Download International Business Environments and Operations

International Business
Environments and Operations,
13/e
Global Edition
Part 6
Managing International
Operations
16-1
Copyright © 2011 Pearson Education
Chapter 16
Marketing
Globally
16-2
Copyright © 2011 Pearson Education
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
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Marketing as a Means of Pursuing
an International Strategy
16-4
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Marketing Strategies
Overall international marketing strategies
should depend on the company’s:
• Marketing orientation
• Target market
16-5
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Market Orientation
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Production Orientation
Sales Orientation
Customer Orientation
Strategic Marketing Orientation
Social Marketing Orientation
16-6
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Segmenting and Targeting
Markets
• Three Approaches
– By Country
– By Global Segment
– By Multiple Criteria
• Mass Markets versus Niche Markets
16-7
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Why Firms Alter Products
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Legal Considerations
Cultural Considerations
Economic Considerations
Alteration Costs
Product Line Extent and Mix
16-8
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Potential Obstacles in
International Pricing
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Government intervention
Market diversity
Export price escalation
Fluctuations in currency value
Fixed versus variable pricing
Relations with suppliers
16-9
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Promotion Strategies
• The Push-Pull Mix
– Factors in Push-Pull Decisions
• Problems in International Promotion
– Standardization: Pros and Cons
16-10
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Branding Strategies
• World Wide Brand versus Local Brand
– Problems with Uniform Brands
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Language
Brand Acquisition
Country-of-Origin Image
Generic and Near Generic Names
16-11
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Distribution Strategies
Distribution reflects different country
environments:
• It may vary substantially among countries.
• It is difficult to change.
16-12
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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
16-13
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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
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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
16-15
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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
16-16
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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
16-17
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Managing the Marketing Mix
• Gap Analysis: Types of Gaps
– Usage Gaps
– Product Line and Distribution Gaps
– Competitive Gaps
16-18
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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
16-19
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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.
16-20
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