1. Chapter 16: International Marketing
International Business, 4th Edition
Griffin & Pustay

2. Marketing Process of planning and executing
the conception, pricing, promotion,
and distribution of ideas, goods,
and services to create exchanges that satisfy
individuals and organizational objectives

3. International Marketing and Business Strategy
International business strategy can take three forms:
Differentiation
Cost leadership
Focus
Differentiation: A differentiation strategy requires marketing managers to develop products as well as pricing, promotional, and distribution tactics that differentiate firm’s products or services from those of the competitors in the eyes of customers.

4. International Marketing and Business Strategy
Differentiation can be based on perceived quality, fashion, reliability and other salient characteristics.
Cost Leadership: A firm may adopt an international business strategy that stresses its overall cost leadership. Cost leadership can be pursued and achieved through a systematic reductions in the production and manufacturing costs, reduction in sales costs, the acceptance of lower profit margins, the use of less expensive materials and component parts or other means.

5. International Marketing and Business Strategy
Focus: A firm may also adopt a focus strategy. In this case marketing managers will concentrate their effort on particular segments of the customer market or on particular areas or regions within a market.

6. The Marketing Mix
After an international firm has decided to enter a particular foreign market, further marketing decision must be made. International marketing managers must address four issues:
How to develop the firm’s product(s)
How to price those products
How to sell those products
How to distribute those products to the firm’s customers
These elements are collectively known as marketing mix and colloquially known as four p’s of marketing.

7. The Marketing Mix
Product
Place
Promotion
Pricing
Marketing Mix
Product: Develop the tangible and intangible features that meet customer needs in diverse market.
Pricing: Develop policies that bring in revenue and strategically shape the competitive environment.

8. The Marketing Mix
Promotion: Diverse ways to enhance the desirability of the product or services to potential buyers.
Place: Get products and services into customer’s hands via transportation and merchandising.

9. Standardization Versus Customization
Should the firm adopt an ethnocentric approach? That is, market its goods internationally the same way it does domestically?
Should it adopt a polycentric approach? That is, Customize its marketing mix to meet the specific needs of each foreign market it serves? Or,

10. Standardization Versus Customization
Should it adopt a geocentric approach? That means, Should it analyze the need of the customers worldwide and adopt a standardized marketing mix for all the markets it serves.

11. Product Policy These factors influence product policy
Customization versus Standardization
Legal forces
Economic factors
Cultural influences
Brand names

12. Pricing policies Standard price policy Two-tiered pricing
Market pricing

13. Promotion Mix Advertising Personal Selling Sales Promotion
Public Relations

14. Factors affecting Advertising Strategy
The message it wants to convey
The media available for conveying the message
The extent to which the firm wants to globalize its advertising effort

15. A customer entering this domino parlor in Egypt encounters no language barriers in knowing that the establishment serves Coke

16. Distribution Issues and Decisions
Distribution is the process of getting products and services from the firm into the hands of customers.
An international firm faces two important sets of distribution issues:
Physically transporting its goods and services from where they are created to the various markets in which they are to be sold
Selecting the means by which to merchandise its good in the markets it wants to serve

17. Channels of Distribution