Pamantasan ng Lungsod ng Maynila

Graduate School of Management

Master in Business Administration

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By:
Kathleene Fay dela Cruz
And
Rudolf John Velasco

August 14, 2010

ROAD MAP: Previewing the Concepts

ÿ escribe three key approaches to entering

international markets.
ÿ
plain how companies adapt their marketing
mies for international markets.
ÿ dentify the three major forms of international
marketing organization.

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Market Entry Strategies

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Exporting
ÿ
ntering a foreign market by sending products and
selling them through international marketing
intermediaries (indirect eporting) or through the
companyƞs own department, branch, or sales
representatives of agents (direct eporting).

ƛ Indirect: working through independent international

marketing intermediaries.
ƛ Direct: company handles its own eports.

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ðoint Venturing
ÿ
ntering foreign markets by joining with foreign
companies to produce or market a product or
service.

ÿ Approaches:
ƛ Licensing
ƛ Contract manufacturing
ƛ Management contracting
ƛ Joint ownership
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ðoint Venturing

i
 
ÿ A method of entering a foreign market in
which the company enters into an
agreement with a licensee in the foreign
market, offering the right to use a
manufacturing process, trademark, patent,
trade secret, or other item of value for a
fee or royalty.

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ðoint Venturing

°    

ÿ A joint venture in which a company

contracts with manufacturers in a foreign
market to produce the product.

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ðoint Venturing



°   

ÿ A joint venture in which the domestic firm

supplies the management know-
know-how to a
foreign company that supplies the capital;
the domestic firm eports management
services rather than products.

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ðoint Venturing

ð 
 

ÿ A joint venture in which a company joins

investors in a foreign market to create a
local business in which the company
shares joint ownership and control.

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ðoint Ownership

KFC entered Japan through a joint ownership venture with Japanese

conglomerate Mitsubishi.
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Direct Investment

ƛ The development of foreign-

foreign-based assembly
or manufacturing facilities.

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þþ
Deciding on the Global Marketing
Program

ÿ Standardized Marketing Mi

ÿ Adapted Marketing Mi

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þ
Standardized Marketing Mix

ÿ An international marketing strategy for

using basically the same product,
advertising, distribution channels and
other elements of the marketing mi in all
the companyƞs international markets.

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þ
Adapted Marketing Mix

ÿ An international marketing strategy for

adjusting the marketing mi elements to
each international target market, bearing
more costs, but hoping for a larger market
share and return.

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þ
Marketing Mix Adaptation

n ndia, Mc onaldƞs serves chicken, fish, and vegetable burgers, and the
Maharaja MacƜtwo all-mutton patties, special sauce, lettuce, cheese,
pickles, onions, on a sesame-seed bun.
þ
þ
=ive Global Product and
Promotion Strategies

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Global Product Strategies
ÿ Straight Product
tension:
ƛ Marketing a product in a foreign market
without any change.
ÿ Product Adaptation:
ƛ Adapting a product to meet local conditions or
wants in foreign markets.
ÿ Product nvention:
ƛ Creating new products or services for foreign
markets.
þ
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Global Promotion Strategies

ÿ Can use a standardized theme globally,

but may have to make adjustments for
language or cultural differences.
ÿ Communication Adaptation:
ƛ Fully adapting an advertising message for
local markets.
ÿ Changes may have to be made due to
media availability.

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Global Pricing Strategies
ÿ Companies face many problems in setting their
international prices.
ÿ Possible approaches include:
ƛ Charge a uniform price all around the world.
ƛ Charge what consumers in each country will
pay.
ƛ Use a standard markup of costs everywhere.

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Distribution Channel

6 


° 


ÿ esigning international channels that take
into account all the necessary links in
distributing the sellerƞs products to final
buyers, including the sellerƞs headquarters
organization, channels among nations,
and channels within nations.

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6hole-Channel Concept for
International Marketing

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Deciding on the Global
Marketing Organization

ÿ rganize an eport department

ÿ Create international divisions
ƛ Geographical organizations
ƛ World product groups
ƛ nternational subsidiaries
ÿ Become a global organization

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|hank you.

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