The Clobal Narketplace The Clobal Narketplace

15-2
ROAD MAP: Previewing the Concepts
- - Discuss how the international trade system, Discuss how the international trade system,
economic, political economic, politicallegal, and cultural legal, and cultural
environments affect a company's international environments affect a company's international
marketing decisions. marketing decisions.
- - Describe three key approaches to entering Describe three key approaches to entering
international markets. international markets.
- - Explain how companies adapt their marketing Explain how companies adapt their marketing
mixes for international markets. mixes for international markets.
- - !dentify the three major forms of international !dentify the three major forms of international
marketing organization. marketing organization.
15-3
oba Marketing in the 2
st
Century
- - The world is shrinking rapidly with the The world is shrinking rapidly with the
advent of faster communication, advent of faster communication,
transportation, and financial flows. transportation, and financial flows.
- - !nternational trade is booming and !nternational trade is booming and
accounts for 2S of U.S. CDP. accounts for 2S of U.S. CDP.
- - Clobal competition is intensifying. Clobal competition is intensifying.
- - Higher risks with globalization. Higher risks with globalization.
15-4
&$ obaization
any U.S.
companies
have made
the world
their market.
15-5
Major Internationa Marketing Decisions
15-6
ooking at the oba Marketing
Environment
The !nternational Trade System:
%estrictions-tariffs, quotas, embargos, exchange
controls, and nontariff trade barriers.
The World Trade Organization and CATT:
Helps Trade-reduces tariffs and other international
trade barriers.
Regional Free Trade Zones:
Croups of nations organized to work toward common
goals in the regulation of international trade.
15-7
- - What types of U.S. companies would What types of U.S. companies would
like to see higher tariffs and what like to see higher tariffs and what
types would like to see lower tariffs or types would like to see lower tariffs or
no tariffs? Why is this the case? no tariffs? Why is this the case?
Discussion Question
15-8
Industria $tructure
- - Shapes a country's product and service needs, Shapes a country's product and service needs,
income levels, and employment levels. income levels, and employment levels.
Subsistence Economies
%aw aterial Exporting Economies
!ndustrializing Economies
!ndustrial Economies
15-9
Poiticaega Environment
ttitudes Toward !nternational Buying
Covernment Bureaucracy
Political Stability
onetary %egulations
15-10
Cutura Environment
- - Sellers must examine the ways consumers Sellers must examine the ways consumers
in different countries think about and use in different countries think about and use
products before planning a marketing products before planning a marketing
program. program.
- - Business norms vary from country to Business norms vary from country to
country. country.
- - Companies that understand cultural Companies that understand cultural
nuances can use them to advantage when nuances can use them to advantage when
positioning products internationally. positioning products internationally.
15-11
Cutura Differences
When Nike learned
that this stylized
ir" logo resembled
llah" in rabic
script, it apologized
and pulled the shoes
from distribution.
15-12
Deciding Whether to o oba
- - %easons to consider going global: %easons to consider going global:
-- Foreign attacks on domestic markets Foreign attacks on domestic markets
-- Foreign markets with higher profit Foreign markets with higher profit
opportunities opportunities
-- Stagnant or shrinking domestic markets Stagnant or shrinking domestic markets
-- Need larger customer base to achieve Need larger customer base to achieve
economies of scale economies of scale
-- %educe dependency on single market %educe dependency on single market
-- Follow customers who are expanding Follow customers who are expanding
15-13
Deciding Which Markets to Enter
- - Before going abroad, the company should try to define Before going abroad, the company should try to define
its international marketing objectives and policies. its international marketing objectives and policies.
What volume of Foreign Sales is Desired?
How any Countries to arket !n?
What Types of Countries to Enter?
Choose Possible Countries and %ank Based on
arket Size, arket Crowth, Cost of Doing
Business, Competitive dvantage, and %isk Level
15-14
Cogate oes to China
Using aggressive promotional and educational programs, Colgate has
expanded its market share from 7 to 3S in less than a decade.
15-15
Market Entry $trategies
15-16
Market Entry $trategies
- - Exporting: Exporting:
-- !ndirect: !ndirect: working through independent working through independent
international marketing intermediaries. international marketing intermediaries.
-- Direct: Direct: company handles its own exports. company handles its own exports.
