Global Marketing Management    Market Entry Strategies

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Global Marketing Management Market Entry Strategies

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1. Global Marketing Management Market Entry Strategies MKGT 3215-001 Fall 2010 Mrs. Tamara L. Cohen

2. Market Entry Strategies Reading for this class: Cateora, Gilly & Graham, ch.11 Homework: Visit the Ikea store near campus: What is unique about Ikea? How does it differ from most American furniture/warehouse stores? Cateora, Gilly & Graham pages in chapter 11: pp 309-311: starts with The Nestlé Way: Evolution Not Revolution; goes until Planning for Global Markets pp 318-325: starts with Alternative Market Entry Strategies; goes until International Joint ventures Cateora, Gilly & Graham pages in chapter 11: pp 309-311: starts with The Nestlé Way: Evolution Not Revolution; goes until Planning for Global Markets pp 318-325: starts with Alternative Market Entry Strategies; goes until International Joint ventures

4. Direct export - company sells directly to customer in another country Indirect export - company sells to buyer (an importer or distributor) in home country; buyer exports product Contractual agreement - long-term, non-equity association between one company & another company in foreign market Licensing - contractual means by which company grants rights to use its patents, trademarks and/or technology to another company, usually in foreign market Franchising - form of licensing where company (franchiser) provides standard package of products, systems & management services to franchisee, who would have local knowledge of foreign markets Joint venture (JV) - partnership where participating companies join to create a separate legal entity Strategic International Alliance - synergistic business relationship established by 2 or more companies to achieve common goal with mutual benefit

5. 4 ways to enter foreign markets: Export Contractual agreements Strategic alliances Direct foreign investments All modes can have equity requirements. Can use a variety of methods simultaneously. Companies most often begin with modest export involvement The different modes of entry can be further classified on the basis of the equity or non-equity requirements of each mode. The amount of equity required by the company to use different modes affects the risk, return, and control that it will have in each mode. Companies most often begin with modest export involvement The different modes of entry can be further classified on the basis of the equity or non-equity requirements of each mode. The amount of equity required by the company to use different modes affects the risk, return, and control that it will have in each mode.

6. Market Entry Considerations 1. Market characteristics potential sales competition strategic importance strengths of local resources cultural differences country restrictions & regulations 2. Company capabilities & characteristics degree of near-market knowledge marketing involvement management commitment When a company makes the commitment to go international, it must choose an entry strategy. This decision should reflect an analysis of market characteristics (such as potential sales, competition, strategic importance, strengths of local resources, cultural differences, and country restrictions and deregulation). In addition, company capabilities and characteristics, including the degree of near-market knowledge, marketing involvement, and commitment that management is prepared to make must be considered. When a company makes the commitment to go international, it must choose an entry strategy. This decision should reflect an analysis of market characteristics (such as potential sales, competition, strategic importance, strengths of local resources, cultural differences, and country restrictions and deregulation). In addition, company capabilities and characteristics, including the degree of near-market knowledge, marketing involvement, and commitment that management is prepared to make must be considered.

7. Market Entry Strategies As sales revenues grow, the firms often proceed down through the series of steps listed in Exhibit 11.2 (Cateora, Gilly & Graham). Successful smaller firms are often particularly adept at exploiting networks of personal and commercial relationships to mitigate the financial risks of initial entry. Also, experience in larger numbers of foreign markets can increase the number of entry strategies used. In fact, a company in several country markets may employ a variety of entry modes because each country market poses a different set of conditions. As sales revenues grow, the firms often proceed down through the series of steps listed in Exhibit 11.2 (Cateora, Gilly & Graham). Successful smaller firms are often particularly adept at exploiting networks of personal and commercial relationships to mitigate the financial risks of initial entry. Also, experience in larger numbers of foreign markets can increase the number of entry strategies used. In fact, a company in several country markets may employ a variety of entry modes because each country market poses a different set of conditions.

