Understanding the Global Marketplace: Marketing without Borders 03


Understanding the Global Marketplace: Marketing without Borders 03 McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved

LEARNING OBJECTIVES Identify the various levels in the Global Marketing Experience Curve Learn the essential information components for assessing a global market opportunity Learn the stages of classification system for evaluating and marketing in an emerging market Define the key regional market zones and their marketing challenges Describe the strategies for entering new global markets Recognize key factors in creating a global product strategy McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 2

distinct stages of international marketing McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 3

Ten Examples of Global Companies and their Expansion in Global Markets EXHIBIT 3.2 McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 4

ASSESSING THE GLOBAL OPPORTUNITY Essential Information McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 5

ASSESSING THE GLOBAL OPPORTUNITY Emerging Markets McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 6

ASSESSING THE GLOBAL OPPORTUNITY Multinational Regional Market Zones McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 7

Top Four Regional Market Zones EXHIBIT 3.7 McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 8 Reprinted Courtesy of European Commission

Composition of the EU since its creation EXHIBIT 3.8 McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 9

SELECT THE GLOBAL MARKET Identify Selection Criteria Company Review

Key Company characteristics in Global Market Expansion EXHIBIT 3.10 McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 11

Market Entry Strategies Exporting Internet Exporter and Distributor Direct Sales Force McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 12

Market Entry Strategies Contractual Agreements Licensing Franchising McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 13

Market Entry Strategies Strategic Alliances International Joint Venture McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 14

Market Entry Strategies Direct Foreign Investment Timing Legal Issues Transaction Costs Technology Transfer Product Differentiation Marketing Communication Barriers McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 15

The Most Common International Organizational Structure EXHIBIT 3.14 McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 16 Reprinted from Philip R. Cateora and John L. Graham, International Marketing, 13e, 2007.

Organizational Structure Choices Decision Making Authority Degree Of Centralization McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 17

Choose Structure Global Product Lines Geographic Regions Matrix Structure McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 18

Product Choices Direct Product Extension Product Adaptation Product Invention McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 19

Consumer Issues Quality Fitting the Product to the Culture Brand Strategy Country of Origin McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 20

INTERNATINOAL Channel Structures EXHIBIT 3.17 McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 21 Reprinted from Philip R. Cateora and John L. Graham, International Marketing, 13e, 2007.

Market Channel Issues Channel Factors McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 22

Marketing Communications Advertising McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 23

Marketing Communications Personal Selling Sales Promotion Public Relations McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 24

Pricing One World Price Local Market Conditions Price Cost-Based Price McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 25

Pricing Price Escalation McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 26

Pricing Global Pricing Issues Dumping Gray Market McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 27

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