marketing internationally
DESCRIPTION
Marketing InternationallyTRANSCRIPT
![Page 1: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/1.jpg)
![Page 2: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/2.jpg)
Marketing Internationally
McGraw-Hill/IrwinInternational Business, 11/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.
chapter eighteen
![Page 3: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/3.jpg)
18-3
Learning Objectives
Understand why there are differences between domestic and international marketing
Explain why international marketing managers may wish to standardize the marketing mix regionally or worldwide
Explain why standardizing the marketing mix globally is often impossible
Appreciate the importance of distinguishing among the total product, the physical product, and the brand name
![Page 4: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/4.jpg)
18-4
Learning Objectives
Explain why consumer products generally require greater modification for international sales than do industrial products or services
Discuss the product strategies that can be formed from three product alternatives and three kinds of promotional messages
Explain “glocal” advertising strategies
Discuss the effect of the Internet on international marketing
Discuss the distribution strategies of international marketers
![Page 5: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/5.jpg)
18-5
International Marketing
• Develop marketing strategies by assessing the firm’s potential foreign markets and analyzing the many alternative marketing mixes– Must plan and control a variety of marketing
strategies• Rather than a single unified and
standardized one• Coordinate and integrate those strategies
into a single marketing program
![Page 6: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/6.jpg)
18-6
Standardize, Adapt, or Formulate Anew?
• Management would prefer global standardization of the marketing mix
• Significant cost savings• Longer production runs• Standardized advertising, promotional materials,
and sales training• Standardized corporate image• Standardized pricing strategies • Easier control and coordination• Reduction of preparation time• Often not possible
![Page 7: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/7.jpg)
18-7
Product Strategies
• Product is central to marketing mix
• Total product includes– Physical product– Brand name– Accessories– After-sales service– Warranty– Instructions for use– Company image– Package
![Page 8: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/8.jpg)
18-8
Total Product
![Page 9: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/9.jpg)
18-9
Types of Products
• Industrial Products– Many can be sold unchanged worldwide
(computer chips)– If changes are required, they may be cosmetic
(printing instructions in another language)– In developing countries problems with
• Overload of equipment• Maintenance
– Local legal requirements
![Page 10: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/10.jpg)
18-10
Types of Products
• Consumer Products– Require greater modification to meet local market
requirements than do industrial products
– Some can be sold unchanged to certain market segments
• Large automobiles, sporting equipment, and perfumes
– Greater dissimilarity as you go down the economic strata
![Page 11: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/11.jpg)
18-11
Types of Products
• Services– Marketing of services similar to that of
industrial products• Services easier to market globally compared to
consumer products• Laws and customs may force changes
![Page 12: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/12.jpg)
18-12
Foreign Environmental Forces
• Sociocultural Forces– Dissimilar cultural patterns generally require
changes in food and other consumer goods– May require
• Redesign of product– Different meanings of colors– Different meanings of brand name
• Translation of instructions or labels
![Page 13: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/13.jpg)
18-13
Foreign Environmental Forces
• Legal Forces– Laws concerning
• Pollution• Consumer protection
• Operator safety – Laws prohibiting classes of imports
• Food and pharmaceuticals influenced by laws concerning purity and labeling
– Legal forces may prevent use of brand name worldwide
• In some countries brand may be registered to someone else
![Page 14: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/14.jpg)
18-14
Foreign Environmental Forces
• Economic Forces– Great disparity in income throughout world
– Obstacle to product standardization
– Many industrialized country products too expensive for developing country consumers
• Must either simplify the product or produce a different, less costly one
![Page 15: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/15.jpg)
18-15
Foreign Environmental Forces
• Physical Forces– Climate and terrain prevent international product
standardization• Heat• High humidity
– Special packaging
• High altitudes– Baking products and motors
• Rough roads
![Page 16: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/16.jpg)
18-16
Promotional Strategies
• Promotion– Any form of communication between a firm
and its publics • To bring about a favorable buying action
and achieve long-lasting confidence in the firm and the product or service it provides
![Page 17: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/17.jpg)
18-17
Promotional Strategies
• Distinct promotional strategies based on combination of three alternatives – Marketing the same physical product everywhere
– Adapting the physical product for foreign markets
– Designing a different physical product with• (a) the same message• (b) adapted message or • (c) different message
![Page 18: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/18.jpg)
18-18
Six Common Promotional Strategies
• Same product-same message– Avon, Maidenform
• Same product-different message– Honda’s campaign in America is different than in Brazil
• Product adaptation-same message– In Japan, Lever Brothers puts Lux soap in fancy boxes to encourage gift
sales
![Page 19: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/19.jpg)
18-19
Six Common Promotional Strategies cont’d.
