Designing Global Market OfferingsDesigning Global Market OfferingsDesigning Global Market OfferingsDesigning Global Market Offerings

Otterbein College

Winter 2000

Otterbein College

Winter 2000

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ObjectiveObjectivess

ObjectiveObjectivess

• Factors to Consider Before Going Global

• Selecting Foreign Markets

• Foreign Market Entry

• Product Adaption for Global Marketing

• Management & Organization of Global Activities

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Deciding whetherto go abroad

Deciding whichmarkets to enter

Deciding how toenter the market

Deciding on themarketing program

Deciding on themarketing organization

Major Decisions in International Major Decisions in International MarketingMarketing

Major Decisions in International Major Decisions in International MarketingMarketing

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Challenges in Going Challenges in Going GlobalGlobal

Challenges in Going Challenges in Going GlobalGlobal

• Shifting borders

• Unstable governments

• Foreign-exchange

• Corruption

• Technological pirating

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Criteria for Criteria for EntryEntry

Criteria for Criteria for EntryEntry

• Market Attractiveness

• Risk

• Competitive Advantage

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Directinvest-ment

JointventuresLicensingDirect

exportingIndirect

Exporting

Amount of commitment, risk, control, and profit potential

Five Models of Entry Into Foreign Five Models of Entry Into Foreign MarketsMarkets

Five Models of Entry Into Foreign Five Models of Entry Into Foreign MarketsMarkets

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Joint Joint VentureVenture

Joint Joint VentureVenture

• Licensing: Sell rights to name brand

• Contract Manufacturing: make item in host country; manufacturer of product only

• Management Contracting: hired as mgmt. Consultant to host company

• Joint Ownership: truly partnering with company in host country; share expertise & mutual gains.

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Internationalization Internationalization ProcessProcess

Internationalization Internationalization ProcessProcess

No Export

Export via Agents

Sales Subsidiaries

Production Abroad

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Five International Five International ProductProduct

and Promotion Strategiesand Promotion Strategies

Five International Five International ProductProduct

and Promotion Strategiesand Promotion Strategies

PromotionPromotion

ProductProduct

Do not changeDo not changepromotionpromotion

AdaptAdaptpromotionpromotion

AdaptAdaptproductproduct

Do not changeDo not changeproductproduct

Develop newDevelop newproductproduct

Communi-cation

adaptationDual

adaptation

Productadaptation

Straightextension

Productinvention

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Pricing Pricing ChallengesChallenges

Pricing Pricing ChallengesChallenges

• Price Escalation

• Transfer Prices

• Dumping Charges

• Gray Markets

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Whole-channel Concept for Whole-channel Concept for

International MarketingInternational Marketing

Whole-channel Concept for Whole-channel Concept for

International MarketingInternational Marketing

Seller

Seller’s internationalmarketing headquarters

Channels betweennations

Channels withinforeign nations

Final buyers

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Marketing Marketing OrganizationOrganization

Marketing Marketing OrganizationOrganization

Export Department

International Division

Global OrganizationRUSSIA

ASIA

EUROPE

M IDDLE EAST

AFRICA

USA

SOUTH

AM ERICA

AUSTRALIA

CANADA

ANTARCTICA

GREENLAND

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Shaping the Market Offering:• Products, Branding, Packaging