Objectives Factors to Consider Before Going Global Selecting

Objectives ä Factors to Consider Before Going Global ä Selecting Foreign Markets ä Foreign Market Entry ä Product Adaption for Global Marketing ä Management & Organization of Global Activities © 2000 Prentice Hall

Major Decisions in International Marketing Deciding whether to go abroad Deciding which markets to enter Deciding how to enter the market Deciding on the marketing program © 2000 Prentice Hall Deciding on the marketing organization

Challenges in Going Global ä Shifting borders ä Unstable governments ä Foreign-exchange ä Corruption ä Technological pirating © 2000 Prentice Hall

Criteria for Entry ä Market Attractiveness ä Risk ä Competitive © 2000 Prentice Hall Advantage

Five Models of Entry Into Foreign Markets Indirect Exporting Direct exporting Licensing Joint ventures Direct investment Amount of commitment, risk, control, and profit potential © 2000 Prentice Hall

Joint Venture ä Licensing: Sell rights to name brand. ä Contract Manufacturing: make item in host country; manufacturer of product only. ä Management Contracting: hired as Mgmt. Consultant to host company ä Joint Ownership: truly partnering with a company in host country, to share expertise and mutual gains. © 2000 Prentice Hall

Internationalization Process No Export via Agents Sales Subsidiaries Production Abroad © 2000 Prentice Hall

Five International Product and Promotion Strategies Product Do not change promotion Do not change product Adapt product Straight extension Product adaptation Product invention Promotion Adapt promotion © 2000 Prentice Hall Develop new product Communication adaptation Dual adaptation

Pricing Challenges >Price Escalation >Transfer prices >Dumping charges >Gray markets © 2000 Prentice Hall

Whole-channel Concept for International Marketing Seller’s international marketing headquarters Channels between nations Channels within foreign nations © 2000 Prentice Hall Final buyers

Marketing Organization Export Department International Division Global Organization © 2000 Prentice Hall

Review ä Factors to Consider Before Going Global ä Selecting Foreign Markets ä Foreign Market Entry ä Product Adaption for Global Marketing ä Management & Organization of Global Activities © 2000 Prentice Hall