publishing as Prentice Hall 16-3 Chapter Objectives • To understand a variety of international product policies and their appropriate circumstances • To be aware of product alterations
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International Business Environments and Operations, 13/
e
Part 6 Managing International
Operations
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Chapter 16 Marketing Globally
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Chapter Objectives
• To understand a variety of international product policies and their
appropriate circumstances
• To be aware of product alterations when deciding between
standardized and differentiated marketing programs among countries
• To appreciate the pricing complexities when selling in foreign markets
• To be familiar with country differences that may necessitate
alterations in promotional practices
• To comprehend the different branding strategies companies may
employ internationally
• To discern effective practices and complications
of international distribution
• To perceive why and how emphasis within the marketing mix may vary among countries
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Marketing as a Means of Pursuing
an International Strategy
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Marketing Strategies
Overall international marketing strategies should depend on the company’s:
• Marketing orientation
• Target market
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Market Orientation
• Production Orientation
• Sales Orientation
• Customer Orientation
• Strategic Marketing Orientation
• Social Marketing Orientation
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Segmenting and Targeting
Markets
• Three Approaches
– By Country
– By Global Segment
– By Multiple Criteria
• Mass Markets versus Niche Markets
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Why Firms Alter Products
• Legal Considerations
• Cultural Considerations
• Economic Considerations
• Alteration Costs
• Product Line Extent and Mix
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Potential Obstacles in International Pricing
• Government intervention
• Market diversity
• Export price escalation
• Fluctuations in currency value
• Fixed versus variable pricing
• Relations with suppliers
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Promotion Strategies
• The Push-Pull Mix
– Factors in Push-Pull Decisions
• Problems in International Promotion
– Standardization: Pros and Cons
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Branding Strategies
• World Wide Brand versus Local Brand
– Problems with Uniform Brands
• Language
• Brand Acquisition
• Country-of-Origin Image
• Generic and Near Generic Names
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Distribution Strategies
Distribution reflects different country
environments:
• It may vary substantially among countries
• It is difficult to change
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Internal Handling
Distribution may be handled internally:
• When volume is high
• When companies have sufficient resources
• When there is a need to deal directly with the customer because of the nature of the
product
• When the customer is global
• When the distribution form is a competitive
advantage
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Qualifying Distributors
Some evaluation criteria for distributors include their:
• Financial capability
• Connections with customers
• Fit with a company’s product
• Other resources
• Trustworthiness
• Compatibility with product image
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The Challenge of Getting
Distribution
Distributors choose which companies and
products to handle Companies:
• May need to give incentives
• May use successful products as bait for new ones
• Must convince distributors that product and company are viable
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Hidden Costs and Gains in
Distribution
• Factors that contribute to cost differences
among countries in distribution:
– Infrastructure conditions
– Number of levels in distribution system
– Retail inefficiencies
– Size and Operating Hour Restrictions
– Inventory Stock-Outs
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E-Commerce and the Internet
• Evidence suggests online shoppers
universally have some similar characteristics:
– Desire convenience
– Are heavy users of e-mail and the Internet
– Have favorable attitudes toward direct marketing and advertising
• Opportunities
• Problems
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Managing the Marketing Mix
• Gap Analysis: Types of Gaps
– Usage Gaps
– Product Line and Distribution Gaps
– Competitive Gaps
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Future: Evolving Challenges to
Segment Markets
• Disparities between “haves” and “have-nots” will increase
• Companies will have conflicting opportunities to serve both “haves” and “have-nots”
• Attitudinal differences continue to affect demand:
– Materialism, Cosmopolitanism, and Consumer
Ethnocentrism
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