IBM 16e PPT17

3/13/2024
International Business
Sixteenth Edition
Chapter 17
Marketing Globally
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Learning Objectives (1 of 2)
17-1 Classify international marketing strategies in
terms of marketing orientations, segmentation,
and targeting
17-2 Discuss the pros and cons of adaptation
versus global standardization of products
17-3 Describe pricing complexities when selling in
foreign markets
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Learning Objectives (2 of 2)
17-4 Recognize the advantages and problems of
using uniform promotional marketing practices
among countries
17-5 Explain the different branding strategies
companies may employ internationally
17-6 Discern major practices and complications of
international distribution
17-7 Illustrate how gap analysis can help in
managing the international marketing mix
Common Marketing Orientations

Objective 17-1
• Production orientation
• Sales orientation
• Customer orientation
• Strategic marketing orientation
• Social marketing orientation
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Common Marketing Orientations

Objective 17-1
• Production Orientation assuming that customers simply want
products with lower prices, higher quality, or whatever they sell
domestically.
• Sales Orientation assuming that consumers are sufficiently similar.
• Customer orientation assuming that the country or type of
consumer is held constant and the product and marketing method
vary.
• Strategic Marketing Orientation adopt a strategy that combines
production, sales, and customer orientations.
• Social Marketing Orientation Companies with social marketing
orientations pay close attention to the potential environmental,
health, social, and work-related problems that may arise when
selling or making their products.
Segmenting Global Markets

Objective 17-1
• Global Segment. An MNE may identify some global
segments that transcend countries. Each country may have
some people within the same segment, but the proportional
and actual size of the segment will vary by country.
• By Country. A company decides to go to one country
market.
• Mixing the Marketing Mix. A company may hold one or
more elements of its marketing functions—prices, promotion,
branding, and distribution.
• Mass Markets versus Niche Market. Most companies have
multiple products and product variations that appeal to
different segments; thus, they must decide which to introduce
abroad and whether to target them to mass markets or niche
segments. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
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Country Adaptation vs. Global

Standardization
Objective 17-2
• Why Adapt?
– Legal considerations (direct and indirect legal
considerations)
– Cultural considerations
– Economic considerations
Potential Issues in Pricing

Objective 17-3
• Government intervention
• Market Diversity
• Export Price Escalation
• Fluctuations in Currency
• Fixed versus Variable pricing
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Potential Issues in Pricing

Objective 17-3
Pricing Tactics
• A skimming strategy—charging a high price for a new
product by aiming first at consumers willing to pay that
much, then progressively lowering the price to sell to other
consumers
• A penetration strategy—introducing a product at a low
price to induce a maximum number of consumers to try it
• A cost-plus strategy—pricing at a desired margin over
cost
What is pricing tactic?
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Push-Pull Promotion Decisions

Objective 17-4
• Push and Pull: push - uses direct selling
techniques, pull - relies on mass media.
• Factors in Push-Pull Decisions
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Standardize Advertising?
Objective 17-4
• Advantages of standardizing Advertising
• Some cost savings.
• Better quality at the country level.
• A common image globally.
• Rapid entry into different countries.
• Considerations when standardizing

• Translation
• Legality
• Message Needs
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Global Branding
Objective 17-5
• What is a brand? A brand is an identifying mark for products
or services.
• Global Brands Considerations
• Language A brand name may carry a different association in
another language.
• Country-of-Origin Images Consumers have limited knowledge of
the nationality of most brands, and they often misclassify the
production origins.
• Locational Origin of Names One ongoing international legal debate
concerns product names associated with location.
• Generic and Near-Generic Names Companies’ brands can become
generic, a situation whereby competitors can use the names to call
their products.
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Working with Product Distribution

Objective 17-6
• Internalization of distribution? Should companies
handle their own distribution?
• Factors to determining a internalization strategy
– Sales Volume and Cost
– Characteristics of product (high price, high technology,
complex after-sale-service)
– Type of customer (global B2B customer)
– Company’s competitive advantage
• Distribution partnerships as an option

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Working with Product Distribution

Objective 17-6
• Distribution partnerships as an option
• May need to give incentives.
• may use successful products as bait for new ones.
• must convince distributors that product and company
are viable.
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What is GAP analysis?

Objective 17-7
• Definition of GAP analysis: whereby a company estimates
potential sales for a given type of product and compares how
emphasis on different marketing mix elements can better help it
serve prospective customers.
• Types of GAPS
• Usage—collectively, all competitors sell less than the market
potential.
• Product line—the company lacks some product variations
• Distribution—the company misses coverage by geography or
type of outlet.
• Competitive—competitors’ sales are not explained by
product-line and distribution gaps.
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GAP Analysis Process

Objective 17-7
Figure 17.3 Gap Analysis
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3/13/2024

Common Marketing Orientations

Common Marketing Orientations

Segmenting Global Markets

Country Adaptation vs. Global

Potential Issues in Pricing

Potential Issues in Pricing

What is pricing tactic?

Push-Pull Promotion Decisions

• Considerations when standardizing

Working with Product Distribution

• Distribution partnerships as an option

Working with Product Distribution

What is GAP analysis?

GAP Analysis Process

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