Decisions In International Marketing
1. Deciding Whether to Go Abroad
• Factors that draw companies into the international arena.
• Some international markets present better profit opportunities than domestic markets.
•Firm needs a larger customer base to achieve economies of scale
• Firm wants to reduce dependence on any one market.
• Firm counterattacks global competitors in home markets.
• Customers going abroad require international service.
2. Deciding Whether to Go Abroad
• Before making a decision to go abroad, the company must also weigh several risks
•Firm might not understand foreign preferences, failing to offer a competitively attractive product
• A firm might not understand a foreign country’s culture
• Firm might underestimate foreign regulations and incur unexpected costs
• Firm might lack managers with international experience.
• Foreign country might change commercial laws, devalue the currency, or expropriate
foreign property
3. Deciding Which Markets to Enter
How many markets to enter
• Waterfall Approach
• Sprinkler Approach
• Born Global
4. Evaluating Potential Markets
• Neighboring countries
• Psychic proximity/cultural distance
• Fewer countries
5. Desired Country Characteristics for Market Entry
•Rank high on market attractiveness
•Rank low in market risk
•Possess a competitive advantage
6. Succeeding in Developing Markets
•BRICS --Brazil, Russia, India, China, and South Africa
•CIVETS --Columbia, Indonesia, Vietnam, Egypt, Turkey, and South Africa
7. Succeeding in India
• Lively democracy/youthful population
• World’s second-most populous nation
• One of the youngest large economies
• Has fully embraced mobile technology
• Poor infrastructure/public services
8. Succeeding in China
• Largest auto market in the world
• Emerging urban middle class
• World’s top consumer of luxury goods
• Fierce competition among foreign firms
• Opaque and arbitrary bureaucracy
9. Succeeding in Indonesia
• Increasing political stability
• Increasing economic growth
• Largest Muslim country
• Consumers are brand conscious
• Distribution/infrastructure limitations
10. Deciding How to Enter theMarket
10.1 Indirect exporting
10.2 Direct exporting
10.3 Licensing
Licensor issues a license to a foreign company to use a manufacturing process, trademark, patent, trade secret, or another item of value for a fee or royalty.
10.4 Joint ventures
Foreign investors have often joined local investors in a joint venture company in which they share ownership and control.
10.5 Direct Investment
•The foreign company can buy part or full interest in a local company or build its own manufacturing or service facilities.
10.6 Acquisition
Acquiring local brands for their brand portfolio
11. Deciding on the Marketing Program
11.1 Global similarities and differences
The Internet, cable and satellite TV, and global linking of telecommunications networks have led to a convergence of lifestyles
11.2 Marketing Adaptation
• Product features
• Labeling
• Colors
• Materials
• Sales promotion
• Prices
• Advertising media
• Brand name
• Packaging
• Advertising execution
• Advertising themes
11.3 Product & Communication Strategies
12.Global product strategies
12.1 Product standardization
12.2 Product invention
• Backward invention: reintroduces earlier product forms well adapted to a
foreign country’s needs
• Forward invention: creates a new product to meet a need in another country
13. Companies have three choices for setting prices in different countries
• Uniform price everywhere
• Market-based price
• Cost-based price
14. Global Distribution Strategies
• Channel entry
• Whole-Channel Concept for International Marketing
• Channel differences
• Various distribution systems
• Size and character of retail units
