Chapter presentation, 'International, Regional and Global Marketing' from Wiley's global textbook on Marketing Management- 'Managing Marketing: An Applied Approach'

1. PRESENTATION 23 OF 24 / 1
Managing Markets Strategically
Professor Noel Capon
R.C. Kopf Professor of International Marketing
Columbia Business School
New York, NY, U.S.A.
&
Professor Siddharth Shekhar Singh
Director Fellow Programme in Management & Associate Professor of Marketing
Indian School of Business
Hyderabad & Mohali, India
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© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.

2. PRESENTATION 23 OF 24 / 2
Managing Markets Strategically
Section I: Marketing and the Firm
Section II: Fundamental Insights for Strategic Marketing
Section III: Strategic Marketing
Section IV: Implementing the Market Strategy
Section V: Special Marketing Topics
Chapter 23: International, Regional, and Global Marketing
Chapter 24: Rural Marketing
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
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3. PRESENTATION 23 OF 24 / 3
CHAPTER 23
International, Regional,
and Global Marketing
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© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.

4. PRESENTATION 23 OF 24 / 4
Global Trade ($ billions)
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
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5. PRESENTATION 23 OF 24 / 5
International, Regional, and Global Marketing
Session Roadmap
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com
Should the firm enter foreign markets?
How should the firm choose which foreign markets to enter?
What foreign-market-entry options are available?
What foreign market strategy issues should the firm address?
How should the firm implement its foreign market strategy?
How should the firm organize for global markets?

6. PRESENTATION 23 OF 24 / 6
International, Regional, and Global Marketing
Session
Roadmap
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com
Should the firm enter foreign markets?
How should the firm choose which foreign markets to enter?
What foreign-market-entry options are available?
What foreign market strategy issues should the firm address?
How should the firm implement its foreign market strategy?
How should the firm organize for global markets?

7. PRESENTATION 23 OF 24 / 7
Should the Firm Enter Foreign Markets?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com
Diversify
risk
Follow
customers
Gain
knowledge
Growth
opportuniti
es
Keep
competitor
s
Reduce
costs
Small
home
market

8. PRESENTATION 23 OF 24 / 8
International, Regional, and Global Marketing
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com
Session
Roadmap
Should the firm enter foreign markets?
How should the firm choose which foreign markets to enter?
What foreign-market-entry options are available?
What foreign market strategy issues should the firm address?
How should the firm implement its foreign market strategy?
How should the firm organize for global markets?

9. PRESENTATION 23 OF 24 / 9
How Should the Firm Choose
Which Foreign Markets to Enter?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com
Foreign
market
attractiveness
The firm’s
ability to
compete

10. PRESENTATION 23 OF 24 / 10
How Should the Firm Choose
Which Foreign Markets to Enter?
Foreign Market Attractiveness
• Economic
• Political/legal/regulatory
• Distance
• Illustration
The Firm’s Ability to Compete
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com

11. PRESENTATION 23 OF 24 / 11
How Should the Firm Choose
Which Foreign Markets to Enter?
Foreign Market Attractiveness
• Economic
• Political/legal/regulatory
• local
• bilateral
• regional
• global
• International Monetary Fund (IMF)
• World Bank (WB)
• World Trade Organization (WTO)
• Distance
• Illustration
The Firm’s Ability to Compete
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com

12. PRESENTATION 23 OF 24 / 12
How Should the Firm Choose
Which Foreign Markets to Enter?
Foreign Market Attractiveness
• Economic
• Political/legal/regulatory
• Distance
• geographic
• sociocultural
• Illustration
The Firm’s Ability to Compete
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com

13. PRESENTATION 23 OF 24 / 13
How Should the Firm Choose
Which Foreign Markets to Enter?
Foreign Market Attractiveness: Illustration for an Indian firm
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
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Great Britain Australia Mexico Great Britain Australia Mexico
Criteria
Importan
ce
Weight (I)
Rating
(RA) (1 to
10 scale)
Rating
(RB) (1 to
10 scale)
Rating
(RC) (1 to
10 scale)
I x RA I x RB I x RC
Market size 30 8 3 5 240 90 150
Growth potential 20 5 7 8 100 140 160
Communications ease 10 10 10 3 100 100 30
Travel ease 10 5 2 2 50 20 20
Currency stability 10 7 7 4 70 70 40
Firm learning 10 3 3 3 30 30 30
Degree of corruption 10 8 8 5 80 80 50
Total 100 Totals 670 530 480

14. PRESENTATION 23 OF 24 / 14
How Should the Firm Choose
Which Foreign Markets to Enter?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com
Foreign Market
Attractiveness
The Firm’s Ability to
Compete

15. PRESENTATION 23 OF 24 / 15
How Should the Firm Choose
Which Foreign Markets to Enter?
Assessing the Firm’s Ability to Compete: Illustration – Argentina
“To be successful in Argentina, any competitor must possess the following strengths…”
Factor Country Weighting
Firm Rating
(1 to 10 scale)
Factor Score
(weighting x rating)
Deep pockets 10 9 90
Fast-moving organization 5 3 15
Good R&D 25 7 175
High-quality service 15 6 90
In-place distribution 20 5 100
Low-cost operations 10 4 40
Well-trained sales force 15 9 135
Total 100 645
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com

