International, Regional & Global Marketing

PRESENTATION 23 OF 24 / 1

Managing Markets StrategicallyProfessor Noel CaponR.C. Kopf Professor of International Marketing

Columbia Business School

New York, NY, U.S.A.

&

Professor Siddharth Shekhar SinghDirector Fellow Programme in Management & Associate Professor of Marketing

Indian School of Business

Hyderabad & Mohali, India

www.wileyindia.comwww.axcesscapon.com

© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.


Managing Markets Strategically

Section I: Marketing and the Firm

Section II: Fundamental Insights for Strategic Marketing

Section III: Strategic Marketing

Section IV: Implementing the Market Strategy

Section V: Special Marketing Topics

Chapter 23: International, Regional, and Global Marketing

Chapter 24: Rural Marketing




CHAPTER 23

International, Regional,

and Global Marketing




Global Trade ($ billions)© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.



International, Regional, and Global Marketing

Session Roadmap



Should the firm enter foreign markets?

How should the firm choose which foreign markets to enter?

What foreign-market-entry options are available?

What foreign market strategy issues should the firm address?

How should the firm implement its foreign market strategy?

How should the firm organize for global markets?


International, Regional, and Global Marketing

Session

Roadmap










Should the Firm Enter Foreign Markets?© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.


Diversify risk

Follow customers

Gain knowledge

Growth opportuniti

es

Keep competitor

s

Reduce costs

Small home

market


International, Regional, and Global Marketing© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.


Session

Roadmap








How Should the Firm Choose

Which Foreign Markets to Enter?© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.


Foreign market

attractiveness

The firm’s ability to compete



Which Foreign Markets to Enter?

Foreign Market Attractiveness

• Economic

• Political/legal/regulatory

• Distance

• Illustration

The Firm’s Ability to Compete







• Economic


• local

• bilateral

• regional

• global• International Monetary Fund (IMF)

• World Bank (WB)

• World Trade Organization (WTO)

• Distance

• Illustration








• Economic


• Distance

• geographic

• sociocultural

• Illustration







Foreign Market Attractiveness: Illustration for an Indian firm



Great Britain Australia Mexico Great Britain Australia Mexico

CriteriaImportan

ce Weight (I)

Rating (RA) (1 to 10 scale)

Rating (RB) (1 to 10 scale)

Rating (RC) (1 to 10 scale)

I x RA I x RB I x RC

Market size 30 8 3 5 240 90 150

Growth potential 20 5 7 8 100 140 160

Communications ease 10 10 10 3 100 100 30

Travel ease 10 5 2 2 50 20 20

Currency stability 10 7 7 4 70 70 40

Firm learning 10 3 3 3 30 30 30

Degree of corruption 10 8 8 5 80 80 50

Total 100 Totals 670 530 480



Which Foreign Markets to Enter?© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.







Assessing the Firm’s Ability to Compete: Illustration – Argentina“To be successful in Argentina, any competitor must possess the following strengths…”

Factor Country WeightingFirm Rating

(1 to 10 scale)Factor Score

(weighting x rating)

Deep pockets 10 9 90

Fast-moving organization 5 3 15

Good R&D 25 7 175

High-quality service 15 6 90

In-place distribution 20 5 100

Low-cost operations 10 4 40

Well-trained sales force 15 9 135

Total 100 645






1000

700

400

100

100 400 700 1000Low Medium High

High

Medium

Low

Business Strengths

Co

un

try

Att

ract

iven

ess

* Mexico






Session

Roadmap








What Foreign Market Entry Options Are Available?© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.


Passive Entry

• Exporting

• Licensing

Active Entry

• Importing

• Local Production

• Franchising




Session

Roadmap








What Foreign Market Strategy Issues

Should the Firm Address?© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.


Scope Objectives

Segmenting multiple country markets

Global branding

Country of origin



Should the Firm Address?

Scope

International Marketing

DomesticLimited

InternationalMarketing

RegionalMarketing

Limited

InternationalMarketing






Segmenting Multiple Country Markets

• Segmentation by grouping countries

• common markets and trade zones

• cultural closeness

• geographic proximity

• historic relationships

• income

• language

• specific purpose

• Across-country segmentation

• demographic characteristics

• values





Should the Firm Address?© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.


Values: Illustration –

Roper Starch

Strivers

Devouts

Altruists

Intimates

Fun seekers

Creatives




Global Branding

• Favorable factors

• cross-border travel

• growth potential

• homogeneity of customer tastes across countries

• increased global media reach and lower costs






Global Branding






• Scope

• Objectives

• Segmenting multiple country markets

• Global branding

• Country of origin

• Cognitive

• Affective

• Normative






Session

Roadmap








How Should the Firm Implement

Its Foreign Marketing Strategy?

• Control versus flexibility

• Implementation levers

• product

• communications

• distribution

• price






Session

Roadmap








How Should the Firm

Organize for Global Markets?© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.


Export department

International division

Geographic region

Geographic region/product division matrix

Global product division

FunctionalGlobal

customer management


How Should the Firm

Organize for Global Markets?

Traditional Organizations

Geography

Product




How Should the Firm


Global Customer Management

Geography

Product

Customer




How Should the Firm


Global Customer Management

• Modified geographic organization

• Market-integrated organization

• Global region




CHAPTER 23

International, Regional,

and Global Marketing



Date post:	21-Jul-2015
Category:	Education
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International, Regional & Global Marketing

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