Copyright © 2015 Pearson Education, Inc. 17-1

International Business

Environments & Operations

15e

Daniels ● Radebaugh ● Sullivan

Copyright © 2015 Pearson Education, Inc. 17-2

Chapter 17

Marketing Globally

Copyright © 2015 Pearson Education, Inc. 17-3

Learning Objectives Understand the difference between domestic and

international marketing Comprehend the strategies and policies related to

the four P’s in international marketing. Explain how they vary internationally. Product policy considerations Pricing considerations Promotion considerations Distribution considerations

Copyright © 2015 Pearson Education, Inc. 17-4

Introduction International marketing defined: the performance

of a wide range of business activities directed at satisfying needs and wants through the exchange process, internationally

Distinction between Domestic and International Marketing Marketing principles in foreign markets are similar to

those in domestic markets. However, some or all elements may need to be adapted to better fit local markets

Global market segmentation

The Marketing Environment

ProductPricePromotionPlace

Copyright © 2015 Pearson Education, Inc. 17-6

Global Market Segmentation

Dividing and subdividing markets into homogenous subsets. Segmentation helps in identifying target/niche markets

Firms can segment and target markets By country By global segment Using multiple criteria

7

Standardization-Adaptation Debate

Standardization Adaptation Debate and ContinuumStandardization______________Adaptation

Product 5______4______3______2______1Price 5______4______3______2______1Promotion 5______4______3______2______1Distribution 5______4______3______2______1Planning 5______4______3______2______1

Factors favoring Standardization or Adaptation

8

Product Policy Considerations Legal Considerations Cultural Considerations Economic Considerations Product Line/Mix-width and depth of

product lines Product Life Cycle Considerations

9

Pricing Considerations Domestic vs. international pricing Governmental Intervention

- Price controls- Legal and Tax consideration

Diversity of Markets: skimming vs. penetration

Price Escalation Currency Value and Inflation Gray market Fixed vs. Variable Pricing

Copyright © 2015 Pearson Education, Inc. 17-10

Pricing StrategiesWhy Cost-Plus Pricing Pushes Up Prices

Copyright © 2015 Pearson Education, Inc. 17-11

Pricing StrategiesNegotiating Import-Export Prices

12

Promotion Considerations

International Promotion Mix: personal selling, advertising, sales promotion activities and publicity/public relations

Push vs. Pull Mix Advantages of a worldwide brand

global image Identification-safety, security, trust, expectations

Problems with global brands language brand acquisition country-of-origin generic and near-generic names

13

Distribution Considerations

Factor affecting the designing of channel-distributor and channel

Distribution intensity: intensive, selective and exclusive distribution

Factors that can contribute to distribution cost differences among countries include Infrastructure conditions The number of levels in the distribution system Retail inefficiencies Size and operating hour restrictions Inventory stock-outs Hidden costs in foreign

distribution

14

Internet and Global Commerce

Opportunities created by Internet E-commerce offers firms a unique opportunity

to market their products worldwide. The Internet permits suppliers to deal

more quickly with their customers. Challenges

Customers worldwide can quickly compare prices from different distributors, thus intensifying price competition.

Differentiation is difficult because the same web ads and prices reach customers everywhere.

Internet ads and prices must comply with the laws of each country where a firm markets its products.

15

Discussion Questions1. Define international marketing and

explain how it differs from domestic marketing.

2. Explain the standardization adaptation debate in international marketing

3. Explain Product Considerations in international marketing. I may ask you to explain any of the four P’s in marketing.

4. How does Internet affect marketing? Explain.

Copyright © 2015 Pearson Education, Inc. 17-16

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.