Post on 29-Dec-2015
transcript
15-2
ROAD MAP: Previewing the Concepts
• Discuss how the international trade Discuss how the international trade system, economic, political-legal, and system, economic, political-legal, and cultural environments affect a company’s cultural environments affect a company’s international marketing decisions.international marketing decisions.
• Describe three key approaches to entering Describe three key approaches to entering international markets.international markets.
• Explain how companies adapt their Explain how companies adapt their marketing mixes for international markets.marketing mixes for international markets.
• Identify the three major forms of Identify the three major forms of international marketing organization.international marketing organization.
15-3
Global Marketing in the 21st Century
• The world is shrinking rapidly with The world is shrinking rapidly with the advent of faster communication, the advent of faster communication, transportation, and financial flows.transportation, and financial flows.
• International trade is booming and International trade is booming and accounts for 25% of U.S. GDP.accounts for 25% of U.S. GDP.
• Global competition is intensifying.Global competition is intensifying.
• Higher risks with globalization.Higher risks with globalization.
15-6
Looking at the Global Marketing Environment
The International Trade System:Restrictions—tariffs, quotas, embargos, exchange
controls, and non-tariff trade barriers.
The World Trade Organization and GATT:Helps Trade—reduces tariffs and other
international trade barriers.
Regional Free Trade Zones:Groups of nations organized to work toward
common goals in the regulation of international trade.
15-7
Industrial Structure• 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 EconomiesSubsistence Economies
Raw Material Exporting EconomiesRaw Material Exporting Economies
Industrializing EconomiesIndustrializing Economies
Industrial EconomiesIndustrial Economies
15-8
Political-Legal Environment
Attitudes Toward International Buying
Government Bureaucracy
Political Stability
Monetary Regulations
15-9
Cultural Environment
• Sellers must examine the ways Sellers must examine the ways consumers in different countries think consumers in different countries think about and use products before about and use products before planning a marketing program.planning a marketing 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 nuances can use them to advantage when positioning products when positioning products internationally.internationally.
15-10
Cultural Differences
When Nike learned that this stylized “Air” logo resembled “Allah” in Arabic script, it apologized and pulled the shoes from distribution.
15-11
Deciding Whether to Go Global
• Reasons to consider going global:Reasons to consider going global:– Foreign attacks on domestic marketsForeign attacks on domestic markets– Foreign markets with higher profit Foreign markets with higher profit
opportunitiesopportunities– Stagnant or shrinking domestic marketsStagnant or shrinking domestic markets– Need larger customer base to achieve Need larger customer base to achieve
economies of scaleeconomies of scale– Reduce dependency on single marketReduce dependency on single market– Follow customers who are expandingFollow customers who are expanding
15-12
Deciding Which Markets to Enter• Before going abroad, the company should try to Before going abroad, the company should try to
define its international marketing objectives and define its international marketing objectives and policies.policies.
What Volume of Foreign Sales is Desired?
How Many Countries to Market In?
What Types of Countries to Enter?
Choose Possible Countries and Rank Based on Market Size, Market Growth, Cost of
Doing Business, Competitive Advantage, and Risk Level
15-13
Colgate Goes to China
Using aggressive promotional and educational programs, Colgate has expanded its market share from 7% to 35% in less than a decade.
15-15
Market Entry Strategies
• Exporting:Exporting:– Indirect:Indirect: working through independent working through independent
international marketing intermediaries.international marketing intermediaries.– Direct:Direct: company handles its own company handles its own
exports.exports.
15-16
Market Entry Strategies
• Joint Venturing:Joint Venturing:– Joining with foreign companies to Joining with foreign companies to
produce or market products or services.produce or market products or services.
• Approaches:Approaches:– LicensingLicensing– Contract manufacturingContract manufacturing– Management contractingManagement contracting– Joint ownershipJoint ownership
15-17
Joint Ownership
KFC entered Japan through a joint ownership venture with Japanese conglomerate Mitsubishi.
15-18
Market Entry Strategies
• Direct Investment:Direct Investment:– The development of foreign-based The development of foreign-based
assembly or manufacturing facilities.assembly or manufacturing facilities.– This approach has both advantages and This approach has both advantages and
disadvantages.disadvantages.
15-19
Deciding on the Global Marketing Program
• Standardized Marketing Mix:Standardized Marketing Mix:– Selling largely the same products and Selling largely the same products and
using the same marketing approaches using the same marketing approaches worldwide.worldwide.
• Adapted Marketing Mix:Adapted Marketing Mix:– Producer adjusts the marketing mix Producer adjusts the marketing mix
elements to each target market, bearing elements to each target market, bearing more costs but hoping for a larger market more costs but hoping for a larger market share and return.share and return.
15-20
Marketing Mix Adaptation
In India, McDonald’s serves chicken, fish, and vegetable burgers, and the Maharaja Mac—two all-mutton patties, special sauce, lettuce, cheese, pickles, onions, on a sesame-seed bun.
15-22
Global Product Strategies
• Straight Product Extension:Straight Product Extension:– Marketing a product in a foreign market Marketing a product in a foreign market
without any change.without any change.
