Bài giảng International Business - Chapter eighteen: Marketing Internationally

Marketing InternationallyMcGraw-Hill/IrwinInternational Business, 11/eCopyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.chapter eighteenLearning ObjectivesExplain why there are differences between domestic and international marketingExplain why international marketing managers may wish to standardize the marketing mix regionally or worldwide Explain why standardizing the marketing mix globally is often impossible Discuss the importance of distinguishing among the total product, the physical product, and the brand name3Learning ObjectivesExplain why consumer products generally require greater modification for international sales than do industrial products or servicesDiscuss the product strategies that can be formed from three product alternatives and three kinds of promotional messagesExplain “glocal” advertising strategies Discuss some of the effects the Internet may have on international marketingDiscuss the distribution strategies of international marketers4International MarketingDevelop marketing strategies by assessing the firm’s potential foreign markets and analyzing the many alternative marketing mixesMust plan and control a variety of marketing strategiesRather than a single unified and standardized oneCoordinate and integrate those strategies into a single marketing program5Standardize, Adapt, or Formulate Anew?Management would prefer global standardization of the marketing mixSignificant cost savingsLonger production runsStandardized advertising, promotional materials, and sales trainingStandardized corporate imageStandardized pricing strategies Easier control and coordinationReduction of preparation timeOften not possible6Product StrategiesProduct is central to marketing mixTotal product includesPhysical productBrand nameAccessoriesAfter-sales serviceWarrantyInstructions for useCompany imagePackage7Total Product8Types of ProductsIndustrial ProductsMany can be sold unchanged worldwide (computer chips)If changes are required, they may be cosmetic (printing instructions in another language)In developing countries problems withOverload of equipmentMaintenanceLocal legal requirements9Types of ProductsConsumer ProductsRequire greater modification to meet local market requirements than do industrial productsSome can be sold unchanged to certain market segmentsLarge automobiles, sporting equipment, and perfumesGreater dissimilarity as you go down the economic strata10Types of ProductsServicesMarketing of services similar to that of industrial productsServices easier to market globally compared to consumer productsLaws and customs may force changes11Foreign Environmental ForcesSociocultural ForcesDissimilar cultural patterns generally require changes in food and other consumer goodsMay requireRedesign of productDifferent meanings of colorsDifferent meanings of brand nameTranslation of instructions or labels12Foreign Environmental ForcesLegal ForcesLaws concerningPollutionConsumer protectionOperator safety Laws prohibiting classes of importsFood and pharmaceuticals influenced by laws concerning purity and labelingLegal forces may prevent use of brand name worldwideIn some countries brand may be registered to someone else13Foreign Environmental ForcesEconomic ForcesGreat disparity in income throughout world Obstacle to product standardizationMany industrialized country products too expensive for developing country consumers Must either simplify the product or produce a different, less costly one14Foreign Environmental ForcesPhysical ForcesClimate and terrain prevent international product standardizationHeatHigh humiditySpecial packagingHigh altitudesBaking products and motorsRough roads15Promotional StrategiesPromotionAny form of communication between a firm and its publics To bring about a favorable buying action and achieve long-lasting confidence in the firm and the product or service it provides16Promotional StrategiesDistinct promotional strategies based on combination of three alternatives Marketing the same physical product everywhereAdapting the physical product for foreign marketsDesigning a different physical product with(a) the same message(b) adapted message or (c) different message17Six Common Promotional StrategiesSame product-same messageAvon, Maidenform Same product-different messageHonda’s campaign in America is different than in BrazilProduct adaptation-same messageIn Japan, Lever Brothers puts Lux soap in fancy boxes to encourage gift sales18Six Common Promotional Strategies cont’d.Product adaptation-message adaptationIn Latin America, Tang is sweetened and promoted as mealtime drinkDifferent product-same messageProduct is produced in low cost plastic squeeze bottle for developing countries, but advertised the same Different product for the same use-different messageWelding torches rather than automatic welding machines are sold in developing countries19The Promotional MixAdvertisingPersonal sellingSales promotionPublic relationsPublicity20AdvertisingPaid, nonpersonal presentation of ideas, goods, or services by identified sponsorAmong promotional mix elements, advertisingHas the greatest similarities worldwideIs formulated and executed