21-1 chapter questions what factors should a company review before deciding to expand? how can...
Post on 20-Dec-2015
217 views
TRANSCRIPT
![Page 1: 21-1 Chapter Questions What factors should a company review before deciding to expand? How can companies evaluate and select specific markets to enter?](https://reader030.vdocument.in/reader030/viewer/2022032800/56649d445503460f94a2077d/html5/thumbnails/1.jpg)
21-1
Chapter Questions
• What factors should a company review before deciding to expand?
• How can companies evaluate and select specific markets to enter?
• What are the main ways to enter a new market?
• Should the company adapt its products and marketing program to each new market?
• How should the company evaluate and control its activities?
![Page 2: 21-1 Chapter Questions What factors should a company review before deciding to expand? How can companies evaluate and select specific markets to enter?](https://reader030.vdocument.in/reader030/viewer/2022032800/56649d445503460f94a2077d/html5/thumbnails/2.jpg)
21-2
Global Firm
A firm that operates in more than onecountry and captures R&D, production,
logistical, marketing, and financial advantages in its costs and
reputation that are not available to purelydomestic competitors.
![Page 3: 21-1 Chapter Questions What factors should a company review before deciding to expand? How can companies evaluate and select specific markets to enter?](https://reader030.vdocument.in/reader030/viewer/2022032800/56649d445503460f94a2077d/html5/thumbnails/3.jpg)
21-3
Regional Free Trade Zones
• European Union
• NAFTA
• MERCOSUL
• APEC
![Page 4: 21-1 Chapter Questions What factors should a company review before deciding to expand? How can companies evaluate and select specific markets to enter?](https://reader030.vdocument.in/reader030/viewer/2022032800/56649d445503460f94a2077d/html5/thumbnails/4.jpg)
21-4
Major Decisions in Marketing Expansion
Deciding whether to go
Deciding which markets to enter
Deciding how to enter
Deciding on the
marketing program
Deciding on the
marketing organization
![Page 5: 21-1 Chapter Questions What factors should a company review before deciding to expand? How can companies evaluate and select specific markets to enter?](https://reader030.vdocument.in/reader030/viewer/2022032800/56649d445503460f94a2077d/html5/thumbnails/5.jpg)
21-5
Choosing markets strategically
• 3 main criteria:
– market attractiveness,
– risk, and
– competitive advantage
• Developing markets and countries offer a
unique set of opportunities and risks.
![Page 6: 21-1 Chapter Questions What factors should a company review before deciding to expand? How can companies evaluate and select specific markets to enter?](https://reader030.vdocument.in/reader030/viewer/2022032800/56649d445503460f94a2077d/html5/thumbnails/6.jpg)
21-6
Four Stages of Internationalization
No regular export activities
Export via independent agents
Establish sales subsidiaries
Establish production
facilities abroad
![Page 7: 21-1 Chapter Questions What factors should a company review before deciding to expand? How can companies evaluate and select specific markets to enter?](https://reader030.vdocument.in/reader030/viewer/2022032800/56649d445503460f94a2077d/html5/thumbnails/7.jpg)
21-7
Nescafe Markets in Russia
![Page 8: 21-1 Chapter Questions What factors should a company review before deciding to expand? How can companies evaluate and select specific markets to enter?](https://reader030.vdocument.in/reader030/viewer/2022032800/56649d445503460f94a2077d/html5/thumbnails/8.jpg)
21-8
Five Modes of Entry into Foreign Markets
Indirect
exporting
Direct
exportingLicensing
Joint
ventures
Direct
investment
Commitment, Risk, Control, Profit Potential
![Page 9: 21-1 Chapter Questions What factors should a company review before deciding to expand? How can companies evaluate and select specific markets to enter?](https://reader030.vdocument.in/reader030/viewer/2022032800/56649d445503460f94a2077d/html5/thumbnails/9.jpg)
21-9
Indirect Exporting
• Contract with an import/export
company to manage the flow of goods
and money
![Page 10: 21-1 Chapter Questions What factors should a company review before deciding to expand? How can companies evaluate and select specific markets to enter?](https://reader030.vdocument.in/reader030/viewer/2022032800/56649d445503460f94a2077d/html5/thumbnails/10.jpg)
21-10
Direct Exporting Methods
• Domestic-based export department
• Overseas sales branch or subsidiary
• Traveling export sales representatives
• Foreign-based distributors or agents
![Page 11: 21-1 Chapter Questions What factors should a company review before deciding to expand? How can companies evaluate and select specific markets to enter?](https://reader030.vdocument.in/reader030/viewer/2022032800/56649d445503460f94a2077d/html5/thumbnails/11.jpg)
21-11
Licensing
![Page 12: 21-1 Chapter Questions What factors should a company review before deciding to expand? How can companies evaluate and select specific markets to enter?](https://reader030.vdocument.in/reader030/viewer/2022032800/56649d445503460f94a2077d/html5/thumbnails/12.jpg)
21-12
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
environment
• Differences in consumer needs, wants, usage patterns
• Differences in brand development process
![Page 13: 21-1 Chapter Questions What factors should a company review before deciding to expand? How can companies evaluate and select specific markets to enter?](https://reader030.vdocument.in/reader030/viewer/2022032800/56649d445503460f94a2077d/html5/thumbnails/13.jpg)
21-13
Price Choices
• Set a uniform price everywhere
• Set a market-based price in each country
• Set a cost-based price in each country
![Page 14: 21-1 Chapter Questions What factors should a company review before deciding to expand? How can companies evaluate and select specific markets to enter?](https://reader030.vdocument.in/reader030/viewer/2022032800/56649d445503460f94a2077d/html5/thumbnails/14.jpg)
21-14
Whole-Channel Concept
Seller
International headquarters
Channels between nations
Channels within nations
Final buyers
![Page 15: 21-1 Chapter Questions What factors should a company review before deciding to expand? How can companies evaluate and select specific markets to enter?](https://reader030.vdocument.in/reader030/viewer/2022032800/56649d445503460f94a2077d/html5/thumbnails/15.jpg)
21-15
Global Organization Strategies
World as Single MarketWorld as Single Market
MultinationalMultinational
“Global”“Global”
![Page 16: 21-1 Chapter Questions What factors should a company review before deciding to expand? How can companies evaluate and select specific markets to enter?](https://reader030.vdocument.in/reader030/viewer/2022032800/56649d445503460f94a2077d/html5/thumbnails/16.jpg)
18-16
Marketing Audit
Comprehensive examination of the
marketing environment, objectives,
strategies and activities
to determine problems and opportunities,
and a plan of action to improve
the company’s marketing performance
•© Copyright 2008 Pearson Education Canada