to what extent must a company adapt its products and marketing program to each foreign country
TRANSCRIPT
PRODUCT AND MARKETING ADAPTATION
TO EACH FOREIGN COUNTRY
Two types of strategies possible.
Standardized Marketing Program• Low costs• Consitency • But will ignore
• Customer Needs,wants• Differences in culture• Differences in legal Environment
Adapted Marketing Program
• Consistent with marketing concept• Will cater to each market individually
Factors to be valued for market adaptation..
• Product Features• Brand Name• Sales Promotion• Packaging• Advertising• Pricing
Global Product Strategies…
Product Standardization
Product Adaptation Strategies
Brand Element Adaptation
• Standardisation
Product Standardization
• Standardisation + Customization
Product Adaptation Strategies
Product Standardization Product Adaptation Strategies
Brand Element Adaptation
• Straight Extension– No change
• Product Adaptation
May fail
Brand Element AdaptationIf Adaptation doesn’t happen , errors like Clairol may happen..
Product Standardization
Product Adaptation Strategies
Brand Element Adaptation
Global Communication Strategies…
Global Communication Strategies…
• Same message but ADAPT the way it is delivered• The samae thing may be received differently in
various cultures• A global pool of ads also may work .(COLA)
Global Pricing Strategies…
Price Escalation
1
• Set a Uniform Price everywhere• Set a Market based price in each
country• Set a market based price in each
country
A company may incur extra costs… It may do three things..
Transfer Prices
2
A company may have to charge a subsidiary a transfer price..
Pay higher duties vs DumpingSOLUTION??
Transfer Prices
2
A company may have to charge a subsidiary a transfer price..
SOLUTION??
ARM”s Length Price
Gray Markets
3
Diverting of goods across borders away from authorized channels
SOLUTION??
FREE RIDER’s Problem
Gray Markets
3
Diverting of goods across borders away from authorized channelsSOLUTION??
• Policing the distributers• Raising prices
Counterfeit ProductsCounterfeiting of Popular brands.
4
Global Distribution Strategies…
Channel Entry
CHANNEL ENTRY CHANNEL DIFFERENCES
When companies enter a country , they prefer to work with local distributors.
Channel Entry
CHANNEL ENTRY CHANNEL DIFFERENCES
…But friction may arise later..
Channel Differences
CHANNEL ENTRY
Channels vary widely across countries….They must be studied and marketing strategies
adapted to them.
CHANNEL DIFFERENCES
NOT THE SAME IN ALL COUNTRIES!!!
RECAP• Global Product Strategies• Global Communication Strategies• Global Pricing Strategies• Global Distribution Strategies
Thank YouChandra Has
Dondapati