8. 1. Exporting Exporting accounts for +- 10% of global economic activity. Direct exporting = company sells to a customer in another country; most common initial approach Indirect exporting = company sells to a buyer (importer or distribution) in home country, who in turn exports the product Internet marketing initially focused on domestic sales. International internet marketing developed from companies receiving orders from customers overseas. Direct sales especially for high tech & big ticket industrial products Exporting accounts for some 10% of global economic activity. Exporting can be either direct or indirect. With direct exporting the company sells to a customer in another country. This is the most common approach employed by companies taking their first international step because the risks of financial loss can be minimized. In contrast, indirect exporting usually means that the company sells to a buyer (importer or distributor) in the home country, who in turn exports the product. Customers include large retailers such as Walmart or Sears, wholesale supply houses, trading companies, and others that buy to supply customers abroad.Exporting accounts for some 10% of global economic activity. Exporting can be either direct or indirect. With direct exporting the company sells to a customer in another country. This is the most common approach employed by companies taking their first international step because the risks of financial loss can be minimized. In contrast, indirect exporting usually means that the company sells to a buyer (importer or distributor) in the home country, who in turn exports the product. Customers include large retailers such as Walmart or Sears, wholesale supply houses, trading companies, and others that buy to supply customers abroad.

9. 2. Contractual Agreement = long-term, non-equity association between one company and another company in a foreign market - usually involves transfer of knowledge / processes / trademarks / skills rather than equity - take the form of Licensing or Franchising Contractual agreements are long-term, non-equity associations between a company and another in a foreign market. Contractual agreements generally involve the transfer of technology, processes, trademarks, or human skills. In short, they serve as a means of transfer of knowledge rather than equity.  Contractual agreements are long-term, non-equity associations between a company and another in a foreign market. Contractual agreements generally involve the transfer of technology, processes, trademarks, or human skills. In short, they serve as a means of transfer of knowledge rather than equity.  

10. Licensing = means of establishing a foothold in foreign markets without large capital outlays common strategy for small & mid-sized companies good way to capitalize on intellectual property in foreign mkt usually supplement exporting or manufacturing licenses for: production processes, use of trade name, distribution of imported products ADVANTAGES DISADVANTAGES when capital scarce quality & production problems import restrictions payment problems sensitivity to foreign ownership contract enforcement (jurisdiction) patents/trademarks need protection loss of marketing control least risk least profitable way to enter market A means of establishing a foothold in foreign markets without large capital outlays is licensing. Patent rights, trademark rights, and the rights to use technological processes are granted in foreign licensing. It is a favorite strategy for small and medium-sized companies, although by no means limited to such companies. The advantages of licensing are most apparent when capital is scarce, import restrictions forbid other means of entry, a country is sensitive to foreign ownership, or patents and trademarks must be protected against cancellation for nonuse. Although licensing may be the least profitable way of entering a market, the risks and headaches are less than for direct investments. It is a legitimate means of capitalizing on intellectual property in a foreign market, and such agreements can also benefit the economies of target countries.A means of establishing a foothold in foreign markets without large capital outlays is licensing. Patent rights, trademark rights, and the rights to use technological processes are granted in foreign licensing. It is a favorite strategy for small and medium-sized companies, although by no means limited to such companies. The advantages of licensing are most apparent when capital is scarce, import restrictions forbid other means of entry, a country is sensitive to foreign ownership, or patents and trademarks must be protected against cancellation for nonuse. Although licensing may be the least profitable way of entering a market, the risks and headaches are less than for direct investments. It is a legitimate means of capitalizing on intellectual property in a foreign market, and such agreements can also benefit the economies of target countries.

11. Franchising = form of licensing Franchiser provides standard package of products, systems & management services Franchisee provides market knowledge, capital & personal involvement in management skill centralization (knowledge of franchiser) + operational decentralization (local knowledge & entrepreneurial spirit of franchisee) degree of control (franchiser) + flexibility dealing with local market conditions (franchisee) foreign regulations welcome franchising because it fosters local ownership, operations & employment company can expand quickly with low capital investment fastest-growing foreign market-entry strategy > 30,000 franchises of US firms in overseas countries Franchising is a rapidly growing form of licensing in which the franchiser provides a standard package of products, systems, and management services, and the franchisee provides market knowledge, capital, and personal involvement in management. The combination of skills permits flexibility in dealing with local market conditions and yet provides the parent firm with a reasonable degree of control. The franchiser can follow through on marketing of the products to the point of final sale. Potentially, the franchise system provides an effective blending of skill centralization and operational decentralization; it has become an increasingly important form of international marketing. Despite temporary setbacks during the global economic downturn right after the turn of the millennium, franchising is still expected to be the fastest-growing market-entry strategy. Two types of franchise agreements are used by franchising firms—master franchise and straight licensing—either of which can have a country’s government as one partner. The master franchise is the most inclusive agreement and the method used in more than half of the international franchises. The master franchise gives the franchisee the rights to a specific area (many are for an entire country), with the authority to sell or establish sub-franchises. Licensing a local franchisee the right to use a product, good, service, trademark, patent, or other asset for a fee is a second type of franchise arrangement. Franchising is a rapidly growing form of licensing in which the franchiser provides a standard package of products, systems, and management services, and the franchisee provides market knowledge, capital, and personal involvement in management. The combination of skills permits flexibility in dealing with local market conditions and yet provides the parent firm with a reasonable degree of control. The franchiser can follow through on marketing of the products to the point of final sale. Potentially, the franchise system provides an effective blending of skill centralization and operational decentralization; it has become an increasingly important form of international marketing. Despite temporary setbacks during the global economic downturn right after the turn of the millennium, franchising is still expected to be the fastest-growing market-entry strategy. Two types of franchise agreements are used by franchising firms—master franchise and straight licensing—either of which can have a country’s government as one partner. The master franchise is the most inclusive agreement and the method used in more than half of the international franchises. The master franchise gives the franchisee the rights to a specific area (many are for an entire country), with the authority to sell or establish sub-franchises. Licensing a local franchisee the right to use a product, good, service, trademark, patent, or other asset for a fee is a second type of franchise arrangement.

