kotler_mm13e_im_21 - APPING INTO CHAPTER LOBAL MARKETS 21...

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TAPPING INTO GLOBAL MARKETS 21 C H A P T E R LEARNING OBJECTIVES After reading this chapter, students should: Know what factors a company should review before deciding to go abroad Know how companies can evaluate and select specific foreign markets to enter Know what are the major ways of entering a foreign market Know to what extent the company must adapt its products and marketing program to each foreign country Know how the company should manage and organize its international activities CHAPTER SUMMARY Despite the many challenges in the international arena (shifting borders, unstable governments, foreign-exchange problems, corruption, and technological pirating), companies selling in global industries need to internationalize their operations. Companies cannot simply stay domestic and expect to maintain their markets. In deciding to go abroad, a company needs to define its international marketing objectives and policies. The company must determine whether to market in a few countries or many countries. It must decide which countries to consider. In general, the candidate countries should be rated on three criteria: market attractiveness, risk, and competitive advantage. Developing countries offer a unique set of opportunities and risks. Once a company decides on a particular country, it must determine the best mode of entry. Its broad choices are indirect exporting, direct exporting, licensing, joint ventures, and direct investment. Each succeeding strategy involves more commitment, risk, control, and profit potential. In deciding on the marketing program, a company must decide how much to adapt its marketing program. At the product level, firms can pursue a strategy of straight extension, product adaptation, or product invention. At the communication level, firms may choose communication adaptation or dual adaptation. At the price level, firms may encounter price escalation, dumping, gray markets, and discounted counterfeit products. At the distribution level, firms need to take a whole-channel view of the challenge of distributing products to the final users. In creating all elements of the marketing program, firms must be aware of the cultural, social, political, technological, environmental, and legal limitations they face in other countries. Country-of-origin perceptions can affect consumers and businesses alike. Managing those perceptions in the most advantageous way possible is an important marketing priority. 459
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Chapter-by-Chapter Instructional Material Depending on the level of international involvement, companies manage their international marketing activity in three ways: through export departments, international divisions, or a global organization. DETAILED CHAPTER OUTLINE
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kotler_mm13e_im_21 - APPING INTO CHAPTER LOBAL MARKETS 21...

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