries to Enter?
4. Types of Countries to Enter?
5. Evaluate Each Country Based On:
a. Market Size
b. Market Growth
c. Cost of Doing Business
d. Competitive Advantage
e. Risk Level
1. Marketing Objectives and Policies?
Market Potential
23. Deciding How to Enter the Market
Direct Investment
Joint Venturing
Exporting
Amount
of
Commitment,
Risk,
Control,
and
Profit
Potential
Greater
Lesser
25. Estimate of current market potential
Forecast of future market potential
and risk
Forecast of sales potential
Forecast of costs and profits
Estimate of rate of return on
investment
27. Deciding on Global Marketing Program
Straight
Extension
Communication
Adaptation
Product
Adaptation
Dual
Adaptation
Promotion
Don’t Change
Product
Adapt
Product
Product
Don’t
Change
Promotion
Adapt
Promotion
Product Invention
Develop New Product
Five International Product and Promotion Strategies
28. Whole-Channel Concept for Distribution
Seller
Seller’s Headquarters
Channels Between Nations
Channels Within Nations
Final User or Buyer
29. International Channel of Distribution Alternatives
Home country Foreign country
The foreign marketer or
producer sells to or through
Domestic
producer or
marketer sells
to or through
Open
distribution
via domestic
wholesale
middlemen
Exporter Foreign
agent or
merchant
wholesalers
Foreign
retailer
Importer Foreign
consumer
Export management company
or company
sales force
30. Setting a uniform price
everywhere
Setting a market-based
price in each country
Setting a cost-based price
in each country
32. Deciding on Global
Marketing Organization
Export Department
International Division
Global Organization
Degree
of
Involvement
in
International
Marketing
Activities