12. Franchises in the Global Marketplace Yamaha Music School (Japan) Benetton (Italy) Europcar (France) Bang & Olufsen (UK) Swatch (Switzerland) Ikea (Sweden) Spar (Netherlands) Lacoste (France) Swarovski (Austria) Yamaha Music School (Japan) Benetton (Italy) Europcar (France) Bang & Olufsen (UK) Swatch (Switzerland) Ikea (Sweden) Spar (Netherlands) Lacoste (France) Swarovski (Austria)

13. 3. Strategic International Alliances = synergistic business relationship established by 2 or more companies to achieve common goal with mutual benefit Why seek Strategic International Alliances? strengthen weaknesses & increase competitive advantages opportunities for rapid expansion into new markets access to new technology more efficient production & innovation reduced marketing costs strategic competitive moves access to additional sources of products & capital attractive profits A strategic international alliance (SIA) is a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective. Strategic alliances have grown in importance over the last few decades as a competitive strategy in global marketing management. SIAs are sought as a way to shore up weaknesses and increase competitive strengths. Firms enter into strategic international alliances for several reasons: opportunities for rapid expansion into new markets, access to new technology, more efficient production and innovation, reduced marketing costs, strategic competitive moves, and access to additional sources of products and capital. Finally, evidence suggests that SIAs often contribute nicely to profits A strategic international alliance (SIA) is a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective. Strategic alliances have grown in importance over the last few decades as a competitive strategy in global marketing management. SIAs are sought as a way to shore up weaknesses and increase competitive strengths. Firms enter into strategic international alliances for several reasons: opportunities for rapid expansion into new markets, access to new technology, more efficient production and innovation, reduced marketing costs, strategic competitive moves, and access to additional sources of products and capital. Finally, evidence suggests that SIAs often contribute nicely to profits

