copyright © 2013 pearson education, inc. publishing as prentice hall 16-1 international business...

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

16-1

International Business

Environments & Operations

14e

Daniels ● Radebaugh ● Sullivan


16-2

Chapter 16

Marketing Globally


16-3

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 among countries

To appreciate the pricing complexities when selling in foreign 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 of international distribution

To perceive why and how emphasis within the marketing mix may vary among countries


16-4

Introduction Marketing principles in foreign markets are

similar to those in domestic markets Product Price Promotion Place

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


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IntroductionMarketing as a Means of Pursuing an International Strategy


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Marketing Strategies Marketing strategy depends on marketing

orientation Production Sales Customer Strategic marketing Social marketing


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Marketing Strategies Firms can segment and target markets

By country By global segment Using multiple criteria


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Product PoliciesLearning Objective 1: To understand a variety of international product policies and their appropriate circumstances


16-9

Product PoliciesLearning Objective 2: To be aware of product alterations when deciding between standardized and differentiated marketing programs among countries


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Why Firms Alter Products Firms alter products for

Legal reasons Cultural reasons Economic reasons


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The Product Line: Extent and Mix

Product line decisions depend on Sales and cost considerations Product life cycle considerations


16-12

Pricing StrategiesLearning Objective 3: To appreciate the pricing complexities when selling in foreign markets


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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 higher

prices


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Pricing Strategies Pricing tactics

Skimming strategy Penetration strategy Cost-plus strategy

Export price escalation Fluctuations in currency value


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Pricing StrategiesWhy Cost-Plus Pricing Pushes Up Prices


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Pricing Strategies Gray market or product diversion

the selling and handling of goods through unofficial distributors


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Pricing StrategiesNegotiating Import-Export Prices


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Promotion StrategiesLearning Objective 4: To be familiar with country differences that may necessitate alterations in promotional practices


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Promotion Strategies Promotion

the presentation of messages intended to help sell a product or service

Push-pull mix Push

uses direct selling techniques Pull

relies on mass media


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Promotion Strategies 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 StrategiesLearning Objective 5: To comprehend the different branding strategies companies may employ internationally


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Branding Strategies Brand

an identifying mark for a product or service


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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 StrategiesLearning Objective 6: To discern effective practices and complications of international distribution


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Distribution Strategies Distribution

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


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Distribution Strategies Deciding whether to standardize

Distribution can vary substantially among countries

Distribution can be difficult to change


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Distribution Strategies When choosing distributors and channels

firms must consider whether internal handling is feasible which distributors are qualified the reliability of after-sales service


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Distribution Strategies Distributors choose which products to

handle 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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Distribution Strategies Factors that can contribute to distribution

cost 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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Distribution Strategies E-commerce and the Internet

Opportunities can replace traditional sales methods faster customer service

Problems cannot differentiate sales programs between

countries still must comply with local laws


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Managing the Marketing Mix

Learning Objective 7: To perceive why and how emphasis within the marketing mix may vary among countries


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Gap analysis a method for estimating a company’s potential

sales by identifying prospective customers it is not serving adequately

Usage Product line Distribution Competitive


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Gap Analysis


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Evolving Challenges to 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 to affect demand

Materialism, cosmopolitanism, and consumer ethnocentrism


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copyright © 2013 pearson education, inc. publishing as prentice hall 16-1 international business...

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international strategy

marketing mix

marketing strategies

aware of product alterations

pricing complexities

foreign markets