Presented by:

BLAZING Nathaniel Lee

Chapter 21 - Tapping Into Global MarketA Visual Presentation

The Global Market

Companies need to internationalize their operations.

In order to compete with global competitors.

The benefits of going abroad include: high profit opportunities

The benefits of going abroad include: aid in achieving economies of scale

The benefits of going abroad include: reduce dependence in a single market.

However, it poses several risks.

First is foreign preference.

Another one is: the different business culture

Finally, there are:specific foreign regulations.

Companies can enter a market through several means.

They can directly export.

They can work through intermediaries.

They can offer another company a license.

Or they can enter a joint venture with a local company.

There are three things that must be considered when planning on entering a global market.

3

First is PRODUCT.

The company may prefer to introduce the product without changes but it may result to

disaster.

The company may alter the product to meet local preference.

Or invent a new product or reintroduce an earlier product.

Next is COMMUNICATION.

Communication adaptation occurs when the firm uses the original marketing or adapts it to the

local market.

The firm may develop a pool of ads where they choose the most appropriate one per location or

area..

Finally, there is PRICE.

This occurs when additional costs such as transportation, taxes, tariffs, etc.

Countries with overcapacity, cheap currency with aggressive exporting resulted to low demand and

reluctance to pay higher.

In recent times, governments realize the image of their countries affect not just tourism but commerce as well.

The good image of a country can attract investors thus providing jobs and improve infrastructure. Marketing now does not only involve

products or services alone but countries and cities as well.

Global marketers now know that buyers hold distinct attitudes and perceptions about products (and brands) from a particular

country.

A brand that is perceived as successful on a global stage may lend credibility and respect.

Presented by:

BLAZING Nathaniel Lee

Chapter 21 - Tapping Into Global MarketA Visual Presentation

Thank you very much.