Post on 13-Jan-2016
transcript
Chapter 14
MarketingInternationally
McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Added Complexities of International Marketing
• Basic marketing functions are the same world-wide, but differ in local markets due to these issues:
• Sociocultural• Resource & environmental• Economic & socioeconomic• Legal• Financial• Labor
• Basic marketing functions are the same world-wide, but differ in local markets due to these issues:
• Sociocultural• Resource & environmental• Economic & socioeconomic• Legal• Financial• Labor
LO1
14-2
The Marketing Mix (What to Sell and How to Sell
It)• The Marketing Mix:
– A set of strategy decisions about
• Product• Promotion• Price• Distribution
– Focuses on satisfying target market(s) needs and desires
• The Marketing Mix:– A set of strategy
decisions about• Product• Promotion• Price• Distribution
– Focuses on satisfying target market(s) needs and desires
• The international marketing manager’s question:– “Can we standardize
worldwide, should we make some changes, or should we formulate a completely different marketing mix?”
• The international marketing manager’s question:– “Can we standardize
worldwide, should we make some changes, or should we formulate a completely different marketing mix?”
LO2
14-3
Standardize, Adapt, or Formulate Anew?
• To Standardize:– Use same marketing
mix in all markets– Gains cost savings
because of economies of scale and experience
• To Standardize:– Use same marketing
mix in all markets– Gains cost savings
because of economies of scale and experience
• Benefits:– Consistent global
message– Sales training &
advertising creative work only done once
– Pricing avoids customer getting different quotes
– Product consistency– Easier coordination &
control
• Benefits:– Consistent global
message– Sales training &
advertising creative work only done once
– Pricing avoids customer getting different quotes
– Product consistency– Easier coordination &
control
LO3
14-4
Type of Product• Industrial Products – sold in B-to-B markets, often
unchanged– Adaptation used to meet local legal requirements
• Industrial Products – sold in B-to-B markets, often unchanged– Adaptation used to meet local legal requirements
• Consumer Products – sold to ultimate consumer for personal consumption• Often modified to meet local cultural preferences
• Consumer Products – sold to ultimate consumer for personal consumption• Often modified to meet local cultural preferences
• Services – “Performances” targeted to B-to-B or ultimate consumer• Less complex marketing, but local laws/customs may mandate
adaptations
• Services – “Performances” targeted to B-to-B or ultimate consumer• Less complex marketing, but local laws/customs may mandate
adaptations
LO4
14-5
Foreign Environmental Forces• Sociocultural Forces –
– different cultural patterns often require changes in brand name, color, label translations, package size & price
• Legal Forces – – impact every aspect of marketing mix and pollution,
consumer protection & operator safety
Economic Forces – – income differences impact consumer’s ability to pay
requiring quantity and price changes
• Physical Forces – – climate, terrain, altitude, etc., may demand product
alteration
• Sociocultural Forces – – different cultural patterns often require changes in
brand name, color, label translations, package size & price
• Legal Forces – – impact every aspect of marketing mix and pollution,
consumer protection & operator safety
Economic Forces – – income differences impact consumer’s ability to pay
requiring quantity and price changes
• Physical Forces – – climate, terrain, altitude, etc., may demand product
alteration
LO4
14-6
Promotional Strategies
• 9 possible strategies from 3 alternatives:
1. Marketing same physical product everywhere
2. Adapting physical product to foreign markets
3. Designing new physical product with (a) same, (b) adapted, or different messages
• 9 possible strategies from 3 alternatives:
1. Marketing same physical product everywhere
2. Adapting physical product to foreign markets
3. Designing new physical product with (a) same, (b) adapted, or different messages
• Promotion –– “Communication that
secures understanding between a firm and its publics to bring favorable buying action and long-term confidence in the firm and its products or services”
• Promotion –– “Communication that
secures understanding between a firm and its publics to bring favorable buying action and long-term confidence in the firm and its products or services”
LO4
14-7
6 Commonly Used Promotional Strategies
1. Same product – same message2. Same product – different message3. Product adaptation – same message4. Product adaptation – message adaptation5. Different product – same message6. Different product for the same use – different
message
1. Same product – same message2. Same product – different message3. Product adaptation – same message4. Product adaptation – message adaptation5. Different product – same message6. Different product for the same use – different
message
LO4
14-8
Advertising• Internet Advertising
– Provides affluent, reachable, English-speaking audience
– Cheap, interactive communications
– Customers can determine which messages & information they receive
– Best media choice for select audiences
• Internet Advertising– Provides affluent,
reachable, English-speaking audience
– Cheap, interactive communications
– Customers can determine which messages & information they receive
– Best media choice for select audiences
• Type of Product– Same buying motives
for industrial and luxury goods globally = standardization
– Low-priced products bought & consumed for same reasons globally = standardized appeals & sales arguments
• Type of Product– Same buying motives
