Tapping global markets unit 4

Global Industry – Strategic positions of competitors in geographic or national markets are affected by overall global positions

Global Firm - Operates in more than one country & captures R&D , Production, marketing, financial advantages& reputation than competitors

Tapping Into Global markets

Deciding to go abroad

Which market to enter

How to enter market

Decide marketing program

Decide marketing organization

Major Decisions

WHY International Arena

• Higher profit opportunities

• Large customer base • To reduce dependence on one market

• Counterattack in home markets

• International servicing

Several Risks

• Fail To Understand Customer preferences

• Fail To Understand Country Culture

• Underestimate Foreign Regulations

• Lacks Managers With International experience


Developed

Developing

NAFTA

Regional Free trade Zones

EU

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http://images.google.co.in/imgres?imgurl=http://www.sonic.net/~schuelke/NAFTA_flag.gif&imgrefurl=http://www.sonic.net/~schuelke/FreeTradeAreas.htm&h=251&w=300&sz=5&hl=en&start=2&tbnid=-GH0NDi6GMQvKM:&tbnh=97&tbnw=116&prev=/images%3Fq%3Dflag%2Bof%2BNAFTA%26gbv%3D2%26svnum%3D10%26hl%3Den%26sa%3DG

Deciding to go abroad


How to entermarket

Decide marketing program

Decide marketing organization

Com

mitm

ent , risk, control ,profit potential 5 modes entry into foreign market

Standardized Marketing MixAdapted Marketing Mix•Product•Communications•Price

Marketing Program

Standardization of ProductCommunicationDistribution channels

Adapted – Where producer adjusts marketing program to each target market


Marketing Program

Straight Extension Introducing product in foreign market without changeProduct Adaption Altering product to meet local conditions or preferences.Product Invention


Marketing Program

Communication AdaptionCo.s run same marketing communications programsDual AdaptionAdapts both product & communications


Marketing Program

Uniform price everywhere

Market based price in each country

Cost based price in each country

Tapping global markets unit 4

Business

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