Please enable JavaScript.
Coggle requires JavaScript to display documents.
Global Marketing (Decisions in International Market (Deciding on Marketing…
Global Marketing
-
Challenges
Unstable Government
Foreign Exchange Problems,
Foreign Government Entry Requirements
Tariffs & Trade Barriers
Corruption
Technological Pirating
High Cost of adaptation
-
Factors in Differences
Differences in language & meaning
Difference in Market Segmentation
Difference in Consumption Patterns
Difference in perceived benefits
Differences in criteria for evaluating products and services
Differences in economic & social conditions & family structures
Differences in market research
-
Cultural Idiosyncrasies
Colours, numbers, symbols & superstitions
Global Brands
Products are manufactured, package and positioned the same way regardless of the country its sold
Little risk, but less control & have competition
-
-
Things to consider before moving production to other countries
1) Is product origin important to consumer?
2) Is product origin important to brand meaning?
3) Do product's & brand's origin fits consumer's view?
4) Effects to be expected [Positive/Neutral/Negative]
5) Keep production in countries / Choose new production site
-
Burberry
Moved its production from UK to China. Companies were waiting to see Burberry fall, but surprisingly it did not hurt the brand.
Prof's Experience
When buying a piano, 2 pianos of similar design were sold at a different price. The 1 made in the better country was sold higher as it "has better quality"
Standardize or Adapt? It Depends
EG: Barbie sold well everywhere except Japan which ended up making modification to it
EG: Gilette had different brand names & formulations for same products in different countries. Standardization is better as it reduces costs and increases global brand power
Product
Do Not Change = DNC, Adapt = A, Product+Promotion = Both
DNC Both: Straight product extension - Market product into foreign country w/o change
A Product & DNC Promotion: Product Adaptation - Change product to meet the local conditions/wants
Develop new product & A or DNC Promotion: Product Invention - Create something new for foreign market
-
Russia did not allow companies to take out hard currencies. American companies used the money to buy vodka & sold it in US
-
-
-
-
-
Oreo works with different manufacturers in different countries
EG: Might be more expensive working with kraft in china
-
-
-
-
Global firms may offer better products or lower prices
Counterattack in their home market to tie-up resources
-
-
Consider
Market entry & control cost
Product & Communication adaptation costs
Size and growth of population & income
Competitors & barriers of entry
-
Attractiveness
Geographical factors
Income & population
Political climate
Psychic Proximity - Same values
-
Modes of Entry
Indirect Exporting: Through independent middlemen
Direct Exporting: Through own sales branch & distribution
Licensing: Right to use process, trademarks, patent and trade secret
Joint Ventures: Work with foreign companies
Direct Investment: Own foreign assembly/manufacturing facilities
-
-
-
Contract Manufacturer: Hire foreign firms to produce
Management contract: Hilton Hotel group
Joint ownership: 2 Diff companies works together (Might have differing views and aims)
-
SG is good at attracting foreign investments by giving tax rebates.
BMW produced in US are not taxed like cars made in EU
-
-
-
Can keep alphabetic name as visuals EG: 3M, IBM, AT&T, M&M
-
EG: Panasonic in the west, National in Asia Pacific, Le-Sheng in Southern China
-