14. Strategic Alliances in the Global Marketplace + + = Examples of Strategic International Alliances: Airline industry (Star Alliance; Oneworld Alliance; SkyTeam) General Mills + Nestlé = Cereal Partners Worldwide; European cereal market – PRESS RELEASE OCT.2, 09, RE NEW CPW INNOVATION CENTER IN SWITZERLAND, PART OF NESTLE’S WW RESEARCH NETWORK, 5000 EMPLOYEES C-Itoh + Tyson Foods + Provemex = yakitori Established in 1990 with headquarters in Switzerland, CPW markets cereals in more than 130 countries. CPW is the second-largest cereal company outside of North America. General Mills’ joint venture with Nestlé is a leading producer of breakfast cereals with brands such as Zucosos, Chocapic, Nesquik and Shreddies. December 9, 2009 A commitment to reduce sugar levels in cereals advertised to children by an average of 20% has been announced by Cereal Partners Worldwide (CPW), a global joint venture between Nestlé S.A. and General Mills Inc. The move to reduce sugar content is part of CPW’s ongoing commitment to deliver superior nutrition in its cereals. Throughout the past decade, CPW has led numerous innovations in cereal that deliver superior health and nutrition to consumers. Due to the sugar reduction it has already achieved, CPW estimates that over 5,000 tons of sugar have been removed from its global food supply. Currently the number two breakfast cereal producer worldwide with sales of CHF 2.8 billion in 2008, CPW has 14 factories and employs nearly 4,000 people worldwide. Tyson Foods (U.S.), C-Itoh, (Japan), and Provemex. (Mexico). This alliance will process Japanese-style "yaka- tori" chicken products (a popular Asian dish) Innovative companies in the U.S., Mexico, and the Pacific Rim are experimenting with a new type of transnational strategic alliance (TSA). By sharing complementary resources and capabilities across borders—and splitting the costs and risks—these TSAs can take advantage of market opportunities that most firms dare not grasp for on their own. They represent radical departures from traditional joint ventures in terms of the objectives, perspectives, and relationships of alliance partners. Examples of Strategic International Alliances: Airline industry (Star Alliance; Oneworld Alliance; SkyTeam) General Mills + Nestlé = Cereal Partners Worldwide; European cereal market – PRESS RELEASE OCT.2, 09, RE NEW CPW INNOVATION CENTER IN SWITZERLAND, PART OF NESTLE’S WW RESEARCH NETWORK, 5000 EMPLOYEES C-Itoh + Tyson Foods + Provemex = yakitori Established in 1990 with headquarters in Switzerland, CPW markets cereals in more than 130 countries. CPW is the second-largest cereal company outside of North America. General Mills’ joint venture with Nestlé is a leading producer of breakfast cereals with brands such as Zucosos, Chocapic, Nesquik and Shreddies. December 9, 2009 A commitment to reduce sugar levels in cereals advertised to children by an average of 20% has been announced by Cereal Partners Worldwide (CPW), a global joint venture between Nestlé S.A. and General Mills Inc. The move to reduce sugar content is part of CPW’s ongoing commitment to deliver superior nutrition in its cereals. Throughout the past decade, CPW has led numerous innovations in cereal that deliver superior health and nutrition to consumers. Due to the sugar reduction it has already achieved, CPW estimates that over 5,000 tons of sugar have been removed from its global food supply. Currently the number two breakfast cereal producer worldwide with sales of CHF 2.8 billion in 2008, CPW has 14 factories and employs nearly 4,000 people worldwide. Tyson Foods (U.S.), C-Itoh, (Japan), and Provemex. (Mexico). This alliance will process Japanese-style "yaka- tori" chicken products (a popular Asian dish) Innovative companies in the U.S., Mexico, and the Pacific Rim are experimenting with a new type of transnational strategic alliance (TSA). By sharing complementary resources and capabilities across borders—and splitting the costs and risks—these TSAs can take advantage of market opportunities that most firms dare not grasp for on their own. They represent radical departures from traditional joint ventures in terms of the objectives, perspectives, and relationships of alliance partners.

15. Kinds of Strategic International Alliances International JOINT VENTURE (JV) = partnership of 2 or more companies that have joined forces to create a separate legal entity . CONSORTIA typically involve numerous participants and operate in countries where none of participants is currently active. Many companies also are entering SIAs to be in a strategic position to be competitive and to benefit from the expected growth in the single European market. International joint ventures (IJVs), as a means of foreign market entry, have accelerated sharply during the last 30 years. Besides serving as a means of lessening political and economic risks by the amount of the partner’s contribution to the venture, IJVs provide a way to enter markets that pose legal and cultural barriers that is less risky than acquisition of an existing company. A joint venture is differentiated from other types of strategic alliances or collaborative relationships in that a joint venture is a partnership of two or more participating companies that have joined forces to create a separate legal entity. Joint ventures are different from minority holdings by an MNC in a local firm. Four characteristics define joint ventures: JVs are established, separate, legal entities; they acknowledge intent by the partners to share in the management of the JV; they are partnerships between legally incorporated entities such as companies, chartered organizations, or governments, and not between individuals; and equity positions are held by each of the partners.Many companies also are entering SIAs to be in a strategic position to be competitive and to benefit from the expected growth in the single European market. International joint ventures (IJVs), as a means of foreign market entry, have accelerated sharply during the last 30 years. Besides serving as a means of lessening political and economic risks by the amount of the partner’s contribution to the venture, IJVs provide a way to enter markets that pose legal and cultural barriers that is less risky than acquisition of an existing company. A joint venture is differentiated from other types of strategic alliances or collaborative relationships in that a joint venture is a partnership of two or more participating companies that have joined forces to create a separate legal entity. Joint ventures are different from minority holdings by an MNC in a local firm. Four characteristics define joint ventures: JVs are established, separate, legal entities; they acknowledge intent by the partners to share in the management of the JV; they are partnerships between legally incorporated entities such as companies, chartered organizations, or governments, and not between individuals; and equity positions are held by each of the partners.

