Transcript ch_17_pp - Homework Market

International
Business
Environments & Operations
15e
Daniels
●
Radebaugh
●
Copyright © 2015 Pearson Education, Inc.
Sullivan
17-1
Chapter 17
Marketing Globally
Copyright © 2015 Pearson Education, Inc.
17-2
Learning Objectives
Understand a variety of international
marketing strategies/policies and their
appropriate circumstances
 Discuss the pros and cons of product
alterations when deciding between
standardized and differentiated marketing
programs among countries
 Appreciate the pricing complexities when
selling in foreign markets
 Recognize country differences that may
necessitate alterations in promotional
marketing practices

Copyright © 2015 Pearson Education, Inc.
17-3
Learning Objectives
Comprehend the different branding
strategies companies may employ
internationally
 Discern effective practices and
complications of international distribution
 Perceive why and how emphasis within the
marketing mix may vary among countries
 Anticipate the ways that international
marketing segmentation may evolve

Copyright © 2015 Pearson Education, Inc.
16-4
Introduction

Marketing principles in foreign markets are
similar to those in domestic markets





Product
Price
Promotion
Place
However, some or all elements may need
to be adapted to better fit local markets
Copyright © 2015 Pearson Education, Inc.
17-5
Introduction
Marketing as a Means of Pursuing an International Strategy
Copyright © 2015 Pearson Education, Inc.
17-6
Marketing Strategies

Marketing strategy depends on marketing
orientation





Production
Sales
Customer
Strategic marketing
Social marketing
Copyright © 2015 Pearson Education, Inc.
17-7
Marketing Strategies

Firms can segment and target markets
 By country
 By global segment
 Using multiple criteria
Copyright © 2015 Pearson Education, Inc.
17-8
Product Policies
Learning Objective:
Understand a variety of international
marketing strategies/policies and their
appropriate circumstances
Copyright © 2015 Pearson Education, Inc.
17-9
Product Policies
Learning Objective:
Discuss the pros and cons of product
alterations when deciding between
standardized and differentiated marketing
programs among countries
Copyright © 2015 Pearson Education, Inc.
17-10
Why Firms Alter Products

Firms alter products for
 Legal considerations
 Labeling requirements
 Environmental protection regulations
 Indirect legal considerations
 Cultural considerations
 Economic considerations
Copyright © 2015 Pearson Education, Inc.
17-11
The Product Line:
Extent and Mix

Product line decisions depend on
 Sales and cost considerations
 Product life cycle considerations
Copyright © 2015 Pearson Education, Inc.
17-12
Pricing Strategies
Learning Objective:
Appreciate the pricing complexities when
selling in foreign markets
Copyright © 2015 Pearson Education, Inc.
17-13
Pricing Strategies

Potential obstacles in international pricing


Government intervention
 Set minimum or maximum pricing
 Prohibit certain pricing practices
Market diversity
 Consumers may be willing to pay higher
prices
Copyright © 2015 Pearson Education, Inc.
17-14
Pricing Strategies

Pricing tactics



Skimming strategy
Penetration strategy
Cost-plus strategy
Export price escalation
 Fluctuations in currency value

Copyright © 2015 Pearson Education, Inc.
17-15
Pricing Strategies
Why Cost-Plus Pricing Pushes Up Prices
Copyright © 2015 Pearson Education, Inc.
17-16
Pricing Strategies

Gray market or product diversion

the selling and handling of goods through
unofficial distributors
Copyright © 2015 Pearson Education, Inc.
17-17
Pricing Strategies
Negotiating Import-Export Prices
Copyright © 2015 Pearson Education, Inc.
17-18
Promotion Strategies
Learning Objective:
Recognize country differences that may
necessitate alterations in promotional
practices
Copyright © 2015 Pearson Education, Inc.
17-19
Promotion Strategies

Promotion


the presentation of messages intended to help
sell a product or service
Push-pull mix


Push
 uses direct selling techniques
Pull
 relies on mass media
Copyright © 2015 Pearson Education, Inc.
17-20
Promotion Strategies

Advantages of standardized advertising





lower cost
better quality at local level
common global image
rapid entry into multiple countries
However, firms could have problems with



translation
legalities
market needs
Copyright © 2015 Pearson Education, Inc.
17-21
Branding Strategies
Learning Objective:
Comprehend the different branding
strategies companies may employ
internationally
Copyright © 2015 Pearson Education, Inc.
17-22
Branding Strategies

Brand
 an identifying mark for a product or
service
Copyright © 2015 Pearson Education, Inc.
17-23
Branding Strategies

Advantages of a worldwide brand



global image
global player identification
Problems with global brands




language
brand acquisition
country-of-origin
generic and near-generic names
Copyright © 2015 Pearson Education, Inc.
17-24
Distribution Strategies
Learning Objective:
Discern effective practices and
complications of international distribution
Copyright © 2015 Pearson Education, Inc.
17-25
Distribution Strategies

Distribution
 the course – physical path or legal title
– that goods take between production
and consumption
Copyright © 2015 Pearson Education, Inc.
17-26
Distribution Strategies

Deciding whether to standardize
 Distribution can vary substantially
among countries
 Distribution can be difficult to change
Copyright © 2015 Pearson Education, Inc.
17-27
Distribution Strategies

When choosing distributors and channels
firms must consider
 whether internal handling is feasible
 which distributors are qualified
 the reliability of after-sales service
Copyright © 2015 Pearson Education, Inc.
17-28
Distribution Strategies
Distributors choose which products to
handle
 To get a distributor to work for them,
companies may have to
 give incentives
 use successful products as bait for new
ones
 convince distributors that their product
and company are viable

Copyright © 2015 Pearson Education, Inc.
17-29
Distribution Strategies

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
Copyright © 2015 Pearson Education, Inc.
17-30
Distribution Strategies

E-commerce and the Internet


Opportunities
 can replace traditional sales methods
 faster customer service
Problems
 cannot differentiate sales programs between
countries
 still must comply with local laws
Copyright © 2015 Pearson Education, Inc.
17-31
Managing the Marketing Mix
Learning Objective:
Perceive why and how emphasis within the
marketing mix may vary among countries
Copyright © 2015 Pearson Education, Inc.
17-32
Managing the Marketing Mix

Gap analysis

a method for estimating a company’s potential
sales by identifying prospective customers it is
not serving adequately
 Usage
 Product line
 Distribution
 Competitive
Copyright © 2015 Pearson Education, Inc.
17-33
Managing the Marketing Mix
Gap Analysis
Copyright © 2015 Pearson Education, Inc.
17-34
All rights reserved. No part of this publication may be reproduced, stored in
a retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2015 Pearson Education, Inc.
17-35