In this chapter, you will learn how globalization affects international marketing activities. You will also: Explore how firms develop their international product strategies. understand how companies blend product and promotional strategies for international markets, and examine the elements that influence international distribution and pricing strategies.
Trang 1Developing and Marketing Products
14
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Chapter Objectives
international marketing activities
when developing international product strategies
promotional strategies and the blending of product and promotional strategies
account when designing international distribution
strategies
pricing strategies
Trang 3• Identical product is sold worldwide
• Promotes brand on college campuses
• Sponsors extreme sporting events
Trang 4• Consistent image/message
• Contain costs
• Consistent image/message
• Contain costs
• Respond to local needs
• Exploit unique image
• Respond to local needs
• Exploit unique image
Trang 5Cultural differences
Laws and regulations
National image
Counterfeit
goods
National Business Environments
Trang 6 Obey local laws
Trang 7New product development efforts
Result is shorter product life cycles
New product development efforts
Result is shorter product life cycles
Consecutive market introductions
Technology and travel make obsolete
Consecutive market introductions
Technology and travel make obsolete
Trang 9Laws and regulations can force
product alteration Cultural
differences can force
adaptations to better suit local
preferences National image can
influence perception of quality
Counterfeit goods can damage a
brand’s image And shortened
product life cycles result from
rapid new product development.
Trang 1014 - 10
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Push and Pull Strategies
Push Strategy Pull Strategy
Pressure channel members
to carry a product and promote it to
final users
Create buyer demand that will encourage channel members to
stock a product
Trang 11 Powerful channel members make push
Trang 13Marketing Communications
Trang 14Luxury goods
Global strategy
Global strategy
Trang 15Level of economic development
Can help contain costs
Can help contain costs
Trang 16Local content
laws
Can be expensive
Can be expensive
Safety codes, infrastructure
Safety codes, infrastructure
Trang 17Needs large, profitable segment
Explain product benefits
Explain product benefits
Trang 18Low purchasing
power
Level of economic development
Level of economic development
Different infrastructure
Different infrastructure
Trang 19A company that creates
buyer demand that will
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Answer to Discussion Question
A company that creates
buyer demand that will
Trang 21Planning, implementing, and controlling the physical
flow of a product from origin to consumption
Physical goods Consulting services News providers
Trang 23Value density
Value density
Product’s value relative
to its weight and volume
Product’s value relative
to its weight and volume
The lower a product’s value density, the more localized
is its distribution system
The lower a product’s value density, the more localized
is its distribution system
Trang 26grants rights to sell a product
to one or a limited number of
resellers, as in automobiles
An intensive channel is one
in which a producer grants
the right to sell a product to
many resellers, as in general
office supplies.
Trang 28• Local production cost
• Export / distribution cost
• Local purchasing power
• Exchange rates
Trang 3014 - 30
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Pricing Issues
Intra-company transfer Free-market price
Upper or lower limits Unfairly low export price
Transfer price Arm’s length price
Price controls
Dumping
Trang 31A pricing strategy in which
a company must keep its
domestic and international
buyers separate is called
Trang 3214 - 32
Copyright © 2014 Pearson Education, Inc
Answer to Discussion Question
A pricing strategy in which
a company must keep its
domestic and international
buyers separate is called
Trang 33All 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 © 2014 Pearson Education, Inc