Chapter 21 - Tapping into global markets. In this chapter, we will address the following 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 differences between marketing in a developing and a developed market? What are the major ways of entering a foreign market?
Phillip Kevin Lane Kotler • Keller Marketing Management • 14e Ch r e t p a Tapping into Global Markets Discussion 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 differences between marketing in a developing and a developed market? What are the major ways of entering a foreign market? Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 31 Discussion Questions To what extent must the company adapt its products and marketing program to each foreign country? How marketers influence country-oforigin effects? How should the company manage and organize its international activities? Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 31 Competing on a Global Basis Otis Elevator Door system – France Small gear parts – Spain Electronics – Germany Motor drives – Japan Systems integration – U.S Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 31 e r u g Fi 1.1 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 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 31 Deciding Whether to Go Abroad Reduce single market dependency Customers going abroad Economies of scale Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Higher profit potential Counterattac k competitors Slide of 31 Risks of Going Abroad Lack: •An understanding of foreign preferences •An understanding foreign business culture •Experienced managers Underestimate: •Foreign regulations Foreign country may: •Change commercial laws •Devalue its currency •Undergo political Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 31 The Internationalization Process Independent Representativ es Establish sales subsidiaries Establish production Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 31 Deciding Which Markets to Enter How many markets Evaluating potential markets Developed versus developing markets Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 10 of 31 Deciding on the Marketing Program Global Similarities and Differences Marketing Adaptation Global Product Strategies Global Communication Strategies Global Pricing Strategies Global Distribution Strategies Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 17 of 31 Ta e l b 21 Standardized Marketing Pros and Cons Advantages •Economies of scale •Lower marketing costs •Power and scope •Brand Consistency •Leverage ideas quickly and efficiently ãUniformity of marketing practices Copyright â 2012 Pearson Education, Inc Publishing as Prentice Hall Disadvantages Ignores differences in: •Consumer needs, wants, and usage patterns •Consumer response •Brand and product development •Legal environment •Marketing institutions •Administrative procedures Slide 18 of 31 Global Similarities and Differences Median Age 43 Germany, Italy, & Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Japan Soft Drink (8-ounce servings) Consumption Americans Mexicans 674 Brazilians 315 Russians 149 Chinese 760 39 25 China, India Slide 19 of 31 Cultural Differences Masculine versus feminine Collectivis m Individualis m Power distance Uncertainty Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 20 of 31 Consumer Behavior Differences Honda Automobiles Japan – Speed, youth, and energy U.S – Quality and reliability Heineke n U.S - Super Premium Netherlands - Mid-tier Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 21 of 31 Marketing Adaptation Communicatio ns Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 22 of 31 Global Product Strategies Product Standardization Product Adaptation Strategies Brand Element Adaptation Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 23 of 31 e r u g Fi 1.3 International Product and Communication Strategies Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 24 of 31 Classic Blunders in Global Marketing CocaHallmark (France) Pop-Tarts Cola (Britain) (Spain) Phillips (Japan) Crest (Mexico) Tang (France) Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 25 of 31 Global Distribution Strategies Channel Entry Channel Differences Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 26 of 31 e r u g Fi 1.4 WholeChannel Concept for International Marketing Seller Seller’s marketing headquarters Channels between nations Channels within foreign nations Final buyer Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 27 of 31 Country-of-Origin Effects Building Country Images Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 28 of 31 Country-of-Origin Effects Consumer Perceptions Ford Mustang Toyota Sienna Ethnocentri Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 29 of 31 Which is More American? Ford Mustang Toyota Sienna Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 30 of 31 Marketing Organization Export Department International Division Global Organization Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 31 of 31 ... Quality and reliability Heineke n U.S - Super Premium Netherlands - Mid-tier Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 21 of 31 Marketing Adaptation Communicatio ns... b 21 Standardized Marketing Pros and Cons Advantages •Economies of scale •Lower marketing costs •Power and scope •Brand Consistency •Leverage ideas quickly and efficiently ãUniformity of marketing. .. Hall Slide 27 of 31 Country-of-Origin Effects Building Country Images Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 28 of 31 Country-of-Origin Effects Consumer Perceptions