Transcript Standardized marketing mix

Tapping Into Global Markets
(Chapter 21)
Trends
• World is shrinking: faster communication,
transportation, and financial flows
• Products from one country readily accepted
in other countries: ____________________
• Competition is intensifying
Challenges in Entering Global Markets
• Can company ________ to other countries’
business cultures, consumer behavior,
regulations, political environments, etc.?
• Costs of entering global markets
• Costs of not entering global markets
Criteria for Entering
Which countries (potential markets)?
• Infrastructure, government regulations, trade
barriers
• Quality of labor pool, welcoming environment
• Geographically close
• Psychic proximity
Deciding How to Enter the Market
Figure 21.2:
Five Modes of Entry into
Foreign Markets
Commitment
Risk
Control
Profit Potential
Product Planning for Global Markets
Straight product extension (p. 678): introduce
product in foreign market without any change; do
foreign consumers use this product and how
much?
Advantage: no additional cost of product
development, manufacturing changes, or new
promotion:
Disadvantage: fail to meet foreign customer needs
Product Planning for Global Markets
Product adaptation: alter product to meet local
conditions or preferences
Gerber: baby food in Japan includes flounder and
spinach stew, cod roe spaghetti, and sardines
ground up in white radish sauce.
Product Planning for Global Markets
Product invention: creating something new; forward
invention – creating a new product to meet a need
in another country
Promotion Planning for Global Markets
Communication adaptation: altering the
advertising and promotion campaigns for
each local market
Austria and Italy regulate TV advertising to
children; Saudi Arabia does not want
advertisers to use women in ads
Key Issues in Developing a Marketing
Program
Standardization vs Adaptation (p. 679)
Standardized marketing mix: involves no
change in marketing mix, therefore assumes
lowest cost; _____________________
Adapted marketing mix: marketing mix
adapted to each target market; increases
________________________________
Key Issues in Developing a Marketing
Program
To what extent should marketing mix be
adapted or standardized?
Review elements of marketing mix and determine
which would add more revenue than cost
Standardized
Adapted
Key Issues in Developing a Marketing
Program
Elements of Marketing Mix: which will add more
revenue than costs (p. 679)?
Product features, prices, brand name, labeling,
packaging, colors, materials, advertising, etc.
Ex: Coca-Cola Classic is sold worldwide, but in
some countries it is less carbonated and less sweet.
Managing a Holistic Marketing
Organization (Chapter 22)
Requires that everyone in the organization buy into
the concepts and goals of marketing and engage in
choosing, providing and communicating customer
value
Issues: Departments (functions) define company
problems and goals from their viewpoint, so
conflicts of interest are unavoidable; stereotypes;
prejudice; communication breakdowns
Internal Marketing
Challenges: Departments (functions) define
company problems and goals from their
viewpoint, so conflicts of interest are unavoidable;
stereotypes; prejudice; communication
breakdowns.
Possible solution: function-to-function meeting with
departments where greater understanding and
collaboration is warranted (p. 704).
Internal Marketing
Building a Creative Marketing Organization (p. 704)
• Company must be customer-oriented and ______________
Ex: If marketers pay too much attention to consumers say
they need or want, marketers will simply make products
similar to those that already exist. It is the marketer’s job
to go beyond what customer’s say they want (Marketing
Insight, p. 706)
• Ability to capitalize on trends
Socially Responsible Marketing
Need to practice higher level of corporate social
responsibility: rising customer expectations,
changing employee expectations, government
legislation and pressure, investor interest in social
criteria, and changing business procurement
practices (p. 706).
Marketing Implementation
A brilliant strategic marketing plan counts for little if
it is not implemented properly (p. 715)
Skills necessary Diagnostic skills – poor strategy or poor implementation?
Implementation skills – allocating (budgeting); organizing;
interaction (motivate others)
Evaluation skills – track and evaluate actions
Future of Marketing
Marketing must be holistic and less departmental
Must continuously create new ideas if the company
is to prosper in a hypercompetitive economy
Must build brands through performance, more than
promotion
Succeed through superior information and
communication systems
Future of Marketing
Marketing management is largely an artistic exercise
and therefore highly subjective vs. Marketing
management is largely a scientific exercise with
well-established guidelines and criteria