2000 Prentice Hall

Objectives
Factors to Consider Before Going
Global
Selecting Foreign Markets
Foreign Market Entry
Product Adaption for Global Marketing
Management & Organization of Global
Activities
2000 Prentice Hall
Major Decisions in
International Marketing
Deciding whether
to go abroad
Deciding which
markets to enter
Deciding how to
enter the market
Deciding on the
marketing program
Deciding on the
marketing organization
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Challenges in Going Global
Shifting borders
Unstable governments
Foreign-exchange
Corruption
Technological pirating
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Criteria for Entry
Market Attractiveness
Risk
Competitive Advantage
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Direct
invest-
ment
Joint
ventures
Licensing
Five Models of Entry
Into Foreign Markets
Direct
exporting
Indirect
Exporting
Amount of commitment, risk, control, and profit potential
2000 Prentice Hall
Joint Venture
Licensing: Sell rights to name brand.
Contract Manufacturing: make item in
host country; manufacturer of product only.
Management Contracting: hired as
Mgmt. Consultant to host company
Joint Ownership: truly partnering with a
company in host country, to share
expertise and mutual gains.
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Internationalization Process
No Export
Export via Agents
Sales Subsidiaries
Production Abroad
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Five International Product
and Promotion Strategies
Dual
adaptation
Promotion
Product
Product
adaptation
Adapt
product
Straight
extension
Do not change
product
Do not change
promotion
Communi-
cation
adaptation
Adapt
promotion
Develop new
product
Product
invention
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Pricing Challenges
>Price Escalation
>Dumping charges
>Gray markets
>Transfer prices
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Whole-channel Concept for
International Marketing
Seller
Sellers international
marketing headquarters
Channels between
nations
Channels within
foreign nations
Final buyers
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Marketing Organization
Export Department
International Division
Global Organization
RUSSIA
ASIA
EUROPE
MIDDLEEAST
AFRICA
USA
SOUTH
AMERICA
AUSTRALIA
CANADA
ANTARCTICA
GREENLAND
2000 Prentice Hall
Review
Factors to Consider Before Going
Global
Selecting Foreign Markets
Foreign Market Entry
Product Adaption for Global Marketing
Management & Organization of Global
Activities