for industrial and luxury goods globally = standardization
– Low-priced products bought & consumed for same reasons globally = standardized appeals & sales arguments
LO5
14-9
Advertising• Foreign
Environmental Forces, Especially Sociocultural Forces, Deter Standardization:– Positioning as foreign or
local product– Language & Translation– Laws reflect public opinion– Religious limitations
• Foreign Environmental Forces, Especially Sociocultural Forces, Deter Standardization:– Positioning as foreign or
local product– Language & Translation– Laws reflect public opinion– Religious limitations
• Globalization versus Localization– Product & brand
standardization = cost savings
– Product content standardization + local packaging = manufacturing efficiency
– Local product + local brand = sales, but limited country transferability
• Globalization versus Localization– Product & brand
standardization = cost savings
– Product content standardization + local packaging = manufacturing efficiency
– Local product + local brand = sales, but limited country transferability
LO3
14-10
“Glocal” Advertising • Neither Purely
Global nor Purely Local – “Glocal” Advertising– Best way to handle
international advertising
– Common strategy for large regions = lower costs
• Neither Purely Global nor Purely Local – “Glocal” Advertising– Best way to handle
international advertising
– Common strategy for large regions = lower costs
• Programmed-Management Approach– A middle-ground
advertising strategy between globally standardized and entirely local programs
• Programmed-Management Approach– A middle-ground
advertising strategy between globally standardized and entirely local programs
LO6
14-11
Advertising • Personal Selling
– Importance of personal selling depends on
• Relative cost of advertising
• Funds available for advertising
• Available media• Type of product
– Industrial firms use personal selling more than advertising
– Consumer goods use personal selling in developing markets
• Personal Selling– Importance of personal
selling depends on • Relative cost of
advertising• Funds available for
advertising• Available media• Type of product
– Industrial firms use personal selling more than advertising
– Consumer goods use personal selling in developing markets
• Personal Selling and the Internet– If used to build trust,
Internet can be effective in personal selling
– Internet can be enhanced by face-to-face communication
• Personal Selling and the Internet– If used to build trust,
Internet can be effective in personal selling
– Internet can be enhanced by face-to-face communication
LO5
14-12
Sales Promotion• Sales Promotion
– Any of various selling aids, including displays, premiums, contests, and gifts.
• Standardization is easy – what works in U.S. works abroad, and cultural constraints need be considered.
• Sales Promotion– Any of various selling
aids, including displays, premiums, contests, and gifts.
• Standardization is easy – what works in U.S. works abroad, and cultural constraints need be considered.
• Sociocultural and Economic Constraints– Premiums must be
culturally meaningful– Contests, games &
raffles are successful where people like to gamble
– Point-of-purchase displays must be downsized to fit smaller foreign stores
• Sociocultural and Economic Constraints– Premiums must be
culturally meaningful– Contests, games &
raffles are successful where people like to gamble
– Point-of-purchase displays must be downsized to fit smaller foreign stores
LO3
14-13
Public Relations• Public Relations
– Various methods of communicating with the firm’s publics to secure a favorable impression
• Public Relations– Various methods of
communicating with the firm’s publics to secure a favorable impression
• MNCs need to improve communications to non-business publics because of:• Nationalism• Anti-MNC feelings• Profit from public good• Critics of firm’s motives
and operations Choice: defend or
do nothing
• MNCs need to improve communications to non-business publics because of:• Nationalism• Anti-MNC feelings• Profit from public good• Critics of firm’s motives
and operations Choice: defend or
do nothing
14-14
Pricing, a Controllable Variable• The one
marketing mix element that can be varied to attain marketing objectives.
• The one marketing mix element that can be varied to attain marketing objectives.
• Standardizing Prices– Foreign National Pricing
• Local pricing in another country
– International Pricing• Setting prices of goods for export
for both unrelated and related firms
– Transfer Price• Intracorporate price, or the price of
a good/service sold by on affiliate to another, the office to an affiliate, or vice versa”
• Advantages: 2 profit centers and lower tax environments
• Standardizing Prices– Foreign National Pricing
• Local pricing in another country
– International Pricing• Setting prices of goods for export
for both unrelated and related firms
– Transfer Price• Intracorporate price, or the price of
a good/service sold by on affiliate to another, the office to an affiliate, or vice versa”
• Advantages: 2 profit centers and lower tax environments
14-15
Pricing• The Internet is Redefining Pricing
Options:– Instant access to multiple sellers world wide– Greater global price competition– Instant price comparisons from 100s of sites
• The Results:– National boundaries are less important– World prices are becoming a reality in both
consumer and B-to-B markets
• The Internet is Redefining Pricing Options:– Instant access to multiple sellers world wide– Greater global price competition– Instant price comparisons from 100s of sites
• The Results:– National boundaries are less important– World prices are becoming a reality in both
consumer and B-to-B markets
LO5
14-16