Kotler Keller

Marketing Management 14e

Phillip

Kevin Lane

Tapping into Global Markets

Discussion Questions
1. What factors should a company review before deciding to go abroad? 2. How can companies evaluate and select specific foreign markets to enter?

3. What are the differences between marketing in a developing and a developed market?
4. What are the major ways of entering a foreign market?
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Discussion Questions
5. To what extent must the company adapt its products and marketing program to each foreign country? 6. How do marketers influence country-of-origin effects? 7. How should the company manage and organize its international activities?

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Competing on a Global Basis

Otis Elevator
Door system France Small gear parts Spain Electronics Germany Motor drives Japan Systems integration U.S.

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Deciding whether to go abroad

Decisions in International Marketing

Deciding which markets to enter Deciding how to enter the market Deciding on the marketing program Deciding on the marketing organization

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Deciding Whether to Go Abroad

Reduce single market dependency

Higher profit potential Customers going abroad

Economies of scale Counterattack competitors

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Risks of Going Abroad

Lack: An understanding of foreign preferences An understanding foreign business culture Experienced managers

Underestimate: Foreign regulations

Foreign country may: Change commercial laws Devalue its currency Undergo political revolution
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The Internationalization Process

Independent Representatives

Establish sales subsidiaries

Establish production facilities

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Deciding Which Markets to Enter

How many markets

Evaluating potential markets

Developed versus developing markets

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Regional Trade Areas

NAFTA European Union APEC

ASEAN MERCOSUR
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Deciding How to Enter the Market

Export Joint Venture

Licensing
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Direct Investment
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Commitment, Risk, Control, and Profit Potential

Direct Investment Joint Ventures Licensing Direct Exporting Indirect Exporting

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Five Modes of Entry into Foreign Markets

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Indirect and Direct Export

Indirect

Direct
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Licensing
Management Contracts

Contract Manufacturing

Franchising
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Joint Ventures & Direct Investment

Joint Venture

Direct Investment
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Deciding on the Marketing Program

Global Similarities and Differences Marketing Adaptation Global Product Strategies Global Communication Strategies Global Pricing Strategies Global Distribution Strategies

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Standardized Marketing Pros and Cons

Advantages
Economies of scale Lower marketing costs Power and scope Brand Consistency Leverage ideas quickly and efficiently Uniformity of marketing practices
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Disadvantages
Ignores differences in: Consumer needs, wants, and usage patterns Consumer response Brand and product development Legal environment Marketing institutions Administrative procedures
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Global Similarities and Differences

Soft Drink Consumption
(8-ounce servings)

Americans Mexicans Brazilians Russians Chinese

760 674 315 149 39

Median Age

25 China, India

43 Germany, Italy, & Japan

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Cultural Differences
Masculine versus feminine Collectivism

Individualism

Power distance Uncertainty avoidance

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Consumer Behavior Differences

Honda Automobiles

Japan Speed, youth, and energy U.S. Quality and reliability

Heineken

U.S. - Super Premium

Netherlands - Mid-tier

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Marketing Adaptation

Product

Communications

Distribution

Price

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Global Product Strategies

Product Standardization Product Adaptation Strategies Brand Element Adaptation

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International Product and Communication Strategies

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Classic Blunders in Global Marketing

Hallmark
(France)

Coca-Cola
(Spain)

Pop-Tarts
(Britain)

Phillips
(Japan)

Crest
(Mexico)

Tang
(France)
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Global Distribution Strategies

Channel Entry

Channel Differences
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Seller

Whole-Channel Concept for International Marketing

Sellers marketing headquarters Channels between nations Channels within foreign nations Final buyer

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Country-of-Origin Effects
Building Country Images

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Country-of-Origin Effects
Consumer Perceptions
Ford Mustang

Toyota Sienna

Ethnocentric
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Which is More American?

Ford Mustang

Toyota Sienna

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Marketing Organization

Export Department International Division

Global Organization
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