Professional Documents
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Developing and Marketing Products
Developing and Marketing Products
Developing and Marketing Products
Developing and
Marketing Products
Chapter Preview
National Counterfeit
image goods
Pressure channel members to carry a Create buyer demand that will encourage
product and promote it to final users channel members to stock a product
© Prentice Hall, 2008 International Business 4e Chapter 14 - 7
Choosing Push or Pull
Powerful channel
members make push difficult
Global
Simple and
Luxury items consumer
profitable
goods
Local Local
Can be costly
infrastructure content laws
Requires large
Rather Can be
profitable
uncommon expensive
segment
Product invention
Economic
Purchasing Varying
development
power infrastructure
level
Physical goods
Consulting services
News providers
Intensive channel
Cost implications
• Many resellers
Lack of market
understanding Financial loss
• Low-cost leadership
• Differentiation
• Focus
© Prentice Hall, 2008 International Business 4e Chapter 14 - 20
Worldwide Pricing
Difficulties
• Local production cost
• Export, distribution cost
• Local purchasing power
• Exchange rates
Separate international
from domestic buyers
• If not, arbitrage possible