1. Developing and Marketing Products

2. International Business 3e
Chapter Preview
Explain the key considerations in choosing international product strategies
Identify the five international communication strategies
Describe each element that impacts international distribution strategies
Identify various international pricing strategies and the factors that influence selection
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International Business 3e

3. Globalization and Marketing
Standardized product and promotion
Consistent image and message
Contain costs
Adapted product and/or marketing
Respond well to local needs
Obey local laws
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International Business 3e

4. National Business Environments
Cultural differences
Laws and regulations
National image
Counterfeit goods
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International Business 3e

5. Brand and Product Names
Brand name
Competitive advantage
Consistent image
Consider connotation
Product name
Select carefully
Respect cultures
Obey local laws
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International Business 3e

6. International Business 3e
Product Life Cycles
Consecutive market introductions
Technology and travel make obsolete
New-product development efforts
Result is shorter product life cycles
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International Business 3e

7. Push and Pull Strategies
Push Strategy
Pressure channel members to carry a product and promote it to final users
Pull Strategy
Create buyer demand that will encourage channel members to stock a product
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International Business 3e

8. International Business 3e
Choosing Push or Pull
Powerful channel members make push difficult
Fewer media outlets in emerging markets makes pull difficult
Brand loyalty makes pull easier
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International Business 3e

9. Global Sales Force Management
Adapt to local compensation
Research local customer base
Adjust to local motivation tactics
Obtain feedback from salespeople
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International Business 3e

10. Communication Strategy I
Extend product and communications
Simple and profitable
Luxury items
Global consumer goods
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International Business 3e

11. Communication Strategy II
Extend product / adapt communication
Satisfies different need
Serves different function
Appeals to different buyer
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International Business 3e

12. Communication Strategy III
Adapt product / extend communication
Local infrastructure
Local content laws
Can be costly
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International Business 3e

13. Communication Strategy IV
Adapt product and communications
Rather uncommon
Can be expensive
Requires large profitable segment
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International Business 3e

14. Communication Strategy V
Product invention
Purchasing power
Economic development level
Varying infrastructure
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International Business 3e

15. Distribution Strategy
Planning, implementing, and controlling the physical flow of a product from origin to consumption
Physical goods
Consulting services
News providers
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International Business 3e

16. Distribution Channels
Degree of exposure
Exclusive channel
One / few resellers
Intensive channel
Many resellers
Channel length
Number of intermediaries
Cost implications
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International Business 3e

17. Product Characteristics
Value density
Product’s value relative to its weight and volume
The lower a product’s value density, he more localized is its distribution system
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International Business 3e

18. Distribution Problems
Lack of market understanding
Theft and corruption
Both result in:
Financial loss
Strategic impact
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International Business 3e

19. International Business 3e
Pricing strategy
Must match overall firm strategy
Low-cost leadership
Differentiation
Focus
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International Business 3e

20. International Business 3e
Worldwide Pricing
Single selling price for all international markets
Difficulties
Local production cost
Export and distribution cost
Local purchasing power
Exchange rates
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International Business 3e

21. International Business 3e
Dual Pricing
Different selling price abroad than at home
Price escalation
Lower local price
Separate international from domestic buyers
If not, arbitrage possible
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International Business 3e

22. International Business 3e
Pricing Issues
Transfer price
Intra-company transfer
Arm’s length price
Free-market price
Price controls
Upper or lower limits
Dumping
Unfairly-low export price
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International Business 3e