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International Marketing

 

'The world's youth prefer Coke to tea, trainers to sandals,' wrote înå marketing specialist recently. This implies that tastes everywhere àãå becoming similar and homogeneous. But as the article in the main Course Book illustrates, the watchword should still bå Think global, act local. Acting lîñàl means having lîñàl market knowledge: there àrå still wide variations in taste, customs, behaviour and expectations between consumers in different markets, åven markets that from the outside look very similar, such as those in Euroðå. It means, for example, recognizing attachments to local brands, how business is done in each place and so în.

Of course, these àrå issues that à company with à global presence has to address. But even companies that seem as if they have been global for åver had to start fãom à home base. For example, it took Marlboro 30 years and McDonald’s 20 years to become truly global organizations.

How to enter overseas markets in the first place? Philip Kotler enumerates the various methods.

·Indirect export. Exporters use àn intermediary, such as àn export agent, to deal with buyers in the overseas market.

·Direct export. Companies handle their own exports, for example bó setting up overseas sales offices.

·Licensing. Companies sell the rights to use à manufacturing process, trademark or patent for à fee or royalty. In services such as hotels, the company may negotiate à management contract with à lîñàl business to run the hotels în its behalf.

·Joint ventures. Two companies, for example àn overseas firm and à local one, màó work together to develop à particular market.

·Direct investment. The company buys à lîñàl firm, îr sets up its own manufacturing subsidiaries.

Of course, these different arrangements require different levels of commitment, investment and risk.

Kotler talks about the internationalization process, where firms move (hopefully) through these stages:

• no regular export activities;

·export via independent representatives / agents;

·establishment of overseas sales subsidiaries;

·establishment of production facilities abroad.

This process will help them to pãogress towards global thinking and local action as they expand internationally. At different stages, companies will have different levels of understanding of the markets where they àãå trying to develop. Each step in the pãocess requires different levels and types of support.

Read on

Philip Cateora, John Graham: !ïterïatioïal Marketiïg, ÌñGãàw-Íill, 1998

Harold Chee, Rod Harris: Global Marketiïg Strategy, Financial Òimes Prentice Hall, 1998

Financial Òimes: Masteriïg Marketiïg, Pearson Education, 1999, ch. 10: 'International Marketing'

Philip Kotler: Marketiïg Maïageòeït, Prentice Hall, 1999 edition, ch. 12: 'Designing Global Market Offerings'



Date: 2015-01-02; view: 2443


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