Directory UMM :Slide_Kuliah:PPT:MP_Kotler_10:

Objectives
 Factors

to Consider Before Going

Global
 Selecting Foreign Markets
 Foreign Market Entry
 Product Adaption for Global Marketing
 Management & Organization of Global
Activities
©2000 Prentice Hall

Major Decisions in
International Marketing
Deciding whether
to go abroad
Deciding which
markets to enter
Deciding how to
enter the market

Deciding on the
marketing program
©2000 Prentice Hall

Deciding on the
marketing organization

Challenges in Going Global
 Shifting

borders
 Unstable governments
 Foreign-exchange
 Corruption
 Technological pirating

©2000 Prentice Hall

Criteria for Entry
 Market Attractiveness

 Risk
 Competitive Advantage

©2000 Prentice Hall

Five Models of Entry
Into Foreign Markets

Indirect
Exporting

Direct
exporting

Licensing

Joint
ventures

Direct

investment

Amount of commitment, risk, control, and profit potential

©2000 Prentice Hall

Joint Venture
 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 a
company in host country, to share expertise
and mutual gains.
©2000 Prentice Hall

Internationalization Process

No Export
Export via Agents

Sales Subsidiaries
Production Abroad
©2000 Prentice Hall

Five International Product
and Promotion Strategies
Product

Do not change
promotion

Do not change
product

Adapt
product

Straight
extension

Product
adaptation
Product
invention

Promotion
Adapt
promotion
©2000 Prentice Hall

Develop new
product

Communication
adaptation

Dual

adaptation

Pricing Challenges
>Price Escalation
>Transfer prices
>Dumping charges
>Gray markets

©2000 Prentice Hall

Whole-channel Concept for
International Marketing
Seller
Seller’s international
marketing headquarters

Channels between
nations
Channels within
foreign nations

©2000 Prentice Hall

Final buyers

Marketing Organization
Export Department

International Division

G REEN LAN D

RUSSIA
CAN ADA
EUROPE

USA
M I D D LE EAST

Global Organization

SO UTH
AM ERI CA

AUSTRALI A

ANTARCTICA

©2000 Prentice Hall

ASIA

AFRI CA

Review
 Factors

to Consider Before Going

Global
 Selecting Foreign Markets

 Foreign Market Entry
 Product Adaption for Global Marketing
 Management & Organization of Global
Activities
©2000 Prentice Hall