International Business Environments and OperationsPart 6 Managing International Operations16-1Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

Chapter 16 Marketing Globally

16-2Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

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 countries16-3Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

Marketing as a Means of Pursuing an International Strategy

16-4Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

Marketing StrategiesOverall international marketing strategies should depend on the companys: Marketing orientation Target market

16-5Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

Market Orientation Production Orientation Sales Orientation Customer Orientation Strategic Marketing Orientation Social Marketing Orientation

16-6Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

Segmenting and Targeting Markets Three Approaches By Country By Global Segment By Multiple Criteria

Mass Markets versus Niche Markets

16-7Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

Why Firms Alter Products Legal Considerations Cultural Considerations Economic Considerations Alteration Costs Product Line Extent and Mix

16-8Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

Potential Obstacles in International Pricing Government intervention Market diversity Export price escalation Fluctuations in currency value Fixed versus variable pricing Relations with suppliers

16-9Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

Promotion Strategies The Push-Pull Mix Factors in Push-Pull Decisions Problems in International Promotion Standardization: Pros and Cons

16-10Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

Branding Strategies World Wide Brand versus Local Brand Problems with Uniform Brands Language Brand Acquisition Country-of-Origin Image Generic and Near Generic Names

16-11Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

Distribution StrategiesDistribution reflects different country environments: It may vary substantially among countries. It is difficult to change.

16-12Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

Internal HandlingDistribution 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 advantage16-13Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

Qualifying DistributorsSome evaluation criteria for distributors include their: Financial capability Connections with customers Fit with a companys product Other resources Trustworthiness Compatibility with product image16-14Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

The Challenge of Getting DistributionDistributors 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

16-15Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

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-Outs16-16Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

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 Problems16-17Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

Managing the Marketing Mix Gap Analysis: Types of Gaps Usage Gaps Product Line and Distribution Gaps Competitive Gaps

16-18Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

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

16-19Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

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.

16-20Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall