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Global Marketing Strategies Explained

A global firm operates in multiple countries to gain advantages like lower costs through economies of scale in R&D, production, marketing and finance that domestic competitors cannot achieve. There are advantages like consistent branding but also disadvantages like differing consumer needs. Key decisions include whether, where and how to enter new markets and adapting the marketing program and organization. Firms typically start with no exports, then use agents, establish subsidiaries and later production facilities abroad. Desired country characteristics are high attractiveness and low risk. Modes of entry range from indirect exporting to direct investment based on commitment, risk and control. Marketing aspects that can be adapted include products, packaging, prices, promotion and communication strategies. Firms can have various levels of product adaptation and

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14 views16 pages

Global Marketing Strategies Explained

A global firm operates in multiple countries to gain advantages like lower costs through economies of scale in R&D, production, marketing and finance that domestic competitors cannot achieve. There are advantages like consistent branding but also disadvantages like differing consumer needs. Key decisions include whether, where and how to enter new markets and adapting the marketing program and organization. Firms typically start with no exports, then use agents, establish subsidiaries and later production facilities abroad. Desired country characteristics are high attractiveness and low risk. Modes of entry range from indirect exporting to direct investment based on commitment, risk and control. Marketing aspects that can be adapted include products, packaging, prices, promotion and communication strategies. Firms can have various levels of product adaptation and

Uploaded by

Anuj Chanda
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Tapping Into Global Markets

What is a Global Firm?

A global firm is one that operates in more than one country and
captures R&D, production, logistical, marketing, and financial
advantages in its costs and reputation that are not available to
purely domestic competitors
Global Marketing

Advantages Disadvantages
• Economies of scale • Differences in consumer
• Lower marketing costs needs, wants, usage patterns
• Power and scope • Differences in consumer
• Consistency in brand image response to marketing mix
• Ability to leverage • Differences in brand
• Uniformity of marketing development process
practices • Differences in environment
Major Decisions in International Marketing
Deciding whether to go

Deciding which markets to enter

Deciding how to enter

Deciding on the marketing program

Deciding on the marketing organization


Four Stages of Internationalization

No regular export activities

Export via independent agents

Establish sales subsidiaries

Establish production facilities abroad


Desired Country
Characteristics for Market Entry

• Rank high on market


attractiveness
• Rank low in market risk
• Possess a competitive
advantage
Modes of Entry into Foreign Markets

Indirect Direct Joint Direct


Licensing
exporting exporting ventures investment

Commitment, Risk, Control, Profit Potential


What Marketing Aspects Might Be Adapted for
International Marketing?

• Product features • Packaging

• Colors • Advertising execution

• Materials • Prices

• Sales promotion • Advertising themes

• Advertising media
International Product and Communication
Strategies
Levels of Product Adaptation

• Production of regional product versions

• Production of country versions

• Production of city versions

• Production of retailer versions


Price Choices

• Set a uniform price everywhere

• Set a market-based price in each country

• Set a cost-based price in each country


What is a Gray Market?

A gray market consists of branded products diverted


from normal or authorized distributions channels in the
country of product origin or cross international borders;
dealers in lower priced countries sell products in higher
priced countries.
Country of Origin Effects

• Many countries have become known for expertise in


certain product categories or for conveying a particular
type of image.
• In world’s cultural bazaar consumers pick and chose
brands originating in different countries based on their
belief about quality from those countries
• Italian suits, German car, American shoes, French wine
• Gucci shoes and purses – Italy
• Mont Blanc pens – Switzerland
Country of Origin - Examples
Global Organization Strategies

World
World as
as Single
Single Market
Market

Multinational
Multinational

“Glocal”
“Glocal”

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