?2000 Prentice Hall
Objectives
? Factors to Consider Before Going Global
? Selecting Foreign Markets
? Foreign Market Entry
? Product Adaption for Global Marketing
? Management & Organization of Global Activities
?2000 Prentice Hall
Major Decisions in International Marketing
Deciding whether
to go abroad
Deciding which
markets to enter
Deciding how to
enter the market
Deciding on the
marketing program
Deciding on the
marketing organization
?2000 Prentice Hall
Challenges in Going Global
? Shifting borders
? Unstable governments
? Foreign-exchange
? Corruption
? Technological pirating
?2000 Prentice Hall
Criteria for Entry
? Market Attractiveness
? Risk
? Competitive Advantage
?2000 Prentice Hall
Five Models of Entry
Into Foreign Markets
Direct
invest- ment Joint ventures Licensing Direct exporting Indirect Exporting
Amount of commitment,risk,control,and profit potential
?2000 Prentice Hall
Internationalization Process
No Export
Export via Agents
Sales Subsidiaries
Production Abroad
?2000 Prentice Hall
Five International Product
and Promotion Strategies
Dual adaptation
Promotion
Product
Product
adaptation
Adapt product
Straight extension
Do not change product
Do not change promotion
Communi- cation
adaptation
Adapt promotion
Develop new product
Product
invention
?2000 Prentice Hall
Pricing Challenges
>Price Escalation
>Dumping charges
>Gray markets
>Transfer prices
?2000 Prentice Hall
Whole-channel Concept for
International Marketing
Seller
Seller’s international
marketing headquarters
Channels between
nations
Channels within
foreign nations
Final buyers