Marketing

Joint Ventures
Foreign investors may join with local investors to create a joint venture company in which they share ownership and control.
A) A joint venture may be necessary or desirable for economic or political reasons.
B) The foreign firm might lack the:
1) Financial resources
2) Physical resources
3) Managerial resources needed to undertake the venture alone
4)Foreign governments might require joint ownership for entry
5) The value of a partnership can extend far beyond increased sales or access to distribution. Good partners share “brand values” that help maintain brand consistency across markets
C) Joint ownership has certain drawbacks:
1) The partners might disagree over investment
2) The partners might disagree over marketing
3)The partners might disagree over other policies
4) Can prevent a multinational company from carrying out specific manufacturing and marketing policies on a worldwide basis
Direct Investment
The ultimate form of foreign involvement is direct ownership of foreign-based assembly or manufacturing facilities.
A) The foreign company can buy part or full interest in a local company or build itsown facilities.
B) If the market appears large enough, foreign production facilities offer distinct advantages:
1) The firm secures cost economies in the form of cheaper labor or raw materials; foreign-government investment incentives and/or freight savings.
2) The firm strengthens its image in the host country because it creates jobs.
3) The firm develops a deeper relationship withgovernment, customers, local suppliers, and distributors.
4) The firm retains full control over its investment.
5) The firm assures itself access to the market.
C) The main disadvantage of direct investment is:
1) The firm exposes a large investment to risks such as blocked or devalued currencies
2) Worsening markets
3) Expropriation
Global Similarities & Differences(cultural dimensions)
The development of the Web, the spread of cable and satellite TV, and the global linking of telecommunications networks have led to a convergence of lifestyles. Increasingly common needs and wants have created global markets for more standardized products, particularly among the young middle class.
Hofstede identifies four cultural dimensions that can differentiatecountries:
1) Individualism versus collectivism
2) High versus low power distance
3) Masculine versus feminine
4) Weak versus strong uncertainty avoidance
Consumer behavior differences as well as historical market factors lead marketers to position brands differently in different markets.

Marketing Adaptation (aspect might be adapted for international marketing)
Because ofall these differences, most products require at least some adaptation.

A) The best global brands are consistent in theme but reflect significant differences in consumer behavior, brand development, competitive forces, and the legal or political environment.

Marketing Memo: The ten commandments of global branding (Global branding)
Suggestions for global branding: Understand similarities anddifferences in the global branding landscape;

A) Do not take shortcuts in brand-building;
B) Establish a marketing infrastructure;
C) Embrace integrated marketing communication;
D) Establish brand partnerships;
E) Balance standardization and customization;
F) Balance global and local control;
G) Establish operable guidelines;
H) Implement a globalbrand equity measurement system;
I) Leverage brand elements.

Product Adaptation Strategies (levels of product adaptation)
Warren Keegan has distinguished five adaptation strategies of product and communications to a foreign market. The product adaptation strategies are:
A) Straight extension means introducing the product in the foreign market without any change.
B) Product adaptation...