Kalan Lecture 11

Kalan Lecture 11 - K alan Lecture 11 2/28/2011 Going...

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Kalan Lecture 11 2/28/2011 Going International/Global A. You have to make many corporate decisions when going overseas. Do you want a subsidiary? There is always a tradeoff between risk and control. The more risk the less control, the more control the less risk. These a B. As marketers we are interested in product level decisions. a. Do you want the same marketing strategy in every market? b. Or do you want to offer more strategy based on things you learned about the local market place. C. Product Level Decisions a. Standardization vs. Localization i. Having a standard type of product is cost efficient. 1. You don’t have to have different designs or different machinery. ii. Economies of Scale: By manufacturing for a large entity we can manufacture in larger volumes. When you make a bigger volume you are able to make economies of scale. It is easier to centralize decision making. iii. Localized 1. Allows us to apply different needs in different locations 2. It allow us to accommodate different culture a. People in different markets of the world have different tastes. b. Product Decision: When designing a product you have 3 ways of determine if you want to go international i. Sell the same thing
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ii. Adopt our current product based on some local need. iii. Go to a new market place with something totally different from what
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Kalan Lecture 11 - K alan Lecture 11 2/28/2011 Going...

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