832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 130

Impact of Globalization to

International Marketing

Presented by Ireneo Cantildeete JrAurora Cendana

Marketing Management ndash Dr Ed Garrovillas

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 230

Reference

Marketing Management 11th

editionby Philip Kotler

Out of the Box Marketing Principles that workand make sense by Dr E Garrovillas

wwwworldbankorg

Kotler on Marketing

ldquoToday you have to run faster to stay in

placerdquo

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 330

Objectives

Focus on the following questions

What factors should a company review before decidingto go abroad

How can companies evaluate and select foreignmarkets to enter

What are the major ways of entering a foreign market To what extent must the company adapt its products

and marketing program to each foreign country

How should the company manage and organize its

international activities

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 430

Globalization

According to Friedman (1999) Globalization isthe inexorable integration of markets nationstates and technologies to a degree neverwitnessed before- in a way that is enabling

individuals corporations and nation-states toreach around the world farther faster deeperand cheaper than before the spread of free-market capitalism to virtually every country

around the world

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 530

Pros And Cons Of Globalization

Globalization is a new term that has found a significantplace in the lives of the people By globalization wemean shedding down the walls of distrust and thebarriers of suspicion in between countries to make abridge where ideas and beliefs can cross the borders

Though globalization today primarily covers the

economical side the impact is not limited to theeconomy only It actually affects every aspect of lifelike cultural social psychological and of coursepolitical

While globalization is seen as a sign of a hopeful future

by some there are others who believe that it can causetremendous disaster for the world economy Read on to find the pros and cons of globalization

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 630

Pros Of Globalization With globalization there is a global market for companies to trade their

products and a wider range of options for people to choose from amongthe products of different nations

Developing countries benefit a lot from globalization as there is a soundflow of money and thus a decrease in the currency difference

To meet the increasing demands that follow globalization there is anincrease in the production sector This gives loads of options to themanufacturers as well

Competition keeps prices relatively low and as a result inflation is less

likely to occur The focus is diverted and segregated among all the nations No countryremains the single power head instead there are compartmentalizedpower sectors The decisions at higher levels are meant for the people atlarge

Communication among the countries is on the rise which allows for betterunderstanding and broader vision

As communication increases amongst two countries there is interchangeof cultures as well We get to know more about the others culturalpreferences

As we feed to each others financial needs the ecological imbalance isalso meted out Governments of countries show concern about eachother

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 730

Cons Of Globalization Globalization is causing Europeans to lose their jobs as work is

being outsourced to the Asian countries The cost of labor in theAsian countries is low as compared to other countries

The high rate of profit for the companies in Asia has resulted in apressure on the employed Europeans who are always under thethreat of the business being outsourced

Companies are as opening their counterparts in other countriesThis results in transferring the quality of their product to othercountries thereby increasing the chances of depreciation in termsof quality

There are experts who believe that globalization is the cause forthe invasion of communicable diseases and social degeneration incountries

The threat that the corporates would rule the world is on high asthere is a lot of money invested by them

It is often argued that poor countries are exploited by the richercountries where the work force is taken advantage of and lowwages are implemented

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 830

Appraising the Global Marketing

Environment A company has to examine many issues deciding

whether and where to sell abroad The company has to acquire a thorough understanding

of the international marketing environment Significant changes in past 2 decades

Substantial speedup of international transportationcommunication and financial transactionsIncrease of strategic alliances bw major

international companiesGrowth of global brands in autos food clothing

electronics and many other categoriesRising economic power of Japan and several FarEastern countries in world markets

Strategies for Global

Market Penetrationppt

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 230

Reference

Marketing Management 11th

editionby Philip Kotler

Out of the Box Marketing Principles that workand make sense by Dr E Garrovillas

wwwworldbankorg

Kotler on Marketing

ldquoToday you have to run faster to stay in

placerdquo

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 330

Objectives

Focus on the following questions

What factors should a company review before decidingto go abroad

How can companies evaluate and select foreignmarkets to enter

What are the major ways of entering a foreign market To what extent must the company adapt its products

and marketing program to each foreign country

How should the company manage and organize its

international activities

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 430

Globalization

According to Friedman (1999) Globalization isthe inexorable integration of markets nationstates and technologies to a degree neverwitnessed before- in a way that is enabling

individuals corporations and nation-states toreach around the world farther faster deeperand cheaper than before the spread of free-market capitalism to virtually every country

around the world

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 530

Pros And Cons Of Globalization

Globalization is a new term that has found a significantplace in the lives of the people By globalization wemean shedding down the walls of distrust and thebarriers of suspicion in between countries to make abridge where ideas and beliefs can cross the borders

Though globalization today primarily covers the

economical side the impact is not limited to theeconomy only It actually affects every aspect of lifelike cultural social psychological and of coursepolitical

While globalization is seen as a sign of a hopeful future

by some there are others who believe that it can causetremendous disaster for the world economy Read on to find the pros and cons of globalization

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 630

Pros Of Globalization With globalization there is a global market for companies to trade their

products and a wider range of options for people to choose from amongthe products of different nations

Developing countries benefit a lot from globalization as there is a soundflow of money and thus a decrease in the currency difference

To meet the increasing demands that follow globalization there is anincrease in the production sector This gives loads of options to themanufacturers as well

Competition keeps prices relatively low and as a result inflation is less

likely to occur The focus is diverted and segregated among all the nations No countryremains the single power head instead there are compartmentalizedpower sectors The decisions at higher levels are meant for the people atlarge

Communication among the countries is on the rise which allows for betterunderstanding and broader vision

As communication increases amongst two countries there is interchangeof cultures as well We get to know more about the others culturalpreferences

As we feed to each others financial needs the ecological imbalance isalso meted out Governments of countries show concern about eachother

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 730

Cons Of Globalization Globalization is causing Europeans to lose their jobs as work is

being outsourced to the Asian countries The cost of labor in theAsian countries is low as compared to other countries

The high rate of profit for the companies in Asia has resulted in apressure on the employed Europeans who are always under thethreat of the business being outsourced

Companies are as opening their counterparts in other countriesThis results in transferring the quality of their product to othercountries thereby increasing the chances of depreciation in termsof quality

There are experts who believe that globalization is the cause forthe invasion of communicable diseases and social degeneration incountries

The threat that the corporates would rule the world is on high asthere is a lot of money invested by them

It is often argued that poor countries are exploited by the richercountries where the work force is taken advantage of and lowwages are implemented

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 830

Appraising the Global Marketing

Environment A company has to examine many issues deciding

whether and where to sell abroad The company has to acquire a thorough understanding

of the international marketing environment Significant changes in past 2 decades

Substantial speedup of international transportationcommunication and financial transactionsIncrease of strategic alliances bw major

international companiesGrowth of global brands in autos food clothing

electronics and many other categoriesRising economic power of Japan and several FarEastern countries in world markets

Strategies for Global

Market Penetrationppt

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 330

Objectives

Focus on the following questions

What factors should a company review before decidingto go abroad

How can companies evaluate and select foreignmarkets to enter

What are the major ways of entering a foreign market To what extent must the company adapt its products

and marketing program to each foreign country

How should the company manage and organize its

international activities

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 430

Globalization

According to Friedman (1999) Globalization isthe inexorable integration of markets nationstates and technologies to a degree neverwitnessed before- in a way that is enabling

individuals corporations and nation-states toreach around the world farther faster deeperand cheaper than before the spread of free-market capitalism to virtually every country

around the world

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 530

Pros And Cons Of Globalization

Globalization is a new term that has found a significantplace in the lives of the people By globalization wemean shedding down the walls of distrust and thebarriers of suspicion in between countries to make abridge where ideas and beliefs can cross the borders

Though globalization today primarily covers the

economical side the impact is not limited to theeconomy only It actually affects every aspect of lifelike cultural social psychological and of coursepolitical

While globalization is seen as a sign of a hopeful future

by some there are others who believe that it can causetremendous disaster for the world economy Read on to find the pros and cons of globalization

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 630

Pros Of Globalization With globalization there is a global market for companies to trade their

products and a wider range of options for people to choose from amongthe products of different nations

Developing countries benefit a lot from globalization as there is a soundflow of money and thus a decrease in the currency difference

To meet the increasing demands that follow globalization there is anincrease in the production sector This gives loads of options to themanufacturers as well

Competition keeps prices relatively low and as a result inflation is less

likely to occur The focus is diverted and segregated among all the nations No countryremains the single power head instead there are compartmentalizedpower sectors The decisions at higher levels are meant for the people atlarge

Communication among the countries is on the rise which allows for betterunderstanding and broader vision

As communication increases amongst two countries there is interchangeof cultures as well We get to know more about the others culturalpreferences

As we feed to each others financial needs the ecological imbalance isalso meted out Governments of countries show concern about eachother

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 730

Cons Of Globalization Globalization is causing Europeans to lose their jobs as work is

being outsourced to the Asian countries The cost of labor in theAsian countries is low as compared to other countries

The high rate of profit for the companies in Asia has resulted in apressure on the employed Europeans who are always under thethreat of the business being outsourced

Companies are as opening their counterparts in other countriesThis results in transferring the quality of their product to othercountries thereby increasing the chances of depreciation in termsof quality

There are experts who believe that globalization is the cause forthe invasion of communicable diseases and social degeneration incountries

The threat that the corporates would rule the world is on high asthere is a lot of money invested by them

