Transcript same message Different product for the same use – different message

Chapter 14
Marketing
Internationally
McGraw-Hill/Irwin
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
LO1
Added Complexities of
International Marketing
• Basic marketing functions are the same
world-wide, but differ in local markets
due to these issues:
•
•
•
•
•
•
Sociocultural
Resource & environmental
Economic & socioeconomic
Legal
Financial
Labor
14-2
The Marketing Mix
(What to Sell and How to Sell It)
LO2
• The Marketing Mix:
– A set of strategy
decisions about
• Product
• Promotion
• Price
• Distribution
– Focuses on satisfying
target market(s)
needs and desires
• The international
marketing manager’s
question:
– “Can we standardize
worldwide, should we
make some changes,
or should we
formulate a
completely different
marketing mix?”
14-3
LO3
Standardize, Adapt,
or Formulate Anew?
• To Standardize:
– Use same marketing mix
in all markets
– Gains cost savings
because of economies of
scale and experience
• Benefits:
– Consistent global message
– Sales training &
advertising creative work
only done once
– Pricing avoids customer
getting different quotes
– Product consistency
– Easier coordination &
control
14-4
Type of Product
LO4
• Industrial Products – sold in B-to-B markets, often
unchanged
– Adaptation used to meet local legal requirements
• Consumer Products – sold to ultimate consumer for personal
consumption
•
Often modified to meet local cultural preferences
• Services – “Performances” targeted to B-to-B or ultimate
consumer
•
Less complex marketing, but local laws/customs may mandate adaptations
14-5
LO4
Foreign Environmental Forces
• Sociocultural Forces –
– different cultural patterns often require changes in brand
name, color, label translations, package size & price
• Legal Forces –
– impact every aspect of marketing mix and pollution,
consumer protection & operator safety
Economic Forces –
– income differences impact consumer’s ability to pay requiring
quantity and price changes
• Physical Forces –
– climate, terrain, altitude, etc., may demand product alteration
14-6
LO4
Promotional Strategies
• Promotion –
– “Communication that
secures understanding
between a firm and its
publics to bring favorable
buying action and longterm confidence in the
firm and its products or
services”
• 9 possible strategies
from 3 alternatives:
1.
Marketing same physical
product everywhere
2.
Adapting physical product
to foreign markets
3.
Designing new physical
product with (a) same, (b)
adapted, or different
messages
14-7
LO4
1.
2.
3.
4.
5.
6.
6 Commonly Used
Promotional Strategies
Same product – same message
Same product – different message
Product adaptation – same message
Product adaptation – message adaptation
Different product – same message
Different product for the same use – different message
14-8
LO5
Advertising
• Internet Advertising
– Provides affluent,
reachable, Englishspeaking audience
– Cheap, interactive
communications
– Customers can determine
which messages &
information they receive
– Best media choice for
select audiences
• Type of Product
– Same buying motives for
industrial and luxury
goods globally =
standardization
– Low-priced products
bought & consumed for
same reasons globally =
standardized appeals &
sales arguments
14-9
LO3
Advertising
• Foreign
Environmental
Forces, Especially
Sociocultural Forces,
Deter
Standardization:
– Positioning as foreign or
local product
– Language & Translation
– Laws reflect public opinion
– Religious limitations
• Globalization versus
Localization
– Product & brand
standardization = cost
savings
– Product content
standardization + local
packaging =
manufacturing efficiency
– Local product + local
brand = sales, but limited
country transferability
14-10
LO6
“Glocal” Advertising
• Neither Purely
Global nor Purely
Local – “Glocal”
Advertising
– Best way to handle
international
advertising
– Common strategy for
large regions = lower
costs
• ProgrammedManagement
Approach
– A middle-ground
advertising strategy
between globally
standardized and
entirely local
programs
14-11
Advertising
• Personal Selling
– Importance of personal
selling depends on
• Relative cost of
advertising
• Funds available for
advertising
• Available media
• Type of product
– Industrial firms use
personal selling more
than advertising
– Consumer goods use
personal selling in
developing markets
LO5
• Personal Selling and
the Internet
– If used to build trust,
Internet can be
effective in personal
selling
– Internet can be
enhanced by face-toface communication
14-12
LO3
Sales Promotion
• Sales Promotion
– Any of various selling
aids, including displays,
premiums, contests, and
gifts.
• Standardization is
easy – what works in
U.S. works abroad,
and cultural
constraints need be
considered.
• Sociocultural and
Economic
Constraints
– Premiums must be
culturally meaningful
– Contests, games & raffles
are successful where
people like to gamble
– Point-of-purchase displays
must be downsized to fit
smaller foreign stores
14-13
Public Relations
• Public Relations
– Various methods of
communicating with the
firm’s publics to secure a
favorable impression
• MNCs need to
improve
communications to
non-business publics
because of:
•
•
•
•
Nationalism
Anti-MNC feelings
Profit from public good
Critics of firm’s motives
and operations
 Choice: defend or do
nothing
14-14
Pricing, a Controllable Variable
• The one
marketing
mix element
that can be
varied to
attain
marketing
objectives.
• Standardizing Prices
– Foreign National Pricing
• Local pricing in another country
– International Pricing
• Setting prices of goods for export for
both unrelated and related firms
– Transfer Price
• Intracorporate price, or the price of a
good/service sold by on affiliate to
another, the office to an affiliate, or
vice versa”
• Advantages: 2 profit centers and
lower tax environments
14-15
Pricing
LO5
• The Internet is Redefining Pricing
Options:
– Instant access to multiple sellers world wide
– Greater global price competition
– Instant price comparisons from 100s of sites
• The Results:
– National boundaries are less important
– World prices are becoming a reality in both
consumer and B-to-B markets
14-16