Global Marketing and Sales Development

2022-23
Week 6
Week 6: Tactical Marketing
Please note:

Tactical Marketing:

This is one of the key area of the module, you are required to Analyse and
Evaluate the marketing and sales strategies of the given company in both
countries. Almost 2000 words on your assignment is on tactical marketing.

Understanding of the concept:

Standardization and Adaptation- you are required to read the academic paper on
this concept. Apply the concept of standardisation and adaptation within the
marketing mix (4 Ps)
Learning Outcomes
Week 6: Tactical Marketing

1. To learn the global and multidomestic marketing strategy.

2. To be able to argue whether to adapt or standardise the product/service in

the international market.

3. To learn the impact of various factors on product decision (standardisation v

adaptation) in international market.
International Market and Product Decisions

Orientation: Belief, principle

Domestic Market Multidomestic -market

Global Orientation
Extension Orientation Orientation

Seeking commonalities
in needs among set of
countries and
responding with a global
product/service
Selling the same
product/service Developing different
that is sold in the products to fit the
home country uniqueness of each
market, country market.
internationally
International market and product decisions

Global Product

● Homogenization of tastes
and needs and values has
resulted in similar needs
across cultures.

● Standardization leads to
cost saving- economies of
scale.
Standardization V Adaptation debate

The arguments for and against the standardization of global marketing strategies
are based on two key factors: cost savings and enhanced value. Both these
factors are driven by considerations of market homogeneity.

(Szymanski, Bharadwaj, & Varadarajan, 1993; Zou & Cavusgil, 2002).

Standardization

The extant literature has defined standardization in two different ways—one, the
same marketing strategies are used in all markets, and two, the domestic
marketing strategies are applied to foreign markets.

(S Tamer Cavusgil, Zou & Naidu, 1993; Samiee & Roth, 1992; Zou et al., 1997).
 Global Product Strategy
Standardization
Global Product
Strategy However, low
depends on local
Homogeneity responsiveness!!

Similarity- cultural,
political system,
government Leads to Cost saving
regulation,
economic High quality, low cost
system/situation:
Efficiency
leading to similar Consistency
taste (needs and
wants)
Multi domestic product strategy
Adaptation

A standardization strategy may not be feasible when government regulations

vary across markets, especially when foreign businesses are required to meet
environmental regulations, product safety standards, or local content
requirements

(Cavusgil et al., 1993; Wind, 1986).

Marketers must be aware of and sensitive to the diverse cultures in foreign

countries to survive and prosper in international markets

(Cateora, 1993; Ricks, 1983).

 Multi domestic Product Strategy
Adaptation

However, higher
Multi domestic
cost and constant
product strategy -
adjustment to
Heterogeneity
product-
design/ingredients

Difference- cultural, Addressing local

political system, needs and
government Leads to wants
regulation,
economic Less conflict
system/situation:
leading to different High local
taste (needs and responsiveness Access to local market
wants)
Standardization V Adaptation
Middle ground

It is important to study the finer dimensions within the 4-Ps that can be
successfully standardized or adapted by firms

Product:

Standardize where possible and adapt where necessary.

Physical attributes (standardize): Do not require major changes from one culture
to another.

Non-physical attributes such as Intangible elements (adapt):

Example:
Mandatory adaptation

For United Kingdom the associated plug type is G, which is the plug that three
rectangular pins in a triangular pattern. United Kingdom operates on a 230V
supply voltage and 50Hz.

"Euro-plug". This is the one used mainly in Spain and in most countries in
Europe. Type C consists of two round parallel pins while the wall plug has
two holes where it is connected.
Standardization V Adaptation
Middle ground

It is important to study the finer dimensions within the 4-Ps that can be
successfully standardized or adapted by firms

Product:

Adapt to mandatory requirements such as quality and safety standards,

ingredients.

Legal, economic, technological and climate requirements of a market dictate

product adaptation.
Why Adapt?

Product:
Adapt to minimise market resistance and rate of acceptance of an innovation.

Market resistance is characterised by customers’ reluctance to accept a new

product/service. Consumers are less reluctant when:

• New product has relative advantage over the old product.

• More compatible with acceptable norms and values.

• Less complex : innovation is perceived as difficult to understand and use.

• Trialability: product can be tried

• Observability : result is visible to consumer

Consumers are less reluctant when

1: product has a relative advantage:

Relative advantage refers to the extent to which the innovation is more

productive, efficient, cost less or improves in some other manner upon existing
products.

Example:

Technological advancements have made the cashless economy a reality. Google

Wallet, an app that converts a smartphone into a payment device, offers a
relative advantage over traditional means of payment.
Consumers are less reluctant when

2: Compatibility

The degree to which the innovation(adaptation) is perceived as being consistent

with existing values, past experiences, and needs of potential adopters.

Example:

Traditional cultural products have turned into a cottage business and become a
major source of income in many craftsmen’s communities
The End
Global Sales and Marketing
Development

Seminar
Week 6
 Seminar 6

This week’s seminar is on checking of learning.

Please log in to the blackboard, go to week 6 seminar section.

Download the worksheet and complete the three tasks, during the seminar.
Your seminar tutor will guide you to complete the tasks. However, you should
have confidence to do these tasks independently.