Looking at the Global Marketing Environment Deciding Whether to Go International Outlines: Deciding Which Markets to Enter Deciding How to Enter the Market Deciding on the Global Marketing Program The International Environment International Trade System Cultural Environment Considerations in the Global Environment Political-Legal Environment Economic Environment Whether to go abroad & why? Motives for internationalization: – – – – – – saturated domestic mkt market seeking client following competitor following diversification enjoy eco of scale/scope Deciding Which Markets to Enter Marketer’s Checklist for Identifying Markets to Enter 1. Demographic Characteristics. 2. Geographic Characteristics. 3. Economic Factors. 4. Technological Factors. 5. Sociocultural Factors. 6. National Goals and Plans. Market Entry Strategies Amount of Commitment, Risk, Control, and Profit Potential Greater Lesser Direct Investment Joint Venturing Exporting Entry Strategy (1) Export: direct & indirect Licensing: licenser & licensee enter into agreement, offering the right to use a manufacturing process, trademark, trade secret for a fee or loyalty Contract manufacturing/international subcontracting: a company in one country place an order, with specification to products required, with a firm in another Entry Strategy (2) Management contracting: an arrangement under which the domestic firm supplies the mgt know-how to a foreign co. that supplies the K Joint venture: – contractual JV – equity JV Direct investment/wholly owned subsidiaries: – green field/acquisition Choice: depends on control, risk, commitment, nature of product The Global Marketing Program Promotion Product Don’t Change Adapt Don’t Change Straight Extension Product Adaptation Adapt Communication Adaptation Dual Adaptation Product Invention Develop New Product