To what extent must the company adapt its product and marketing program to each foreign country?

Global Similarities

and Differences

Globally Standardized Marketing

• Economies of scale in production and distribution• Lower power marketing

costs• Power and scope• Consistency in brand

image• Ability to leverage good

ideas quickly and efficiently• Uniformity of marketing

process

Advantages Disadvantages

• Ignores differences in consumer needs, wants, usage patterns, consumer response to marketing programs, brand and product development, legal environment, marketing institutions and administrative procedures

Marketing Adaption

• Product features• Labeling• Colors• Materials• Sales Promotion• Advertising

media

• Brand name• Packaging• Advertising

Execution• Prices• Advertising

themes

Global Product

Strategies

Product Standardization

Quality and prestige can be marketed similarly across countries

Influenced by culture and wealth factors

Emphasize products across different markets

Product Adaptation

Product Intervention

• Backward intervention : reintroduces earlier product forms well adapted to a foreign country’s needs.

• Forward Intervention : creates a new product to meet a need in another country

Product Intervention

Marketers need to change certain brand elements

Brand slogans or ad taglines sometimes need to be changed too

Brand element adaptation

Global

Communication

Strategies

Global Adaptations

Ensure that communications are legally and culturally acceptable

Must check their creative strategies and communication for appropriateness

Must be prepared to vary their messages appeal

Price

esca

latio

n

• Set a uniform price everywhere Price too high in poor countries and not high enough in rich countries

• Set a market-based price in each country

• Set a cost based price in each country

Tran

sfer P

rices

• Transfer: price for goods it ships to its foreign subsidiaries

• Dumping: If company charges its subsidiary too low a price

• Arm’s length price: the price charged by other competitors for the same product

Image creditsflickr users

• 401(K) 2012• Barbera*