MARKETING MANAGEMENT
Managing
Long-Term
Growth
10-1
Chapter Questions
• What factors should a company review
before deciding to expand?
• How can companies evaluate and select
specific markets to enter?
• What are the main ways to enter a new
market?
• Should the company adapt its products and
marketing program to each new market?
• How should the company evaluate and
control its activities?
21-2
Major Decisions in Marketing Expansion
Deciding whether to go
Deciding which markets to enter
Deciding how to enter
Deciding on the
marketing program
Deciding on the
marketing organization
21-3
Choosing markets strategically
• 3 main criteria:
– market attractiveness,
– risk, and
– competitive advantage
• Developing markets and countries offer a
unique set of opportunities and risks.
21-4
Internationalization: Four Stages
No regular export activities
Export via independent agents
Establish sales subsidiaries
Establish production
facilities abroad
21-5
Nescafe Markets in Russia
21-6
Five Modes of Entry into Foreign Markets
Indirect
exporting
Direct
exporting
Licensing
Joint
ventures
Direct
investment
Commitment, Risk, Control, Profit Potential
21-7
Indirect Exporting
• Contract with an import/export
company to manage the flow of goods
and money
21-8
Direct Exporting Methods
• Domestic-based export department
• Overseas sales branch or subsidiary
• Traveling export sales representatives
• Foreign-based distributors or agents
21-9
Licensing
21-10
Global Organization Strategies
World as Single Market
Multinational
“Global”
21-11
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 in
environment
• Differences in
consumer needs,
wants, usage patterns
• Differences in brand
development process
21-12
Price Choices
• Set a uniform price
everywhere
• Set a market-based
price in each country
• Set a cost-based
price in each country
21-13
Case: Clash of the Sky Titans
• What would you do if you were
• BOEING
• AIRBUS
21-14