16. International JVs 4 characteristics define joint ventures: JVs are established, separate, legal entities acknowledged intent by partners to share in management of JV partnerships between legally incorporated entities, i.e. companies, chartered organizations, or governments, and not between individuals equity positions held by all partners Challenges: selection of partners & maintenance of relationships sharing of control relations with parents legal environments extent of knowledge-sharing > 50,000 JVs established in China in last 30 years International joint ventures (IJVs), as a means of foreign market entry, have accelerated sharply during the last 30 years. Besides serving as a means of lessening political and economic risks by the amount of the partner’s contribution to the venture, IJVs provide a way to enter markets that pose legal and cultural barriers that is less risky than acquisition of an existing company. International joint ventures (IJVs), as a means of foreign market entry, have accelerated sharply during the last 30 years. Besides serving as a means of lessening political and economic risks by the amount of the partner’s contribution to the venture, IJVs provide a way to enter markets that pose legal and cultural barriers that is less risky than acquisition of an existing company.

17. Consortia Consortia are developed to pool financial and managerial resources, and to lessen risks. e.g. large construction projects Airbus Industrie is most prominent int’l consortium. 4 major European aerospace companies agreed to work together to build commercial airlines in competition with Boeing. In 2000 consortium transformed into global company to compete better. Challenges: coordination ability to be team player Consortia are similar to joint ventures and could be classified as such except for two unique characteristics: they typically involve a large number of participants, and they frequently operate in a country or market in which none of the participants is currently active. Consortia are developed to pool financial and managerial resources and to lessen risks. Often, huge construction projects are built under a consortium arrangement in which major contractors with different specialties form a separate company specifically to negotiate for and produce one job. One firm usually acts as the lead firm, or the newly formed corporation may exist independently of its originators. Without doubt, the most prominent international consortium has been Airbus, Boeing’s European competitor in the global commercial aircraft market. That picture is the A300-600ST "Beluga" Airbus, world’s biggest aircraft. It’s a cargo carrier. Airbus operates a fleet of 5 of them.Consortia are similar to joint ventures and could be classified as such except for two unique characteristics: they typically involve a large number of participants, and they frequently operate in a country or market in which none of the participants is currently active. Consortia are developed to pool financial and managerial resources and to lessen risks. Often, huge construction projects are built under a consortium arrangement in which major contractors with different specialties form a separate company specifically to negotiate for and produce one job. One firm usually acts as the lead firm, or the newly formed corporation may exist independently of its originators. Without doubt, the most prominent international consortium has been Airbus, Boeing’s European competitor in the global commercial aircraft market. That picture is the A300-600ST "Beluga" Airbus, world’s biggest aircraft. It’s a cargo carrier. Airbus operates a fleet of 5 of them.

18. 4. Direct Foreign Investment Why invest directly? take advantage of low cost labor avoid high import taxes reduce high transportation costs access raw materials or technology Factors that influence structure & performance of direct investments: timing - 1st movers have advantage but are more risky growing complexity & contingencies of contracts transaction cost structures technology transfer degree of product differentiation previous experiences & cultural diversity of acquired firms advertising & reputation barriers Direct foreign investment is investment within a foreign country. Companies may invest locally to capitalize on low-cost labor, to avoid high import taxes, to reduce the high costs of transportation to market, to gain access to raw materials and technology or as a means of gaining market entry. Mix of considerations and risks makes for increasingly difficult decisions about such foreign investments. But as legal restrictions continue to ease with WTO and other international agreements, more and more large firms are choosing to enter markets via direct investment. Direct foreign investment is investment within a foreign country. Companies may invest locally to capitalize on low-cost labor, to avoid high import taxes, to reduce the high costs of transportation to market, to gain access to raw materials and technology or as a means of gaining market entry. Mix of considerations and risks makes for increasingly difficult decisions about such foreign investments. But as legal restrictions continue to ease with WTO and other international agreements, more and more large firms are choosing to enter markets via direct investment.