• Product adaptation-message adaptation– In Latin America, Tang is sweetened and promoted as mealtime drink
• Different product-same message– Product is produced in low cost plastic squeeze bottle for developing
countries, but advertised the same
• Different product for the same use-different message– Welding torches rather than automatic welding machines are sold in
developing countries
![Page 20: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/20.jpg)
18-20
The Promotional Mix
• Advertising
• Personal selling
• Sales promotion
• Public relations
• Publicity
![Page 21: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/21.jpg)
18-21
Advertising
• Paid, nonpersonal presentation of ideas, goods, or services by identified sponsor– Among promotional mix elements,
advertising• Has the greatest similarities worldwide• Is formulated and executed through
global ad agencies that have wholly owned subsidiaries, joint ventures, and working agreements with local agencies
![Page 22: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/22.jpg)
18-22
Global and Regional Brands
• Reasons for increase in global and regional brands– Cost – Better chance of obtaining one regional source
for high-quality work– Belief that single image throughout region is
important– Establishment of regionalized organizations with
many functions centralized– Growth of global and regional satellite and cable
television
![Page 23: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/23.jpg)
18-23
Top Twenty Brands 2006
![Page 24: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/24.jpg)
18-24
Impact of Culture on Advertising
• Directness vs. indirectness• Comparison• Humor• Gender roles• Explicitness• Sophistication• Popular vs. traditional• Information content vs. fluff
![Page 25: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/25.jpg)
18-25
Advertising
• Branding
– Global, regional or national• Managers may convert or use a combination
– Private brands• Serious competitors• Alliances with international retailers• Trend common in Europe
![Page 26: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/26.jpg)
18-26
Advertising
• Media– Satellite TV expands availability of media
– International print media available• Reader’s Digest has 48 foreign editions
– Cinema and billboards used heavily in Europe
– In developing countries, vehicles equipped with loudspeakers
![Page 27: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/27.jpg)
18-27
Advertising
• Internet Advertising• An affluent, reachable audience
• Web contacts feature interactivity, shrinks distance
• Involve customers in determining which messages and information they receive
• For some groups, Internet may be among the best media choices
![Page 28: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/28.jpg)
18-28
Advertising
• Foreign Environmental Forces– Basic cultural decision for marketer: position
the product as foreign or local
– Depends on the country, the product types, and the target market
– Language often an issue• back translation• plenty of illustrations with short copy
![Page 29: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/29.jpg)
18-29
Advertising
• What should be the approach of the international advertising manager?– Think globally, but act locally– Neither global nor local-”glocal”– Pan regional approach
• Latin America• Middle East• Africa• Atlantic
![Page 30: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/30.jpg)
18-30
Personal Selling
• Importance of personal selling compared to advertising depends on– Relative cost– Funds available– Media available– Type of product
• Manufacturers of industrial products rely on personal selling
• Marketers may increase use of personal selling for consumer products in developing countries
![Page 31: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/31.jpg)
18-31
Personal Selling
• Internet– Would seem to eliminate the need for personal
selling, but may not be so
– Successful personal selling depends on establishing trust
• Evolving approaches to trust building in a virtual environment
![Page 32: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/32.jpg)
18-32
Personal Selling
• International Standardization– An overseas sales force is similar to the home
country in• Organization• Sales presentation• Training methods
– Recruitment of salespeople in foreign countries can be difficult
![Page 33: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/33.jpg)
18-33
Sales Promotion
• Any various selling aids, including displays, premiums, contest, and gifts
• Sociocultural and economic constraints make some sales promotions difficult to use– If premium is to fulfill the sales aid objective, it
must be meaningful to the purchaser– Sales promotion is generally less sophisticated
overseas than in U.S.
![Page 34: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/34.jpg)
18-34
Public Relations
• Various methods of communicating with
the firm’s publics to secure a favorable
impression
– Markets firm
– Improves image and overcomes negative
perceptions
– May work through government agencies
![Page 35: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/35.jpg)
18-35
Pricing
• Important and complex consideration in formulating marketing strategy
• One of the marketing mix elements that can be varied to achieve firm’s marketing objectives
• Made more complex by– Interaction with the other functional areas– Environmental forces
![Page 36: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/36.jpg)
18-36
Interaction between Marketing and Other Functional Areas
• The finance people want prices that are profitable and conducive to steady cash flow
• Production supervisors want prices that create large sales volumes, which permit long production runs
• Legal department worries about possible antitrust violations when different prices are set according to type of customer
![Page 37: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/37.jpg)
18-37
Interaction between Marketing and Other Functional Areas
• The tax people are concerned with effects of prices on tax loads
• The domestic sales manager wants export prices to be high enough to avoid parallel importing
• The marketer must address all these concerns and consider– Legal forces– Environmental forces
![Page 38: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/38.jpg)
18-38
Standardizing Prices
• Difficult if desirable– Foreign National Pricing
• Local pricing in another country– International Pricing
• Setting prices for unrelated and related firms– Transfer pricing
• Intracorporate price, price of a good or service sold by one affiliate to another, the home office to an affiliate, or vice versa
![Page 39: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/39.jpg)
18-39
Distribution Strategies
• Distribution Decisions– Often interdependent with other marketing
mix variables
• Standardizing Distribution– Two fundamental constraints
• The variation in availability of channel members
• The environmental forces present in these different markets
![Page 40: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/40.jpg)
18-40
Standardizing Distribution
• Disintermediation– Unraveling of traditional distribution
structures• Most often the result of being able to
combine Internet with fast delivery services
![Page 41: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/41.jpg)
18-41
Channel Selection
• Direct or Indirect Marketing– The first decision: whether to use middlemen– Export sales may be consummated by local
agents if• Management believes this is politically expedient• Country’s laws demand it
• Factors Influencing Channel Selection• Market• Product• Company• Middlemen
![Page 42: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/42.jpg)
18-42
Foreign Environmental Forces and the Marketing Mix Matrix
![Page 43: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/43.jpg)
18-43
Foreign Environmental Forces and the Marketing Mix Matrix
![Page 44: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/44.jpg)
18-44
Foreign Environmental Forces and the Marketing Mix Matrix
![Page 45: Marketing Internationally](https://reader031.vdocuments.net/reader031/viewer/2022012917/5695d2941a28ab9b029af824/html5/thumbnails/45.jpg)
18-45
Foreign Environmental Forces and the Marketing Mix Matrix