Tapping into Global Markets

Decision regarding global market

• Deciding whether to go abroad

• Deciding which markets to enter
• Evaluating potential markets
• Deciding how to enter the market
• Deciding on the global marketing program

Deciding Deciding
Deciding Deciding on Deciding on the
which how to
whether to the marketing marketing
markets to enter the
go abroad program organization
enter market
Deciding whether to go abroad
• General risks associated with entering a new market
- To correctly identify competitive threat
- To build effective supply and distribution networks
- company’s inability to understand customer needs and develop an offering to address these needs
• Specific risks associated with doing business in a different country
- Business disrupted by commercial and political changes like tariffs, currency fluctuations
- Not understanding the nuances of the foreign country’s business culture
- Lacking skilled managers with international experience
- Intricacies of foreign regulations
Deciding which markets to enter
• Determining how many markets to enter
- Waterfall approach : gradually entering countries in sequence
- Sprinkler approach : entering many countries simultaneously
• Evaluating potential markets
- Physical proximity
- Cultural proximity
Deciding how to enter the market
• Licensing (McDonald’s. Burger , Subway)
• Joint Ventures
• Direct investment
• Indirect and Direct Export

Find out the advantages and disadvantages of these forms (Task)

Deciding on the Global Marketing Program
• Standardized marketing program: It promises the greatest consistency across
individual countries.
• Localized marketing program: It believes consumer needs vary and tailors its
marketing to each target group.

Compare the advantages and disadvantages of both??

 Global Product strategies
Global Product Global Brand Global Pricing Global Global distribution
Strategies Strategies strategies communication strategies
strategies

Straight Extension Set a uniform price Size and character of

everywhere retail units

Product Adaptation Brand Adaptation Set a market based

price in each country

Product Invention

Dealing with Country - of – origin

counterfeit products Effects
 Global Similarities and Differences across countries

Power Distance Individualism vs. Masculinity vs. Uncertainty Normative vs. Indulgence vs.
Index Collectivism Femininity Avoidance Index Pragmatic Restraint
Orientation
Degree to which In collectivist It measures how It reflects the It reflects the It represents the
the less powerful societies, the self greatly the culture degree to which extent to which a extent to which a
members of a worth of an reflects assertive the members of society links with society relies on
society accept individual is characteristics more a society feel its own past while strict norms to
and expect that rooted more in the often attributed to uncomfortable dealing with the guide individual
the power will be social system than males vs. nurturing with the challenges of behaviour
distributed in individual characteristics more uncertainty and present and future
unequally achievement often attributed to ambiguity
females

China vs. India Japan vs. USA