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Chapter 21 six concepts
The document outlines six concepts for international marketing: 1) four factors that draw companies globally, 2) three criteria to rate markets, 3) differences between developed and developing markets, 4) global market entry strategies, 5) elements of a marketing program, and 6) three ways companies manage international marketing activities. Examples are provided to illustrate each concept.
Chapter 21 six concepts
- 1. Marketing Six Concepts Chapter21 Tapping Into Global Markets Guo,Li (Lisa) Ateneo Graduate School of Business May 9, 2013
- 2. Outline • Six Concepts •Global Markets...... • 1. Four Factors that draws companies into the international arena. • 2. Three criteria should be rated. • 3. Developed versus developing markets. • 4. Best mode of entry. • 5. Companies decide on a marketing program. • 6.Companies manage their international marketing activity in three ways.
- 3. Concept 1: FourFactors That Draws Companies Into The International Arena. 3. Independence From One Market 1.Higher Profits • 　　 4. Competition With Global Competitors 2. Larger Customer
- 4. Example of Concept1 • Tata Group • India's biggest conglomerate, operates successful businesses that range from software,cars, and steel to phone service, tea bags, and wristwatches. • The market potential is huge, ther are just seven automobiles per 1000 people in India. • Targeting markets such as Africa and Southeast Asia and perhaps even parts of Eastern Europe and Latin America.
- 5. Concept 2: ThreeCriteria Should Be Rated 1. Market Attractiveness 2. Risk 3. Competitive Advantage
- 6. Example of Concept2 1. Market Attractiveness Market size and growth rate. 2. Risk Foreign Preference, Differeent Business Culture, Specifice foreign regulations. 3. Competitive Advantage Products or services at the lowest cost in the industry. A variety of products, services, or features to cunsumers that competitors are not ye offering or are unable to offer. Completely new or notable better products or services.
- 7. Concept 3: Developed AndDeveloping Markets • Brazil • Russia • India • China • Indonesia • South Africa
- 8. Example of Concept3 • Each nation has unique features. • Depend on its demographic, economic, sociocultural, natural, technological, and political-legal environments.
- 9. Concept 4: GlobalMarket Entry Strategies
- 10. Example of Concept4 Indirect Exporting Work through independent intermediaries. Direct exporting A producer or supplier directly sells its product to an international market Licensing A simple way to engage in international marketing. To use a manufacturing process, trademark, patent, tarde secret, or other item of value for a fee or royalty. Joint Ventures To share ownership and control. To reach more geographic and technological market. To diversify its investment and risk. Direct Investment Can buy part or full interest in a local company. Build its own manufacturing or service facilities.
- 11. Concept 5: Companies DecideOn A Marketing Program • Product Level • Price Level • Communication Level • Distribution Level
- 12. Example of Concept5 Product Products or services are easily standardized and appropriate adaptation. (Google, eBay, Amazon.com)-made quick progress in overseas markets. Communicatio n To make the message as compelling and effective. Global Adaptations (Apple,Coca-Cola, Goodyear) Pricing Set a uniform price everywhere set a market based price in each country Set a cost based price in each country Distribution The multinational must choose the right distributors, invest in them, and set up performance goals to which they can agree.
- 13. Concept 6: Companiesmanage their international marketing activity in three ways Export Departments Global Organization International Divisions
- 14. Example of Concept6 Export Department A sales manager and a few assistants. Various marketing services. International Division Headed by a division president who sets goals and budgets. Responsible for the company's international growth. Corporate staff consists of functional specialists who provide services to various operating units. Global Organization Plan worldwide manufacturing facilities, marketing policies, financial flows, and logistical systems. Report directly to the chief executive or executive committee.
- 15. Summary • Six Concepts •Global Markets...... • 1. Four Factors that draws companies into the international arena. • 2. Three criteria should be rated. • 3. Developed versus developing markets. • 4. Best mode of entry. • 5. Companies decide on a marketing program. • 6.Companies manage their international marketing activity in three ways.