Transcript International Business Environments & Operations

International
Business
Environments & Operations
15e
Daniels
●
Radebaugh
●
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Sullivan
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Chapter 17
Marketing Globally
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Learning Objectives
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Understand the difference between domestic and
international marketing
Comprehend the strategies and policies related to
the four P’s in international marketing. Explain
how they vary internationally.
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Product policy considerations
Pricing considerations
Promotion considerations
Distribution considerations
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Introduction
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International marketing defined: the performance
of a wide range of business activities directed at
satisfying needs and wants through the exchange
process, internationally
Distinction between Domestic and International
Marketing
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Marketing principles in foreign markets are similar to
those in domestic markets. However, some or all
elements may need to be adapted to better fit local
markets
Global market segmentation
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The Marketing Environment
Product
Price
Promotion
Place
Global Market Segmentation
Dividing and subdividing markets into
homogenous subsets. Segmentation helps
in identifying target/niche markets
 Firms can segment and target markets
 By country
 By global segment
 Using multiple criteria
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Standardization-Adaptation Debate
Standardization Adaptation Debate and Continuum
Standardization______________Adaptation
Product
Price
Promotion
Distribution
Planning
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5______4______3______2______1
5______4______3______2______1
5______4______3______2______1
5______4______3______2______1
5______4______3______2______1
Factors favoring Standardization or Adaptation
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Product Policy Considerations
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Legal Considerations
Cultural Considerations
Economic Considerations
Product Line/Mix-width and depth of
product lines
Product Life Cycle Considerations
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Pricing Considerations
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Domestic vs. international pricing
Governmental Intervention
- Price controls
- Legal and Tax consideration
Diversity of Markets: skimming vs.
penetration
Price Escalation
Currency Value and Inflation
Gray market
Fixed vs. Variable Pricing
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Pricing Strategies
Why Cost-Plus Pricing Pushes Up Prices
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Pricing Strategies
Negotiating Import-Export Prices
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Promotion Considerations
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International Promotion Mix: personal selling,
advertising, sales promotion activities and
publicity/public relations
Push vs. Pull Mix
Advantages of a worldwide brand
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global image
Identification-safety, security, trust, expectations
Problems with global brands
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language
brand acquisition
country-of-origin
generic and near-generic names
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Distribution Considerations
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Factor affecting the designing of channeldistributor and channel
Distribution intensity: intensive, selective and
exclusive distribution
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 Hidden costs in foreign
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distribution
Internet and Global Commerce
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Opportunities created by Internet
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E-commerce offers firms a unique opportunity
to market their products worldwide.
The Internet permits suppliers to deal
more quickly with their customers.
Challenges
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Customers worldwide can quickly compare
prices from different distributors, thus
intensifying price competition.
Differentiation is difficult because the same
web ads and prices reach customers
everywhere.
Internet ads and prices must comply with the
laws of each country where a firm markets its
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products.
Discussion Questions
1.
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4.
Define international marketing and
explain how it differs from domestic
marketing.
Explain the standardization adaptation
debate in international marketing
Explain Product Considerations in
international marketing. I may ask you to
explain any of the four P’s in marketing.
How does Internet affect marketing?
Explain.
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