Tapping into global markets doc

Tapping Into Global Markets Marketing Management, 13 th ed 21 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 21-2 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? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 21-3 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. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 21-4 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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 21-5 Four Stages of Internationalization • No regular export activities • Export via independent agents • Establish sales subsidiaries • Establish production facilities abroad Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 21-6 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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 21-7 Regional Free Trade Zones • European Union • NAFTA • MERCOSUL • APEC • ASEAN Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 21-8 Key Developing Markets Brazil Russia India China South Africa Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 21-9 Desired Country Characteristics for Market Entry • Rank high on market attractiveness • Rank low in market risk • Possess a competitive advantage Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 21-10 Five Modes of Entry into Foreign Markets • Indirect exporting • Direct exporting • Licensing • Joint ventures • Direct investment [...]... Publishing as Prentice Hall 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 Copyright © 2009 Pearson Education, Inc Publishing as Prentice Hall Commandments of Global Branding (cont.) • • • • Balance... partnerships Copyright © 2009 Pearson Education, Inc Publishing as Prentice Hall 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 Copyright © 2009 Pearson Education, Inc Publishing as Prentice Hall Levels of Product Adaptation • • •... department Overseas sales branch or subsidiary Traveling export sales representatives Foreign-based distributors or agents Copyright © 2009 Pearson Education, Inc Publishing as Prentice Hall 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... for International Marketing • • • • • Seller International headquarters Channels between nations Channels within nations Final buyers Copyright © 2009 Pearson Education, Inc Publishing as Prentice Hall Global Organization Strategies • World as single market • Multinational • Glocal Copyright © 2009 Pearson Education, Inc Publishing as Prentice Hall . Tapping Into Global Markets Marketing Management, 13 th ed 21 Copyright © 2009 Pearson Education, Inc. Publishing. 21-16 Commandments of Global Branding (cont.) • Balance standardization and customization • Balance global and local control • Establish operable guidelines • Implement a global brand-equity measurement. abroad Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 21-6 Top Global Firms Based in Developing Markets • America Movil • Cemex • China Mobile • CNOOC • Embraer • Gazprom • Haier • Hisense • Huawei