• Product Adaptation:Product Adaptation:– Adapting a product to meet local Adapting a product to meet local
conditions or wants in foreign markets.conditions or wants in foreign markets.
• Product Invention:Product Invention:– Creating new products or services for Creating new products or services for
foreign markets.foreign markets.
15-23
Global Promotion Strategies
• Can use a standardized theme Can use a standardized theme globally, but may have to make globally, but may have to make adjustments for language or cultural adjustments for language or cultural differences.differences.
• Communication Adaptation:Communication Adaptation:– Fully adapting an advertising message Fully adapting an advertising message
for local markets.for local markets.
• Changes may have to be made due Changes may have to be made due to media availability.to media availability.
15-24
Global Pricing Strategies
• Companies face many problems in setting Companies face many problems in setting their international prices.their 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.
• International prices tend to be higher than International prices tend to be higher than domestic prices because of domestic prices because of price escalationprice escalation..
• Companies may become guilty of Companies may become guilty of dumpingdumping –a –a foreign subsidiary charges less than its costs foreign subsidiary charges less than its costs or less than it charges in its home market.or less than it charges in its home market.
15-25
International 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
Deciding on the Global Marketing Organization
• Organize an export departmentOrganize an export department
• Create international divisionsCreate international divisions– Geographical organizationsGeographical organizations– World product groupsWorld product groups– International subsidiariesInternational subsidiaries
• Become a global organizationBecome a global organization
15-28
Rest Stop: Reviewing the Concepts
1.1. Discuss how the international trade Discuss how the international trade system, economic, political-legal, and system, economic, political-legal, and cultural environments affect a company’s cultural environments affect a company’s international marketing decisions.international marketing decisions.
2.2. Describe three key approaches to Describe three key approaches to entering international markets.entering international markets.
3.3. Explain how companies adapt their Explain how companies adapt their marketing mixes for international marketing mixes for international markets.markets.
4.4. Identify the three major forms of Identify the three major forms of international marketing organization.international marketing organization.
15-29
Q: Which of the following are common product complaints?
1. poorly made products 1. poorly made products
2. products that deliver little 2. products that deliver little benefit benefit
3. unsafe products 3. unsafe products
4. all of the above4. all of the above
AK, 7e – Chapter 16
15-30
Q: Among the deceptive marketing practices cited by critics are _____.
1. deceptive packaging 1. deceptive packaging
2. deceptive pricing 2. deceptive pricing
3. deceptive promotion 3. deceptive promotion
4. all the above4. all the above
AK, 7e – Chapter 16
15-31
Q: Deceptive practices have led to legislation, such as the _____ Act.
1. Robinson-Patman 1. Robinson-Patman
2. FTC 2. FTC
3. Consumer Product Safety 3. Consumer Product Safety
4. Wheeler-Lea4. Wheeler-Lea
AK, 7e – Chapter 16
15-32
Q: The question, "What aspects of our production process create the most pollution?" is likely to come out of what
practice of environmental sustainability?
1. Sustainability vision 1. Sustainability vision
2. New environmental 2. New environmental technology technology
3. Pollution prevention 3. Pollution prevention
4. Product stewardship4. Product stewardship
AK, 7e – Chapter 16
15-33
Q: The question, "Would making our products recyclable add value for our customers?" is likely to come out of what
practice of environmental sustainability?
1.Sustainability vision 1.Sustainability vision
2.New environmental 2.New environmental technology technology
3.Pollution prevention 3.Pollution prevention
4.Product stewardship4.Product stewardship
AK, 7e – Chapter 16
15-34
Q: The statement, "Our mission is for our company to evolve in ways that help solve social and environmental problems" is likely to come out of what practice of environmental
sustainability?
1. Sustainability vision 1. Sustainability vision
2. New environmental technology 2. New environmental technology
3. Pollution prevention 3. Pollution prevention
4. Product stewardship4. Product stewardship
AK, 7e – Chapter 16
15-35
Q: Consumer advocates would like to expand buyers’ rights to include all the
following except:
1. the right to be well informed about 1. the right to be well informed about important aspects of the product. important aspects of the product.
2. the right to be protected against 2. the right to be protected against questionable products and marketing questionable products and marketing practices. practices.
3. the right to a full refund if the buyer is 3. the right to a full refund if the buyer is unsatisfied, no questions asked. unsatisfied, no questions asked.
4. the right to influence products and 4. the right to influence products and marketing practices in ways that will marketing practices in ways that will improve the "quality of life."improve the "quality of life."
AK, 7e – Chapter 16
15-36
Q: Do you think it would be proper to give a "gift" in order to win an account?
1. Yes1. Yes
2. No2. No
AK, 7e – Chapter 16
15-37
Q: Do you think drug companies are justified in charging high prices for their products?
1. Yes1. Yes
2. No2. No
AK, 7e – Chapter 16
15-38
Q: A delicious and nutritious salad is an example of a ___________.
1. pleasing product 1. pleasing product
2. desirable product 2. desirable product
3. salutary product 3. salutary product
4. deficient product4. deficient product
AK, 7e – Chapter 16