18. global market report

8/8/2019 18. Global Market Report

http://slidepdf.com/reader/full/18-global-market-report 1/23

The GlobalThe Global

MarketplaceMarketplace

Pamantasan ng Lungsod ng MaynilaGraduate School of Management Master in Business Administration

By:By:KathleeneKathleene FayFay deladela CruzCruz

And AndRudolf John VelascoRudolf John Velasco

August 14, 2010 August 14, 2010



15-2

ROAD MAP: Previewing the Concepts

D escribe three key approaches to enteringD escribe three key approaches to enteringinternational markets.international markets.Ex plain how companies adapt their marketingEx plain how companies adapt their marketing

mix

es for international markets.mix

es for international markets.I dentify the three major forms of internationalI dentify the three major forms of internationalmarketing organization.marketing organization.



15-3

Market Entry Strategies



15-5

J oint Venturing

Entering foreign markets by joining with foreignEntering foreign markets by joining with foreigncompanies to produce or market a product orcompanies to produce or market a product or

service.service.

Approaches: Approaches: LicensingLicensing Contract manufacturingContract manufacturing Management contractingManagement contracting Joint ownershipJoint ownership



15-6

J oint Venturing

Li cens ingLi cens ing A method of entering a foreign market in A method of entering a foreign market inwhich the company enters into anwhich the company enters into anagreement with a licensee in the foreignagreement with a licensee in the foreignmarket, offering the right to use amarket, offering the right to use a

manufacturing process, trademark, patent,manufacturing process, trademark, patent,trade secret, or other item of value for atrade secret, or other item of value for afee or royalty.fee or royalty.



15-7

J oint Venturing

Contract Manufactur ingContract Manufactur ing

A joint venture in which a company A joint venture in which a companycontracts with manufacturers in a foreigncontracts with manufacturers in a foreignmarket to produce the product.market to produce the product.



15-8

J oint Venturing

Management Contract ingManagement Contract ing

A joint venture in which the domestic firm A joint venture in which the domestic firmsupplies the management knowsupplies the management know- -how to ahow to aforeign company that supplies the capital;foreign company that supplies the capital;the domestic firm e x ports management the domestic firm e x ports management services rather than products.services rather than products.



15-9

J oint Venturing

J o int Ownersh ipJ o int Ownersh ip

A joint venture in which a company joins A joint venture in which a company joinsinvestors in a foreign market to create ainvestors in a foreign market to create alocal business in which the companylocal business in which the companyshares joint ownership and control.shares joint ownership and control.



15-10

J oint Ownership

KFC entered Japan through a joint ownership venture with Japanese

conglomerate Mitsubishi.



15-11

Direct Investment

The development of foreignThe development of foreign- -based assemblybased assembly

or manufacturing facilities.or manufacturing facilities.



15-12

Deciding on the Global Marketing

Program

Standardized Marketing Mi xStandardized Marketing Mi x

Adapted Marketing Mi x Adapted Marketing Mi x



15-13

Standardized Marketing Mix

An international marketing strategy for An international marketing strategy forusing basically the same product,using basically the same product,advertising, distribution channels andadvertising, distribution channels andother elements of the marketing mi x in allother elements of the marketing mi x in allthe company s international markets.the company s international markets.



15-14

Adapted Marketing Mix

An international marketing strategy for An international marketing strategy foradjusting the marketing mi x elements toadjusting the marketing mi x elements toeach international target market, bearingeach international target market, bearingmore costs, but hoping for a larger market more costs, but hoping for a larger market share and return.share and return.



15-15

Marketing Mix Adaptation

I n India, Mc D onald s serves chicken, fish, and vegetable burgers, and theMaharaja Mac two all-mutton patties, special sauce, lettuce, cheese,

pickles, onions, on a sesame-seed bun.



15-16

F ive Global Product and

Promotion Strategies



15-17

Global Product Strategies

Straight Product Ex tension:Straight Product Ex tension: Marketing a product in a foreign market Marketing a product in a foreign market

without any change.without any change.Product Adaptation:Product Adaptation: Adapting a product to meet local conditions or Adapting a product to meet local conditions or

wants in foreign markets.wants in foreign markets.

Product I nvention:Product I nvention: Creating new products or services for foreignCreating new products or services for foreign

markets.markets.



15-18

Global Promotion Strategies

Can use a standardized theme globally,Can use a standardized theme globally,but may have to make adjustments forbut may have to make adjustments forlanguage or cultural differences.language or cultural differences.Communication Adaptation:Communication Adaptation: Fully adapting an advertising message forFully adapting an advertising message for

local markets.local markets.Changes may have to be made due toChanges may have to be made due tomedia availability.media availability.



15-19

Global Pricing Strategies

Companies face many problems in setting theirCompanies face many problems in setting theirinternational prices.international prices.

Possible approaches include:Possible approaches include: Charge a uniform price all around the world.Charge a uniform price all around the world. Charge what consumers in each country willCharge what consumers in each country will

pay.pay.

Use a standard markup of costs everywhere.Use a standard markup of costs everywhere.



15-20

Distribution Channel

W holeW hole- -Channel V iewChannel V iewD esigning international channels that takeD esigning international channels that takeinto account all the necessary links ininto account all the necessary links indistributing the seller s products to finaldistributing the seller s products to finalbuyers, including the seller s headquartersbuyers, including the seller s headquarters

organization, channels among nations,organization, channels among nations,and channels within nations.and channels within nations.



15-21

W hole-Channel Concept for

International Marketing



15-22

Deciding on the Global

Marketing OrganizationO rganize an e x port department O rganize an e x port department

Create international divisionsCreate international divisions Geographical organizationsGeographical organizations World product groupsWorld product groups I nternational subsidiariesI nternational subsidiaries

Become a global organizationBecome a global organization



15-23

T hank you.

18. global market report

Documents