The document discusses various considerations and strategies for international marketing. It covers factors to evaluate when deciding to enter foreign markets, methods for entering markets, ways to adapt marketing programs across cultures, and organizational structures for managing global operations. Key topics include evaluating country characteristics, modes of foreign market entry, adapting the marketing mix to different countries, and developing global vs. local organizational strategies.

1. Tapping Into
Global Markets
Marketing Management, 13th ed
21

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Chapter Questions
• 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?

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Nokia Nseries Sold Globally

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What is a Global Firm?
A global firm is one that operates in
more than one country and captures
R&D, production, logistical, marketing,
and financial advantages in its costs
and reputation that are not available to
purely domestic competitors.

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Major Decisions in
International Marketing
Deciding whether to go
Deciding which markets to enter
Deciding how to enter
Deciding on the
marketing program
Deciding on the
marketing organization

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Four Stages of
Internationalization
No regular export activities
Export via independent agents
Establish sales subsidiaries
Establish production
facilities abroad

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Fiat Markets Palio in
Latin American Markets

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Top Global Firms Based
in Developing Markets
• America Movil
• Cemex
• China Mobile
• CNOOC
• Embraer
• Gazprom
• Haier
• Hisense
• Huawei
Technologies
• Infosys
Technologies
• Koc Holding
• Lenovo Group
• MMC Norilsk Nickel
• Mahindra &
Mahindra

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Regional Free Trade Zones
• European Union
• NAFTA
• MERCOSUL
• APEC
• ASEAN

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Key Developing Markets
Brazil
Russia
India
China
South Africa

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Desired Country
Characteristics for Market Entry
• Rank high on market
attractiveness
• Rank low in market
risk
• Possess a competitive
advantage

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Figure 21.2 Five Modes of Entry into
Foreign Markets
Indirect
exporting
Direct
exporting
Licensing
Joint
ventures
Direct
investment
Commitment, Risk, Control, Profit Potential

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Direct Exporting Methods
• Domestic-based export department
• Overseas sales branch or subsidiary
• Traveling export sales representatives
• Foreign-based distributors or agents

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McDonald’s Franchises
Are Sold Worldwide

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Table 21.2 Global Marketing
Advantages
• Economies of scale
• Lower marketing costs
• Power and scope
• Consistency in brand
image
• Ability to leverage
• Uniformity of marketing
practices
Disadvantages
• Differences in
consumer needs,
wants, usage patterns
• Differences in
consumer response to
marketing mix
• Differences in brand
development process
• Differences in
environment

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Red Bull Has 70% of Worldwide
Energy Drink Market

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What Marketing Aspects Might Be
Adapted for International Marketing?
• Product features
• Labeling
• Colors
• Materials
• Sales promotion
• Advertising media
• Brand name
• Packaging
• Advertising
execution
• Prices
• Advertising themes

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Cultural Dimensions
Individualism
vs.
Collectivism
Weak vs. Strong
Uncertainty
Avoidance
High vs. Low
Power Distance
Masculine
vs.
Feminine

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Commandments of
Global Branding
• Understand similarities and differences in the
global branding landscape
• Do not take shortcuts in brand building
• Establish a marketing infrastructure
• Embrace integrated marketing
communications
• Establish brand partnerships

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Commandments of
Global Branding (cont.)
• Balance standardization and customization
• Balance global and local control
• Establish operable guidelines
• Implement a global brand-equity
measurement system
• Leverage brand elements

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Figure 21.3 International Product and
Communication Strategies

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Levels of Product Adaptation
• Production of regional product versions
• Production of country versions
• Production of city versions
• Production of retailer versions

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Haagen Dazs Developed a
Dulce de Leche Ice Cream
for Its Argentina Market

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Communications
• Communications adaptation
• Dual adaptation

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Price Choices
• Set a uniform price
everywhere
• Set a market-based
price in each country
• Set a cost-based price
in each country

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What is a Gray Market?
A gray market consists of branded
products diverted from normal or
authorized distributions channels in the
country of product origin or cross
international borders; dealers in lower
priced countries sell products in higher
priced countries.

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Figure 21.4 Whole-Channel Concept
for International Marketing
Seller
International headquarters
Channels between nations
Channels within nations
Final buyers

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Country of Origin Effects

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Global Organization Strategies
World as Single Market
Multinational
“Glocal”

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Marketing Debate
 Is the world coming closer together?
Take a position:
1. People are becoming more and more
similar.
or
2. The differences between people of
different cultures far outweigh their
similarities.

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Marketing Discussion
 Think of some of your favorite brands.
 Do you know where they come from?
 Where and how they are made or
provided?
 Would knowing affect your perceptions
of quality or satisfaction?