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Information about 20061011114549631

Published on January 13, 2009

Author: aSGuest10326

Source: authorstream.com

International Marketing : Advanced Marketing BiMBA 2006 International Marketing …as opposed to international sales Great new opportunity for China : Advanced Marketing BiMBA 2006 Great new opportunity for China Expand from international sales to international marketing Greater reward Greater risk Risks of International Marketing : Advanced Marketing BiMBA 2006 Risks of International Marketing Political environment Legal environment Cultural environment Antagonizing present buyers Risk: unfriendly political environment : Advanced Marketing BiMBA 2006 Risk: unfriendly political environment Unfriendly government Nationalization Contract revocation Repatriation of funds Treatment of expatriate personnel Cyberterrorism Unfriendly people e.g., French tearing off roof of McDonald’s Risk: unexpected economic sanctions : Advanced Marketing BiMBA 2006 Risk: unexpected economic sanctions Exchange Controls e.g., penalize luxuries, lack of convertibility Tax Controls Local-Content Laws Price Controls Import Restrictions Risk: unfamiliar legal system : Advanced Marketing BiMBA 2006 Risk: unfamiliar legal system Common law English Civil or code law French (Louisiana) Islamic law No interest charges Socialist law No private ownership Risk: unfamiliar marketing laws : Advanced Marketing BiMBA 2006 Risk: unfamiliar marketing laws Country laws: Marketing laws Product Packaging Pricing Distribution Green laws Employment laws Evolving cyber laws: Domain Names Registration in each country E-Commerce taxes Government controls Risk: antagonizing present buyers : Advanced Marketing BiMBA 2006 Risk: antagonizing present buyers How will Wal-Mart react if Chinese firm markets its own brand? No problem as long as cost to Wal-Mart remains the same? How will customers react if they learn that a Chinese brand is the same as at Wal-Mart? Make certain it’s not the same! Solution to international risks : Advanced Marketing BiMBA 2006 Solution to international risks Work with local partner Joint Ventures Marketing and Distribution On-site manufacturing Licensing Planned Domestication Contribute to economy & culture Recognize that profits are not solely company’s Act as a guest Train executives & families to act appropriately Be fluent in local language Evolution of International Marketing : Advanced Marketing BiMBA 2006 Evolution of International Marketing Domestic market extension? Ethnocentric Multi-domestic market ? Polycentric Global marketing ? Regiocentric / Geocentric Transnational marketing? Mixed International product : Advanced Marketing BiMBA 2006 International product Standardize or customize High tech or high touch Cameras vs. cosmetics Washing machines vs. desserts Cut costs or increase sales Simplify or increase complexity International Prices : Advanced Marketing BiMBA 2006 International Prices Prices are converging, at least at regional level Belief that in the absence of custom duties and transportation costs prices for particular items should be the same world-wide Price is key variable for competitiveness, however… Prices are not only objective variables but also subjective cues that have an influence on consumers, industrial buyers, competitors and regulators (competition authorities) International pricing strategies : Advanced Marketing BiMBA 2006 International pricing strategies Ethnocentric position (control): a single global price based on the factory price of the goods the customer is charged for insurance, freight and customs costs. Polycentric position (no control): local subsidiaries fix their own prices according to local market conditions. Geocentric position (intermediate): the subsidiary takes into account local competition and seeks to maximize the firm's total income through international co-ordination of tactical pricing. Key issue: local pricing strategies should be co-ordinated at least at the regional level, taking into account local marketing mixes, to maintain coherence between price and other mix variables International market segmentation : Advanced Marketing BiMBA 2006 International market segmentation Traditionally geography more and more questionable Global transnational segments (global teens) Cultural affinity classes Ethnicity and ethnic segments Cultural affinity zones (CAZ) Find lead countries in regional areas (CAZ) Selection of country clusters : Advanced Marketing BiMBA 2006 Selection of country clusters Determine each countries’ largest segments Define consumer behavior patterns usage and decision making Cluster countries/consumer with common characteristics Rank clusters by attractiveness Bases for international segments : Advanced Marketing BiMBA 2006 Bases for international segments Country level Market size income, income growth, population, population growth Geography SE Asia, Americas, Europe Economic/Political Integration Language/Culture Proximity Competitive position or opportunity Climate Individual level Demographic Psychographic Attitudes Product usage Buying patterns Brand loyalty Situations International distribution channels : Advanced Marketing BiMBA 2006 International distribution channels Retail Outlets Type and size of retail outlets population density, local retail regulation, traditions Degree of concentration of major retail companies Opening hours / degree of scannerization Product range carried in particular type of stores Services and interaction with shoppers in the store environment International distribution channels : Advanced Marketing BiMBA 2006 International distribution channels Wholesale/Distributors Short vs. long distribution channels Relationship of manufacturers to wholesalers and retailers: Japanese distribution Keiretsu system Degree of conflict within the distribution system Degree of openness to foreign suppliers Concerns in choosing channels : Advanced Marketing BiMBA 2006 Concerns in choosing channels Consumers: location and characteristics Culture: local styles of exchange Character: image projected by the channel Capital: financial resources necessary to start and maintain the channel (fixed capital, working capital) Cost: trade margins rather than to overhead costs Competition in local channels (local cartels) Coverage: geographic coverage Continuity: security against bankruptcy or financial difficulties Control: the ideal is for company to create its own distribution network Concerns of international advertising : Advanced Marketing BiMBA 2006 Concerns of international advertising Standardize Protect global brand image Lower cost Customize Higher cost Respond to local culture Message is culture bound “a homely girl” McDonald’s variation on a theme Media is culture bound Image Availability Concerns of direct marketing : Advanced Marketing BiMBA 2006 Concerns of direct marketing Postal service Reliability Speed Delivery Customs delays Mailing lists Availability Accuracy Language Literacy Ethics & privacy Laws Restrictive legislation Store hours Acceptability of phone calls Men calling women? Concerns of promotions : Advanced Marketing BiMBA 2006 Concerns of promotions Coupons Level of literacy Consumer/retailer sophistication Low social status implications Contests and Sweepstakes Legal requirements Prizes suit target market tastes Price-offers Absence of price displayed Bargaining Stamps and collections Future orientation needed High inflation Levels of channel sophistication Free samples Interpretation of gratuity Trade misuse Theft of sampled products Gifts (in, on or near packs) Legal requirements Theft by channel employees or customers Standardize what you can… : Advanced Marketing BiMBA 2006 Standardize what you can… Homogeneous needs: Global segments uniform product and image Customer willing to sacrifice features for price/quality Economies of scale Customize what you must : Advanced Marketing BiMBA 2006 Customize what you must Differentiate according to: Marketing mix elements Type of market Level of development Type of product Consumer or industrial Control over subsidiary

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