Marketing Six ConceptsChapter 21
Tapping Into Global Markets
Guo,Li (Lisa)Ateneo Graduate School of Business
May 9, 2013
Outline
• Six Concepts • Global Markets......
• 1. Four Factors that draws companies into the international arena.• 2. Three criteria should be rated.• 3. Developed versus developing markets.• 4. Best mode of entry.• 5. Companies decide on a marketing program.• 6.Companies manage their international marketing activity in three
ways.
Concept 1: Four Factors That Draws Companies Into The International Arena.
3. Independence From One Market
1. Higher
Profits • 4.
Competition
With Global
Competitors
2. Larger Customer
Example of Concept 1• Tata Group• India's biggest conglomerate, operates successful businesses that
range from software,cars, and steel to phone service, tea bags, and wristwatches.
• The market potential is huge, ther are just seven automobiles per 1000 people in India.
• Targeting markets such as Africa and Southeast Asia and perhaps even parts of Eastern Europe and Latin America.
Concept 2: Three Criteria Should Be Rated
1. Market Attractiveness 2. Risk
3. Competitive Advantage
Example of Concept 2
1. Market Attractiveness
Market size and growth rate.
2. Risk Foreign Preference, Differeent Business Culture, Specifice foreign regulations.
3. Competitive Advantage
Products or services at the lowest cost in the industry.A variety of products, services, or features to cunsumers that competitors are not ye offering or are unable to offer.Completely new or notable better products or services.
Concept 3: Developed And Developing Markets
• Brazil• Russia• India• China• Indonesia• South Africa
Example of Concept 3
• Each nation has unique features.• Depend on its demographic,
economic, sociocultural, natural, technological, and political-legal environments.
Concept 4: Global Market Entry Strategies
Example of Concept 4Indirect Exporting
Work through independent intermediaries.
Direct exporting A producer or supplier directly sells its product to an international market
Licensing A simple way to engage in international marketing.To use a manufacturing process, trademark, patent, tarde secret, or other item of value for a fee or royalty.
Joint Ventures To share ownership and control.To reach more geographic and technological market.To diversify its investment and risk.
Direct Investment
Can buy part or full interest in a local company.Build its own manufacturing or service facilities.
Concept 5: Companies Decide On A Marketing Program
• Product Level
• Price Level
• Communication Level
• Distribution Level
Example of Concept 5
Product Products or services are easily standardized and appropriate adaptation.(Google, eBay, Amazon.com)-made quick progress in overseas markets.
Communication
To make the message as compelling and effective.Global Adaptations(Apple,Coca-Cola, Goodyear)
Pricing Set a uniform price everywhereset a market based price in each countrySet a cost based price in each country
Distribution The multinational must choose the right distributors, invest in them, and set up performance goals to which they can agree.
Concept 6: Companies manage their international marketing activity in three ways
ExportDepartments
GlobalOrganization
InternationalDivisions
Example of Concept 6
Export Department
A sales manager and a few assistants.Various marketing services.
International Division
Headed by a division president who sets goals and budgets.Responsible for the company's international growth.Corporate staff consists of functional specialists who provide services to various operating units.
Global Organization
Plan worldwide manufacturing facilities, marketing policies, financial flows, and logistical systems.Report directly to the chief executive or executive committee.
Summary
• Six Concepts • Global Markets......
• 1. Four Factors that draws companies into the international arena.
• 2. Three criteria should be rated.• 3. Developed versus developing markets.• 4. Best mode of entry.• 5. Companies decide on a marketing program.• 6.Companies manage their international marketing
activity in three ways.