Chapter 15 Marketing Internationally

A set of strategy decisions made in the areas of product, promotion, pricing, and distribution in order to satisfy the needs and desires of customers in a target market
– Marketing mix
what the costumer buys, including the physical product, brand name, accessories, after-sales service, warranty, instructions for use, company image, and package
– Total product
Suggest, many industrial products can be sold unchanged worldwide.
– Industrial products
Require greater modification to meet local market requirements, however products can be sold unchanged to certain markets
– Consumer product
Generally less complex globally than is the marketing of consumer product
– Services
Economic forces
– Price too high for consumers
Physical forces
– Climate and terrain
– High altitudes
Environmental forces
– Play a major part in foreign products strategies. Their influence is pervasive in the design of the entire marketing mix
One of the basic elements of the marketing mix, is communication that secures understanding between a firm and its publics to bring about a favorable buying action and achieve long-lasting confidence in the product or service
– Promotion
Promotions strategies
1. Same product- same message
When marketers find that target markers vary little with respect to product use and consumer attitudes, they can offer the same product and use the same promotional appeals in all markets
Promotions strategies
2. Same product- different message
– This means the product may be left unchanged but a different message is required.
Promotions strategies
3. Product adaptation-same message
– In cases where the product serves the same function but must be adapted to different conditions, the same message is employed with a changed product
Promotions strategies
4. Product adaptation-message adaptation
– Both product and message must be modified for foreign markets
Promotions strategies
5. Different product-same message
– In many markets, the potential customers cannot afford the product as manufactured for developed markets
Promotions strategies
6. Different product for the same use- different message
– Frequently, the different product requires a different message as well
May be the one with the greatest similarities worldwide. Paid, nonpersonal presentation of ideas, goods, or services by an identified sponsor
-Advertising
Manufacturers are increasingly using global or regional brands for a number of reasons
– Cost is most often cited. A firm can save up a 50% of the production
– Better chance of obtaining one regional source to do high-quality
– Marketing managers believe their companies must have a single image throughout a region
– Marketing is centralized
– Global and regional satellite and cable television are widely available
Global o national
– Companies that acquired successfully regional or national brands when purchasing the original owner have been extremely cautious about converting them in their global brands
Foreign forces
– Like variations in media availability, foreign environmental forces act as deterrents to the international standardization of advertising, and as you would expect, among influential of these forces are the sociocultural force.
Global versus localization
– Good brands and good products ideas can cross international borders, but each may have to be adjusted for the local market.
Gillette’s Panregional Approach
– Organizes its advertising in the following regional and cultural cluster: pan-Latin America, pan-Meddle East, pan-Africa, and pan-Atlantic. The company believes it can it can identify the same needs and buying motives among consumers in regions or countries
A middle-ground advertising strategy between globally standardize and entirely local programs
– Programmed management approach
Any of various selling aids, including displays, premiums, contests, and gift
– Sales promotion
Various methods of communicating with the firm’s public to secure a favorable impression
– Public relations
Interaction between marketing and the other functional Areas
1. The finance people want prices that are both profitable and conductive to steady cash flow.
2. Production supervisors want prices that create large sales volumes
3. The legal department worries about possible antitrust violation
4. The tax people are concerned with the effects of prices on tax loads
5. The domestic sales manager wants export prices to be high enough to avoid having to compete
Local pricing in another country
– Foreign national pricing
Setting prices of goods for export for both unrelated and related firms
– International pricing
Is common among large companies as they attempt to require that subsidiaries specialize in the manufacture of some products and import others
– Intracorporate sales
Refers to the unraveling of traditional distributions structures and is most often the result of being able to combine the internet with fast delivery services such as FedEx and UPS
– Disintermediation