Copyright 2009, Prentice-Hall, Inc.18-1 A Framework for Marketing Management Chapter 18 Managing...

Copyright 2009, Prentice-Hall, Inc. 18-1

A Framework forMarketing Management

Chapter 18Chapter 18Managing Marketing in the Global Economy


Chapter Questions

What factors should a company review before deciding to market internationally?

What are the major ways of entering foreign markets?

What are the keys to effective internal marketing? How can a company improve its marketing

implementation? How can companies be responsible social

marketers?


Global Firm

Operates in two or more countries and captures R&D, production, logistics, marketing, and finance advantages not available to purely domestic competitors.

Plan, operate, and coordinate their activities on a worldwide basis.


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


Deciding Whether to Go AbroadFactors drawing companies into the

international arena: Higher profit opportunities Need a larger customer base to achieve

economies of scale or want to reduce dependence on any one market

To counterattack global competitors Customers are going abroad and require

international service


Deciding Whether to Go AbroadRisks: Might not understand foreign preferences and could

fail to offer a competitively attractive product Might not understand the other country’s business

culture or know how to deal with foreign regulations May lack managers with international experience Other country might change its commercial laws,

devalue its currency, or undergo a political revolution and expropriate foreign property


Deciding Which Markets to Enter Factors influencing attractiveness of a

market: Product Geography Income and population Political climate Other factors


Deciding How to Enter the Market Indirect and direct exporting Licensing Joint ventures Direct investment


Deciding on the Marketing Program Standardized marketing mix

Keeps costs low Allows for brand image consistency Enables the firm to leverage ideas quickly and

efficiently Adapted marketing mix

Market program is adjusted to each target market


Five International Product and Communication Strategies Straight extension Product adaptation Product invention Communication adaptation Dual adaptation


Price and Distribution

Price escalation—must add the cost of transportation, tariffs, importer margin, wholesaler margin, and retailer margin to the product’s factory cost.

Gray market—branded products are diverted from normal or authorized distribution channels in the country of product origin or across international borders.


Country-of-Origin Effects

Distinct attitudes and beliefs about brands or products from particular countries.


Internal Marketing

Requires that everyone in the organization buy into the concepts and goals of marketing and engage in choosing, providing, and communicating customer value.


Organizing the Marketing Department Functionally Geographically Product or brand Market Matrix Corporate/division


Relations with Other Departments Marketing vice president, or CMO, tasks:

Coordinate the company’s internal marketing activities

Coordinate marketing with finance, operations, and other company functions to serve the customer


Managing the Marketing Process Marketing implementation—the process

that turns marketing plans into action assignments and ensures that they accomplish the plan’s stated objectives.


Marketing Metrics

Sales metrics Customer readiness to buy metrics Customer metrics Distribution metrics Communication metrics


Evaluation and Control

Annual-plan control Profitability control Efficiency control Strategic control


The Control Process

Goal setting—What do we want to achieve? Performance measurement—What is

happening? Performance diagnosis—Why is it

happening? Corrective action—What should we do

about it?


The Marketing Audit

A comprehensive, systematic, independent, and periodic examination of a company’s (or business unit’s) marketing environment, objectives, strategies, and activities to identify problems and opportunities and to recommend improvements.


The Marketing Audit

Examines six major marketing components: Macroenvironment and task environment Marketing strategy Marketing organization Marketing systems Marketing productivity Marketing function


Socially Responsible Marketing Ethical, legal, and socially responsible

behavior. Cause-related marketing—links the firm’s

contributions to a designated cause with customers’ engaging directly or indirectly in revenue-producing transactions with the firm.

Sustainability—the importance of meeting humanity’s needs without harming future generations.


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Copyright 2009, Prentice-Hall, Inc.18-1 A Framework for Marketing Management Chapter 18 Managing...

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