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1、Tapping into Global MarketsChapter 8studyLearning Objectives01What factors should a company review before deciding to go abroad?02How can companies evaluate and select specific international markets to enter?03What are the differences between marketing in a developing and a developed market?04What a
2、re the major ways of entering a foreign market?05To what extent must the company adapt its products and marketing program to each foreign country?06How do marketers influence country-of-origin effects?Competing on a Global BasisGlobal industryCompetitors strategic positions in major geographic or na
3、tional markets are affected by their overall global positionsGlobal firmOperates in more than one country and captures R&D,production,logistical,marketing,and financial advantages not available to purely domestic competitorsFigure 8.1Decisions In International MarketingDeciding Whether to Go AbroadF
4、actors that draw companies into the international arenaSome international markets present better profit opportunities than domestic marketFirm needs larger customer base to achieve economies of scaleDeciding Whether to Go AbroadFirm wants to reduce dependence on any one marketFirm counterattacks glo
5、bal competitors in home marketsCustomers going abroad require international serviceDeciding Whether to Go AbroadBefore making a decision to go abroad,the company must also weigh several risksFirm might not understand foreign preferences,failing to offer competitively attractive productFirm might not
6、 understand foreign countrys cultureFirm might underestimate foreign regulations and incur unexpected costsFirm might lack managers with international experienceForeign country might change commercial laws,devalue currency,or expropriate foreign propertyDeciding Whether to Go Abroad作废！Firm might und
7、erestimate foreign regulations and incur unexpected costsFirm might lack managers with international experienceForeign country might change commercial laws,devalue currency,or expropriate foreign propertyInternationalization ProcessStage 1:No export activitiesStage 2:Export via independent represent
8、atives Stage 3:Establishment of sales subsidiariesStage 4:Establishment of production facilities abroadDeciding Which Markets to EnterHow many markets to enterWaterfall ApproachSprinkler ApproachBorn GlobalReference GroupsNeighboring countriesPsychic proximity/cultural distanceFewer countriesSucceed
9、ing in Developing MarketsBRICSBrazil,Russia,India,China,and South AfricaCIVETSColumbia,Indonesia,Vietnam,Egypt,Turkey,and South AfricaSucceeding in Developing MarketsBrazil Biggest economy in Latin America Sixth largest economy in the world Fifth-largest country of digital users High cost of transpo
10、rting products Crime and corruption existSucceeding in Developing MarketsRussia Largest exporter of natural gas Second-largest exporter of oil Third-largest exporter of steel/aluminum Make heavy use of social media Dwindling workforce/poor infrastructureSucceeding in Developing MarketsIndia Lively d
11、emocracy/youthful population Worlds second most populous nation One of the youngest large economies Has fully embraced mobile technology Poor infrastructure/public servicesSucceeding in Developing MarketsChina Largest auto market in the world Emerging urban middle class Worlds top consumer of luxury
12、 goods Fierce competition among foreign firms Opaque and arbitrary bureaucracySucceeding in Developing MarketsSouth Africa Access point to the African region Increasing discretionary income Consumers are brand conscious Increasing reliance on mobile phones Logistical/infrastructure problemsSucceeding in Developing MarketsIndonesia Increasing political stability Increasing economic growth Largest Muslim country Consumers are brand conscious Distribution/infrastructure limitationsFigure 8.2Modes of Foreign Market Entry