Global Firm
Operates in two or more countries
and captures R&D, production,
logistics, marketing, and finance
advantages not available to purely
domestic competitors.
Breakthrough Marketing: Samsung

Samsung has invested more that $6
billion in marketing to upgrade its
image!
Major Decisions in
International Marketing
Deciding Whether to Go Abroad
Factors drawing companies into the international
arena:

Higher profit opportunities

Need a larger customer base to achieve economies
of scale or want to reduce dependence on any one
market

To counterattack global competitors

Customers are going abroad and require
international service
Deciding Whether to Go
Abroad
Risks:

Might not understand foreign preferences and could
fail to offer a competitively attractive product

Might not understand the other country’s business
culture or know how to deal with foreign regulations

May lack managers with international experience

Other country might change its commercial laws,
devalue its currency, or undergo a political revolution
and expropriate foreign property
Deciding Which Markets to Enter
Product
Geography
Political
climate
Income and
population
Other factors
Five Modes of Entry into
Foreign Markets
Deciding on the Marketing Program
Standardized
marketing mix
Adapted marketing
mix
For Discussion
Discuss whether
these products should
standardize or adapt
when selling in the
United States:
• British automobiles
• French wine
• South African
diamonds
• Australian clothing
International Product and
Communication Strategies
Price and Distribution

Price escalation—must add the cost of
transportation, tariffs, importer margin,
wholesaler margin, and retailer margin
to the product’s factory cost.

Gray market—branded products are
diverted from normal or authorized
distribution channels in the country of
product origin or across international
borders.
Country-of-Origin Effects
Country-of-origin perceptions
Distinct attitudes and beliefs about
brands or products from particular
countries.
Internal Marketing
Requires that everyone in the organization
buy into the concepts and goals of
marketing and engage in choosing,
providing, and communicating customer
value.
Organizing the Marketing
Department

Functionally

Geographically

Product or brand

Market

Matrix

Corporate/division
Relations with Other Departments

Marketing vice president, or CMO, tasks:


Coordinate the company’s internal marketing activities
Coordinate marketing with finance, operations, and other
company functions to serve the customer
Managing the Marketing
Process
Marketing implementation
The process that turns marketing
plans into action assignments and
ensures that they accomplish the
plan’s stated objectives.
Marketing Metrics
Sales metrics
Customer
readiness to
buy metrics
Distribution
metrics
Customer
metrics
Communication
metrics
The Control Process
The Marketing Audit
A comprehensive, systematic, independent, and
periodic examination of a company’s (or business
unit’s) marketing environment, objectives,
strategies, and activities to identify problems and
opportunities and to recommend improvements.
The Marketing Audit

Examines six major marketing components:






Macro-environment and task environment
Marketing strategy
Marketing organization
Marketing systems
Marketing productivity
Marketing function
Socially Responsible Marketing
Legal behavior
Ethical behavior
Social responsibility
behavior
Socially Responsible Marketing
Cause-related
marketing
Sustainability
Marketing Skills:
Cause-Related Marketing

Choose a cause that fits the company’s or brand’s
image and be meaningful to employees and other
stakeholders.

Prepare to brand the program, perhaps with a new selfbranded organization associated with the cause.

Plan and manage it as carefully as all other marketing
activities.
Reflection
Think of other
examples of causerelated marketing.
Reflect on the case
of Cabbages &
Condoms campaign
in Thailand