1. Chapter 14 Developing and Marketing Products

2. International Business 4e
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 4e

3. Globalization and Marketing
Standardized product
and promotion
Adapted product
and/or marketing
Consistent image
and message
Contain costs
Respond well to
local needs
Obey local laws
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International Business 4e

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

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 4e

6. 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 4e

7. Push and Pull Strategies
Push Strategy
Pull Strategy
Pressure channel members to carry a
product and promote it to final users
Create buyer demand that will encourage channel members to stock a product
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International Business 4e

8. members make push difficult
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 4e

9. Global Sales Force Management
Research local
customer base
Obtain feedback
from salespeople
Adapt to local
compensation
Adjust to local
motivation tactics
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International Business 4e

10. Marketing Communications
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International Business 4e

11. Communication Strategy I
Extend product and communications
Simple and
profitable
Global
consumer
goods
Luxury items
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International Business 4e

12. Communication Strategy II
Extend product / adapt communications
Satisfies
different need
Appeals to
different buyer
Serves
different function
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International Business 4e

13. Communication Strategy III
Adapt product / extend communications
Local
infrastructure
Local
content laws
Can be costly
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International Business 4e

14. Communication Strategy IV
Adapt product and communications
Rather
uncommon
Can be
expensive
Requires large
profitable
segment
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International Business 4e

15. Communication Strategy V
Product invention
Purchasing
power
Economic
development
level
Varying
infrastructure
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International Business 4e

16. 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 4e

17. Distribution Channels
Intensive channel
Many resellers
Exclusive channel
One / few resellers
Degree of exposure
Cost implications
Number of
intermediaries
Channel length
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International Business 4e

18. Product Characteristics
Product’s value relative
to its weight and volume
The lower a product’s value
density, the more localized
is its distribution system
Value
density
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International Business 4e

19. Distribution Problems
Lack of market
understanding
Theft and
corruption
Financial loss
Strategic impact
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International Business 4e

20. Must match overall firm strategy International Business 4e
Pricing Strategy
Must match overall firm strategy
Low-cost leadership
Differentiation
Focus
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International Business 4e

21. Worldwide Pricing Difficulties
Single selling price for all international markets
Difficulties
Local production cost
Export, distribution cost
Local purchasing power
Exchange rates
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International Business 4e

22. International Business 4e
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 4e

23. International Business 4e
Pricing Issues
Transfer price
Arm’s length price
Price controls
Dumping
Intra-company transfer
Free-market price
Upper or lower limits
Unfairly-low export price
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International Business 4e

24. International Business 4e
Chapter Review
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
© Prentice Hall, 2008
International Business 4e