Chapter 11: International Marketing 11.1 International Marketing Strategies

International Marketing Strategies Many options to choose from: Centralized/ decentralized strategy Incorporating push or pull marketing Decide to focus on international brand acquisition or brand development

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

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

Push Strategy 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 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 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 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 Read Chapter 11.1 (p ) Answer on p. 344: 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