1. Kotler & Keller, 13ed Prepared for: International Business Management Universitas Ciputra

2. Global Industry: an industry in which the strategic positions of competitors in major geographic or national markets are fundamentally affected by their overall global positions Global Firm: a firm that operates in more than one country and captures R&D, production, logistical, marketing and financial advantages in its costs and reputation that are not available to purely domestic competitors

3. Deciding whether to go abroad Deciding which markets to enter Deciding how to enter the market Deciding the marketing program Deciding the marketing organization

4. Foreign markets present higher profit opportunities Need a larger customer base to achieve economies of scale Want to reduce its dependence in any one market To counterattack global competitors in their home markets The company’s customers are going abroad and require international service

5. Market entry and market control costs are high Product and communication adaptation cost are high Population, income size and growth are high in the initial countries chosen Dominants foreign firms can establish high barriers to entry

6. Waterfall Approach, in which countries are gradually entered sequentially Sprinkler Approach, in which many countries are entered simultaneously within a limited period of time

7. Direct Investment Joint VenturesLicensingDirect ExportingIndirect Export Commitment, Risk, Control, and Profit Potential

8. 1. Product Product Do Not Change Product Adapt Product Develop New Product Do Not Change Communications Straight extension Product adaptation Product invention Adapt Communications Communicat ion adaptation Dual adaptation Communication

9. 2. Promotion (Communication) Communication Adaptation One message every where, varying only the language, name and colors Use the same theme globally but adapt the copy to each local market Develop a global pool of ads, from which each country selects the most appropriate one e.g. Darkie to Darlie Mc Donald in Indonesia, Japan and ChinaChina

12. 3. Price Set a uniform price everywhere Set a market-based price in each country Set a cost-based price in each country Some Possibilities Problem: Transfer Price Dumping Gray Market E.g. BigMac PriceBigMac Price

14. Seller Seller’s international marketing headquarters Channels between nations Channels within foreign nations Final buyers

15. Building Country Images e.g. France and Italy = branded stuff Taiwan = 3C (Computer, Camera, Cell Phone) Germany = Car Consumer Perception of Country of Origin e.g. Made in China vs Made in Japan

16. Export Departments shipping out its good International Divisions creating international division to handle all their international activity Global organization developing worldwide manufacturing facilities, marketing policies, financial flows and logistical system