©2000 prentice hall objectivesobjectives ä factors to consider before going global ä selecting...
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©2000 Prentice Hall
ObjectivesObjectivesObjectivesObjectives
Factors to Consider Before Going Factors to Consider Before Going GlobalGlobal
Selecting Foreign MarketsSelecting Foreign Markets Foreign Market EntryForeign Market Entry Product Adaption for Global MarketingProduct Adaption for Global Marketing Management & Organization of Global Management & Organization of Global
ActivitiesActivities
©2000 Prentice Hall
Major Decisions in Major Decisions in International MarketingInternational Marketing
Major Decisions in Major Decisions in International MarketingInternational Marketing
Deciding whetherto go abroad
Deciding whichmarkets to enter
Deciding how toenter the market
Deciding on themarketing program
Deciding on themarketing organization
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Challenges in Going GlobalChallenges in Going GlobalChallenges in Going GlobalChallenges in Going Global
Shifting bordersShifting borders Unstable governmentsUnstable governments Foreign-exchangeForeign-exchange CorruptionCorruption Technological piratingTechnological pirating
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Criteria for EntryCriteria for EntryCriteria for EntryCriteria for Entry
Market AttractivenessMarket Attractiveness RiskRisk Competitive AdvantageCompetitive Advantage
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Directinvest-ment
JointventuresLicensing
Five Models of EntryFive Models of EntryInto Foreign MarketsInto Foreign MarketsFive Models of EntryFive Models of EntryInto Foreign MarketsInto Foreign Markets
Directexporting
IndirectExporting
Amount of commitment, risk, control, and profit potential
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Joint VentureJoint VentureJoint VentureJoint Venture
Licensing:Licensing: Sell rights to name brand. Sell rights to name brand. Contract Manufacturing:Contract Manufacturing: make item in make item in
host country; manufacturer of product only.host country; manufacturer of product only. Management Contracting:Management Contracting: hired as Mgmt. hired as Mgmt.
Consultant to host companyConsultant to host company Joint Ownership:Joint Ownership: truly partnering with a truly partnering with a
company in host country, to share expertise company in host country, to share expertise and mutual gains.and mutual gains.
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Internationalization ProcessInternationalization ProcessInternationalization ProcessInternationalization Process
No Export
Export via Agents
Sales Subsidiaries
Production Abroad
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Five International ProductFive International Productand Promotion Strategiesand Promotion StrategiesFive International ProductFive International Productand Promotion Strategiesand Promotion Strategies
Dualadaptation
PromotionPromotion
ProductProduct
Productadaptation
AdaptAdaptproductproduct
Straightextension
Do not changeDo not changeproductproduct
Do not changeDo not changepromotionpromotion
Communi-cation
adaptation
AdaptAdaptpromotionpromotion
Develop newDevelop newproductproduct
Productinvention
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Pricing ChallengesPricing ChallengesPricing ChallengesPricing Challenges
>Price Escalation
>Dumping charges
>Gray markets
>Transfer prices
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Whole-channel Concept for Whole-channel Concept for International MarketingInternational Marketing
Whole-channel Concept for Whole-channel Concept for International MarketingInternational Marketing
Seller
Seller’s internationalmarketing headquarters
Channels betweennations
Channels withinforeign nations
Final buyers
©2000 Prentice Hall
Marketing OrganizationMarketing OrganizationMarketing OrganizationMarketing Organization
Export Department
International Division
Global OrganizationRUSSIA
ASIA
EUROPE
M IDDLE EAST
AFRICA
USA
SOUTH
AM ERICA
AUSTRALIA
CANADA
ANTARCTICA
GREENLAND
©2000 Prentice Hall
ReviewReviewReviewReview
Factors to Consider Before Going Factors to Consider Before Going GlobalGlobal
Selecting Foreign MarketsSelecting Foreign Markets Foreign Market EntryForeign Market Entry Product Adaption for Global MarketingProduct Adaption for Global Marketing Management & Organization of Global Management & Organization of Global
ActivitiesActivities