Marketing Final Exam

TAPPING INTO GLOBAL MARKETS

Despite shifting borders, unstable governments, foreign-exchange problems, corruption, and technological pirating, companies selling in global industries need to internationalize their operations.</para></listitem>

<listitem><inst></inst><para>Upon deciding to go abroad, a company needs to define its international marketing objectives and policies. It must determine whether to market in a few or many countries and rate candidate countries on three criteria: market attractiveness, risk, and competitive advantage.</para></listitem>

<listitem><inst></inst><para>Developing countries offer a unique set of opportunities and risks. The “BRICS” countries—Brazil, Russia, India, China, and South Africa—plus other significant markets such as Indonesia are a top priority for many firms.</para></listitem>

<listitem><inst></inst><para>Modes of entry are indirect exporting, direct exporting, licensing, joint ventures, and direct investment. Each succeeding strategy entails more commitment, risk, control, and profit potential.</para></listitem>

<listitem><inst></inst><para>In deciding how much to adapt their marketing programs at the product level, firms can pursue a strategy of straight extension, product adaptation, or product invention. At the communication level, they may choose communication adaptation or dual adaptation. At the price level, firms may encounter price escalation, dumping, gray markets, and discounted counterfeit products. At the distribution level, firms need to take a whole-channel view of distributing products to the final users. Firms must always consider the cultural, social, political, technological, environmental, and legal limitations they face in other countries.</para></listitem>

<listitem><inst></inst><para>Country-of-origin perceptions can affect consumers and businesses alike. Managing those perceptions to best advantage is a marketing priority.