International Business

Environments and Operations,

13/e
Global Edition
Part 6
Managing International
Operations
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Chapter 16

Marketing
Globally

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Chapter Objectives
To understand a variety of international product policies and
their appropriate circumstances
To be aware of product alterations when deciding between
standardized and differentiated marketing programs among
countries
To appreciate the pricing complexities when selling in foreign
markets
To be familiar with country differences that may necessitate
alterations in promotional practices
To comprehend the different branding strategies companies
may employ internationally
To discern effective practices and complications
of international distribution
To perceive why and how emphasis within the marketing mix
may vary among countries
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Marketing as a Means of Pursuing

an International Strategy

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Marketing Strategies
Overall international marketing strategies
should depend on the companys:
Marketing orientation
Target market

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Market Orientation

Production Orientation
Sales Orientation
Customer Orientation
Strategic Marketing Orientation
Social Marketing Orientation

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Segmenting and Targeting

Markets
Three Approaches
By Country
By Global Segment
By Multiple Criteria

Mass Markets versus Niche Markets

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Why Firms Alter Products

Legal Considerations
Cultural Considerations
Economic Considerations
Alteration Costs
Product Line Extent and Mix

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Potential Obstacles in
International Pricing

Government intervention
Market diversity
Export price escalation
Fluctuations in currency value
Fixed versus variable pricing
Relations with suppliers

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Promotion Strategies
The Push-Pull Mix
Factors in Push-Pull Decisions
Problems in International Promotion
Standardization: Pros and Cons

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Branding Strategies
World Wide Brand versus Local Brand
Problems with Uniform Brands

Language
Brand Acquisition
Country-of-Origin Image
Generic and Near Generic Names

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Distribution Strategies
Distribution reflects different country
environments:
It may vary substantially among countries.
It is difficult to change.

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Internal Handling
Distribution may be handled internally:
When volume is high
When companies have sufficient resources
When there is a need to deal directly with the
customer because of the nature of the
product
When the customer is global
When the distribution form is a competitive
advantage
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Qualifying Distributors
Some evaluation criteria for distributors include
their:
Financial capability
Connections with customers
Fit with a companys product
Other resources
Trustworthiness
Compatibility with product image
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The Challenge of Getting

Distribution
Distributors choose which companies and
products to handle. Companies:
May need to give incentives
May use successful products as bait for new
ones
Must convince distributors that product and
company are viable

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Hidden Costs and Gains in

Distribution
Factors that contribute to cost differences
among countries in distribution:
Infrastructure conditions
Number of levels in distribution system
Retail inefficiencies
Size and Operating Hour Restrictions
Inventory Stock-Outs

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E-Commerce and the Internet

Evidence suggests online shoppers
universally have some similar characteristics:
Desire convenience
Are heavy users of e-mail and the Internet
Have favorable attitudes toward direct marketing
and advertising

Opportunities
Problems
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Managing the Marketing Mix

Gap Analysis: Types of Gaps
Usage Gaps
Product Line and Distribution Gaps
Competitive Gaps

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Future: Evolving Challenges to

Segment Markets
Disparities between haves and have-nots will
increase
Companies will have conflicting opportunities to
serve both haves and have-nots
Attitudinal differences continue to affect demand:
Materialism, Cosmopolitanism, and Consumer
Ethnocentrism

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All rights reserved. No part of this publication

may be reproduced, stored in a retrieval
system, or transmitted, in any form or by any
means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior written
permission of the publisher. Printed in the
United States of America.

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