It is often argued that poor countries are exploited by the richercountries where the work force is taken advantage of and lowwages are implemented

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 830

Appraising the Global Marketing

Environment A company has to examine many issues deciding

whether and where to sell abroad The company has to acquire a thorough understanding

of the international marketing environment Significant changes in past 2 decades

Substantial speedup of international transportationcommunication and financial transactionsIncrease of strategic alliances bw major

international companiesGrowth of global brands in autos food clothing

electronics and many other categoriesRising economic power of Japan and several FarEastern countries in world markets

Strategies for Global

Market Penetrationppt

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 430

Globalization

According to Friedman (1999) Globalization isthe inexorable integration of markets nationstates and technologies to a degree neverwitnessed before- in a way that is enabling

individuals corporations and nation-states toreach around the world farther faster deeperand cheaper than before the spread of free-market capitalism to virtually every country

around the world

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 530

Pros And Cons Of Globalization

Globalization is a new term that has found a significantplace in the lives of the people By globalization wemean shedding down the walls of distrust and thebarriers of suspicion in between countries to make abridge where ideas and beliefs can cross the borders

Though globalization today primarily covers the

economical side the impact is not limited to theeconomy only It actually affects every aspect of lifelike cultural social psychological and of coursepolitical

While globalization is seen as a sign of a hopeful future

by some there are others who believe that it can causetremendous disaster for the world economy Read on to find the pros and cons of globalization

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 630

Pros Of Globalization With globalization there is a global market for companies to trade their

products and a wider range of options for people to choose from amongthe products of different nations

Developing countries benefit a lot from globalization as there is a soundflow of money and thus a decrease in the currency difference

To meet the increasing demands that follow globalization there is anincrease in the production sector This gives loads of options to themanufacturers as well

Competition keeps prices relatively low and as a result inflation is less

likely to occur The focus is diverted and segregated among all the nations No countryremains the single power head instead there are compartmentalizedpower sectors The decisions at higher levels are meant for the people atlarge

Communication among the countries is on the rise which allows for betterunderstanding and broader vision

As communication increases amongst two countries there is interchangeof cultures as well We get to know more about the others culturalpreferences

As we feed to each others financial needs the ecological imbalance isalso meted out Governments of countries show concern about eachother

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 730

Cons Of Globalization Globalization is causing Europeans to lose their jobs as work is

being outsourced to the Asian countries The cost of labor in theAsian countries is low as compared to other countries

The high rate of profit for the companies in Asia has resulted in apressure on the employed Europeans who are always under thethreat of the business being outsourced

Companies are as opening their counterparts in other countriesThis results in transferring the quality of their product to othercountries thereby increasing the chances of depreciation in termsof quality

There are experts who believe that globalization is the cause forthe invasion of communicable diseases and social degeneration incountries

The threat that the corporates would rule the world is on high asthere is a lot of money invested by them

It is often argued that poor countries are exploited by the richercountries where the work force is taken advantage of and lowwages are implemented

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 830

Appraising the Global Marketing

Environment A company has to examine many issues deciding

whether and where to sell abroad The company has to acquire a thorough understanding

of the international marketing environment Significant changes in past 2 decades

Substantial speedup of international transportationcommunication and financial transactionsIncrease of strategic alliances bw major

international companiesGrowth of global brands in autos food clothing

electronics and many other categoriesRising economic power of Japan and several FarEastern countries in world markets

Strategies for Global

Market Penetrationppt

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 530

Pros And Cons Of Globalization

Globalization is a new term that has found a significantplace in the lives of the people By globalization wemean shedding down the walls of distrust and thebarriers of suspicion in between countries to make abridge where ideas and beliefs can cross the borders

Though globalization today primarily covers the

economical side the impact is not limited to theeconomy only It actually affects every aspect of lifelike cultural social psychological and of coursepolitical

While globalization is seen as a sign of a hopeful future

by some there are others who believe that it can causetremendous disaster for the world economy Read on to find the pros and cons of globalization

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 630

Pros Of Globalization With globalization there is a global market for companies to trade their

products and a wider range of options for people to choose from amongthe products of different nations

Developing countries benefit a lot from globalization as there is a soundflow of money and thus a decrease in the currency difference

To meet the increasing demands that follow globalization there is anincrease in the production sector This gives loads of options to themanufacturers as well

Competition keeps prices relatively low and as a result inflation is less

likely to occur The focus is diverted and segregated among all the nations No countryremains the single power head instead there are compartmentalizedpower sectors The decisions at higher levels are meant for the people atlarge

Communication among the countries is on the rise which allows for betterunderstanding and broader vision

As communication increases amongst two countries there is interchangeof cultures as well We get to know more about the others culturalpreferences

As we feed to each others financial needs the ecological imbalance isalso meted out Governments of countries show concern about eachother

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 730

Cons Of Globalization Globalization is causing Europeans to lose their jobs as work is

being outsourced to the Asian countries The cost of labor in theAsian countries is low as compared to other countries

The high rate of profit for the companies in Asia has resulted in apressure on the employed Europeans who are always under thethreat of the business being outsourced

Companies are as opening their counterparts in other countriesThis results in transferring the quality of their product to othercountries thereby increasing the chances of depreciation in termsof quality

There are experts who believe that globalization is the cause forthe invasion of communicable diseases and social degeneration incountries

The threat that the corporates would rule the world is on high asthere is a lot of money invested by them

It is often argued that poor countries are exploited by the richercountries where the work force is taken advantage of and lowwages are implemented

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 830

Appraising the Global Marketing

Environment A company has to examine many issues deciding

whether and where to sell abroad The company has to acquire a thorough understanding

of the international marketing environment Significant changes in past 2 decades

Substantial speedup of international transportationcommunication and financial transactionsIncrease of strategic alliances bw major

international companiesGrowth of global brands in autos food clothing

electronics and many other categoriesRising economic power of Japan and several FarEastern countries in world markets

Strategies for Global

Market Penetrationppt

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 630

Pros Of Globalization With globalization there is a global market for companies to trade their

products and a wider range of options for people to choose from amongthe products of different nations

Developing countries benefit a lot from globalization as there is a soundflow of money and thus a decrease in the currency difference

To meet the increasing demands that follow globalization there is anincrease in the production sector This gives loads of options to themanufacturers as well

Competition keeps prices relatively low and as a result inflation is less

likely to occur The focus is diverted and segregated among all the nations No countryremains the single power head instead there are compartmentalizedpower sectors The decisions at higher levels are meant for the people atlarge

Communication among the countries is on the rise which allows for betterunderstanding and broader vision

As communication increases amongst two countries there is interchangeof cultures as well We get to know more about the others culturalpreferences

As we feed to each others financial needs the ecological imbalance isalso meted out Governments of countries show concern about eachother

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 730

Cons Of Globalization Globalization is causing Europeans to lose their jobs as work is

being outsourced to the Asian countries The cost of labor in theAsian countries is low as compared to other countries

The high rate of profit for the companies in Asia has resulted in apressure on the employed Europeans who are always under thethreat of the business being outsourced

Companies are as opening their counterparts in other countriesThis results in transferring the quality of their product to othercountries thereby increasing the chances of depreciation in termsof quality

There are experts who believe that globalization is the cause forthe invasion of communicable diseases and social degeneration incountries

The threat that the corporates would rule the world is on high asthere is a lot of money invested by them

It is often argued that poor countries are exploited by the richercountries where the work force is taken advantage of and lowwages are implemented

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 830

Appraising the Global Marketing

Environment A company has to examine many issues deciding

whether and where to sell abroad The company has to acquire a thorough understanding

of the international marketing environment Significant changes in past 2 decades

Substantial speedup of international transportationcommunication and financial transactionsIncrease of strategic alliances bw major

international companiesGrowth of global brands in autos food clothing

electronics and many other categoriesRising economic power of Japan and several FarEastern countries in world markets

Strategies for Global

Market Penetrationppt

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 730

Cons Of Globalization Globalization is causing Europeans to lose their jobs as work is

being outsourced to the Asian countries The cost of labor in theAsian countries is low as compared to other countries

The high rate of profit for the companies in Asia has resulted in apressure on the employed Europeans who are always under thethreat of the business being outsourced

Companies are as opening their counterparts in other countriesThis results in transferring the quality of their product to othercountries thereby increasing the chances of depreciation in termsof quality

There are experts who believe that globalization is the cause forthe invasion of communicable diseases and social degeneration incountries

The threat that the corporates would rule the world is on high asthere is a lot of money invested by them

It is often argued that poor countries are exploited by the richercountries where the work force is taken advantage of and lowwages are implemented

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 830

Appraising the Global Marketing

Environment A company has to examine many issues deciding

whether and where to sell abroad The company has to acquire a thorough understanding

of the international marketing environment Significant changes in past 2 decades

Substantial speedup of international transportationcommunication and financial transactionsIncrease of strategic alliances bw major

international companiesGrowth of global brands in autos food clothing

electronics and many other categoriesRising economic power of Japan and several FarEastern countries in world markets

Strategies for Global

Market Penetrationppt

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 830

Appraising the Global Marketing

Environment A company has to examine many issues deciding

whether and where to sell abroad The company has to acquire a thorough understanding

of the international marketing environment Significant changes in past 2 decades

Substantial speedup of international transportationcommunication and financial transactionsIncrease of strategic alliances bw major

international companiesGrowth of global brands in autos food clothing

electronics and many other categoriesRising economic power of Japan and several FarEastern countries in world markets

