Download Centralized Marketing Strategy

Chapter 11: International Marketing
11.1 International Marketing Strategies
International Marketing Strategies
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Many options to choose from:
Centralized/ decentralized strategy
 Incorporating push or pull marketing
 Decide to focus on international
brand acquisition or brand
development
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Centralized Marketing Strategy
Focuses on the production and sale of goods
from one central location
 “Think locally, act globally”
 E.g. American head office makes decisions for
all global operations
Advantages:
 Brand building (global brand)
 Cost savings
 Consistency and continuity
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Decentralized Marketing Strategies
Use local production facilities, ad agencies, sales
reps, to target internationally
 “Think Globally, Act Locally”
 E.g. Coca Cola Bottling
Advantages
 Proximity to market
 Flexible
 Cultural sensitivity
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Push Strategy
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Communications and promotional
activities by the marketer persuade
wholesalers (e.g. Costco) and retailers
to stock and promote specific products
E.g. discounted pricing, all-inclusive
vacations, cash payments
Other push strategies: trade shows
and sales reps visiting stores
Pull Strategy
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Strategy aimed at the end consumer of a product
(e.g. you)
Demand for the product is created through
promotional efforts, sales, advertising, etc.
E.g. Rrroll Up the Rim to Win
Brand Acquisition
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International company purchases an existing
company in the foreign country or acquires the
right to distribute the brand
Contracts for distribution rights
Manufacturing rights
Brand Development
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Often used with decentralized
strategy
Will use foreign subsidiary to
develop comparable product to
compete in local market
Many Canadian companies use
this
E.g. McCain Foods, Bombardier
Questions
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Read Chapter 11.1 (p. 336-344)
Answer on p. 344:
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1 (a), 2(a), 3(a)
Choose 1 Canadian brand/company that should
expand globally using an acquisition (e.g. merger)
or development strategy
Explain whether a push or pull strategy would be
more appropriate
Explain the advantages of using a centralized or
decentralized strategy for this expansion
Exercise