copyright © 2015 pearson education, inc.17-1 international business environments & operations...
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Copyright © 2015 Pearson Education, Inc. 17-1
International Business
Environments & Operations
15e
Daniels ● Radebaugh ● Sullivan
Copyright © 2015 Pearson Education, Inc. 17-3
Learning Objectives Understand the difference between domestic and
international marketing Comprehend the strategies and policies related to
the four P’s in international marketing. Explain how they vary internationally. Product policy considerations Pricing considerations Promotion considerations Distribution considerations
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Introduction International marketing defined: the performance
of a wide range of business activities directed at satisfying needs and wants through the exchange process, internationally
Distinction between Domestic and International Marketing Marketing principles in foreign markets are similar to
those in domestic markets. However, some or all elements may need to be adapted to better fit local markets
Global market segmentation
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Global Market Segmentation
Dividing and subdividing markets into homogenous subsets. Segmentation helps in identifying target/niche markets
Firms can segment and target markets By country By global segment Using multiple criteria
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Standardization-Adaptation Debate
Standardization Adaptation Debate and ContinuumStandardization______________Adaptation
Product 5______4______3______2______1Price 5______4______3______2______1Promotion 5______4______3______2______1Distribution 5______4______3______2______1Planning 5______4______3______2______1
Factors favoring Standardization or Adaptation
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Product Policy Considerations Legal Considerations Cultural Considerations Economic Considerations Product Line/Mix-width and depth of
product lines Product Life Cycle Considerations
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Pricing Considerations Domestic vs. international pricing Governmental Intervention
- Price controls- Legal and Tax consideration
Diversity of Markets: skimming vs. penetration
Price Escalation Currency Value and Inflation Gray market Fixed vs. Variable Pricing
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Pricing StrategiesWhy Cost-Plus Pricing Pushes Up Prices
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Promotion Considerations
International Promotion Mix: personal selling, advertising, sales promotion activities and publicity/public relations
Push vs. Pull Mix Advantages of a worldwide brand
global image Identification-safety, security, trust, expectations
Problems with global brands language brand acquisition country-of-origin generic and near-generic names
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Distribution Considerations
Factor affecting the designing of channel-distributor and channel
Distribution intensity: intensive, selective and exclusive distribution
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 Hidden costs in foreign
distribution
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Internet and Global Commerce
Opportunities created by Internet E-commerce offers firms a unique opportunity
to market their products worldwide. The Internet permits suppliers to deal
more quickly with their customers. Challenges
Customers worldwide can quickly compare prices from different distributors, thus intensifying price competition.
Differentiation is difficult because the same web ads and prices reach customers everywhere.
Internet ads and prices must comply with the laws of each country where a firm markets its products.
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Discussion Questions1. Define international marketing and
explain how it differs from domestic marketing.
2. Explain the standardization adaptation debate in international marketing
3. Explain Product Considerations in international marketing. I may ask you to explain any of the four P’s in marketing.
4. How does Internet affect marketing? Explain.
Copyright © 2015 Pearson Education, Inc. 17-16
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