Chapter Questions What factors should a company review before deciding to expand? How can companies evaluate and select specific markets to enter? What.
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1 Chapter QuestionsWhat factors should a company review before deciding to expand?How can companies evaluate and select specific markets to enter?What are the main ways to enter a new market?Should the company adapt its products and marketing program to each new market?How should the company evaluate and control its activities?
2 Global Firm A firm that operates in more than one country and captures R&D, production,logistical, marketing, andfinancial advantages in its costs andreputation that are not available to purelydomestic competitors.
3 Regional Free Trade Zones European UnionNAFTAMERCOSULAPEC
4 Major Decisions in Marketing Expansion Deciding whether to goDeciding which markets to enterDeciding how to enterDeciding on themarketing programDeciding on themarketing organization
5 Choosing markets strategically 3 main criteria:market attractiveness,risk, andcompetitive advantageDeveloping markets and countries offer a unique set of opportunities and risks.
6 Four Stages of Internationalization No regular export activitiesExport via independent agentsEstablish sales subsidiariesEstablish productionfacilities abroad
12 Global Marketing Advantages Disadvantages Economies of scale Lower marketing costsPower and scopeConsistency in brand imageAbility to leverageUniformity of marketing practicesDisadvantagesDifferences in environmentDifferences in consumer needs, wants, usage patternsDifferences in brand development process
13 Price Choices Set a uniform price everywhere Set a market-based price in each countrySet a cost-based price in each country
14 Whole-Channel Concept SellerInternational headquartersChannels between nationsChannels within nationsFinal buyers
15 Global Organization Strategies World as Single MarketMultinational“Global”Click on the video icon to launch a video snippet about Nivea’s philosophy on international marketing.