Kotler_MM_14e_21_ippt.ppt
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The document discusses international marketing and the major decisions involved. It outlines reasons for pursuing global markets such as profit opportunities and countering competitors. However, there are also risks like lack of cultural understanding. Companies typically progress through four stages of internationalization from no exports to establishing foreign production facilities. Firms can enter foreign markets through various modes ranging from indirect exporting to direct investment. While global marketing offers advantages like economies of scale, differences across countries require adaptation of marketing mix elements to local needs.
Kotler_MM_14e_21_ippt.ppt
- 2. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 21-2 Major Decisions in International Marketing Deciding whether to go Deciding which markets to enter Deciding how to enter Deciding on the marketing program Deciding on the marketing organization
- 3. Reasons for Pursuing Global Markets Better profit opportunities Larger customer base to achieve economies of scale Less dependence on any one market Desire to counterattack global competitors in their home markets Customers require international service Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 21-3
- 4. Risks to Going Abroad Lack of knowledge of foreign culture Lack of understanding of foreign needs Lack of understanding of foreign regulations Lack of managers with international expertise Changes in the country environment Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 21-4
- 5. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 21-5 Four Stages of Internationalization Stage 1: No regular export activities Stage 2: Export via independent agents Stage 3: Establish sales subsidiaries Stage 4: Establish production facilities abroad
- 6. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 21-6 Figure 21.2 Five Modes of Entry into Foreign Markets Indirect exporting Direct exporting Licensing Joint ventures Direct investment Commitment, Risk, Control, Profit Potential
- 7. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 21-7 Direct Exporting Methods Domestic-based export department Overseas sales branch or subsidiary Traveling export sales representatives Foreign-based distributors or agents
- 8. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 21-8 Table 21.2 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 consumer needs, wants, usage patterns Differences in consumer response to marketing mix Differences in brand development process Differences in environment
- 9. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 21-9 What Marketing Aspects Might Be Adapted for International Marketing? Product features Labeling Colors Materials Sales promotion Advertising media Brand name Packaging Advertising execution Prices Advertising themes
- 10. Figure 21.3 Five International Product and Communication Strategies Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 21-10
- 11. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 21-11 Levels of Product Adaptation Production of regional product versions Production of country versions Production of city versions Production of retailer versions
- 12. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 21-12 Price Choices Set a uniform price everywhere Set a market-based price in each country Set a cost-based price in each country