Marketing Mix for Global Markets Final

Marketing Mix for Global Markets

18-*International MarketingDevelop marketing strategies by assessing the firms potential foreign markets and analyzing the many alternative marketing mixesMust plan and control a variety of marketing strategiesRather than a single unified and standardized oneCoordinate and integrate those strategies into a single marketing program

18-*Standardize, Adapt, or Formulate Anew?Management would prefer global standardization of the marketing mixSignificant cost savingsLonger production runsStandardized advertising, promotional materials, and sales trainingStandardized corporate imageStandardized pricing strategies Easier control and coordinationReduction of preparation timeOften not possible

18-*Product StrategiesProduct is central to marketing mixTotal product includesPhysical productBrand nameAccessoriesAfter-sales serviceWarrantyInstructions for useCompany imagePackage

18-*Total Product

18-*Foreign Environmental ForcesSociocultural ForcesDissimilar cultural patterns generally require changes in food and other consumer goodsMay requireRedesign of productDifferent meanings of colorsDifferent meanings of brand nameTranslation of instructions or labels

18-*Foreign Environmental ForcesLegal ForcesLaws concerningPollutionConsumer protectionOperator safety Laws prohibiting classes of importsFood and pharmaceuticals influenced by laws concerning purity and labelingLegal forces may prevent use of brand name worldwideIn some countries brand may be registered to someone else

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http://www.ssrana.in/Intellectual%20Property/Domain%20Names/DomainName_CaseLaw.aspx

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18-*Foreign Environmental ForcesEconomic ForcesGreat disparity in income throughout world

Obstacle to product standardization

Many industrialized country products too expensive for developing country consumers Must either simplify the product or produce a different, less costly one

18-*Foreign Environmental ForcesPhysical ForcesClimate and terrain prevent international product standardizationHeatHigh humiditySpecial packagingHigh altitudesBaking products and motorsRough roads

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18-*Promotional StrategiesPromotionAny form of communication between a firm and its publics To bring about a favorable buying action and achieve long-lasting confidence in the firm and the product or service it provides

18-*Promotional StrategiesDistinct promotional strategies based on combination of three alternatives Marketing the same physical product everywhere

Adapting the physical product for foreign markets

Designing a different physical product with(a) the same message(b) adapted message or (c) different message

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18-*Six Common Promotional Strategies contd.

Product adaptation-message adaptationIn Latin America, Tang is sweetened and promoted as mealtime drink

Different product-same messageProduct is produced in low cost plastic squeeze bottle for developing countries, but advertised the same

Different product for the same use-different messageWelding torches rather than automatic welding machines are sold in developing countries

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18-*The Promotional MixAdvertising

Personal selling

Sales promotion

Public relations

Publicity

18-*AdvertisingPaid, nonpersonal presentation of ideas, goods, or services by identified sponsorAmong promotional mix elements, advertisingHas the greatest similarities worldwideIs formulated and executed through global ad agencies that have wholly owned subsidiaries, joint ventures, and working agreements with local agencies

18-*Global and Regional BrandsReasons for increase in global and regional brandsCost Better chance of obtaining one regional source for high-quality workBelief that single image throughout region is importantEstablishment of regionalized organizations with many functions centralizedGrowth of global and regional satellite and cable television

18-*Top Twenty Brands 2006

18-*Impact of Culture on AdvertisingDirectness vs. indirectnessComparisonHumorGender rolesExplicitnessSophisticationPopular vs. traditionalInformation content vs. fluff

18-*AdvertisingBranding

Global, regional or nationalManagers may convert or use a combination

Private brandsSerious competitorsAlliances with international retailersTrend common in Europe

18-*AdvertisingMediaSatellite TV expands availability of media

International print media availableReaders Digest has 48 foreign editions

Cinema and billboards used heavily in Europe

In developing countries, vehicles equipped with loudspeakers

18-*AdvertisingInternet AdvertisingAn affluent, reachable audience

Web contacts feature interactivity, shrinks distance

Involve customers in determining which messages and information they receive

For some groups, Internet may be among the best media choices

18-*AdvertisingForeign Environmental ForcesBasic cultural decision for marketer: position the product as foreign or local

Depends on the country, the product types, and the target market

Language often an issueback translationplenty of illustrations with short copy

18-*AdvertisingWhat should be the approach of the international advertising manager?Think globally, but act locallyNeither global nor local-glocalPan regional approachLatin AmericaMiddle EastAfricaAtlantic

18-*Personal SellingImportance of personal selling compared to advertising depends onRelative costFunds availableMedia availableType of product Manufacturers of industrial products rely on personal sellingMarketers may increase use of personal selling for consumer products in developing countries

18-*Personal SellingInternetWould seem to eliminate the need for personal selling, but may not be so

Successful personal selling depends on establishing trustEvolving approaches to trust building in a virtual environment

18-*Personal SellingInternational StandardizationAn overseas sales force is similar to the home country inOrganizationSales presentationTraining methodsRecruitment of salespeople in foreign countries can be difficult

18-*Sales PromotionAny various selling aids, including displays, premiums, contest, and giftsSociocultural and economic constraints make some sales promotions difficult to useIf premium is to fulfill the sales aid objective, it must be meaningful to the purchaserSales promotion is generally less sophisticated overseas than in U.S.

18-*Public RelationsVarious methods of communicating with the firms publics to secure a favorable impressionMarkets firmImproves image and overcomes negative perceptionsMay work through government agencies

18-*PricingImportant and complex consideration in formulating marketing strategyOne of the marketing mix elements that can be varied to achieve firms marketing objectivesMade more complex byInteraction with the other functional areasEnvironmental forces

18-*Interaction between Marketing and Other Functional AreasThe finance people want prices that are profitable and conducive to steady cash flow

Production supervisors want prices that create large sales volumes, which permit long production runs

Legal department worries about possible antitrust violations when different prices are set according to type of customer

18-*Interaction between Marketing and Other Functional AreasThe tax people are concerned with effects of prices on tax loads

The domestic sales manager wants export prices to be high enough to avoid parallel importing

The marketer must address all these concerns and considerLegal forcesEnvironmental forces

18-*Standardizing PricesDifficult if desirableForeign National PricingLocal pricing in another countryInternational PricingSetting prices for unrelated and related firmsTransfer pricingIntracorporate price, price of a good or service sold by one affiliate to another, the home office to an affiliate, or vice versa

18-*Distribution StrategiesDistribution DecisionsOften interdependent with other marketing mix variablesStandardizing DistributionTwo fundamental constraintsThe variation in availability of channel membersThe environmental forces present in these different markets

18-*Standardizing DistributionDisintermediationUnraveling of traditional distribution structuresMost often the result of being able to combine Internet with fast delivery services

18-*Channel SelectionDirect or Indirect MarketingThe first decision: whether to use middlemenExport sales may be consummated by local agents ifManagement believes this is politically expedientCountrys laws demand itFactors Influencing Channel SelectionMarketProductCompanyMiddlemen

18-*Foreign Environmental Forces and the Marketing Mix Matrix

18-*Foreign Environmental Forces and the Marketing Mix Matrix

18-*Foreign Environmental Forces and the Marketing Mix Matrix

18-*Foreign Environmental Forces and the Marketing Mix Matrix

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