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com

© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 1

Managing Markets Strategically

Professor Noel Capon
R.C. Kopf Professor of International Marketing
Columbia Business School
New York, NY, U.S.A.

&
Professor Siddharth Shekhar Singh
Director Fellow Programme in Management & Associate Professor of Marketing
Indian School of Business
Hyderabad & Mohali, India
www.axcesscapon.com www.wileyindia.com Managing Markets Strategically
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 2

Section I: Marketing and the Firm

Section II: Fundamental Insights for Strategic Marketing
Section III: Strategic Marketing
Section IV: Implementing the Market Strategy
Section V: Special Marketing Topics
Chapter 23: International, Regional, and Global Marketing
Chapter 24: Rural Marketing
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CHAPTER 23

International, Regional,
and Global Marketing
www.axcesscapon.com www.wileyindia.com Global Trade ($ billions)
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 4
www.axcesscapon.com www.wileyindia.com International, Regional, and Global Marketing
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 5

Session Roadmap
• Should the firm enter foreign markets?
• How should the firm choose which foreign markets to enter?
• What foreign-market-entry options are available?
• What foreign market strategy issues should the firm address?
• How should the firm implement its foreign market strategy?
• How should the firm organize for global markets?
www.axcesscapon.com www.wileyindia.com International, Regional, and Global Marketing
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 6

Session Roadmap
• Should the firm enter foreign markets?
• How should the firm choose which foreign markets to enter?
• What foreign-market-entry options are available?
• What foreign market strategy issues should the firm address?
• How should the firm implement its foreign market strategy?
• How should the firm organize for global markets?
www.axcesscapon.com www.wileyindia.com Should the Firm Enter Foreign Markets?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 7

• Diversify risk
• Follow customers
• Gain knowledge
• Growth opportunities
• Keep competitors honest
• Reduce costs
• Small home market
www.axcesscapon.com www.wileyindia.com International, Regional, and Global Marketing
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 8

Session Roadmap
• Should the firm enter foreign markets?
• How should the firm choose which foreign markets to enter?
• What foreign-market-entry options are available?
• What foreign market strategy issues should the firm address?
• How should the firm implement its foreign market strategy?
• How should the firm organize for global markets?
 How Should the Firm Choose
www.axcesscapon.com www.wileyindia.com Which Foreign Markets to Enter?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 9

• Foreign market attractiveness

• The firm’s ability to compete
 How Should the Firm Choose
www.axcesscapon.com www.wileyindia.com Which Foreign Markets to Enter?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 10

Foreign Market Attractiveness

• Economic
• Political/legal/regulatory
• Distance
• Illustration

The Firm’s Ability to Compete

 How Should the Firm Choose
www.axcesscapon.com www.wileyindia.com Which Foreign Markets to Enter?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 11

Foreign Market Attractiveness

• Economic
• Political/legal/regulatory
• local
• bilateral
• regional
• global
• International Monetary Fund (IMF)
• World Bank (WB)
• World Trade Organization (WTO)
• Distance
• Illustration

The Firm’s Ability to Compete

 How Should the Firm Choose
www.axcesscapon.com www.wileyindia.com Which Foreign Markets to Enter?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 12

Foreign Market Attractiveness

• Economic
• Political/legal/regulatory
• Distance
• geographic
• sociocultural

• Illustration

The Firm’s Ability to Compete

 How Should the Firm Choose
www.axcesscapon.com www.wileyindia.com Which Foreign Markets to Enter?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 13

Foreign Market Attractiveness: Illustration for an Indian firm

Great Britain Australia Mexico Great Britain Australia Mexico

Importanc Rating Rating Rating

Criteria e Weight (RA) (1 to (RB) (1 to (RC) (1 to I x RA I x RB I x RC
(I) 10 scale) 10 scale) 10 scale)

Market size 30 8 3 5 240 90 150

Growth potential 20 5 7 8 100 140 160

Communications ease 10 10 10 3 100 100 30

Travel ease 10 5 2 2 50 20 20

Currency stability 10 7 7 4 70 70 40

Firm learning 10 3 3 3 30 30 30

Degree of corruption 10 8 8 5 80 80 50

Total 100 Totals 670 530 480

 How Should the Firm Choose
www.axcesscapon.com www.wileyindia.com Which Foreign Markets to Enter?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 14

Foreign Market Attractiveness

The Firm’s Ability to Compete

 How Should the Firm Choose
www.axcesscapon.com www.wileyindia.com Which Foreign Markets to Enter?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 15

Assessing the Firm’s Ability to Compete: Illustration – Argentina

“To be successful in Argentina, any competitor must possess the following strengths…”

Firm Rating Factor Score

Factor Country Weighting
(1 to 10 scale) (weighting x rating)
Deep pockets 10 9 90
Fast-moving organization 5 3 15
Good R&D 25 7 175
High-quality service 15 6 90
In-place distribution 20 5 100
Low-cost operations 10 4 40
Well-trained sales force 15 9 135
Total 100 645
 How Should the Firm Choose
www.axcesscapon.com www.wileyindia.com Which Foreign Markets to Enter?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 16

1000

High
Country Attractiveness

700

* Mexico
Medium

400

Low

100
100 400 700 1000
Low Medium High

Business Strengths
www.axcesscapon.com www.wileyindia.com International, Regional, and Global Marketing
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 17

Session Roadmap
• Should the firm enter foreign markets?
• How should the firm choose which foreign markets to enter?
• What foreign-market-entry options are available?
• What foreign market strategy issues should the firm address?
• How should the firm implement its foreign market strategy?
• How should the firm organize for global markets?
www.axcesscapon.com What Foreign Market Entry Options Are Available?
www.wileyindia.com

© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 18

Passive Entry
• Exporting
• Licensing

Active Entry
• Importing
• Local Production
• Franchising
www.axcesscapon.com www.wileyindia.com International, Regional, and Global Marketing
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 19

Session Roadmap
• Should the firm enter foreign markets?
• How should the firm choose which foreign markets to enter?
• What foreign-market-entry options are available?
• What foreign market strategy issues should the firm address?
• How should the firm implement its foreign market strategy?
• How should the firm organize for global markets?
 What Foreign Market Strategy Issues
www.axcesscapon.com www.wileyindia.com Should the Firm Address?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 20

• Scope
• Objectives
• Segmenting multiple country markets
• Global branding
• Country of origin
 What Foreign Market Strategy Issues
www.axcesscapon.com www.wileyindia.com Should the Firm Address?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 21

Scope

International Marketing

Limited Limited
Regional
Domestic International International
Marketing
Marketing Marketing
 What Foreign Market Strategy Issues
www.axcesscapon.com www.wileyindia.com Should the Firm Address?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 22

Segmenting Multiple Country Markets

• Segmentation by grouping countries
• common markets and trade zones
• cultural closeness
• geographic proximity
• historic relationships
• income
• language
• specific purpose
• Across-country segmentation
• demographic characteristics
• values
 What Foreign Market Strategy Issues
www.axcesscapon.com www.wileyindia.com Should the Firm Address?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 23

Values: Illustration – Roper Starch

• Strivers
• Devouts
• Altruists
• Intimates
• Fun seekers
• Creatives
 What Foreign Market Strategy Issues
www.axcesscapon.com www.wileyindia.com Should the Firm Address?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 24

Global Branding
• Favorable factors
• cross-border travel
• growth potential
• homogeneity of customer tastes across countries
• increased global media reach and lower costs
 What Foreign Market Strategy Issues
www.axcesscapon.com www.wileyindia.com Should the Firm Address?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 25

Global Branding
 What Foreign Market Strategy Issues
www.axcesscapon.com www.wileyindia.com Should the Firm Address?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 26

• Scope
• Objectives
• Segmenting multiple country markets
• Global branding
• Country of origin
• Cognitive
• Affective
• Normative
www.axcesscapon.com www.wileyindia.com International, Regional, and Global Marketing
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 27

Session Roadmap
• Should the firm enter foreign markets?
• How should the firm choose which foreign markets to enter?
• What foreign-market-entry options are available?
• What foreign market strategy issues should the firm address?
• How should the firm implement its foreign market strategy?
• How should the firm organize for global markets?
 How Should the Firm Implement
www.axcesscapon.com www.wileyindia.com Its Foreign Marketing Strategy?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 28

• Control versus flexibility

• Implementation levers
• product
• communications
• distribution
• price
www.axcesscapon.com www.wileyindia.com International, Regional, and Global Marketing
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 29

Session Roadmap
• Should the firm enter foreign markets?
• How should the firm choose which foreign markets to enter?
• What foreign-market-entry options are available?
• What foreign market strategy issues should the firm address?
• How should the firm implement its foreign market strategy?
• How should the firm organize for global markets?
 How Should the Firm
www.axcesscapon.com www.wileyindia.com Organize for Global Markets?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 30

• Export department
• International division
• Geographic region
• Functional
• Global product division
• Geographic region/product division matrix
• Global customer management
 How Should the Firm
www.axcesscapon.com www.wileyindia.com Organize for Global Markets?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 31

Traditional Organizations

Geography

Product
 How Should the Firm
www.axcesscapon.com www.wileyindia.com Organize for Global Markets?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 32

Global Customer Management

Geography

Product

Customer
 How Should the Firm
www.axcesscapon.com www.wileyindia.com Organize for Global Markets?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 33

Global Customer Management

• Modified geographic organization
• Market-integrated organization
• Global region
www.axcesscapon.com www.wileyindia.com International, Regional, and Global Marketing
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 34

Session Roadmap
• Should the firm enter foreign markets?
• How should the firm choose which foreign markets to enter?
• What foreign-market-entry options are available?
• What foreign market strategy issues should the firm address?
• How should the firm implement its foreign market strategy?
• How should the firm organize for global markets?
www.axcesscapon.com www.wileyindia.com

© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved. PRESENTATION 23 OF 24 / 35

CHAPTER 23

International, Regional,
and Global Marketing