1. Copyright © 2015 Pearson Education, Inc.17-1 International Business Environments & Operations 15e Daniels ● Radebaugh ● Sullivan

2. Copyright © 2015 Pearson Education, Inc.17-2 Chapter 17 Marketing Globally

3. Copyright © 2015 Pearson Education, Inc.17-3 Learning Objectives  Understand a variety of international marketing strategies/policies and their appropriate circumstances  Discuss the pros and cons of product alterations when deciding between standardized and differentiated marketing programs among countries  Appreciate the pricing complexities when selling in foreign markets  Recognize country differences that may necessitate alterations in promotional marketing practices

4. Learning Objectives  Comprehend the different branding strategies companies may employ internationally  Discern effective practices and complications of international distribution  Perceive why and how emphasis within the marketing mix may vary among countries  Anticipate the ways that international marketing segmentation may evolve Copyright © 2015 Pearson Education, Inc.16-4

5. Copyright © 2015 Pearson Education, Inc.17-5 Introduction  Marketing principles in foreign markets are similar to those in domestic markets Product Price Promotion Place  However, some or all elements may need to be adapted to better fit local markets

6. Copyright © 2015 Pearson Education, Inc.17-6 Introduction Marketing as a Means of Pursuing an International Strategy

7. Copyright © 2015 Pearson Education, Inc.17-7 Marketing Strategies  Marketing strategy depends on marketing orientation Production Sales Customer Strategic marketing Social marketing

8. Copyright © 2015 Pearson Education, Inc.17-8 Marketing Strategies  Firms can segment and target markets By country By global segment Using multiple criteria

9. Copyright © 2015 Pearson Education, Inc.17-9 Product Policies Learning Objective: Understand a variety of international marketing strategies/policies and their appropriate circumstances

10. Copyright © 2015 Pearson Education, Inc.17-10 Product Policies Learning Objective: Discuss the pros and cons of product alterations when deciding between standardized and differentiated marketing programs among countries

11. Copyright © 2015 Pearson Education, Inc.17-11 Why Firms Alter Products  Firms alter products for Legal considerations  Labeling requirements  Environmental protection regulations  Indirect legal considerations Cultural considerations Economic considerations

12. Copyright © 2015 Pearson Education, Inc.17-12 The Product Line: Extent and Mix  Product line decisions depend on Sales and cost considerations Product life cycle considerations

13. Copyright © 2015 Pearson Education, Inc.17-13 Pricing Strategies Learning Objective: Appreciate the pricing complexities when selling in foreign markets

14. Copyright © 2015 Pearson Education, Inc.17-14 Pricing Strategies  Potential obstacles in international pricing Government intervention  Set minimum or maximum pricing  Prohibit certain pricing practices Market diversity  Consumers may be willing to pay higher prices

15. Copyright © 2015 Pearson Education, Inc.17-15 Pricing Strategies  Pricing tactics Skimming strategy Penetration strategy Cost-plus strategy  Export price escalation  Fluctuations in currency value

16. Copyright © 2015 Pearson Education, Inc.17-16 Pricing Strategies Why Cost-Plus Pricing Pushes Up Prices

17. Copyright © 2015 Pearson Education, Inc.17-17 Pricing Strategies  Gray market or product diversion the selling and handling of goods through unofficial distributors

18. Copyright © 2015 Pearson Education, Inc.17-18 Pricing Strategies Negotiating Import-Export Prices

19. Copyright © 2015 Pearson Education, Inc.17-19 Promotion Strategies Learning Objective: Recognize country differences that may necessitate alterations in promotional practices

20. Copyright © 2015 Pearson Education, Inc.17-20 Promotion Strategies  Promotion the presentation of messages intended to help sell a product or service  Push-pull mix Push  uses direct selling techniques Pull  relies on mass media

21. Copyright © 2015 Pearson Education, Inc.17-21 Promotion Strategies  Advantages of standardized advertising lower cost better quality at local level common global image rapid entry into multiple countries  However, firms could have problems with translation legalities market needs

22. Copyright © 2015 Pearson Education, Inc.17-22 Branding Strategies Learning Objective: Comprehend the different branding strategies companies may employ internationally

23. Copyright © 2015 Pearson Education, Inc.17-23 Branding Strategies  Brand an identifying mark for a product or service

24. Copyright © 2015 Pearson Education, Inc.17-24 Branding Strategies  Advantages of a worldwide brand global image global player identification  Problems with global brands language brand acquisition country-of-origin generic and near-generic names

25. Copyright © 2015 Pearson Education, Inc.17-25 Distribution Strategies Learning Objective: Discern effective practices and complications of international distribution

26. Copyright © 2015 Pearson Education, Inc.17-26 Distribution Strategies  Distribution the course – physical path or legal title – that goods take between production and consumption

27. Copyright © 2015 Pearson Education, Inc.17-27 Distribution Strategies  Deciding whether to standardize Distribution can vary substantially among countries Distribution can be difficult to change

28. Copyright © 2015 Pearson Education, Inc.17-28 Distribution Strategies  When choosing distributors and channels firms must consider whether internal handling is feasible which distributors are qualified the reliability of after-sales service

29. Copyright © 2015 Pearson Education, Inc.17-29 Distribution Strategies  Distributors choose which products to handle  To get a distributor to work for them, companies may have to give incentives use successful products as bait for new ones convince distributors that their product and company are viable

30. Copyright © 2015 Pearson Education, Inc.17-30 Distribution Strategies  Factors that can contribute to distribution cost differences among countries include Infrastructure conditions The number of levels in the distribution system Retail inefficiencies Size and operating hour restrictions Inventory stock-outs

31. Copyright © 2015 Pearson Education, Inc.17-31 Distribution Strategies  E-commerce and the Internet Opportunities  can replace traditional sales methods  faster customer service Problems  cannot differentiate sales programs between countries  still must comply with local laws

32. Copyright © 2015 Pearson Education, Inc.17-32 Managing the Marketing Mix Learning Objective: Perceive why and how emphasis within the marketing mix may vary among countries

33. Copyright © 2015 Pearson Education, Inc.17-33 Managing the Marketing Mix  Gap analysis a method for estimating a company’s potential sales by identifying prospective customers it is not serving adequately  Usage  Product line  Distribution  Competitive

34. Copyright © 2015 Pearson Education, Inc.17-34 Managing the Marketing Mix Gap Analysis

35. Copyright © 2015 Pearson Education, Inc.17-35 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.