Chapter 17

Marketing Globally
 Introduction
 Marketing principles in foreign markets are
similar to those in domestic markets
 Product
 Price
 Place
 Promotion
 However, some or all elements may need
to be adapted to better fit local markets
 Marketing Strategies
 Marketing strategy depends on marketing
orientation
 Production
 Sales
 Customer
 Strategic marketing
 Social marketing
 Marketing Strategies
 Firms can segment and target markets
 By country
 By global segment
 Using multiple criteria
 Product Policies
Learning Objective:
Discuss the pros and cons of product
alterations when deciding between
standardized and differentiated marketing
programs among countries
 Why Firms Alter Products
 Firms alter products for
 Legal considerations
 Labeling requirements

 Environmental protection regulations

 Indirect legal considerations

 Cultural considerations
 Economic considerations
 Pricing Strategies
Learning Objective:
Appreciate the pricing complexities when
selling in foreign markets
 Pricing Strategies
 Potential obstacles in international pricing
 Government intervention
 Set minimum or maximum pricing

 Prohibit certain pricing practices

 Market diversity
 Consumers may be willing to pay higher

prices
 Pricing Strategies
 Pricing tactics
 Skimming strategy
 Penetration strategy
 Cost-plus strategy
 Export price escalation
 Fluctuations in currency value
Pricing Strategies
Why Cost-Plus Pricing Pushes Up Prices
Pricing Strategies
Negotiating Import-Export Prices
 Promotion Strategies
Learning Objective:
Recognize country differences that may
necessitate alterations in promotional
practices
 Promotion Strategies
 Promotion
 the presentation of messages intended to help
sell a product or service
 Push-pull mix
 Push
 uses direct selling techniques

 Pull
 relies on mass media
 Distribution Strategies
Learning Objective:
Discern effective practices and
complications of international distribution
 Distribution Strategies
 Distribution
 the course – physical path or legal title
– that goods take between production
and consumption
 Distribution Strategies
 Deciding whether to standardize
 Distribution can vary substantially
among countries
 Distribution can be difficult to change
 Distribution Strategies
 When choosing distributors and channels
firms must consider
 whether internal handling is feasible
 which distributors are qualified
 the reliability of after-sales service
 Distribution Strategies
 Distributors choose which products to
handle
 To get a distributor to work for them,
companies may have to
 give incentives
 use successful products as bait for new
ones
 convince distributors that their product
and company are viable
 Distribution Strategies
 Factors that can contribute to distribution
cost differences among countries include
 Infrastructure conditions
 The number of levels in the distribution
system
 Retail inefficiencies
 Size and operating hour restrictions
 Inventory stock-outs
 Distribution Strategies
 E-commerce and the Internet
 Opportunities
 can replace traditional sales methods

 faster customer service

 Problems
 cannot differentiate sales programs between

countries
 still must comply with local laws
Managing the Marketing Mix
Learning Objective:
Perceive why and how emphasis within the
marketing mix may vary among countries
Managing the Marketing Mix
 Gap analysis
 a method for estimating a company’s potential
sales by identifying prospective customers it is
not serving adequately
 Usage

 Product line

 Distribution

 Competitive
Managing the Marketing Mix
Gap Analysis