1. International Business, 8th Edition
Griffin & Pustay
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2. Copyright © 2015 Pearson Education, Inc.
Learning Objectives
Characterize the nature of marketing management in international business
Discuss the basic kinds of product policies and decisions made in international business
Identify pricing issues and evaluate pricing decisions in international business
Identify promotion issues and evaluate promotion decisions in international business
Discuss the basic kinds of distribution issues and decisions in international business
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3. International Marketing Management
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4. International Marketing and Business Strategies
Business Strategy
Differentiation
Overall Cost Leadership
Focus Strategy
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The Marketing Mix
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6. Standardization versus Customization
Ethnocentric Approach
Polycentric Approach
Geocentric Approach
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7. Standardization versus Customization (Cont.)
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8. Standardization versus Customization (Cont.)
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9. Copyright © 2015 Pearson Education, Inc.
Product Policy
Product
Tangible Features
Intangible Features
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10. Standardized Products or Customized Products?
Standardized Across Markets
Customized within Individual Markets
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Legal Forces
Labeling Requirements
Health Standards
Product Design
Technical Standards
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Cultural Influences
Language
Packaging
Food Ingredients
Quality Consciousness
Environmental Consciousness
Local Morals and Sensibilities
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13. Economic Factors Product Desired Attributes
Level of Economic Development
Quality of Infrastructure
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14. Standardize Brand Name
Brand Names
Standardize Brand Name
Packaging Costs
Design Costs
Advertising Production Costs
Ads Spillovers
Customize Brand Name
Example: Spider-Man; Disney; Sesame Street
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15. Pricing Policies Pricing Issues Varying Costs of Doing Business
Transportation and Tariffs
Distribution Practices
Exchange-Rate Fluctuations
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Pricing Policies
Standard Price Policy
Two-tiered Pricing
Market Pricing
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Market Pricing
Conditions
Demand and/or Cost Conditions
Arbitrage
Advantages
Setting prices
Allocating firm’s resources
Disadvantages
Damage to Brand Names
Gray Market Development
Consumer Resentment
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18. Promotion Issues and Decisions
Promotion Mix
Advertising
Personal Selling
Sales Promotion
Public Relations
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19. Advertising vs Promotion
Time
Long term.
Short term.
Price
Expensive in most cases.
Not very expensive in most cases.
Sales
Assumption that it will lead to sales.
Directly related to sales.
Example
Advertising in the newspaper about the major products of a company.
Giving free products, coupons etc.
Suitable for
Medium to large company.
Small to large companies.
Purpose
Increase sales, brand building.
Increase sales.
Result
Slow.
Very soon.
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Advertising
Decision Factors
Message
Medium
Global vs. Local Advertising
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Personal Selling
Industrial Products
Consumer Products
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22. Personal Selling (Cont.)
Advantages
Knowledge of Local Markets
Close Contact with Customers
Access to Valuable Market Information
Disadvantages
Compensating Sales Representatives
Making Contacts After the Sale
Expenses of Regional Sales Offices
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Sales Promotion
Retailers
Wholesalers
Consumers
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Public Relations
Model “Corporate Citizen”
Political Allies
Positive Image and Reputation
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25. Distribution Issues and Decisions
Physical transportation
Selection of means to merchandise goods
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26. International Distribution
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27. International Distribution (Cont.)
Inventory and Service
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28. Channels of Distribution
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