International Business Environments and Operations, 13/e Global Edition

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 companys: 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 companys 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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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.

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