University of

Puerto Rico
Rio Piedras Campus

Marketing Management
Dr. Justin Paul
 2 1
e r
pt
a
Ch
Tapping into Global Markets
Discussion Questions
1. What factors should a company review
before deciding to go abroad?
2. How can companies evaluate and select
specific foreign markets to enter?
3. What are the differences between marketing
in a developing and a developed market?
4. What are the major ways of entering a
foreign market?

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Discussion Questions
5. To what extent must the company adapt its
products and marketing program to each
foreign country?
6. How do marketers influence country-of-origin
effects?
7. How should the company manage and
organize its international activities?

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Competing on a Global Basis

Otis Elevator
Door system – France
Small gear parts – Spain
Electronics – Germany
Motor drives – Japan
Systems integration – U.S.

Your CAR- TYRE-

MALAYSIA, seat leather-
Italian, Components-
Japanese, Gas- shell,
assembling- US..
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 .1
2 1
re
g u
Fi Deciding whether
to go abroad

Deciding which
Decisions in markets to enter

International Deciding how to

enter the market
Marketing
Deciding on the
marketing program

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 Deciding Whether to Go Abroad
Reduce single market dependency

Higher profit potential

Customers going abroad

Economies of scale
Counterattack
competitors

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Risks of Going Abroad
Lack:
•An understanding of foreign preferences
•An understanding foreign business culture
•Experienced managers

Underestimate:
•Foreign regulations

Foreign country may:

•Change commercial laws
•Devalue its currency
•Undergo political revolution
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The Internationalization Process

Independent
Representatives

Establish sales subsidiaries

Establish production facilities

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 Deciding Which Markets to Enter
How many markets

Evaluating potential markets

Developed versus
developing markets

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 Regional Trade Areas

NAFTA

European Union
APEC

ASEAN
MERCOSUR
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Deciding How to Enter the Market
Joint
Export
Venture

Direct
Licensing
Investment
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 .2
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Fi Direct Investment

Joint Ventures
Five Modes of
Entry into Licensing
Foreign Markets
Direct Exporting

Indirect Exporting

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Indirect and Direct Export
Indirect

Direct
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Licensing
Management
Contracts

Contract
Manufacturing

Franchising
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Joint Ventures & Direct Investment

Joint Venture

Direct Investment
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 Deciding on the Marketing Program

Global Similarities and Differences

Marketing Adaptation

Global Product Strategies

Global Communication Strategies

Global Pricing Strategies

Global Distribution Strategies

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 1 .2
e 2 Standardized Marketing
b l
Ta
Pros and Cons
Advantages Disadvantages
•Economies of scale Ignores differences in:
•Lower marketing costs •Consumer needs, wants, and
•Power and scope usage patterns
•Brand Consistency •Consumer response
•Leverage ideas quickly and •Brand and product
efficiently development
•Uniformity of marketing •Legal environment
practices •Marketing institutions
•Administrative procedures
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 Global Similarities and Differences
Soft Drink Consumption
(8-ounce servings)

Americans 760
Mexicans 674
Brazilians 315
Russians 149
Chinese 39

Median Age

25 43
China, India Germany, Italy, & Japan
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 Cultural Differences
Masculine versus feminine Collectivism

Individualism

Power distance

Uncertainty avoidance
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 Consumer Behavior Differences
Honda Automobiles

Japan – Speed, youth, and energy

U.S. – Quality and reliability

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Marketing Adaptation

Communications

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 Global Product Strategies

Product Standardization
Product Adaptation Strategies

Brand Element Adaptation

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 .3
2 1
re
i g u International Product and
F
Communication Strategies

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 Country-of-Origin Effects
Building Country Images

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 Country-of-Origin Effects
Consumer Perceptions

Ford Mustang

Toyota Sienna

Ethnocentric
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 Which is More American?
Ford Mustang

Toyota Sienna

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 Marketing Organization

Export Department

International Division

Global Organization
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P-Framework for
Internationalization
1. Path 2. POTENTIAL 3. Process
4. Pace
5. Potential 6. Problems
7. Performance.

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CPP Framework (Paul & Sanchez)

3 Type companies.

1. Conservatives
2. Predictables
3. Pacemakers.

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