Ch11 Marketing Globally.pdf

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Copyright © 2013 Pearson Education, Inc.publishing as Prentice Hall 16-1

International

BusinessEnvironments & Operations

14e

Daniels●

Radebaugh●

Sullivan




Chapter 11

Marketing Globally




Learning Objectives To understand a variety of international product policies

and their appropriate circumstances To be aware of product alterations when deciding between

standardized and differentiated marketing programs amongcountries

To appreciate the pricing complexities when selling inforeign markets To be familiar with country differences that may necessitate

alterations in promotional practices To comprehend the different branding strategies companies

may employ internationally

To discern effective practices and complications ofinternational distribution To perceive why and how emphasis within the marketing

mix may vary among countries




Introduction

Marketing principles in foreign marketsare similar to those in domestic markets

Product

Price Promotion

Place

However, some or all elements may needto be adapted to better fit local markets




IntroductionMarketing as a Means of Pursuing an International Strategy




Marketing Strategies

Marketing strategy depends on marketingorientation

Production

Sales Customer

Strategic marketing

Social marketing




Marketing Strategies

Firms can segment and target markets

By country

By global segment

Using multiple criteria




Product Policies

Learning Objective 1:

To understand a variety of internationalproduct policies and their appropriate

circumstances




Product Policies


To be aware of product alterations whendeciding between standardized and

differentiated marketing programs amongcountries




Why Firms Alter Products

Firms alter products for

Legal reasons

Cultural reasons

Economic reasons




The Product Line:Extent and Mix

Product line decisions depend on

Sales and cost considerations

Product life cycle considerations




Pricing Strategies


To appreciate the pricing complexitieswhen selling in foreign markets




Pricing Strategies

Potential obstacles in international pricing

Government intervention

Set minimum or maximum pricing

Prohibit certain pricing practices Market diversity

Consumers may be willing to pay higherprices




Pricing Strategies

Pricing tactics

Skimming strategy

Penetration strategy

Cost-plus strategy Export price escalation

Fluctuations in currency value




Pricing Strategies

Why Cost-Plus Pricing Pushes Up Prices



Copyright © 2013 Pearson Education, Inc.publishing as Prentice Hall

16-16

Pricing Strategies

Gray market or product diversion

the selling and handling of goods throughunofficial distributors




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Pricing StrategiesNegotiating Import-Export Prices




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Promotion Strategies


To be familiar with country differencesthat may necessitate alterations in

promotional practices




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Promotion

the presentation of messages intended to helpsell a product or service

Push-pull mix Push

uses direct selling techniques

Pull

relies on mass media




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Advantages of standardized advertising

lower cost

better quality at local level

common global image rapid entry into multiple countries

However, firms could have problems with

translation

legalities

market needs




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Branding Strategies


To comprehend the different brandingstrategies companies may employ

internationally




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Branding Strategies

Brand

an identifying mark for a product orservice




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Branding Strategies

Advantages of a worldwide brand

global image

global player identification

Problems with global brands language

brand acquisition

country-of-origin

generic and near-generic names




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Distribution Strategies


To discern effective practices andcomplications of international distribution




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Distribution

the course – physical path or legal title– that goods take between production

and consumption




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Deciding whether to standardize

Distribution can vary substantiallyamong countries

Distribution can be difficult to change




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When choosing distributors and channelsfirms must consider

whether internal handling is feasible

which distributors are qualified the reliability of after-sales service




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Distributors choose which products tohandle

To get a distributor to work for them,

companies may have to give incentives

use successful products as bait for new ones

convince distributors that their product and

company are viable




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Factors that can contribute to distributioncost differences among countries include

Infrastructure conditions

The number of levels in the distribution system Retail inefficiencies

Size and operating hour restrictions

Inventory stock-outs




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E-commerce and the Internet

Opportunities

can replace traditional sales methods

faster customer service Problems

cannot differentiate sales programs betweencountries

still must comply with local laws




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Managing the Marketing Mix


To perceive why and how emphasis withinthe marketing mix may vary among

countries



Copyright © 2013 Pearson Education, Inc.

publishing as Prentice Hall

16-32

Managing the Marketing Mix

Gap analysis

a method for estimating a company’s potentialsales by identifying prospective customers it isnot serving adequately

Usage

Product line

Distribution

Competitive





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Managing the Marketing MixGap Analysis

E l i Ch ll





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Evolving Challengesto Segment Markets

Disparities between “haves” and “have-nots” will increase

Companies will have conflicting

opportunities to serve both “haves” and “have-nots”

Attitudinal differences will continue toaffect demand

Materialism, cosmopolitanism, andconsumer ethnocentrism





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Ch11 Marketing Globally.pdf