Transcript International Marketing

International Marketing
Trade policy
Culture
Consumer buying
power
Product strategies
BSAD 110
INTERNATIONAL MARKETING
Lars Perner, Instructor
1
Obstacles to Trade:
Protectionism
Differing interests of consumers and
manufacturers
Benefits of trade tend to be more
diffused than benefits to specific
groups of protectionism
BSAD 110
INTERNATIONAL MARKETING
Lars Perner, Instructor
2
Approaches to Protectionism
Tariffs
Quotas
“Voluntary” export
restrictions
Subsidies to domestic
producers/exporters
Non-tariff barriers
legal obstacles
differential treatment
BSAD 110
INTERNATIONAL MARKETING
Lars Perner, Instructor
3
Cultural Lessons
Diet Coke is named Light Coke in Japan-dieting was not well regarded
Red circle trademark was unpopular in Asia
due to its resemblance of Japanese flag
Packaging of products is more important in
some countries than in U.S.
Advertisement featuring man and dog failed
in Africa--dogs were not seem as man’s best
friend
BSAD 110
INTERNATIONAL MARKETING
Lars Perner, Instructor
4
More Cultural Lessons...
Cologne ad featuring a man “attacked” by
women failed in Africa
Food demonstration did well in Chinese
stores but not in Korean ones--older
women were insulted by being “taught”
by younger representatives
Pauses in negotiations
Level of formality
BSAD 110
INTERNATIONAL MARKETING
Lars Perner, Instructor
5
Product Strategies
Extent of product change
Standardization: Attempt at global product
Customization: Specific product for each market
Adaptation: Some changes made to product
• Physical: Product changes (e.g., voltage, size, taste)
• Communications: Positioning
More issues when we considered product
strategy in general
BSAD 110
INTERNATIONAL MARKETING
Lars Perner, Instructor
6
Physical Product vs.
Communication Adaptations
Communication
adaptations not
needed
(extension)
Product
Some industrial
adaptations not equipment; some
needed
electrical
(extension)
equipment
Product
Gasoline; laundry
adaptations
detergent
needed
Communication
adaptations
needed
Bicycle; fast food;
chewing gum
Greeting cards
Domestic
Compass-equipped prayer rug; hand
equivalent does powered washing machine
not exist
(product
invention)
BSAD 110
INTERNATIONAL MARKETING
Lars Perner, Instructor
7
CONSUMER INCOMES AND
BUYING POWER
Measuring country wealth
gross domestic product
“purchase parity” vs. nominal
Government role in the economy
Tax burden
Services provided by the Government—
e.g., health care, education
BSAD 110
INTERNATIONAL MARKETING
Lars Perner, Instructor
8
Nominal vs. Purchase Parity
Adjusted GNPs--Examples
Country
Nominal GNP PPA
United States
28,740
28,740
Japan
37,850
23,400
Argentina
8,570
9,950
Czech Republic
5,200
11,380
Mexico
3,680
8,120
Russia
2,740
4,190
Source: World Bank (http://www.worldbank.org/data/databytopic/gnppc97.pdf)
BSAD 110
INTERNATIONAL MARKETING
Lars Perner, Instructor
9
Market Entry Strategies
Exporting
Joint venture
Low investment
Low control of
promotion
Considerable investment
More control
Able to benefit from
partner’s experience
Must work with partner
Licensing
Low investment
Low control of
promotion, positioning,
and quality
Able to benefit from
existing distribution and
market knowledge
BSAD 110
Direct investment
INTERNATIONAL MARKETING
Large investment
Risky
Greater control
May lack knowledge of
market
Lars Perner, Instructor
10
U.S. Laws of Interest to firms
with U.S. Involvement
Anti-trust
Foreign Corrupt Influences
Anti-boycott laws
Trading With the Enemy
BSAD 110
INTERNATIONAL MARKETING
Lars Perner, Instructor
11