Daniels Ib13 16

Copyright 2011 Pearson Education
16-1
International Business
Environments and Operations,
13/e
Global Edition
Part 6
Managing International
Operations

16-2
Chapter 16
Marketing
Globally

16-3
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


16-4
Marketing as a Means of Pursuing
an International Strategy

16-5
Marketing Strategies
Overall international marketing strategies
should depend on the companys:
Marketing orientation
Target market


16-6
Market Orientation
Production Orientation
Sales Orientation
Customer Orientation
Strategic Marketing Orientation
Social Marketing Orientation

16-7
Segmenting and Targeting
Markets
Three Approaches
By Country
By Global Segment
By Multiple Criteria
Mass Markets versus Niche Markets

16-8
Why Firms Alter Products
Legal Considerations
Cultural Considerations
Economic Considerations
Alteration Costs
Product Line Extent and Mix

16-9
Potential Obstacles in
International Pricing
Government intervention
Market diversity
Export price escalation
Fluctuations in currency value
Fixed versus variable pricing
Relations with suppliers


16-10
Promotion Strategies
The Push-Pull Mix
Factors in Push-Pull Decisions
Problems in International Promotion
Standardization: Pros and Cons


16-11
Branding Strategies
World Wide Brand versus Local Brand
Problems with Uniform Brands
Language
Brand Acquisition
Country-of-Origin Image
Generic and Near Generic Names


16-12
Distribution Strategies
Distribution reflects different country
environments:
It may vary substantially among countries.
It is difficult to change.


16-13
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


16-14
Qualifying Distributors
Some evaluation criteria for distributors include
their:
Financial capability
Connections with customers
Fit with a companys product
Other resources
Trustworthiness
Compatibility with product image


16-15
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


16-16
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

16-17
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


16-18
Managing the Marketing Mix
Gap Analysis: Types of Gaps
Usage Gaps
Product Line and Distribution Gaps
Competitive Gaps


16-19
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


16-20
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.

Daniels Ib13 16

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