MARKETING MANAGEMENT

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MARKETING MANAGEMENT

• Stephen J. Miller
• Oklahoma State University
• MKTG 5133-MG 720
• Lecture 8

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GLOBAL OPPORTUNITIES
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WHY EXPAND INTERNATIONALLY

• Existing Mature Markets
• Growing Foreign Markets
• Economies of Scale
• To Lower Direct Costs
• To Position in Emerging Markets
• Higher Profit Margins

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EXPANSION(Cont.)

• To Diversify Market Users
• To Follow the Customer
• To Monitor Markets/Competitors
• To Challenge Competitors

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CORPORATE FOCUS

• Domestic Markets
• Domestic Extension
• Multi-Domestic/Multi-National
• Global

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MULTINATIONAL VS GLOBAL STRATEGY
DECISION MULTINATIONAL GLOBAL
Markets Independent Integrated
Product Customized Standardized
Value-Added Country-Specific Integrated
Resources
Marketing Local Uniform
Competitive Local IntegratedMoves
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DECISION ISSUES

• Costs
• Learning
• Positioning
• Competitive Leverage
• Diversity of Customer Preference
• Joint Venture Perceived Involvement

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KEY FOREIGN MARKET QUESTIONS

• Similarity of Market Preferences
• Level of Economic Development
• Supportive Infrastructure
• Supportive Political/Legal System
• Product Technical Specifications
• Openness to Competition
• Stable Environment

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MARKET ENTRY STRATEGIES

• Indirect Exporting
• Direct Exporting
• Licensing/Franchising
• Minority Interest Joint Venture
• Controlling Interest Venture

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ENTRY CHOICE FACTORS

• Speed of Entry
• Capital Investment Requirements
• Economic Risk
• Control of Operations/Strategies
• Per Unit Profitability
• Openness of Market

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Your Questions

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