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Geographic segments with very different characteristics
-
Level of involvement
- Simple export
- Through incrmental internationalization often leads to ...
- MNC Multinational Corporations
-
Whether to go international
- Push...
- domestic market dries up
- overcapacity
- domestic taxes
- reduce trade deficit
- over regulation of business
- Pull...
- profit potential
-
Deciding where to go
-
Economic considerations
- buying power of local economy
- industrial structure
- subsistence (agricultural)
- raw material export (mining)
- developing or industrializing
- industrialized (Northern Europe)
- tarrifs
-
Political considerations
- local attitude toward foreign money
- stability of local politics
- monetary policies and stability
- bureaucratic obstacles (bribes etc)
-
Cultural considerations
- norms and taboos for products
- norms for behavior of business
-
How much to adapt the marketing program?
- custom marketing mix to each country
- global marketing mix everywhere
-
- a continuum usually with some adaptation
-
Product maybe an old product
-
Price usually cost based
-
Place depends on situation
- Promotion adapt to local
-
Special problems
- Language
- Frank Perdue in USA "It takes a tough man
to make a tender chicken."
becomes...
.
.
.
.
.
- In Spanish "It takes a sexually excited
man to make a chick affectionate. "
Incremental internationalization:
-
From Export to Globalization
-
casual exporting
- formal exporting
- exporting and importing
- foreign licensing
- contracting for manufacture
- joint ventures
- bonafide international corporation
- True Multinational company
- Global company
As one moves down the list, the level of involvement and committment
increases. The risks are greater. The rewards are potentially greater.
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