Strategies for Global

Market Penetrationppt

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 930

Competing on a Global Basis

Global industry Global firm

Major Decisions inInternational Marketing

Deciding whether to

go abroad

Deciding which marketsto enter

Deciding how to enterthe market

Deciding on the marketing

program

Deciding on the marketingorganization

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1030

Deciding Whether To Go Abroad

Factors drawing companies into the internationalarena

Global firms offering better products or lower pricescan attack the companyrsquos domestic market

The company discovers that some foreign marketspresent higher profit opportunities than the domesticmarket

The company needs a larger customer base to achieveeconomies of scale

The company wants to reduce its dependence on anyone market

The companyrsquos customers are going abroad and needservicing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1130

Deciding Whether To Go Abroad

Before going abroad the company must weigh severalrisk

The company might not understand foreign customerpreferences and fail to offer a competitively attractiveproduct

The company might not understand the foreigncountryrsquos business culture or know how to dealeffectively with foreign nationals

The company might underestimate foreign regulationsand incur unexpected costs

The company might realize that it lacks managers withinternational experience

The foreign country might change its commercial lawsdevalue its currency or undergo a political revolutionand expropriate property

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1230

Blunders in International Marketing

Hallmark cards failed when they were introduced in France The

French dislike syrupy sentiment and prefer writing their own cards

Philips began to earn a profit in Japan only after it had reduced thesize of its coffeemakers to fit into smaller Japanese kitchens andits shavers to fit smaller Japanese hands

Coca-Cola had to withdraw its two-liter bottle in Spain afterdiscovering that few Spaniards owned refrigerators with largeenough compartments to accommodate it

General Foodsrsquo Tang initially failed in France because it waspositioned as a substitute for orange juice at breakfast TheFrench drink little orange juice and almost none at breakfast

Kelloggrsquos Pop-Tarts failed in Britain because the percentage ofBritish Pop- homes with toasters was significantly lower than in theUnited States and the product was too sweet for British tastes

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1330

Deciding Which Markets to Enter

How many markets must a company enter

The candidate countries should be initially rated on 3 majorcriteriaMarket attractiveness ndash GNPcapita work force pop growth

Competitive advantage ndash business dealings

Risk ndash stability in political currency repatriation rules

High Med Low

H China

LM Czech

L EastGermany

H Poland

HM Romania

L

CompetitiveAdvantage

Competitive Advantage

Risk

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1430

Deciding Which Markets to Enter

Prepare a financial analysis of top 3 countries Fivesteps involved in estimating the probable rate of return

on investment

Estimate of Current Market Potential ndash estimate totalindustry sales in each market task calls for using published data and primarydata collected through company surveys

Forecast of Future Market Potential and Risk ndash forecast future industry sales (difficult task) requires predicting economic andpolitical developments and impact on industry sales

Forecast of Sales Potential ndash estimating the companyrsquos salesrequires forecasting its probable market share based on its competitiveadvantage (another difficult task)

Forecasts of Costs and Profits ndash cost will depend oncompanyrsquos entry strategy company subtracts estimated costs from estimatedsales to derive company profits

Estimate of Rate of Return on Investment ndash forecastedincome stream should be related to investment stream to derive implicit rate ofreturn should be high enough to cover firmrsquos normal target return on its

investments and the risk of marketing in that country

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1530

Deciding Which Markets to Enter

Regional free trade zones

The European Union

NAFTA

MERCOSUL

APEC

Evaluating potential markets

Psychic proximity

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1630

Deciding How to Enter the Market

Five Modes of Entry intoForeign Markets

Direct Investment

Joint Ventures

Licensing

Direct Exporting

Indirect Exporting A m o u n t o f c o m m i t m e n t r i s k c o n t r o l a n d

p r o f i t p o t e n t i a l

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1730

Deciding How to Enter the Market

Indirect and direct export

Indirect exporting

Occasional exporting

Active exporting

Domestic- Domestic-based export merchants

Domestic- Domestic-based export agents

Cooperative organizations

Export-management companies

832019 Impact of Globalization to International Marketing

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Deciding How to Enter the Market

Companies can carry on direct exporting inseveral ways

Domestic-based export department or division

Overseas sales branch or subsidiary

Traveling export sales representatives

Foreign-based distributors or agents

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1930

Deciding How to Enter the Market

Licensing

Management contracts

Contract manufacturing

Franchising

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2030

Deciding How to Enter the Market

Joint ventures Direct investment

The Internationalization Process

Johanson and Wiedersheim-Paul identified fourstages in the internationalization process No regular export activities Export via independent representatives (agents) Establishment of one or more sales subsidiaries

Establishment of production facilities abroad

832019 Impact of Globalization to International Marketing

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ASEAN countries Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

Brunei Darussalam 87839128 257635717 222184549 325586827 495720000

Cambodia 483209382 867288538 815180217 530151578 782597000

Indonesia 4914201435 6928480000 9318453649 4877369178 13303654878

Lao PDR 187310641 323520000 227770000 318598209 350000000

Malaysia 6076119971 8590185403 7375907979 1387393683 9102974458

Myanmar 278634106 257686000 283454600 322975866 756323000

Philippines 2921000000 2916000000 1544000000 1963000000 1713000000

Singapore 29347864395 37032936287 8588194480 15278566655 38638121023

Thailand 9452928923 11323987644 8531083130 4976284679 6306251509

Vietnam 2400000000 6700000000 9579000000 7600000000 8000000000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2230

ASEAN + 3 Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

China 124082036118 160051835203 175147650311 114214527413 185080744436

Japan -6783580857 22180067084 24551812047 11834116164 -1358906189

Korea Dem Rep -104620000 66730000 43800000 1970000 37656666

Korea Dem Rep 3586400000 1784400000 3310700000 2249000000 -150100000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2330

Deciding on the Marketing Program

Standardized marketing mix

Adapted marketing mix

Product

Straight Extension Product adaptation Product invention

Backward invention Forward invention

Promotion Communication adaptation Dual adaptation

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2430

Deciding on the Marketing Program

Price

Price escalation Companies have three choices Set a uniform price everywhere Set a market-based price in each country

market Set a cost-based price in each country cost

Transfer price

Dumping price

Armrsquos-length price

Gray market

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2530

Deciding on the Marketing Program

Place (distribution channels)

Sellerrsquos international marketing

headquarters

Channels between nations

Channels within foreign nations

Seller

Sellerrsquos international marketing headquarters

Channels betweennations

Channels within foreign

nations

Final buyers Whole-Channel Concept

for International Marketing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2630

Deciding on the Marketing Organization

Export department

International division

Geographical organizations

World product groups

International subsidiaries

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1030

Deciding Whether To Go Abroad

Factors drawing companies into the internationalarena

Global firms offering better products or lower pricescan attack the companyrsquos domestic market

The company discovers that some foreign marketspresent higher profit opportunities than the domesticmarket

The company needs a larger customer base to achieveeconomies of scale

The company wants to reduce its dependence on anyone market

The companyrsquos customers are going abroad and needservicing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1130

Deciding Whether To Go Abroad

Before going abroad the company must weigh severalrisk

The company might not understand foreign customerpreferences and fail to offer a competitively attractiveproduct

The company might not understand the foreigncountryrsquos business culture or know how to dealeffectively with foreign nationals

The company might underestimate foreign regulationsand incur unexpected costs

The company might realize that it lacks managers withinternational experience

The foreign country might change its commercial lawsdevalue its currency or undergo a political revolutionand expropriate property

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1230

Blunders in International Marketing

Hallmark cards failed when they were introduced in France The

French dislike syrupy sentiment and prefer writing their own cards

Philips began to earn a profit in Japan only after it had reduced thesize of its coffeemakers to fit into smaller Japanese kitchens andits shavers to fit smaller Japanese hands

Coca-Cola had to withdraw its two-liter bottle in Spain afterdiscovering that few Spaniards owned refrigerators with largeenough compartments to accommodate it

General Foodsrsquo Tang initially failed in France because it waspositioned as a substitute for orange juice at breakfast TheFrench drink little orange juice and almost none at breakfast

Kelloggrsquos Pop-Tarts failed in Britain because the percentage ofBritish Pop- homes with toasters was significantly lower than in theUnited States and the product was too sweet for British tastes

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1330

Deciding Which Markets to Enter

How many markets must a company enter

The candidate countries should be initially rated on 3 majorcriteriaMarket attractiveness ndash GNPcapita work force pop growth

Competitive advantage ndash business dealings

Risk ndash stability in political currency repatriation rules

High Med Low

H China

LM Czech

L EastGermany

H Poland

HM Romania

L

CompetitiveAdvantage

Competitive Advantage

Risk

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1430

Deciding Which Markets to Enter

Prepare a financial analysis of top 3 countries Fivesteps involved in estimating the probable rate of return

on investment

Estimate of Current Market Potential ndash estimate totalindustry sales in each market task calls for using published data and primarydata collected through company surveys

Forecast of Future Market Potential and Risk ndash forecast future industry sales (difficult task) requires predicting economic andpolitical developments and impact on industry sales

Forecast of Sales Potential ndash estimating the companyrsquos salesrequires forecasting its probable market share based on its competitiveadvantage (another difficult task)

Forecasts of Costs and Profits ndash cost will depend oncompanyrsquos entry strategy company subtracts estimated costs from estimatedsales to derive company profits

