Comprehensive Insights on International Marketing Strategies
This content delves into various aspects of global marketing, including market entry strategies, benefits of global marketing, and the international planning process. It discusses the importance of customization in marketing, the trend towards localization, and the advantages of marketing globally. The content also explores alternative market entry strategies, emphasizing the significance of analyzing market characteristics, potential sales, strategic importance, and company capabilities. It provides valuable insights for companies looking to expand their presence in international markets.
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Presentation Transcript
International Marketing 15th edition Philip R. Cateora, Mary C. Gilly, and John L. Graham
Global Marketing Management The trend back toward localization Caused by the new efficiencies of customization Made possible by the Internet Increasingly flexible manufacturing processes From the marketing perspective customization is always best Global markets continue to homogenize and diversify simultaneously Best companies will avoid trap of focusing on country as the primary segmentation variable 12 Roy Philip 2
Benefits of Global Marketing 12 When large market segments can be identified Economies of scale in production and marketing Important competitive advantages for global companies Transfer of experience and know-how Across countries through improved coordination and integration of marketing activities Marketing globally Ensures that marketers have access to the toughest customers Market diversity carries with it additional financial benefits Firms are able to take advantage of changing financial circumstances Roy Philip 3
International Planning Process 12 Exhibit 12.1 Roy Philip 4
Alternative Market-Entry Strategies (1 of 2) An entry strategy into international market should reflect on analysis Market characteristics Potential sales Strategic importance Strengths of local resources Cultural differences Country restrictions Company capabilities and characteristics Degree of near-market knowledge Marketing involvement Management commitment 12 Roy Philip 5
Alternative Market-Entry Strategies 12 Exhibit 12.2 Roy Philip 6
Alternative Market-Entry Strategies (2 of 2) 12 Companies most often begin with modest export involvement A company has four different modes of foreign market entry Exporting Contractual agreements Strategic international alliances Direct foreign investments Roy Philip 7
Contractual Agreement (1 of 2) Contractual agreements Long-term, Nonequity association between a company and another in a foreign market Licensing A means of establishing a foothold in foreign markets without large capital outlays A favorite strategy for small and medium-sized companies Legitimate means of capitalizing on intellectual property in a foreign market 12 Roy Philip 8
Contractual Agreement (2 of 2) 12 Franchising Franchiser provides a standard package of products, systems, and management services Franchise provides market knowledge, capital, and personal involvement in management Expected to be the fastest-growing market-entry strategy Two types of franchise agreements Master franchise Gives the franchisee the rights to a specific area with the authority to sell or establish subfranchises Licensing Roy Philip 9
Strategic International Alliances Four characteristics define joint ventures: JVs are established, separate, legal entities The acknowledged intent by the partners to share in the management of the JV There are partnerships between legally incorporated entities such as companies, chartered organizations, or governments, and not between individuals Equity positions are held by each of the partners 12 Roy Philip 10
Strategic International Alliances Consortia Similar to joint ventures and could be classified as such except for two unique characteristics Typically involve a large number of participants Frequently operate in a country or market in which none of the participants is currently active Consortia are developed to pool financial and managerial resources and to lessen risks 12 Roy Philip 11
Direct Foreign Investment 12 Factors that influence the structure and performance of direct investments Timing The growing complexity and contingencies of contracts Transaction cost structures Technology transfer Degree of product differentiation The previous experiences and cultural diversity of acquired firms Advertising and reputation barriers Roy Philip 12
