Kotler Mm14 Ch21 Dppt

Kotler • KellerPhillip Kevin Lane

Marketing Management • 14e

Tapping into Global MarketsChapter 1

6

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 3 of 31

Discussion Questions1. 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?


Discussion Questions5. 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?


Competing on a Global Basis

Otis ElevatorDoor system – FranceSmall gear parts – SpainElectronics – GermanyMotor drives – JapanSystems integration – U.S.


Figu

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21.1

Decisions in International Marketing

Deciding whether to go abroad

Deciding on the marketing program

Deciding how to enter the market

Deciding which markets to enter

Deciding on the marketing

organization


Deciding Whether to Go Abroad

Higher profit potential

Economies of scale

Reduce single market dependency

Counterattack competitors

Customers going abroad


Risks of Going AbroadLack:•An understanding of foreign preferences•An understanding foreign business culture•Experienced managers

Foreign country may:•Change commercial laws•Devalue its currency•Undergo political revolution

Underestimate:•Foreign regulations


The Internationalization Process

Establish sales subsidiaries

Independent Representatives

Establish production facilities


Deciding Which Markets to Enter

Developed versus developing markets

Evaluating potential markets

How many markets


Regional Trade Areas

NAFTA

European Union

MERCOSURASEAN

APEC


Deciding How to Enter the Market

Joint Venture

Licensing Direct Investment

Export


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21.2

Five Modes of Entry into Foreign Markets

Direct Investment

Direct Exporting

Licensing

Joint Ventures

Indirect Exporting


Indirect and Direct Export

Indirect

Direct


Licensing

Management Contracts

Franchising

Contract Manufacturing


Joint Ventures & Direct Investment

Joint Venture

Direct Investment


Deciding on the Marketing Program

Global Similarities and Differences

Marketing Adaptation

Global Product Strategies

Global Communication Strategies

Global Pricing Strategies

Global Distribution Strategies


Tabl

e 21

.2

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

DisadvantagesIgnores differences in:•Consumer needs, wants, and usage patterns•Consumer response•Brand and product development•Legal environment•Marketing institutions•Administrative procedures


Global Similarities and DifferencesSoft Drink Consumption

Americans 760Mexicans 674Brazilians 315Russians 149Chinese 39

(8-ounce servings)

Median Age

25China, India

43Germany, Italy, & Japan


Cultural Differences

Uncertainty avoidance

Individualism

Collectivism

Power distance

Masculine versus feminine


Consumer Behavior Differences

Heineken

U.S. - Super Premium

Netherlands - Mid-tier

Japan – Speed, youth, and energyU.S. – Quality and reliability

Honda Automobiles


Marketing Adaptation

Communications


Global Product Strategies

Product Standardization

Product Adaptation Strategies

Brand Element Adaptation


Figu

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21.3 International Product and

Communication Strategies


Classic Blunders in Global MarketingHallmark

(France)Coca-Cola

(Spain) Pop-Tarts(Britain)

Crest(Mexico)

Tang(France)

Phillips(Japan)


Global Distribution Strategies

Channel Differences

Channel Entry


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21.4

Whole-Channel Concept for International Marketing

Seller

Channels within foreign nations

Channels between nations

Seller’s marketing headquarters

Final buyer


Country-of-Origin Effects

Building Country Images


Country-of-Origin Effects

Consumer Perceptions

Ethnocentric

Ford Mustang

Toyota Sienna


Which is More American?Ford Mustang

Toyota Sienna


Marketing Organization

Export Department

Global Organization

International Division

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Kotler Mm14 Ch21 Dppt