15-17
Market Entry $trategies
- - ]oint venturing: ]oint venturing:
-- ]oining with foreign companies to produce or ]oining with foreign companies to produce or
market products or services. market products or services.
- - pproaches: pproaches:
-- Licensing Licensing
-- Contract manufacturing Contract manufacturing
-- anagement contracting anagement contracting
-- ]oint ownership ]oint ownership
15-18
oint Ownership
FC entered ]apan through a joint ownership venture with ]apanese
conglomerate itsubishi.
15-19
Market Entry $trategies
- - Direct !nvestment: Direct !nvestment:
-- The development of foreign The development of foreignbased assembly based assembly
or manufacturing facilities. or manufacturing facilities.
-- This approach has both advantages and This approach has both advantages and
disadvantages. disadvantages.
15-20
Deciding on the oba Marketing
Program
- - Standardized arketing ix: Standardized arketing ix:
-- Selling largely the same products and using Selling largely the same products and using
the same marketing approaches worldwide. the same marketing approaches worldwide.
- - dapted arketing ix: dapted arketing ix:
-- Producer adjusts the marketing mix elements Producer adjusts the marketing mix elements
to each target market, bearing more costs but to each target market, bearing more costs but
hoping for a larger market share and return. hoping for a larger market share and return.
15-21
Marketing Mix Adaptation
!n !ndia, cDonald's serves chicken, fish, and vegetable burgers, and the
aharaja ac-two allmutton patties, special sauce, lettuce, cheese,
pickles, onions, on a sesameseed bun.
15-22
ive oba Product and
Promotion $trategies
15-23
oba Product $trategies
- - Straight Product Extension: Straight Product Extension:
-- arketing a product in a foreign market arketing a product in a foreign market
without any change. without any change.
- - Product daptation: Product daptation:
-- dapting a product to meet local conditions or dapting a product to meet local conditions or
wants in foreign markets. wants in foreign markets.
- - Product !nvention: Product !nvention:
-- Creating new products or services for foreign Creating new products or services for foreign
markets. markets.
15-24
oba Promotion $trategies
- - Can use a standardized theme globally, Can use a standardized theme globally,
but may have to make adjustments for but may have to make adjustments for
language or cultural differences. language or cultural differences.
- - Communication daptation: Communication daptation:
-- Fully adapting an advertising message for Fully adapting an advertising message for
local markets. local markets.
- - Changes may have to be made due to Changes may have to be made due to
media availability. media availability.
15-25
oba Pricing $trategies
- - Companies face many problems in setting their Companies face many problems in setting their
international prices. international prices.
- - Possible approaches include: Possible approaches include:
-- Charge a uniform price all around the world. Charge a uniform price all around the world.
-- Charge what consumers in each country will pay. Charge what consumers in each country will pay.
-- Use a standard markup of costs everywhere. Use a standard markup of costs everywhere.
- - !nternational prices tend to be higher than !nternational prices tend to be higher than
domestic prices because of domestic prices because of price escalation price escalation. .
- - Companies may become guilty of Companies may become guilty of dumping dumping --a a
foreign subsidiary charges less than its costs or foreign subsidiary charges less than its costs or
less than it charges in its home market. less than it charges in its home market.
15-26
Internationa Pricing
Twelve European Union countries have adopted the euro as a common
currency, creating pricing transparency" and forcing companies to
harmonize their prices throughout Europe.
15-27
WhoeChanne Concept for
Internationa Marketing
15-28
Deciding on the oba
Marketing Organization
- - Organize an export department Organize an export department
- - Create international divisions Create international divisions
-- Ceographical organizations Ceographical organizations
-- World product groups World product groups
-- !nternational subsidiaries !nternational subsidiaries
- - Become a global organization Become a global organization
15-29
%est Stop: %eviewing the Concepts
1. 1. Discuss how the international trade system, Discuss how the international trade system,
economic, political economic, politicallegal, and cultural legal, and cultural
environments affect a company's international environments affect a company's international
marketing decisions. marketing decisions.
2. 2. Describe three key approaches to entering Describe three key approaches to entering
international markets. international markets.
3. 3. Explain how companies adapt their marketing Explain how companies adapt their marketing
mixes for international markets. mixes for international markets.
4. 4. !dentify the three major forms of international !dentify the three major forms of international
marketing organization. marketing organization.