Professional Documents
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Chapter 18 - Managing Marketing in The Global Economy
Chapter 18 - Managing Marketing in The Global Economy
Chapter 18 - Managing Marketing in The Global Economy
Chapter Questions
What factors should a company review before deciding to market internationally? What are the major ways of entering foreign markets? What are the keys to effective internal marketing? How can companies be responsible social marketers?
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Better profit opportunities than domestic Larger customer base to achieve economies of scale Less dependence on any one market Desire to counterattack global competitors in their home markets Customers require international service
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Lack of knowledge of foreign culture Lack of understanding of foreign needs Lack of understanding of foreign regulations Lack of managers with international expertise Changes in the country environment
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Global Marketing
Advantages Economies of scale Lower marketing costs Power and scope Consistency in brand image Ability to leverage Uniformity of marketing practices Disadvantages Differences in consumer needs, wants, usage patterns Differences in consumer response to marketing mix Differences in brand development process Differences in environment
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Joint ventures
Direct investment
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Exporting
Indirect Exporting Domestic-based export merchants Domestic-based export agents Trading companies Direct Exporting Domestic-based export department Overseas sales branch or subsidiary Traveling export sales representatives Foreign-based distributors or agents
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Licensing
The licensor issues a license to a foreign company to use a manufacturing process, trademark, patent, trade secret, or other item of value for a fee or loyalty.
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Joint Ventures
Foreign investors join with local investor to create a joint venture company in which they share ownership and control.
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Direct Investment
The foreign company buys part or full interest in a local company or builds its own facilities to gain from cost economies, government incentives and freight savings.
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Product features Brand name Packaging, Labeling Colors, Materials Prices Sales promotion Advertising themes, media, execution
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Production of regional product versions Production of country versions Production of city versions Production of retailer versions
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Price Choices
Set a uniform price everywhere Set a market-based price in each country Set a cost-based price in each country
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Distribution
Seller International headquarters Channels between nations Channels within nations Final buyers
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International Divisions
Global Organization
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Internal Marketing
Internal Marketing requires that everyone in the organization buy into the concepts and goals of marketing and engage in choosing, providing, and communicating customer value.
Functional Organization Geographic Organization Product- or Brand-Management Organization Market-Management Organization Matrix-Management Organization Global Organization
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Functional Organization
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Develop long-range and competitive strategy for each product Prepare annual marketing plan and sales forecast Work with advertising and merchandising agencies to develop campaigns Increase support of the product among channel members Gather continuous intelligence on product performance, customer attitudes Initiate product improvements
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Category Management
In Category Management, a company focuses on product categories to management its brands.
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Market-Management Organization
Market managers supervise several marketdevelopment managers, market specialists, or industry specialists Market managers are staff people with duties like those of product managers. They develop long-range and annual plans for their markets. Companies organized this way are called market-centered organizations.
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Developing a company-wide passion for customers Organizing around customer segments instead of products Understanding customers through qualitative and quantitative research
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Convince senior management of the need to become customer focused Appoint a senior marketing officer and marketing task force Get outside guidance Change the companys reward measurement and system Hire strong marketing talent
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Develop strong in-house marketing training programs Install a modern marketing planning system Establish an annual marketing excellence recognition program Shift from a department focus to a processoutcome focus Empower the employees
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Sales analysis Market share analysis Sales-to-expense ratios Financial analysis Market-based scorecard analysis
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Marketing effectiveness rating instrument Marketing audit Marketing excellence review Company ethical and social responsibility review
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Cause-Related Marketing
Cause-related marketing links the firms contributions to a designated cause with customers engaging directly or indirectly in revenue-producing transactions with the firm.
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Cause-Marketing Benefits
Build brand awareness Enhance brand image Establish brand credibility Evoke brand feelings Create a sense of brand community Elicit brand engagement
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Chose target markets that are ready to respond Promote a single, doable behavior in clear, simple terms Explain the benefits in compelling terms Make it easy to adopt the behavior Develop attention-grabbing messages Consider an education-entertainment approach
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Where are we? Where do we want to go? How will we get there? How will we stay on course?
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Sony Toyota Procter & Gamble Amazon.com Whole Foods Walt Disney Honda Motor Fed Ex
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Sustainability
Sustainability is the importance of meeting humanitys needs without harming future generations.
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