Adaptive marketing program

ADAPTIVE MARKETING PROGRAM

adapting marketingstrategy to local conditions

GLOBAL SIMILARITIES & DIFFERENCES

Cultural dimensions

• Individualism / collectivism• High / Low power distance• Masculine / Feminine

• Weak / Strong uncertainty avoidance• Long-term / Short-term orientation• Indulgence / restrain

GLOBAL SIMILARITIES & DIFFERENCES

Cultural dimensions

PRODUCT FEATURES LABELING COLORS MATERIALS SALES PROMOTION ADVERTISING MEDIA

MARKETING ADAPTATION

Determine elements adding more revenue than cost if adapted

BRAND NAME PACKAGING ADVERTISING EXECUTION PRICES ADVERTISING THEMES

GLOBAL PRODUCT STRATEGIES

Some products cross borders without

adaptation better than others

Product standardization

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STRAIGHT EXTENTION

PRODUCT ADAPTATION

PRODUCT INVENTION

Introduce product without change

• Regional version• Country version

• Backward (reintroduce earlier forms)• Forward (new product)

• City version• Retailer version

GLOBAL PRODUCT STRATEGIES

Marketers need to changecertain brand elements

Brand Element Adaptation

GLOBAL COMMUNICATION STRATEGIES

Changing marketing communications for each local market

Communication Adaptation

GLOBAL COMMUNICATION STRATEGIES

1. Ensure communications are legal & acceptable2. Check creative strategies & approach3. Vary the message appeal

Global Adaptation

GLOB

AL PR

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• Uniform price• Market-based price in country• Cost-based price in country

PRICE ESCALATION

One unit charges another unit in the same company a transfer price for goods shipped to foreign subsidiaries

TRANSFER PRICES

GREY MARKETSdiverts branded products from authorized distribution channel

COUNTERFEIT PRODUCTS

GLOBAL DISTRIBUTION STRATEGIES

• International marketing headquarter• Channels between nations• Channels within foreign nations

Channel Entry

GLOBAL DISTRIBUTION STRATEGIES

• Distribution channel complexity• Size & character of retails• High markups• Incomes

Channel Differences