MS-CT-KK-C8 Tapping into global markets (Deciding on the MKT program…
MS-CT-KK-C8 Tapping into global markets
Competing on a global basis
In a global industry, competitors' strategic positions in major geographic or national markets are affected by their overall global position.
Major decision on 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
Deciding whether to go abroad
No regular export activities
Export via independent representations (agents)
establishment of one or more sale subsidiaries
establishment of production facilities abroad
Focus on global opportunities: when more than 15% of revenue comes from international markets
Deciding which markets to enter
how many markets to enter: waterfall & shower approach
Evaluating potential markets: psychic proximity
succeeding in developing markets -- BRICS ( Brazil, Russia, India, China, South Africa)
Deciding how to enter the market
Five mode of entry into foreign markets
indirect & direct export
adv of indirect: less cost & risk
direct: 1)domestic-based export department or division; 2)overseas sales branch or subsidiary; 3) traveling export sales representatives; 4) foreign-based distributors or agents.
less risk; gains production expertise or a well-known product or band name.
management contract - contract manufacturing (local manufacture)
joint ventures: share ownership and control
direct investment: buy part or full interest in a local company or build its ow manufacturing or service facilities. -- cheaper labor, government incentives, freight saving; create job; relationship; long-term international objectives; domestic content.
Deciding on the MKT program
global similarities & differences: individual vs collectivism; high vs low power distance; masculine vs feminine; weak vs uncertainty avoidance
marketing adaptation: global product, communication, pricing, distribution strategics.
Global product strategic: product standardization, five international product communication strategies (straight extension; product adaptation; communication adaptation; dual adaptation; product invention)
Global communication strategies: message process
Global pricing strategies: 1) set a uniform price everywhere; 2) set a market-based price in each country; 3) set a cost-based price in each countries
Global distribution strategies: channel entry ( seller - seller's international marketing headquarters - channels between nations - channels within foreign nations - final buyers)
building country images
consumer perceptions of country of origin