19. UNILEVER mission is to add VITALITY to life: Meet everyday needs for nutrition, hygiene & personal care with brands that help people look good, feel good, get more out of life. “world’s greatest consumer goods company” marketing driven strength to anticipate consumer needs & demands, then cater to these € 40 billion (>$53 billion) annual sales 270 manufacturing sites 100 countries 174,000 employees DECENTRALIZATION policy -> subsidies flexible -> higher profits & higher production. Decentralization did not accommodate global changes - Unilever failed to close or merge production facilities when there was duplication or competitive products. Every day customers around the world choose to feed or clean themselves with Unilever products 160 million times a day. HQ in London, UK & Rotterdam, NetherlandsUNILEVER mission is to add VITALITY to life: Meet everyday needs for nutrition, hygiene & personal care with brands that help people look good, feel good, get more out of life. “world’s greatest consumer goods company” marketing driven strength to anticipate consumer needs & demands, then cater to these € 40 billion (>$53 billion) annual sales 270 manufacturing sites 100 countries 174,000 employees DECENTRALIZATION policy -> subsidies flexible -> higher profits & higher production. Decentralization did not accommodate global changes - Unilever failed to close or merge production facilities when there was duplication or competitive products. Every day customers around the world choose to feed or clean themselves with Unilever products 160 million times a day. HQ in London, UK & Rotterdam, Netherlands

20. NESTLÉ mission is belief and consumer offering world’s leading nutrition, health and wellness company, based on sound human values and principles “Good food. Good life.” long term view largest food & beverage company in the world 70% sales from Europe CHF 110 billion (>$100 billion) annual sales 456 factories 130 countries 283,000 employees STRATEGIC INTERNATIONAL ALLIANCES: key is customization. 1st mover advantages: in previously closed markets enter emerging markets early to establish network first (before Unilever & other competitors) purchase local brand name (acquisition) then expand into niches - 2/3 growth by acquisition Brands Nestlé has 8,500 brands. Only 750 of those brands are registered in more than 1 country. Only 80 brands are registered in >10 countries. Every day > billion Nestlé products sold HQ in Vevey, Switzerland NESTLÉ mission is belief and consumer offering world’s leading nutrition, health and wellness company, based on sound human values and principles “Good food. Good life.” long term view largest food & beverage company in the world 70% sales from Europe CHF 110 billion (>$100 billion) annual sales 456 factories 130 countries 283,000 employees STRATEGIC INTERNATIONAL ALLIANCES: key is customization. 1st mover advantages: in previously closed markets enter emerging markets early to establish network first (before Unilever & other competitors) purchase local brand name (acquisition) then expand into niches - 2/3 growth by acquisition Brands Nestlé has 8,500 brands. Only 750 of those brands are registered in more than 1 country. Only 80 brands are registered in >10 countries. Every day > billion Nestlé products sold HQ in Vevey, Switzerland

21. Keys to Success in Market Entry Strategies Global perspective - keep abreast of competition & maintain viable position for increasingly competitive markets Collaborative relationships, strategic int’l alliances, strategic planning & market-entry strategies are critical elements in global marketing management. Expanding markets around the world have increased competition for all levels of international marketing. To keep abreast of the competition and maintain a viable position for increasingly competitive markets, a global perspective is necessary. Global competition also requires quality products designed to meet ever-changing customer needs and rapidly advancing technology. Cost containment, customer satisfaction, and greater competition mean that every opportunity to refine international business practices must be examined in light of company goals. And finally, collaborative relationships, strategic international alliances, strategic planning, and alternative market-entry strategies are important avenues to global marketing that must be implemented in the planning and organization of global marketing management. Expanding markets around the world have increased competition for all levels of international marketing. To keep abreast of the competition and maintain a viable position for increasingly competitive markets, a global perspective is necessary. Global competition also requires quality products designed to meet ever-changing customer needs and rapidly advancing technology. Cost containment, customer satisfaction, and greater competition mean that every opportunity to refine international business practices must be examined in light of company goals. And finally, collaborative relationships, strategic international alliances, strategic planning, and alternative market-entry strategies are important avenues to global marketing that must be implemented in the planning and organization of global marketing management.

22. Next class: Multinational Strategic Alliances Homework: Read Cateora, Gilly & Graham, ch.10: p. 275 p. 286 Exhibit 10.4 p. 291 Exhibit 10.6 In the 14th edition: Page 275 is a 1-page 'Global Perspective': "Might Free Trade Bring Peace to the Middle East?" Page 286 Exhibit 10.4 is about the EURO (currency)  -  notes, coins & sign Page 291 Exhibit 10.6 is about Key Provisions of NAFTAIn the 14th edition: Page 275 is a 1-page 'Global Perspective': "Might Free Trade Bring Peace to the Middle East?" Page 286 Exhibit 10.4 is about the EURO (currency)  -  notes, coins & sign Page 291 Exhibit 10.6 is about Key Provisions of NAFTA

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