creating successful long-term growth -- Chapter 21 -- summary
Despite the many challenges in the international arena:
In deciding to go abroad, a company needs to define its international marketing objectives and policies. The company must determine whether to mark and the few countries or many countries. They must decide which countries to consider. In general, the candidate countries should be rated on three criteria: market attractiveness, risk, and competitive advantage. Developing countries offer a unique set of opportunities and risks.
Once accompanied his side to a particular country, it must determine the best mood of entry. Its broad choices are indirect exporting, direct exporting, licensing, joint ventures, and direct investment. Each succeeding strategy involves more commitment, risk, control, and profit potential.
In deciding on the marketing program, a company must decide how much to adapt its marketing program (product, communications, distribution, and price) to local conditions. At the product level, firms can pursue a strategy of straight extension, product adaptation, or product invention. At the communication level, firms may choose communication adaptation or dual adaptation. At the price level, firms may encounter price escalation in gray markets. At the distribution level, firms need to take a whole channel view of the challenge of distributing products to the final users. In creating all elements of the marketing program, firms must be aware of the cultural, social, political, technological, environmental, and legal limitations they face in other countries.
Country of origin perceptions can affect consumers and businesses alike. Managing this perceptions and the most advantageous way possible is an important marketing priority.
Depending on the level of international involvement, companies manage their international marketing activity in three ways: through export departments, international divisions, or a global organization.
Despite the many challenges in the international arena:
- shifting borders
- unstable government
- foreign exchange problems
- corruption
- technological pirating
In deciding to go abroad, a company needs to define its international marketing objectives and policies. The company must determine whether to mark and the few countries or many countries. They must decide which countries to consider. In general, the candidate countries should be rated on three criteria: market attractiveness, risk, and competitive advantage. Developing countries offer a unique set of opportunities and risks.
Once accompanied his side to a particular country, it must determine the best mood of entry. Its broad choices are indirect exporting, direct exporting, licensing, joint ventures, and direct investment. Each succeeding strategy involves more commitment, risk, control, and profit potential.
In deciding on the marketing program, a company must decide how much to adapt its marketing program (product, communications, distribution, and price) to local conditions. At the product level, firms can pursue a strategy of straight extension, product adaptation, or product invention. At the communication level, firms may choose communication adaptation or dual adaptation. At the price level, firms may encounter price escalation in gray markets. At the distribution level, firms need to take a whole channel view of the challenge of distributing products to the final users. In creating all elements of the marketing program, firms must be aware of the cultural, social, political, technological, environmental, and legal limitations they face in other countries.
Country of origin perceptions can affect consumers and businesses alike. Managing this perceptions and the most advantageous way possible is an important marketing priority.
Depending on the level of international involvement, companies manage their international marketing activity in three ways: through export departments, international divisions, or a global organization.
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