International bussiness 6th griffin pustay chapter 16

International Marketing Griffin & Pustay 16-1 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall International Business, 6th Edition chapter 16 Chapter Objectives • Characterize the nature of marketing management in international business • Discuss the basic kinds of product policies and decisions made in international business • Identify pricing issues and evaluate pricing decisions in international business 16-2 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Chapter Objectives (continued) • Identify promotion issues and evaluate promotion decisions in international business • Discuss the basic kinds of distribution issues and decisions in international business 16-3 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Marketing Marketing is “the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.” 16-4 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall International Marketing International Marketing is the extension of these marketing activities across national boundaries 16-5 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Figure 16.1 International Marketing as an Integrated Functional Area Operations Management Accounting Marketing Finance 16-6 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Human Resource Management Market Strategy Must Support Business Strategy Differentiation Cost Leadership Focus 16-7 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Marketing Mix Issues • How to develop the firm’s product(s) • How to price those products • How to sell those products • How to distribute those products to the firm’s customers 16-8 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Figure 16.2 Elements of the Marketing Mix for International Firms 16-9 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Key Decision-Making Factors • Standardization versus customization • Legal forces • Economic factors • Changing exchange rates • Target customers • Cultural influences • Competition 16-10 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Risks to Market Pricing Policy Charges of dumping Damage to brand name Development of a gray market Consumer resentment 16-21 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Promotion Mix 16-22 Advertising Personal Selling Sales Promotion Public Relations Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Factors Affecting Advertising Strategy • The message it wants to convey • The media available for conveying the message • The extent to which the firm wants to globalize its advertising effort 16-23 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Advertising Message: the facts or impressions the advertiser wants to convey to potential customers 16-24 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Advertising (continued) Medium: the communication channel used by the advertiser to convey a message 16-25 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Global Advertising A customer entering this domino parlor in Egypt encounters no language barriers in knowing that the establishment serves Coke 16-26 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Personal Selling Personal Selling: making sales on the basis of personal contacts 16-27 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Advantages of Personal Selling for International Firms • Local sales representatives understand local culture, norms, and customs • Personal selling promotes close, personal contact with customers • Personal selling makes it easier for firm to adopt valuable market information 16-28 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Sales Promotion Sales promotion: comprises specialized marketing efforts designed to offer an incentive for behavior such as coupons, instore promotions, sampling, direct mail campaigns, cooperative advertising, and trade fair attendance 16-29 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Public Relations Public Relations consists of efforts aimed at enhancing a firm’s reputation and image with the general public, as opposed to touting the specific advantages of an individual product or service 16-30 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Distribution Issues Physical transportation mode 16-31 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Merchandising mode Table 16.2 Advantages/Disadvantages of Transportation Modes Mode Advantages Disadvantages Sample Products Train Safe, reliable, inexpensive Limited to rail routes, slow Airplane Safe, reliable, fast Expensive, limited access Jewelry, medicine Truck Versatile, inexpensive Small size Consumer goods Ship Inexpensive, good for larger products Slow, indirect Automobiles, furniture Electronic Media Fast Unusable for many products Information 16-32 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Automobiles, grains Basic Parts of a Distribution Channel Manufacturer Wholesaler Retailer Customer 16-33 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Figure 16.4 Distribution Channel Options 16-34 Copyright 2010 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 Copyright © 2010 Pearson Education, Inc publishing as Prentice Hall ... in international business 16- 2 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Chapter Objectives (continued) • Identify promotion issues and evaluate promotion decisions in international. .. products to the firm’s customers 16- 8 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Figure 16. 2 Elements of the Marketing Mix for International Firms 16- 9 Copyright 2010 Pearson... Pricing Figure 16. 3a Determining the Profit-Maximizing Price 16- 18 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Figure 16. 3b Determining the Profit-Maximizing Price 16- 19 Copyright