Global FirmOperates in two or more countries and captures R&D, production, logistics, marketing, and finance advantages not available to purely domestic competitors.

Breakthrough Marketing: Samsung

Samsung has invested more that $6 billion in marketing to upgrade its image!

Major Decisions in International Marketing

Deciding Whether to Go Abroad

Factors drawing companies into the international arena:

Higher profit opportunities Need a larger customer base to

achieve economies of scale or want to reduce dependence on any one market

To counterattack global competitors Customers are going abroad and

require international service

Deciding Whether to Go Abroad

Risks: Might not understand foreign preferences and

could fail to offer a competitively attractive product

Might not understand the other country’s business culture or know how to deal with foreign regulations

May lack managers with international experience Other country might change its commercial laws,

devalue its currency, or undergo a political revolution and expropriate foreign property

Deciding Which Markets to Enter

Product Geography Income and population

Other factorsPolitical climate

Five Modes of Entry into Foreign Markets

Deciding on the Marketing Program

Adapted marketing mix

Standardized marketing mix

For DiscussionDiscuss whether these products should standardize or adapt when selling in the United States:• British automobiles• French wine• South African

diamonds• Australian clothing

International Product and Communication Strategies

Price and Distribution

Price escalation—must add the cost of transportation, tariffs, importer margin, wholesaler margin, and retailer margin to the product’s factory cost.

Gray market—branded products are diverted from normal or authorized distribution channels in the country of product origin or across international borders.

Country-of-Origin Effects

Country-of-origin perceptionsDistinct attitudes and beliefs about brands or products from particular countries.

Internal Marketing

Requires that everyone in the organization buy into the concepts and goals of marketing and engage in choosing, providing, and communicating customer value.

Organizing the Marketing Department

Functionally

Geographically

Product or brand

Market

Matrix

Corporate/division

Relations with Other Departments

Marketing vice president, or CMO, tasks: Coordinate the company’s internal marketing

activities Coordinate marketing with finance,

operations, and other company functions to serve the customer

Managing the Marketing Process

Marketing implementationThe process that turns marketing plans into action assignments and ensures that they accomplish the plan’s stated objectives.

Marketing Metrics

Sales metrics

Customer readiness to buy metrics

Customer metrics

Communication metrics

Distribution metrics

The Control Process

The Marketing Audit

A comprehensive, systematic, independent, and periodic examination of a company’s (or business unit’s) marketing environment, objectives, strategies, and activities to identify problems and opportunities and to recommend improvements.

The Marketing Audit

Examines six major marketing components: Macro-environment and task environment Marketing strategy Marketing organization Marketing systems Marketing productivity Marketing function

Socially Responsible Marketing

Legal behavior

Ethical behavior

Social responsibility behavior

Socially Responsible Marketing

Sustainability

Cause-related marketing

Marketing Skills:Cause-Related Marketing

Choose a cause that fits the company’s or brand’s image and be meaningful to employees and other stakeholders.

Prepare to brand the program, perhaps with a new self-branded organization associated with the cause.

Plan and manage it as carefully as all other marketing activities.

Reflection

Think of other examples of cause-related marketing.

Reflect on the case of Cabbages & Condoms campaign in Thailand