Tapping Into Global Markets (Chapter 21)

1
Tapping Into Global Markets(Chapter 21)

• Trends
• World is shrinking faster communication,
  transportation, and financial flows
• Products from one country readily accepted in
  other countries ____________________
• Competition is intensifying

2
Challenges in Entering Global Markets

• Can company ________ to other countries business
  cultures, consumer behavior, regulations,
  political environments, etc.?
• Costs of entering global markets
• Costs of not entering global markets

3
Criteria for Entering

• Which countries (potential markets)?
• Infrastructure, government regulations, trade
  barriers
• Quality of labor pool, welcoming environment
• Geographically close
• Psychic proximity

4
Deciding How to Enter the Market
Figure 21.2Five Modes of Entry into Foreign
Markets Commitment Risk Control Profit Potential
5
Product Planning for Global Markets

• Straight product extension (p. 678) introduce
  product in foreign market without any change do
  foreign consumers use this product and how much?
• Advantage no additional cost of product
  development, manufacturing changes, or new
  promotion
• Disadvantage fail to meet foreign customer needs

6
Product Planning for Global Markets

• Product adaptation alter product to meet local
  conditions or preferences
• Gerber baby food in Japan includes flounder and
  spinach stew, cod roe spaghetti, and sardines
  ground up in white radish sauce.

7
Product Planning for Global Markets

• Product invention creating something new
  forward invention creating a new product to
  meet a need in another country

8
Promotion Planning for Global Markets

• Communication adaptation altering the
  advertising and promotion campaigns for each
  local market
• Austria and Italy regulate TV advertising to
  children Saudi Arabia does not want advertisers
  to use women in ads

9
Key Issues in Developing a Marketing Program

• Standardization vs Adaptation (p. 679)
• Standardized marketing mix involves no change in
  marketing mix, therefore assumes lowest cost
  _____________________
• Adapted marketing mix marketing mix adapted to
  each target market increases
• ________________________________

10
Key Issues in Developing a Marketing Program

• To what extent should marketing mix be adapted or
  standardized?
• Review elements of marketing mix and determine
  which would add more revenue than cost
• Standardized Adapted

11
Key Issues in Developing a Marketing Program

• Elements of Marketing Mix which will add more
  revenue than costs (p. 679)?
• Product features, prices, brand name, labeling,
  packaging, colors, materials, advertising, etc.
• Ex Coca-Cola Classic is sold worldwide, but in
  some countries it is less carbonated and less
  sweet.

12
Managing a Holistic Marketing Organization
(Chapter 22)

• Requires that everyone in the organization buy
  into the concepts and goals of marketing and
  engage in choosing, providing and communicating
  customer value
• Issues Departments (functions) define company
  problems and goals from their viewpoint, so
  conflicts of interest are unavoidable
  stereotypes prejudice communication breakdowns

13
Internal Marketing

• Challenges Departments (functions) define
  company problems and goals from their viewpoint,
  so conflicts of interest are unavoidable
  stereotypes prejudice communication breakdowns.
• Possible solution function-to-function meeting
  with departments where greater understanding and
  collaboration is warranted (p. 704).

14
Internal Marketing

• Building a Creative Marketing Organization (p.
  704)
• Company must be customer-oriented and
  ______________
• Ex If marketers pay too much attention to
  consumers say they need or want, marketers will
  simply make products similar to those that
  already exist. It is the marketers job to go
  beyond what customers say they want (Marketing
  Insight, p. 706)
• Ability to capitalize on trends

15
Socially Responsible Marketing

• Need to practice higher level of corporate social
  responsibility rising customer expectations,
  changing employee expectations, government
  legislation and pressure, investor interest in
  social criteria, and changing business
  procurement practices (p. 706).

16
Marketing Implementation

• A brilliant strategic marketing plan counts for
  little if it is not implemented properly (p. 715)
• Skills necessary -
• Diagnostic skills poor strategy or poor
  implementation?
• Implementation skills allocating (budgeting)
  organizing interaction (motivate others)
• Evaluation skills track and evaluate actions

17
Future of Marketing

• Marketing must be holistic and less departmental
• Must continuously create new ideas if the company
  is to prosper in a hypercompetitive economy
• Must build brands through performance, more than
  promotion
• Succeed through superior information and
  communication systems

18
Future of Marketing

• Marketing management is largely an artistic
  exercise and therefore highly subjective vs.
  Marketing management is largely a scientific
  exercise with well-established guidelines and
  criteria