through global ad agencies that have wholly owned subsidiaries, joint ventures, and working agreements with local agencies21Global and Regional BrandsReasons for increase in global and regional brandsCost Better chance of obtaining one regional source for high-quality workBelief that single image throughout region is importantEstablishment of regionalized organizations with many functions centralizedGrowth of global and regional satellite and cable television22Top Twenty Brands 200623Impact of Culture on AdvertisingDirectness vs. indirectnessComparisonHumorGender rolesExplicitnessSophisticationPopular vs. traditionalInformation content vs. fluff24AdvertisingBrandingGlobal, regional or nationalManagers may convert or use a combinationPrivate brandsSerious competitorsAlliances with international retailersTrend common in Europe25AdvertisingMediaSatellite TV expands availability of mediaInternational print media availableReader’s Digest has 48 foreign editionsCinema and billboards used heavily in EuropeIn developing countries, vehicles equipped with loudspeakers26AdvertisingInternet AdvertisingAn affluent, reachable audienceWeb contacts feature interactivity, shrinks distanceInvolve customers in determining which messages and information they receiveFor some groups, Internet may be among the best media choices27AdvertisingForeign Environmental ForcesBasic cultural decision for marketer: position the product as foreign or localDepends on the country, the product types, and the target marketLanguage often an issueback translationplenty of illustrations with short copy28AdvertisingWhat should be the approach of the international advertising manager?Think globally, but act locallyNeither global nor local-”glocal”Pan regional approachLatin AmericaMiddle EastAfricaAtlantic29Personal SellingImportance of personal selling compared to advertising depends onRelative costFunds availableMedia availableType of product Manufacturers of industrial products rely on personal sellingMarketers may increase use of personal selling for consumer products in developing countries30Personal SellingInternetWould seem to eliminate the need for personal selling, but may not be soSuccessful personal selling depends on establishing trustEvolving approaches to trust building in a virtual environment31Personal SellingInternational StandardizationAn overseas sales force is similar to the home country inOrganizationSales presentationTraining methodsRecruitment of salespeople in foreign countries can be difficult32Sales PromotionAny various selling aids, including displays, premiums, contest, and giftsSociocultural and economic constraints make some sales promotions difficult to useIf premium is to fulfill the sales aid objective, it must be meaningful to the purchaserSales promotion is generally less sophisticated overseas than in U.S.33Public RelationsVarious methods of communicating with the firm’s publics to secure a favorable impressionMarkets firmImproves image and overcomes negative perceptionsMay work through government agencies34PricingImportant and complex consideration in formulating marketing strategyOne of the marketing mix elements that can be varied to achieve firm’s marketing objectivesMade more complex byInteraction with the other functional areasEnvironmental forces35Interaction between Marketing and Other Functional AreasThe finance people want prices that are profitable and conducive to steady cash flowProduction supervisors want prices that create large sales volumes, which permit long production runsLegal department worries about possible antitrust violations when different prices are set according to type of customer36Interaction between Marketing and Other Functional AreasThe tax people are concerned with effects of prices on tax loadsThe domestic sales manager wants export prices to be high enough to avoid parallel importingThe marketer must address all these concerns and considerLegal forcesEnvironmental forces37Standardizing PricesDifficult if desirableForeign National PricingLocal pricing in another countryInternational PricingSetting prices for unrelated and related firmsTransfer pricingIntracorporate price, price of a good or service sold by one affiliate to another, the home office to an affiliate, or vice versa38Distribution StrategiesDistribution DecisionsOften interdependent with other marketing mix variablesStandardizing DistributionTwo fundamental constraintsThe variation in availability of channel membersThe environmental forces present in these different markets39Standardizing DistributionDisintermediationUnraveling of traditional distribution structuresMost often the result of being able to combine Internet with fast delivery services 40Channel SelectionDirect or Indirect MarketingThe first decision: whether to use middlemenExport sales may be consummated by local agents ifManagement believes this is politically expedientCountry’s laws demand itFactors Influencing Channel SelectionMarketProductCompanyMiddlemen41Foreign Environmental Forces and the Marketing Mix Matrix42Foreign Environmental Forces and the Marketing Mix Matrix43Foreign Environmental Forces and the Marketing Mix Matrix44Foreign Environmental Forces and the Marketing Mix Matrix45