16. PRESENTATION 23 OF 24 / 16
How Should the Firm Choose
Which Foreign Markets to Enter?
1000
700
400
100
100 400 700 1000
Low Medium High
High
Medium
Low
Business Strengths
CountryAttractiveness
* Mexico
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com

17. PRESENTATION 23 OF 24 / 17
International, Regional, and Global Marketing
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com
Session
Roadmap
Should the firm enter foreign markets?
How should the firm choose which foreign markets to enter?
What foreign-market-entry options are available?
What foreign market strategy issues should the firm address?
How should the firm implement its foreign market strategy?
How should the firm organize for global markets?

18. PRESENTATION 23 OF 24 / 18
What Foreign Market Entry Options Are Available?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com
Passive Entry
• Exporting
• Licensing
Active Entry
• Importing
• Local
Production
• Franchising

19. PRESENTATION 23 OF 24 / 19
International, Regional, and Global Marketing
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com
Session
Roadmap
Should the firm enter foreign markets?
How should the firm choose which foreign markets to enter?
What foreign-market-entry options are available?
What foreign market strategy issues should the firm address?
How should the firm implement its foreign market strategy?
How should the firm organize for global markets?

20. PRESENTATION 23 OF 24 / 20
What Foreign Market Strategy Issues
Should the Firm Address?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com
Scope Objectives
Segmenting
multiple
country
markets
Global
branding
Country of
origin

21. PRESENTATION 23 OF 24 / 21
What Foreign Market Strategy Issues
Should the Firm Address?
Scope
International Marketing
Domestic
Limited
International
Marketing
Regional
Marketing
Limited
International
Marketing
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com

22. PRESENTATION 23 OF 24 / 22
What Foreign Market Strategy Issues
Should the Firm Address?
Segmenting Multiple Country Markets
• Segmentation by grouping countries
• common markets and trade zones
• cultural closeness
• geographic proximity
• historic relationships
• income
• language
• specific purpose
• Across-country segmentation
• demographic characteristics
• values
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com

23. PRESENTATION 23 OF 24 / 23
What Foreign Market Strategy Issues
Should the Firm Address?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com
Values:
Illustration –
Roper
Starch
Strivers
Devouts
Altruists
Intimates
Fun
seekers
Creatives

24. PRESENTATION 23 OF 24 / 24
What Foreign Market Strategy Issues
Should the Firm Address?
Global Branding
• Favorable factors
• cross-border travel
• growth potential
• homogeneity of customer tastes across countries
• increased global media reach and lower costs
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
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25. PRESENTATION 23 OF 24 / 25
What Foreign Market Strategy Issues
Should the Firm Address?
Global Branding
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com

26. PRESENTATION 23 OF 24 / 26
What Foreign Market Strategy Issues
Should the Firm Address?
• Scope
• Objectives
• Segmenting multiple country markets
• Global branding
• Country of origin
• Cognitive
• Affective
• Normative
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
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27. PRESENTATION 23 OF 24 / 27
International, Regional, and Global Marketing
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com
Session
Roadmap
Should the firm enter foreign markets?
How should the firm choose which foreign markets to enter?
What foreign-market-entry options are available?
What foreign market strategy issues should the firm address?
How should the firm implement its foreign market strategy?
How should the firm organize for global markets?

28. PRESENTATION 23 OF 24 / 28
How Should the Firm Implement
Its Foreign Marketing Strategy?
• Control versus flexibility
• Implementation levers
• product
• communications
• distribution
• price
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com

29. PRESENTATION 23 OF 24 / 29
International, Regional, and Global Marketing
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com
Session
Roadmap
Should the firm enter foreign markets?
How should the firm choose which foreign markets to enter?
What foreign-market-entry options are available?
What foreign market strategy issues should the firm address?
How should the firm implement its foreign market strategy?
How should the firm organize for global markets?

30. PRESENTATION 23 OF 24 / 30
How Should the Firm
Organize for Global Markets?
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com
Export
department
International
division
Geographic
region
Geographic
region/product
division matrix
Global product
division
Functional
Global
customer
management

31. PRESENTATION 23 OF 24 / 31
How Should the Firm
Organize for Global Markets?
Traditional Organizations
Geography
Product
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com

32. PRESENTATION 23 OF 24 / 32
How Should the Firm
Organize for Global Markets?
Global Customer Management
Geography
Product
Customer
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com

33. PRESENTATION 23 OF 24 / 33
How Should the Firm
Organize for Global Markets?
Global Customer Management
• Modified geographic organization
• Market-integrated organization
• Global region
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.
www.wileyindia.comwww.axcesscapon.com

34. PRESENTATION 23 OF 24 / 34
CHAPTER 23
International, Regional,
and Global Marketing
www.wileyindia.comwww.axcesscapon.com
© Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.