1. Teaching International Marketing
David A. Griffith
Department of Marketing & Supply Chain Management
The Eli Broad College of Business
Michigan State University

2. Agenda The Basics Teaching Approaches Basics of marketing
Segmentation, Targeting and Positioning
Marketing Mix
Basics of international marketing
Teaching Approaches
Presentation: Global vs. Comparative
Observational
Experiential
Application

3. Focus
Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

4. Segmentation, Targeting and Positioning

5. The Complete Process Market Segmentation Market Targeting Market
Positioning
Design a product or
service to meet a
segment’s needs and develop a
marketing mix that
will create a competitive advantage in the minds of the selected target market
Identify and describe
market segments
Evaluate segments
and decide which
to go after

6. Market Segmentation
Identifying distinct groups of consumers whose purchasing behavior differs from other in important ways.
Marketing mix adjusted to reflect differing purchasing patterns in segments.
Geography
Demographics
Socio-cultural factors
Psychological factors

7. Two main issues in the differences between countries
Market Segmentation
Two main issues in the differences between countries
The structure of market segments
The existence of segments that transcend national borders

8. Market Targeting and Positioning
Marketers evaluate the attractiveness of each potential segment and decide which of these groups they will try to turn into customers
Mass
Differentiated
Concentrated
Custom
Developing a marketing strategy aimed at influencing how a particular market segment perceives a product or service in comparison to the competition
4 common positioning errors
Underpositioning: lack of differentiation
Overpositioning: too narrow
Confused: too many things to too many people
Doubtful: consumer just doesn’t believe it

9. Marketing Mix

10. Marketing Mix
Price
Product
Consumers
Place
Promotion

11. Marketing Mix:
Product

12. Product Attributes
A product is a bundle of attributes. If consumer needs were the same all over, a firm could simply sell the same product worldwide. Unfortunately, differences in the three following areas often necessitate adaptations
Cultural differences
Economic differences
Product and technical standards

13. Cultural Differences Range of dimensions:
Social structure
Language
Religion
Education
Most important - the impact of tradition
Some tastes and preferences becoming cosmopolitan

14. Economic Differences
Consumer behavior is influenced by economic development
Consumers in highly developed countries tend to have extra performance attributes in their products
Consumers in less developed countries tend not to demand these extra performance attributes

15. Product and Technical Standards
Government standards can prevent the introduction of global products
Different technical standards impede global markets, as well
Come from idiosyncratic decisions made long ago

16. Marketing Mix:
Place

17. Distribution Strategy
Three different distribution systems:
Retail concentration: number of retailers
Cost/benefit of each alternative vary from country to country
Channel length: levels of channel members
Longer the channel in a country, the higher the price
Shorter channel in a country, lower price
Channel exclusivity: access
Match to positioning of product in country

18. A Typical Distribution System
Manufacturer Inside the Country
Manufacturer Outside the Country
Import Agent
Wholesale Distributor
Retail Distributor
Final Customer

19. Marketing Mix:
Price

20. Pricing Strategy Price discrimination Strategic pricing
Regulatory factors

21. Pricing Strategy
Price discrimination: Different prices, different countries, same product
Charging what the market will bear
Two factors:
Must keep national markets separate
Different price elasticities
Arbitrage:Charging different prices in different countries for same product
Doesn’t always work
Sometimes it does
Income level and competitive conditions determine elasticity
Elasticity (price) tends to be be greater in countries with low income levels
Elasticity (demand) tends to be greater in countries where there are many competitors

22. Strategic Pricing Predatory pricing: Multipoint pricing strategy:
Using price as a competitive weapon
Multipoint pricing strategy:
When two or more international firms compete against each other in two or more national markets
A firm’s pricing strategy in one market may impact a rival in another market
Experience curve pricing:
Firms price low worldwide to build market share. Incurred losses are made up as company moves down experience curve

23. Regulatory Influences on Prices
Antidumping regulations:
Selling a product for a price that is less than the cost of producing it
Predatory pricing and experience curve pricing may violate regulations
Antidumping rules place a floor under export prices and limit a firm’s ability to pursue strategic pricing
Competition Policy:
Promote competition
Restrict monopoly practices
Can limit the prices a company can charge in a given country

24. Nike Pricing Strategy
Price discrimination across markets
Multi-point pricing

25. Marketing Mix:
Promotion

26. Communications Strategy
Effectiveness of international communications can be impacted by:
Cultural barriers
Need to develop cross-cultural literacy

27. Communications Strategy
Effectiveness of international communications can be impacted by:
Cultural barriers
Need to develop cross-cultural literacy
Source and country of origin effects
Receiver of the message evaluates it based upon the status of the sender
Country of origin effects:
Emphasize/de-emphasize foreign origin

28. Communications Strategy
Effectiveness of international communications can be impacted by:
Cultural barriers.
Need to develop cross-cultural literacy
Source and country of origin effects
Receiver of the message evaluates it based upon the status of the sender
Country of origin effects:
Emphasize/de-emphasize foreign origin
Noise levels
Tends to reduce the effectiveness of a message
Developed countries - high
Less developed countries - low
Push versus Pull:
Push emphasizes personal selling
Pull depends on mass media advertising

29. Teaching Approaches Teaching Approaches Presentation Observational
Global
Comparative
Observational
Seeing: television shows, movies, etc.
Perceiving: literature
Experiential
Taste it, See it, Feel it
Providing Assistance
Application
Cases
Live Cases

30. Takeaways Planning Engage Students Topical content
Global vs. comparative vs. mixed
Engage Students
Make it apply
What they eat, buy or wear
Seeing differences
Experiencing differences
Unpredictability of International Marketing
Finding the bizarre
Finding the humorous