International business environment and operations 13e pearson chapter 16

International Business Environments and Operations, 13/e Part Managing International Operations 16-1 Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall Chapter 16 Marketing Globally 16-2 Copyright © 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 countries 16-3 Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall Marketing as a Means of Pursuing an International Strategy 16-4 Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall Marketing Strategies Overall international marketing strategies should depend on the company’s: • Marketing orientation • Target market 16-5 Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall Market Orientation • Production Orientation • Sales Orientation • Customer Orientation • Strategic Marketing Orientation • Social Marketing Orientation 16-6 Copyright © 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 16-7 Copyright © 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 16-8 Copyright © 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 16-9 Copyright © 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 16-10 Copyright © 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 16-11 Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall Distribution Strategies Distribution reflects different country environments: • It may vary substantially among countries • It is difficult to change 16-12 Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 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 16-13 Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 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 16-14 Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 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 16-15 Copyright © 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-Outs 16-16 Copyright © 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 • Problems 16-17 Copyright © 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 16-18 Copyright © 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 16-19 Copyright © 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 16-20 Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall .. .Chapter 16 Marketing Globally 16- 2 Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall Chapter Objectives • To understand a variety of international product policies and their... Standardization: Pros and Cons 16- 10 Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall Branding Strategies • World Wide Brand versus Local Brand – Problems with Uniform Brands • • • •... vary among countries 16- 3 Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall Marketing as a Means of Pursuing an International Strategy 16- 4 Copyright © 2011 Pearson Education,