Estimate of Rate of Return on Investment ndash forecastedincome stream should be related to investment stream to derive implicit rate ofreturn should be high enough to cover firmrsquos normal target return on its

investments and the risk of marketing in that country

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1530

Deciding Which Markets to Enter

Regional free trade zones

The European Union

NAFTA

MERCOSUL

APEC

Evaluating potential markets

Psychic proximity

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1630

Deciding How to Enter the Market

Five Modes of Entry intoForeign Markets

Direct Investment

Joint Ventures

Licensing

Direct Exporting

Indirect Exporting A m o u n t o f c o m m i t m e n t r i s k c o n t r o l a n d

p r o f i t p o t e n t i a l

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1730

Deciding How to Enter the Market

Indirect and direct export

Indirect exporting

Occasional exporting

Active exporting

Domestic- Domestic-based export merchants

Domestic- Domestic-based export agents

Cooperative organizations

Export-management companies

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1830

Deciding How to Enter the Market

Companies can carry on direct exporting inseveral ways

Domestic-based export department or division

Overseas sales branch or subsidiary

Traveling export sales representatives

Foreign-based distributors or agents

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1930

Deciding How to Enter the Market

Licensing

Management contracts

Contract manufacturing

Franchising

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2030

Deciding How to Enter the Market

Joint ventures Direct investment

The Internationalization Process

Johanson and Wiedersheim-Paul identified fourstages in the internationalization process No regular export activities Export via independent representatives (agents) Establishment of one or more sales subsidiaries

Establishment of production facilities abroad

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2130

ASEAN countries Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

Brunei Darussalam 87839128 257635717 222184549 325586827 495720000

Cambodia 483209382 867288538 815180217 530151578 782597000

Indonesia 4914201435 6928480000 9318453649 4877369178 13303654878

Lao PDR 187310641 323520000 227770000 318598209 350000000

Malaysia 6076119971 8590185403 7375907979 1387393683 9102974458

Myanmar 278634106 257686000 283454600 322975866 756323000

Philippines 2921000000 2916000000 1544000000 1963000000 1713000000

Singapore 29347864395 37032936287 8588194480 15278566655 38638121023

Thailand 9452928923 11323987644 8531083130 4976284679 6306251509

Vietnam 2400000000 6700000000 9579000000 7600000000 8000000000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2230

ASEAN + 3 Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

China 124082036118 160051835203 175147650311 114214527413 185080744436

Japan -6783580857 22180067084 24551812047 11834116164 -1358906189

Korea Dem Rep -104620000 66730000 43800000 1970000 37656666

Korea Dem Rep 3586400000 1784400000 3310700000 2249000000 -150100000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2330

Deciding on the Marketing Program

Standardized marketing mix

Adapted marketing mix

Product

Straight Extension Product adaptation Product invention

Backward invention Forward invention

Promotion Communication adaptation Dual adaptation

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2430

Deciding on the Marketing Program

Price

Price escalation Companies have three choices Set a uniform price everywhere Set a market-based price in each country

market Set a cost-based price in each country cost

Transfer price

Dumping price

Armrsquos-length price

Gray market

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2530

Deciding on the Marketing Program

Place (distribution channels)

Sellerrsquos international marketing

headquarters

Channels between nations

Channels within foreign nations

Seller

Sellerrsquos international marketing headquarters

Channels betweennations

Channels within foreign

nations

Final buyers Whole-Channel Concept

for International Marketing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2630

Deciding on the Marketing Organization

Export department

International division

Geographical organizations

World product groups

International subsidiaries

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1130

Deciding Whether To Go Abroad

Before going abroad the company must weigh severalrisk

The company might not understand foreign customerpreferences and fail to offer a competitively attractiveproduct

The company might not understand the foreigncountryrsquos business culture or know how to dealeffectively with foreign nationals

The company might underestimate foreign regulationsand incur unexpected costs

The company might realize that it lacks managers withinternational experience

The foreign country might change its commercial lawsdevalue its currency or undergo a political revolutionand expropriate property

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1230

Blunders in International Marketing

Hallmark cards failed when they were introduced in France The

French dislike syrupy sentiment and prefer writing their own cards

Philips began to earn a profit in Japan only after it had reduced thesize of its coffeemakers to fit into smaller Japanese kitchens andits shavers to fit smaller Japanese hands

Coca-Cola had to withdraw its two-liter bottle in Spain afterdiscovering that few Spaniards owned refrigerators with largeenough compartments to accommodate it

General Foodsrsquo Tang initially failed in France because it waspositioned as a substitute for orange juice at breakfast TheFrench drink little orange juice and almost none at breakfast

Kelloggrsquos Pop-Tarts failed in Britain because the percentage ofBritish Pop- homes with toasters was significantly lower than in theUnited States and the product was too sweet for British tastes

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1330

Deciding Which Markets to Enter

How many markets must a company enter

The candidate countries should be initially rated on 3 majorcriteriaMarket attractiveness ndash GNPcapita work force pop growth

Competitive advantage ndash business dealings

Risk ndash stability in political currency repatriation rules

High Med Low

H China

LM Czech

L EastGermany

H Poland

HM Romania

L

CompetitiveAdvantage

Competitive Advantage

Risk

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1430

Deciding Which Markets to Enter

Prepare a financial analysis of top 3 countries Fivesteps involved in estimating the probable rate of return

on investment

Estimate of Current Market Potential ndash estimate totalindustry sales in each market task calls for using published data and primarydata collected through company surveys

Forecast of Future Market Potential and Risk ndash forecast future industry sales (difficult task) requires predicting economic andpolitical developments and impact on industry sales

Forecast of Sales Potential ndash estimating the companyrsquos salesrequires forecasting its probable market share based on its competitiveadvantage (another difficult task)

Forecasts of Costs and Profits ndash cost will depend oncompanyrsquos entry strategy company subtracts estimated costs from estimatedsales to derive company profits

Estimate of Rate of Return on Investment ndash forecastedincome stream should be related to investment stream to derive implicit rate ofreturn should be high enough to cover firmrsquos normal target return on its

investments and the risk of marketing in that country

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1530

Deciding Which Markets to Enter

Regional free trade zones

The European Union

NAFTA

MERCOSUL

APEC

Evaluating potential markets

Psychic proximity

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1630

Deciding How to Enter the Market

Five Modes of Entry intoForeign Markets

Direct Investment

Joint Ventures

Licensing

Direct Exporting

Indirect Exporting A m o u n t o f c o m m i t m e n t r i s k c o n t r o l a n d

p r o f i t p o t e n t i a l

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1730

Deciding How to Enter the Market

Indirect and direct export

Indirect exporting

Occasional exporting

Active exporting

Domestic- Domestic-based export merchants

Domestic- Domestic-based export agents

Cooperative organizations

Export-management companies

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1830

Deciding How to Enter the Market

Companies can carry on direct exporting inseveral ways

Domestic-based export department or division

Overseas sales branch or subsidiary

Traveling export sales representatives

Foreign-based distributors or agents

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1930

Deciding How to Enter the Market

Licensing

Management contracts

Contract manufacturing

Franchising

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2030

Deciding How to Enter the Market

Joint ventures Direct investment

The Internationalization Process

Johanson and Wiedersheim-Paul identified fourstages in the internationalization process No regular export activities Export via independent representatives (agents) Establishment of one or more sales subsidiaries

Establishment of production facilities abroad

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2130

ASEAN countries Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

Brunei Darussalam 87839128 257635717 222184549 325586827 495720000

Cambodia 483209382 867288538 815180217 530151578 782597000

Indonesia 4914201435 6928480000 9318453649 4877369178 13303654878

Lao PDR 187310641 323520000 227770000 318598209 350000000

Malaysia 6076119971 8590185403 7375907979 1387393683 9102974458

Myanmar 278634106 257686000 283454600 322975866 756323000

Philippines 2921000000 2916000000 1544000000 1963000000 1713000000

Singapore 29347864395 37032936287 8588194480 15278566655 38638121023

Thailand 9452928923 11323987644 8531083130 4976284679 6306251509

Vietnam 2400000000 6700000000 9579000000 7600000000 8000000000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2230

ASEAN + 3 Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

China 124082036118 160051835203 175147650311 114214527413 185080744436

Japan -6783580857 22180067084 24551812047 11834116164 -1358906189

Korea Dem Rep -104620000 66730000 43800000 1970000 37656666

Korea Dem Rep 3586400000 1784400000 3310700000 2249000000 -150100000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2330

Deciding on the Marketing Program

Standardized marketing mix

Adapted marketing mix

Product

Straight Extension Product adaptation Product invention

Backward invention Forward invention

Promotion Communication adaptation Dual adaptation

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2430

Deciding on the Marketing Program

Price

Price escalation Companies have three choices Set a uniform price everywhere Set a market-based price in each country

market Set a cost-based price in each country cost

Transfer price

Dumping price

Armrsquos-length price

Gray market

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2530

Deciding on the Marketing Program

Place (distribution channels)

Sellerrsquos international marketing

headquarters

Channels between nations

Channels within foreign nations

Seller

Sellerrsquos international marketing headquarters

Channels betweennations

Channels within foreign

nations

Final buyers Whole-Channel Concept

for International Marketing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2630

Deciding on the Marketing Organization

Export department

International division

Geographical organizations

World product groups

International subsidiaries

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1230

Blunders in International Marketing

Hallmark cards failed when they were introduced in France The

French dislike syrupy sentiment and prefer writing their own cards

Philips began to earn a profit in Japan only after it had reduced thesize of its coffeemakers to fit into smaller Japanese kitchens andits shavers to fit smaller Japanese hands

Coca-Cola had to withdraw its two-liter bottle in Spain afterdiscovering that few Spaniards owned refrigerators with largeenough compartments to accommodate it

General Foodsrsquo Tang initially failed in France because it waspositioned as a substitute for orange juice at breakfast TheFrench drink little orange juice and almost none at breakfast

Kelloggrsquos Pop-Tarts failed in Britain because the percentage ofBritish Pop- homes with toasters was significantly lower than in theUnited States and the product was too sweet for British tastes

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1330

Deciding Which Markets to Enter

How many markets must a company enter

The candidate countries should be initially rated on 3 majorcriteriaMarket attractiveness ndash GNPcapita work force pop growth

Competitive advantage ndash business dealings

Risk ndash stability in political currency repatriation rules

High Med Low

H China

LM Czech

L EastGermany

H Poland

HM Romania

L

CompetitiveAdvantage

Competitive Advantage

Risk

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1430

Deciding Which Markets to Enter

Prepare a financial analysis of top 3 countries Fivesteps involved in estimating the probable rate of return

on investment

Estimate of Current Market Potential ndash estimate totalindustry sales in each market task calls for using published data and primarydata collected through company surveys

Forecast of Future Market Potential and Risk ndash forecast future industry sales (difficult task) requires predicting economic andpolitical developments and impact on industry sales

Forecast of Sales Potential ndash estimating the companyrsquos salesrequires forecasting its probable market share based on its competitiveadvantage (another difficult task)

Forecasts of Costs and Profits ndash cost will depend oncompanyrsquos entry strategy company subtracts estimated costs from estimatedsales to derive company profits

Estimate of Rate of Return on Investment ndash forecastedincome stream should be related to investment stream to derive implicit rate ofreturn should be high enough to cover firmrsquos normal target return on its

investments and the risk of marketing in that country

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1530

Deciding Which Markets to Enter

Regional free trade zones

The European Union

NAFTA

MERCOSUL

APEC

Evaluating potential markets

Psychic proximity

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1630

Deciding How to Enter the Market

Five Modes of Entry intoForeign Markets

Direct Investment

Joint Ventures

Licensing

Direct Exporting

Indirect Exporting A m o u n t o f c o m m i t m e n t r i s k c o n t r o l a n d

p r o f i t p o t e n t i a l

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1730

Deciding How to Enter the Market

Indirect and direct export

Indirect exporting

Occasional exporting

Active exporting

Domestic- Domestic-based export merchants

Domestic- Domestic-based export agents

Cooperative organizations

Export-management companies

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1830

Deciding How to Enter the Market

Companies can carry on direct exporting inseveral ways

Domestic-based export department or division

Overseas sales branch or subsidiary

Traveling export sales representatives

Foreign-based distributors or agents

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1930

Deciding How to Enter the Market

Licensing

Management contracts

Contract manufacturing

Franchising

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2030

Deciding How to Enter the Market

Joint ventures Direct investment

The Internationalization Process

Johanson and Wiedersheim-Paul identified fourstages in the internationalization process No regular export activities Export via independent representatives (agents) Establishment of one or more sales subsidiaries

Establishment of production facilities abroad

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2130

ASEAN countries Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

Brunei Darussalam 87839128 257635717 222184549 325586827 495720000

Cambodia 483209382 867288538 815180217 530151578 782597000

Indonesia 4914201435 6928480000 9318453649 4877369178 13303654878

Lao PDR 187310641 323520000 227770000 318598209 350000000

Malaysia 6076119971 8590185403 7375907979 1387393683 9102974458

Myanmar 278634106 257686000 283454600 322975866 756323000

Philippines 2921000000 2916000000 1544000000 1963000000 1713000000

Singapore 29347864395 37032936287 8588194480 15278566655 38638121023

Thailand 9452928923 11323987644 8531083130 4976284679 6306251509

Vietnam 2400000000 6700000000 9579000000 7600000000 8000000000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2230

ASEAN + 3 Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

China 124082036118 160051835203 175147650311 114214527413 185080744436

Japan -6783580857 22180067084 24551812047 11834116164 -1358906189

Korea Dem Rep -104620000 66730000 43800000 1970000 37656666

Korea Dem Rep 3586400000 1784400000 3310700000 2249000000 -150100000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2330

Deciding on the Marketing Program

Standardized marketing mix

Adapted marketing mix

Product

Straight Extension Product adaptation Product invention

Backward invention Forward invention

Promotion Communication adaptation Dual adaptation

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2430

Deciding on the Marketing Program

Price

Price escalation Companies have three choices Set a uniform price everywhere Set a market-based price in each country

market Set a cost-based price in each country cost

Transfer price

Dumping price

Armrsquos-length price

Gray market

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2530

Deciding on the Marketing Program

Place (distribution channels)

Sellerrsquos international marketing

headquarters

Channels between nations

Channels within foreign nations

Seller

Sellerrsquos international marketing headquarters

Channels betweennations

Channels within foreign

nations

Final buyers Whole-Channel Concept

for International Marketing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2630

Deciding on the Marketing Organization

Export department

International division

Geographical organizations

World product groups

International subsidiaries

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1330

Deciding Which Markets to Enter

How many markets must a company enter

The candidate countries should be initially rated on 3 majorcriteriaMarket attractiveness ndash GNPcapita work force pop growth

Competitive advantage ndash business dealings

Risk ndash stability in political currency repatriation rules

High Med Low

H China

LM Czech

L EastGermany

H Poland

HM Romania

L

CompetitiveAdvantage

Competitive Advantage

Risk

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1430

Deciding Which Markets to Enter

Prepare a financial analysis of top 3 countries Fivesteps involved in estimating the probable rate of return

on investment

Estimate of Current Market Potential ndash estimate totalindustry sales in each market task calls for using published data and primarydata collected through company surveys

Forecast of Future Market Potential and Risk ndash forecast future industry sales (difficult task) requires predicting economic andpolitical developments and impact on industry sales

Forecast of Sales Potential ndash estimating the companyrsquos salesrequires forecasting its probable market share based on its competitiveadvantage (another difficult task)

Forecasts of Costs and Profits ndash cost will depend oncompanyrsquos entry strategy company subtracts estimated costs from estimatedsales to derive company profits

Estimate of Rate of Return on Investment ndash forecastedincome stream should be related to investment stream to derive implicit rate ofreturn should be high enough to cover firmrsquos normal target return on its

investments and the risk of marketing in that country

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1530

Deciding Which Markets to Enter

Regional free trade zones

The European Union

NAFTA

MERCOSUL

APEC

Evaluating potential markets

Psychic proximity

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1630

Deciding How to Enter the Market

Five Modes of Entry intoForeign Markets

Direct Investment

Joint Ventures

Licensing

Direct Exporting

Indirect Exporting A m o u n t o f c o m m i t m e n t r i s k c o n t r o l a n d

p r o f i t p o t e n t i a l

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1730

Deciding How to Enter the Market

Indirect and direct export

Indirect exporting

Occasional exporting

Active exporting

Domestic- Domestic-based export merchants

Domestic- Domestic-based export agents

Cooperative organizations

Export-management companies

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1830

Deciding How to Enter the Market

Companies can carry on direct exporting inseveral ways

Domestic-based export department or division

Overseas sales branch or subsidiary

Traveling export sales representatives

Foreign-based distributors or agents

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1930

Deciding How to Enter the Market

Licensing

Management contracts

Contract manufacturing

Franchising

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2030

Deciding How to Enter the Market

Joint ventures Direct investment

The Internationalization Process

Johanson and Wiedersheim-Paul identified fourstages in the internationalization process No regular export activities Export via independent representatives (agents) Establishment of one or more sales subsidiaries

Establishment of production facilities abroad

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2130

ASEAN countries Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

Brunei Darussalam 87839128 257635717 222184549 325586827 495720000

Cambodia 483209382 867288538 815180217 530151578 782597000

Indonesia 4914201435 6928480000 9318453649 4877369178 13303654878

Lao PDR 187310641 323520000 227770000 318598209 350000000

Malaysia 6076119971 8590185403 7375907979 1387393683 9102974458

Myanmar 278634106 257686000 283454600 322975866 756323000

Philippines 2921000000 2916000000 1544000000 1963000000 1713000000

Singapore 29347864395 37032936287 8588194480 15278566655 38638121023

Thailand 9452928923 11323987644 8531083130 4976284679 6306251509

Vietnam 2400000000 6700000000 9579000000 7600000000 8000000000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2230

ASEAN + 3 Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

China 124082036118 160051835203 175147650311 114214527413 185080744436

Japan -6783580857 22180067084 24551812047 11834116164 -1358906189

Korea Dem Rep -104620000 66730000 43800000 1970000 37656666

Korea Dem Rep 3586400000 1784400000 3310700000 2249000000 -150100000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2330

Deciding on the Marketing Program

Standardized marketing mix

Adapted marketing mix

Product

Straight Extension Product adaptation Product invention

Backward invention Forward invention

Promotion Communication adaptation Dual adaptation

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2430

Deciding on the Marketing Program

Price

Price escalation Companies have three choices Set a uniform price everywhere Set a market-based price in each country

market Set a cost-based price in each country cost

Transfer price

Dumping price

Armrsquos-length price

Gray market

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2530

Deciding on the Marketing Program

Place (distribution channels)

