MARKETING MANAGEMENT
12th edition
21
Tapping Into
Global Markets
Kotler
Keller
Chapter Questions
• What factors should a company review before
deciding to go abroad?
• How can companies evaluate and select specific
foreign markets to enter?
• What are the major ways of entering a foreign
market?
• To what extent must the company adapt its
products and marketing program to each foreign
country?
• How should the company manage and organize
its international activities?
21-2
Red Bull Markets Globally
21-3
Global Firm
A firm that operates in more than one
country and captures R&D, production,
logistical, marketing, and
financial advantages in its costs and
reputation that are not available to purely
domestic competitors.
21-4
Major Decisions in
International Marketing
Deciding whether to go
Deciding which markets to enter
Deciding how to enter
Deciding on the
marketing program
Deciding on the
marketing organization
21-5
Four Stages of Internationalization
No regular export activities
Export via independent agents
Establish sales subsidiaries
Establish production
facilities abroad
21-6
Nescafe Markets in Russia
21-7
Regional Free Trade Zones
•
•
•
•
European Union
NAFTA
MERCOSUL
APEC
21-8
Figure 21.2 Five Modes of Entry into
Foreign Markets
Indirect
exporting
Direct
exporting
Licensing
Joint
ventures
Direct
investment
Commitment, Risk, Control, Profit Potential
21-9
Direct Exporting Methods
•
•
•
•
Domestic-based export department
Overseas sales branch or subsidiary
Traveling export sales representatives
Foreign-based distributors or agents
21-10
McDonald’s Franchises Are Sold
Worldwide
21-11
Table 21.1 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
consumer needs,
wants, usage patterns
• Differences in
consumer response to
marketing mix
• Differences in brand
development process
• Differences in
environment
21-12
Cultural Dimensions
Individualism
vs.
Collectivism
High vs. Low
Power Distance
Masculine
vs.
Feminine
Weak vs. Strong
Uncertainty
Avoidance
21-13
Figure 21.3 International Product
and Communication Strategies
21-14
Communications
• Communications
adaptation
• Dual adaptation
21-15
Price Choices
• Set a uniform price
everywhere
• Set a market-based
price in each
country
• Set a cost-based
price in each
country
21-16
Figure 21.4 Whole-Channel Concept
for International Marketing
Seller
International headquarters
Channels between nations
Channels within nations
Final buyers
21-17
Country of Origin Effects
21-18
EU’s PDO and PGI Listings
21-19
Global Organization Strategies
World as Single Market
Multinational
“Glocal”
21-20
Marketing Debate
 Is the world coming closer together?
Take a position:
1. People are becoming more and more
similar.
2. The differences between people of
different cultures far outweigh their
similarities.
21-21
Marketing Discussion
 Think of some of your favorite
brands. Do you know where they
come from? Where and how they
are made or provided? Do you
think it would affect your perceptions
of quality or satisfaction?
21-22