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Unformatted text preview: Environment
• Sellers must examine the ways consumers in different countries think about and use products before planning a marketing program.
• Business norms vary from country to country.
• Companies that understand cultural nuances can use them to advantage when positioning products internationally. 15-8 Cultural Differences
• When Nike learned that this stylized “Air” logo resembled “Allah” in Arabic script, it apologized and pulled the shoes from distribution • Nova doesn’t go
15-9 Major International Marketing Decisions 15-10 Deciding Whether to Go Global
• Reasons to consider going global: – Foreign attacks on domestic markets
– Foreign markets with higher profit opportunities (ex. Tobacco)
– Stagnant or shrinking domestic markets
– Need larger customer base to achieve economies of scale
– Reduce dependency on single market – Follow customers who are expanding (Denso in Maryville)
15-11 Major International Marketing Decisions 15-12 Deciding Which Markets to Enter
• Before going abroad, the company should try to define its international marketing objectives and policies. What Volume of Foreign Sales is Desired?
How Many Countries to Market In?
What Types of Countries to Enter?
Choose Possible Countries and Rank Based on Market Size, Market Growth, Cost of Doing Business, Competitive Advantage, and Risk Level
15-13 Colgate goes to China
• Using aggressive promotional and educational programs, Colgate has expanded its market share from 7% to 35% in less than a decade 15-14 Major International Mar...
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- Fall '11