Sellerrsquos international marketing

headquarters

Channels between nations

Channels within foreign nations

Seller

Sellerrsquos international marketing headquarters

Channels betweennations

Channels within foreign

nations

Final buyers Whole-Channel Concept

for International Marketing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2630

Deciding on the Marketing Organization

Export department

International division

Geographical organizations

World product groups

International subsidiaries

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1430

Deciding Which Markets to Enter

Prepare a financial analysis of top 3 countries Fivesteps involved in estimating the probable rate of return

on investment

Estimate of Current Market Potential ndash estimate totalindustry sales in each market task calls for using published data and primarydata collected through company surveys

Forecast of Future Market Potential and Risk ndash forecast future industry sales (difficult task) requires predicting economic andpolitical developments and impact on industry sales

Forecast of Sales Potential ndash estimating the companyrsquos salesrequires forecasting its probable market share based on its competitiveadvantage (another difficult task)

Forecasts of Costs and Profits ndash cost will depend oncompanyrsquos entry strategy company subtracts estimated costs from estimatedsales to derive company profits

Estimate of Rate of Return on Investment ndash forecastedincome stream should be related to investment stream to derive implicit rate ofreturn should be high enough to cover firmrsquos normal target return on its

investments and the risk of marketing in that country

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1530

Deciding Which Markets to Enter

Regional free trade zones

The European Union

NAFTA

MERCOSUL

APEC

Evaluating potential markets

Psychic proximity

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1630

Deciding How to Enter the Market

Five Modes of Entry intoForeign Markets

Direct Investment

Joint Ventures

Licensing

Direct Exporting

Indirect Exporting A m o u n t o f c o m m i t m e n t r i s k c o n t r o l a n d

p r o f i t p o t e n t i a l

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1730

Deciding How to Enter the Market

Indirect and direct export

Indirect exporting

Occasional exporting

Active exporting

Domestic- Domestic-based export merchants

Domestic- Domestic-based export agents

Cooperative organizations

Export-management companies

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1830

Deciding How to Enter the Market

Companies can carry on direct exporting inseveral ways

Domestic-based export department or division

Overseas sales branch or subsidiary

Traveling export sales representatives

Foreign-based distributors or agents

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1930

Deciding How to Enter the Market

Licensing

Management contracts

Contract manufacturing

Franchising

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2030

Deciding How to Enter the Market

Joint ventures Direct investment

The Internationalization Process

Johanson and Wiedersheim-Paul identified fourstages in the internationalization process No regular export activities Export via independent representatives (agents) Establishment of one or more sales subsidiaries

Establishment of production facilities abroad

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2130

ASEAN countries Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

Brunei Darussalam 87839128 257635717 222184549 325586827 495720000

Cambodia 483209382 867288538 815180217 530151578 782597000

Indonesia 4914201435 6928480000 9318453649 4877369178 13303654878

Lao PDR 187310641 323520000 227770000 318598209 350000000

Malaysia 6076119971 8590185403 7375907979 1387393683 9102974458

Myanmar 278634106 257686000 283454600 322975866 756323000

Philippines 2921000000 2916000000 1544000000 1963000000 1713000000

Singapore 29347864395 37032936287 8588194480 15278566655 38638121023

Thailand 9452928923 11323987644 8531083130 4976284679 6306251509

Vietnam 2400000000 6700000000 9579000000 7600000000 8000000000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2230

ASEAN + 3 Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

China 124082036118 160051835203 175147650311 114214527413 185080744436

Japan -6783580857 22180067084 24551812047 11834116164 -1358906189

Korea Dem Rep -104620000 66730000 43800000 1970000 37656666

Korea Dem Rep 3586400000 1784400000 3310700000 2249000000 -150100000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2330

Deciding on the Marketing Program

Standardized marketing mix

Adapted marketing mix

Product

Straight Extension Product adaptation Product invention

Backward invention Forward invention

Promotion Communication adaptation Dual adaptation

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2430

Deciding on the Marketing Program

Price

Price escalation Companies have three choices Set a uniform price everywhere Set a market-based price in each country

market Set a cost-based price in each country cost

Transfer price

Dumping price

Armrsquos-length price

Gray market

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2530

Deciding on the Marketing Program

Place (distribution channels)

Sellerrsquos international marketing

headquarters

Channels between nations

Channels within foreign nations

Seller

Sellerrsquos international marketing headquarters

Channels betweennations

Channels within foreign

nations

Final buyers Whole-Channel Concept

for International Marketing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2630

Deciding on the Marketing Organization

Export department

International division

Geographical organizations

World product groups

International subsidiaries

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1530

Deciding Which Markets to Enter

Regional free trade zones

The European Union

NAFTA

MERCOSUL

APEC

Evaluating potential markets

Psychic proximity

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1630

Deciding How to Enter the Market

Five Modes of Entry intoForeign Markets

Direct Investment

Joint Ventures

Licensing

Direct Exporting

Indirect Exporting A m o u n t o f c o m m i t m e n t r i s k c o n t r o l a n d

p r o f i t p o t e n t i a l

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1730

Deciding How to Enter the Market

Indirect and direct export

Indirect exporting

Occasional exporting

Active exporting

Domestic- Domestic-based export merchants

Domestic- Domestic-based export agents

Cooperative organizations

Export-management companies

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1830

Deciding How to Enter the Market

Companies can carry on direct exporting inseveral ways

Domestic-based export department or division

Overseas sales branch or subsidiary

Traveling export sales representatives

Foreign-based distributors or agents

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1930

Deciding How to Enter the Market

Licensing

Management contracts

Contract manufacturing

Franchising

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2030

Deciding How to Enter the Market

Joint ventures Direct investment

The Internationalization Process

Johanson and Wiedersheim-Paul identified fourstages in the internationalization process No regular export activities Export via independent representatives (agents) Establishment of one or more sales subsidiaries

Establishment of production facilities abroad

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2130

ASEAN countries Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

Brunei Darussalam 87839128 257635717 222184549 325586827 495720000

Cambodia 483209382 867288538 815180217 530151578 782597000

Indonesia 4914201435 6928480000 9318453649 4877369178 13303654878

Lao PDR 187310641 323520000 227770000 318598209 350000000

Malaysia 6076119971 8590185403 7375907979 1387393683 9102974458

Myanmar 278634106 257686000 283454600 322975866 756323000

Philippines 2921000000 2916000000 1544000000 1963000000 1713000000

Singapore 29347864395 37032936287 8588194480 15278566655 38638121023

Thailand 9452928923 11323987644 8531083130 4976284679 6306251509

Vietnam 2400000000 6700000000 9579000000 7600000000 8000000000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2230

ASEAN + 3 Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

China 124082036118 160051835203 175147650311 114214527413 185080744436

Japan -6783580857 22180067084 24551812047 11834116164 -1358906189

Korea Dem Rep -104620000 66730000 43800000 1970000 37656666

Korea Dem Rep 3586400000 1784400000 3310700000 2249000000 -150100000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2330

Deciding on the Marketing Program

Standardized marketing mix

Adapted marketing mix

Product

Straight Extension Product adaptation Product invention

Backward invention Forward invention

Promotion Communication adaptation Dual adaptation

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2430

Deciding on the Marketing Program

Price

Price escalation Companies have three choices Set a uniform price everywhere Set a market-based price in each country

market Set a cost-based price in each country cost

Transfer price

Dumping price

Armrsquos-length price

Gray market

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2530

Deciding on the Marketing Program

Place (distribution channels)

Sellerrsquos international marketing

headquarters

Channels between nations

Channels within foreign nations

Seller

Sellerrsquos international marketing headquarters

Channels betweennations

Channels within foreign

nations

Final buyers Whole-Channel Concept

for International Marketing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2630

Deciding on the Marketing Organization

Export department

International division

Geographical organizations

World product groups

International subsidiaries

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1630

Deciding How to Enter the Market

Five Modes of Entry intoForeign Markets

Direct Investment

Joint Ventures

Licensing

Direct Exporting

Indirect Exporting A m o u n t o f c o m m i t m e n t r i s k c o n t r o l a n d

p r o f i t p o t e n t i a l

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1730

Deciding How to Enter the Market

Indirect and direct export

Indirect exporting

Occasional exporting

Active exporting

Domestic- Domestic-based export merchants

Domestic- Domestic-based export agents

Cooperative organizations

Export-management companies

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1830

Deciding How to Enter the Market

Companies can carry on direct exporting inseveral ways

Domestic-based export department or division

Overseas sales branch or subsidiary

Traveling export sales representatives

Foreign-based distributors or agents

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1930

Deciding How to Enter the Market

Licensing

Management contracts

Contract manufacturing

Franchising

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2030

Deciding How to Enter the Market

Joint ventures Direct investment

The Internationalization Process

Johanson and Wiedersheim-Paul identified fourstages in the internationalization process No regular export activities Export via independent representatives (agents) Establishment of one or more sales subsidiaries

