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Five strategies are used for adapting product and marketing communication strategies to a global marketStraight product extension- marketing a product in a foreign market without making any changes to the productProduct adaptation- adapting a product to meet local conditions or wants in foreign marketsProduct invention- consists of creating new products or services for foreign markets.Companies can either adopt the same communication strategy they use in the home market or change it for each local market. Othercompanies follow a strategy ofcommunication adaptation-fully adapting their advertising messages to local markets.An international company must take a whole-channel view (designing international channels that take into account the entire globalsupply chain and marketing channel, forging an effective global value delivery network) of the problem of distributing products tofinal consumers. There are two major links between the seller and the final buyer. The first link, channels between nations, movescompany products from points of production to the borders of countries within which they are sold. The second link, channels withinnations, moves products from their market entry points to the final consumers. The whole-channel view takes into account the entireglobal supply chain and marketing channel. It recognizes that to compete well internationally, the company must effectively designand manage an entire global value delivery network.Channels of distribution within countries vary greatly from nation to nation. LO4Deciding on the global marketing organizationCompanies manage their international marketing activities in at least three different ways: Most companies first organize an exportdepartment, then create an international division, and finally become a global organization. A firm normally gets into internationalmarketing by simply shipping out its goods. If its international sales expand, the company will establish an export departmentwith asales manager and a few assistants. As sales increase, the export department can expand to include various marketing services so thatit can actively go after business. If the firm moves into joint ventures or direct investment, the export department will no longer beadequate. Many companies get involved in several international markets and ventures. A company may export to one country, licenseto another, have a joint ownership venture in a third, and own a subsidiary in a fourth. Sooner or later it will create internationaldivisionsor subsidiaries to handle all its international activity. International divisions are organized in a variety of ways. An51
international division’s corporate staff consists of marketing, manufacturing, research, finance, planning, and personnel specialists. Itplans for and provides services to various operating units, which can be organized in one of three ways. They can be geographicalorganizations, with country managers who are responsible for salespeople, sales branches, distributors, and licensees in theirrespective countries. Or the operating units can be world product groups