Establishment of production facilities abroad

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2130

ASEAN countries Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

Brunei Darussalam 87839128 257635717 222184549 325586827 495720000

Cambodia 483209382 867288538 815180217 530151578 782597000

Indonesia 4914201435 6928480000 9318453649 4877369178 13303654878

Lao PDR 187310641 323520000 227770000 318598209 350000000

Malaysia 6076119971 8590185403 7375907979 1387393683 9102974458

Myanmar 278634106 257686000 283454600 322975866 756323000

Philippines 2921000000 2916000000 1544000000 1963000000 1713000000

Singapore 29347864395 37032936287 8588194480 15278566655 38638121023

Thailand 9452928923 11323987644 8531083130 4976284679 6306251509

Vietnam 2400000000 6700000000 9579000000 7600000000 8000000000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2230

ASEAN + 3 Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

China 124082036118 160051835203 175147650311 114214527413 185080744436

Japan -6783580857 22180067084 24551812047 11834116164 -1358906189

Korea Dem Rep -104620000 66730000 43800000 1970000 37656666

Korea Dem Rep 3586400000 1784400000 3310700000 2249000000 -150100000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2330

Deciding on the Marketing Program

Standardized marketing mix

Adapted marketing mix

Product

Straight Extension Product adaptation Product invention

Backward invention Forward invention

Promotion Communication adaptation Dual adaptation

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2430

Deciding on the Marketing Program

Price

Price escalation Companies have three choices Set a uniform price everywhere Set a market-based price in each country

market Set a cost-based price in each country cost

Transfer price

Dumping price

Armrsquos-length price

Gray market

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2530

Deciding on the Marketing Program

Place (distribution channels)

Sellerrsquos international marketing

headquarters

Channels between nations

Channels within foreign nations

Seller

Sellerrsquos international marketing headquarters

Channels betweennations

Channels within foreign

nations

Final buyers Whole-Channel Concept

for International Marketing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2630

Deciding on the Marketing Organization

Export department

International division

Geographical organizations

World product groups

International subsidiaries

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1730

Deciding How to Enter the Market

Indirect and direct export

Indirect exporting

Occasional exporting

Active exporting

Domestic- Domestic-based export merchants

Domestic- Domestic-based export agents

Cooperative organizations

Export-management companies

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1830

Deciding How to Enter the Market

Companies can carry on direct exporting inseveral ways

Domestic-based export department or division

Overseas sales branch or subsidiary

Traveling export sales representatives

Foreign-based distributors or agents

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1930

Deciding How to Enter the Market

Licensing

Management contracts

Contract manufacturing

Franchising

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2030

Deciding How to Enter the Market

Joint ventures Direct investment

The Internationalization Process

Johanson and Wiedersheim-Paul identified fourstages in the internationalization process No regular export activities Export via independent representatives (agents) Establishment of one or more sales subsidiaries

Establishment of production facilities abroad

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2130

ASEAN countries Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

Brunei Darussalam 87839128 257635717 222184549 325586827 495720000

Cambodia 483209382 867288538 815180217 530151578 782597000

Indonesia 4914201435 6928480000 9318453649 4877369178 13303654878

Lao PDR 187310641 323520000 227770000 318598209 350000000

Malaysia 6076119971 8590185403 7375907979 1387393683 9102974458

Myanmar 278634106 257686000 283454600 322975866 756323000

Philippines 2921000000 2916000000 1544000000 1963000000 1713000000

Singapore 29347864395 37032936287 8588194480 15278566655 38638121023

Thailand 9452928923 11323987644 8531083130 4976284679 6306251509

Vietnam 2400000000 6700000000 9579000000 7600000000 8000000000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2230

ASEAN + 3 Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

China 124082036118 160051835203 175147650311 114214527413 185080744436

Japan -6783580857 22180067084 24551812047 11834116164 -1358906189

Korea Dem Rep -104620000 66730000 43800000 1970000 37656666

Korea Dem Rep 3586400000 1784400000 3310700000 2249000000 -150100000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2330

Deciding on the Marketing Program

Standardized marketing mix

Adapted marketing mix

Product

Straight Extension Product adaptation Product invention

Backward invention Forward invention

Promotion Communication adaptation Dual adaptation

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2430

Deciding on the Marketing Program

Price

Price escalation Companies have three choices Set a uniform price everywhere Set a market-based price in each country

market Set a cost-based price in each country cost

Transfer price

Dumping price

Armrsquos-length price

Gray market

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2530

Deciding on the Marketing Program

Place (distribution channels)

Sellerrsquos international marketing

headquarters

Channels between nations

Channels within foreign nations

Seller

Sellerrsquos international marketing headquarters

Channels betweennations

Channels within foreign

nations

Final buyers Whole-Channel Concept

for International Marketing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2630

Deciding on the Marketing Organization

Export department

International division

Geographical organizations

World product groups

International subsidiaries

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1830

Deciding How to Enter the Market

Companies can carry on direct exporting inseveral ways

Domestic-based export department or division

Overseas sales branch or subsidiary

Traveling export sales representatives

Foreign-based distributors or agents

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1930

Deciding How to Enter the Market

Licensing

Management contracts

Contract manufacturing

Franchising

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2030

Deciding How to Enter the Market

Joint ventures Direct investment

The Internationalization Process

Johanson and Wiedersheim-Paul identified fourstages in the internationalization process No regular export activities Export via independent representatives (agents) Establishment of one or more sales subsidiaries

Establishment of production facilities abroad

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2130

ASEAN countries Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

Brunei Darussalam 87839128 257635717 222184549 325586827 495720000

Cambodia 483209382 867288538 815180217 530151578 782597000

Indonesia 4914201435 6928480000 9318453649 4877369178 13303654878

Lao PDR 187310641 323520000 227770000 318598209 350000000

Malaysia 6076119971 8590185403 7375907979 1387393683 9102974458

Myanmar 278634106 257686000 283454600 322975866 756323000

Philippines 2921000000 2916000000 1544000000 1963000000 1713000000

Singapore 29347864395 37032936287 8588194480 15278566655 38638121023

Thailand 9452928923 11323987644 8531083130 4976284679 6306251509

Vietnam 2400000000 6700000000 9579000000 7600000000 8000000000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2230

ASEAN + 3 Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

China 124082036118 160051835203 175147650311 114214527413 185080744436

Japan -6783580857 22180067084 24551812047 11834116164 -1358906189

Korea Dem Rep -104620000 66730000 43800000 1970000 37656666

Korea Dem Rep 3586400000 1784400000 3310700000 2249000000 -150100000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2330

Deciding on the Marketing Program

Standardized marketing mix

Adapted marketing mix

Product

Straight Extension Product adaptation Product invention

Backward invention Forward invention

Promotion Communication adaptation Dual adaptation

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2430

Deciding on the Marketing Program

Price

Price escalation Companies have three choices Set a uniform price everywhere Set a market-based price in each country

market Set a cost-based price in each country cost

Transfer price

Dumping price

Armrsquos-length price

Gray market

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2530

Deciding on the Marketing Program

Place (distribution channels)

Sellerrsquos international marketing

headquarters

Channels between nations

Channels within foreign nations

Seller

Sellerrsquos international marketing headquarters

Channels betweennations

Channels within foreign

nations

Final buyers Whole-Channel Concept

for International Marketing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2630

Deciding on the Marketing Organization

Export department

International division

Geographical organizations

World product groups

International subsidiaries

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 1930

Deciding How to Enter the Market

Licensing

Management contracts

Contract manufacturing

Franchising

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2030

Deciding How to Enter the Market

Joint ventures Direct investment

The Internationalization Process

Johanson and Wiedersheim-Paul identified fourstages in the internationalization process No regular export activities Export via independent representatives (agents) Establishment of one or more sales subsidiaries

Establishment of production facilities abroad

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2130

ASEAN countries Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

Brunei Darussalam 87839128 257635717 222184549 325586827 495720000

Cambodia 483209382 867288538 815180217 530151578 782597000

Indonesia 4914201435 6928480000 9318453649 4877369178 13303654878

Lao PDR 187310641 323520000 227770000 318598209 350000000

Malaysia 6076119971 8590185403 7375907979 1387393683 9102974458

Myanmar 278634106 257686000 283454600 322975866 756323000

Philippines 2921000000 2916000000 1544000000 1963000000 1713000000

Singapore 29347864395 37032936287 8588194480 15278566655 38638121023

Thailand 9452928923 11323987644 8531083130 4976284679 6306251509

Vietnam 2400000000 6700000000 9579000000 7600000000 8000000000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2230

ASEAN + 3 Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

China 124082036118 160051835203 175147650311 114214527413 185080744436

Japan -6783580857 22180067084 24551812047 11834116164 -1358906189

Korea Dem Rep -104620000 66730000 43800000 1970000 37656666

Korea Dem Rep 3586400000 1784400000 3310700000 2249000000 -150100000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2330

Deciding on the Marketing Program

Standardized marketing mix

Adapted marketing mix

Product

Straight Extension Product adaptation Product invention

Backward invention Forward invention

Promotion Communication adaptation Dual adaptation

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2430

Deciding on the Marketing Program

Price

Price escalation Companies have three choices Set a uniform price everywhere Set a market-based price in each country

market Set a cost-based price in each country cost

Transfer price

Dumping price

Armrsquos-length price

Gray market

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2530

Deciding on the Marketing Program

Place (distribution channels)

Sellerrsquos international marketing

headquarters

Channels between nations

Channels within foreign nations

Seller

Sellerrsquos international marketing headquarters

Channels betweennations

Channels within foreign

nations

Final buyers Whole-Channel Concept

for International Marketing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2630

Deciding on the Marketing Organization

Export department

International division

Geographical organizations

World product groups

International subsidiaries

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2030

Deciding How to Enter the Market

Joint ventures Direct investment

The Internationalization Process

Johanson and Wiedersheim-Paul identified fourstages in the internationalization process No regular export activities Export via independent representatives (agents) Establishment of one or more sales subsidiaries

Establishment of production facilities abroad

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2130

ASEAN countries Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

Brunei Darussalam 87839128 257635717 222184549 325586827 495720000

Cambodia 483209382 867288538 815180217 530151578 782597000

Indonesia 4914201435 6928480000 9318453649 4877369178 13303654878

Lao PDR 187310641 323520000 227770000 318598209 350000000

Malaysia 6076119971 8590185403 7375907979 1387393683 9102974458

Myanmar 278634106 257686000 283454600 322975866 756323000

Philippines 2921000000 2916000000 1544000000 1963000000 1713000000

Singapore 29347864395 37032936287 8588194480 15278566655 38638121023

Thailand 9452928923 11323987644 8531083130 4976284679 6306251509

Vietnam 2400000000 6700000000 9579000000 7600000000 8000000000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2230

ASEAN + 3 Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

China 124082036118 160051835203 175147650311 114214527413 185080744436

Japan -6783580857 22180067084 24551812047 11834116164 -1358906189

Korea Dem Rep -104620000 66730000 43800000 1970000 37656666

Korea Dem Rep 3586400000 1784400000 3310700000 2249000000 -150100000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2330

Deciding on the Marketing Program

Standardized marketing mix

Adapted marketing mix

Product

Straight Extension Product adaptation Product invention

Backward invention Forward invention

Promotion Communication adaptation Dual adaptation

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2430

Deciding on the Marketing Program

Price

Price escalation Companies have three choices Set a uniform price everywhere Set a market-based price in each country

market Set a cost-based price in each country cost

Transfer price

Dumping price

Armrsquos-length price

Gray market

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2530

Deciding on the Marketing Program

Place (distribution channels)

Sellerrsquos international marketing

headquarters

Channels between nations

Channels within foreign nations

Seller

Sellerrsquos international marketing headquarters

Channels betweennations

Channels within foreign

nations

Final buyers Whole-Channel Concept

for International Marketing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2630

Deciding on the Marketing Organization

Export department

International division

Geographical organizations

World product groups

International subsidiaries

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2130

ASEAN countries Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

Brunei Darussalam 87839128 257635717 222184549 325586827 495720000

Cambodia 483209382 867288538 815180217 530151578 782597000

Indonesia 4914201435 6928480000 9318453649 4877369178 13303654878

Lao PDR 187310641 323520000 227770000 318598209 350000000

Malaysia 6076119971 8590185403 7375907979 1387393683 9102974458

Myanmar 278634106 257686000 283454600 322975866 756323000

Philippines 2921000000 2916000000 1544000000 1963000000 1713000000

Singapore 29347864395 37032936287 8588194480 15278566655 38638121023

Thailand 9452928923 11323987644 8531083130 4976284679 6306251509

Vietnam 2400000000 6700000000 9579000000 7600000000 8000000000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2230

ASEAN + 3 Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

China 124082036118 160051835203 175147650311 114214527413 185080744436

Japan -6783580857 22180067084 24551812047 11834116164 -1358906189

Korea Dem Rep -104620000 66730000 43800000 1970000 37656666

Korea Dem Rep 3586400000 1784400000 3310700000 2249000000 -150100000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2330

Deciding on the Marketing Program

Standardized marketing mix

Adapted marketing mix

Product

Straight Extension Product adaptation Product invention

Backward invention Forward invention

Promotion Communication adaptation Dual adaptation

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2430

Deciding on the Marketing Program

Price

Price escalation Companies have three choices Set a uniform price everywhere Set a market-based price in each country

market Set a cost-based price in each country cost

Transfer price

Dumping price

Armrsquos-length price

Gray market

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2530

Deciding on the Marketing Program

Place (distribution channels)

Sellerrsquos international marketing

headquarters

Channels between nations

Channels within foreign nations

Seller

Sellerrsquos international marketing headquarters

Channels betweennations

Channels within foreign

nations

Final buyers Whole-Channel Concept

for International Marketing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2630

Deciding on the Marketing Organization

Export department

International division

Geographical organizations

World product groups

International subsidiaries

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2230

ASEAN + 3 Source World Bank

Foreign Direct Investment net inflows (current US$)

Country Name 2006 2007 2008 2009 2010

China 124082036118 160051835203 175147650311 114214527413 185080744436

Japan -6783580857 22180067084 24551812047 11834116164 -1358906189

Korea Dem Rep -104620000 66730000 43800000 1970000 37656666

Korea Dem Rep 3586400000 1784400000 3310700000 2249000000 -150100000

Foreign direct investment are the net inflows of investment to acquire a lasting

management interest (10 percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor It is the sum of equity

capital reinvestment of earnings other long-term capital and short-term capital as

shown in the balance of payments This series shows net inflows (new investment

inflows less disinvestment) in the reporting economy from foreign investors

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2330

Deciding on the Marketing Program

Standardized marketing mix

Adapted marketing mix

Product

Straight Extension Product adaptation Product invention

Backward invention Forward invention

Promotion Communication adaptation Dual adaptation

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2430

Deciding on the Marketing Program

Price

Price escalation Companies have three choices Set a uniform price everywhere Set a market-based price in each country

market Set a cost-based price in each country cost

Transfer price

Dumping price

Armrsquos-length price

Gray market

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2530

Deciding on the Marketing Program

Place (distribution channels)

Sellerrsquos international marketing

headquarters

Channels between nations

Channels within foreign nations

Seller

Sellerrsquos international marketing headquarters

Channels betweennations

Channels within foreign

nations

Final buyers Whole-Channel Concept

for International Marketing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2630

Deciding on the Marketing Organization

Export department

International division

Geographical organizations

World product groups

International subsidiaries

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2330

Deciding on the Marketing Program

Standardized marketing mix

Adapted marketing mix

Product

Straight Extension Product adaptation Product invention

Backward invention Forward invention

Promotion Communication adaptation Dual adaptation

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2430

Deciding on the Marketing Program

Price

Price escalation Companies have three choices Set a uniform price everywhere Set a market-based price in each country

market Set a cost-based price in each country cost

Transfer price

Dumping price

Armrsquos-length price

Gray market

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2530

Deciding on the Marketing Program

Place (distribution channels)

Sellerrsquos international marketing

headquarters

Channels between nations

Channels within foreign nations

Seller

Sellerrsquos international marketing headquarters

Channels betweennations

Channels within foreign

nations

Final buyers Whole-Channel Concept

for International Marketing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2630

Deciding on the Marketing Organization

Export department

International division

Geographical organizations

World product groups

International subsidiaries

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2430

Deciding on the Marketing Program

Price

Price escalation Companies have three choices Set a uniform price everywhere Set a market-based price in each country

market Set a cost-based price in each country cost

Transfer price

Dumping price

Armrsquos-length price

Gray market

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2530

Deciding on the Marketing Program

Place (distribution channels)

Sellerrsquos international marketing

headquarters

Channels between nations

Channels within foreign nations

Seller

Sellerrsquos international marketing headquarters

Channels betweennations

Channels within foreign

nations

Final buyers Whole-Channel Concept

for International Marketing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2630

Deciding on the Marketing Organization

Export department

International division

Geographical organizations

World product groups

International subsidiaries

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2530

Deciding on the Marketing Program

Place (distribution channels)

Sellerrsquos international marketing

headquarters

Channels between nations

Channels within foreign nations

Seller

Sellerrsquos international marketing headquarters

Channels betweennations

Channels within foreign

nations

Final buyers Whole-Channel Concept

for International Marketing

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2630

Deciding on the Marketing Organization

Export department

International division

Geographical organizations

World product groups

International subsidiaries

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2630

Deciding on the Marketing Organization

Export department

International division

Geographical organizations

World product groups

International subsidiaries

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2730

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2830

Deciding on the Marketing Organization

Global organization Bartlett and Ghoshal distinguish three organizational

strategiesA global strategy treats the world as a single

market

A multinational strategy treats the world as aportfolio of national opportunities A ldquoglocalrdquo strategy standardizes certain core

elements and localizes other elements

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 2930

Filipino companies who made globalJollibee Foods Corp 1974 - started with 2 branches

1984 - Php 500M Sales mark Top 500 Phil Corp 1987 - Top 1000 Phil Corp 1989 - 1st Phil Fast Food Chain to break Php 1B Sales mark In 32 years company has 600 local stores and over 50 international

stores USA 25

Vietnam 23 Brunei 11 Saudi Arabia 8 Qatar 1 Hongkong 1

Chowking 1985 - started with 2 branches Company has 400 local stores and 10 international stores

in USA Middle East Indonesia Revenue (2007) ndash Php 101B

832019 Impact of Globalization to International Marketing

httpslidepdfcomreaderfullimpact-of-globalization-to-international-marketing 3030

Other Companies

Company Revenue Geographic Region

Toyota Motors (2011)

US $236B

Japan NorthAmerica EuropeAsia others

Mitsubishi Motors (2009)Y 1445616M

Japan NorthAmerica Phil BrazilThailand Netherlands

Hyundai Motors (2010)

US $336B

North AmericaEurope Turkey

China othersKia Motors (2010)

US $216B

S Korea NorthAmerica EuropeChina Vietnam etc