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CHAPTER 9 INTERNATIONAL MARKETING - Coggle Diagram
CHAPTER 9
INTERNATIONAL MARKETING
Marketing
Process of planning & executing the conception,
pricing, promotion, and distribution of ideas, goods
and services.
Finance
Human Resource Management
Operations Management
Accounting
Market Strategy Must Support Business Strategy
Differentiation
Cost Leadership
Focus
Differentiation
This strategy requires products development as well as pricing, promotional and distribution tactics that differs from other competitors in the customer's eyes.
Cost Leadership
Adopt an international business strategy that stresses its overall cost leadership
Can be pursued and achieved through systematic reductions in production and manufacturing, sales costs and use less expensive materials etc
Focus
Marketing managers will concentrate their efforts on particular segments of the consumer markets.
Business Strategies
Marketing Mix
How to develop firm's product(s)?
How to price those products
How to sell those products
How to distribute those products to the firm's customers
Key Decision-Making Factors
Standardization versus customization
Ethnocentric Approach
Easier to adopt. Firm markets goods in international markets using the same marketing mix used domestically.
Polycentric Approach
More expensive. International Marketers customize firm's marketing mix in each market the firms enters to meet the idiosyncratic needs of customers in that market.
Geocentric Approach
A standardization of marketing mix, allow firm provide same product/service in different markets and use the same marketing approach
Advantages
Reduce marketing costs
Facilitates centralized control of marketing
Promotes efficiency in R&D
Results in economies of scale in production
Reflects the trend toward a single global marketplace
Disadvantages
Ignores different conditions of product use
Ignores local legal differences
Ignores differences in buyer behavior patterns
Inhibits local marketing initiatives
Ignores other differences in individual markets
Legal Forces
Economic Factors
Changing Exchange Rates
Target Customers
Cultural Influences
COmpetition
Customized International Marketing
Advantages
Reflects different conditions of use
Acknowledges local legal differences/differences in buyer behavior
Accounts for other differences in individual markets
Disadvantages
Increase costs/inefficiencies
Inhibits centralized control of marketing
Reduces economies of scale in production
Ignores the trend toward a single global marketplace
Product
Comprises of;
Tangible Factors
Intangible Factors
Factors Affecting Standardization of Products
Legal Forces
Economic Factors
Cultural Influences
Brand Names
Factors Affecting Pricing Policies
Business Strategy
Competitive Environment
Costs of Doing Business
Exchange Rate Flunctuations
Standard Price Policy
where firm charges the same
price for its products and services
Two-tiered Pricing
Where firms sets one price for all its domestic sales & a second price for all its international sales.
Market Pricing
Most complex of the three pricing policies but most commonly adopted.
A firm utilize market price customizes its prices on a market-by-market basis to maximize profits in each markets.
Firms must face;
Different demand
Different cost conditions
Risks to Market Pricing Policy
Charges of dumping
Damage to brand name
Development of a gray market
Consumer resentment
Promotion Mix
Advertising
Personal Selling
Advantages for
International Firms
Local sales representative understand local culture, norms and customs
Promotes close, personal contact w customers
Easier for firm to adopt valuable market information
Sales Promotion
A specialized marketing efforts, to offer incentive to customers
E.g Coupons, in-store promotions, sampling, direct mail campaigns etc
Public Relations
Consists of efforts aimed at enhancing firm's reputation and image with general public
Factors Affect Advertising Strategy
Messages it wants to convey
Media available for conveying messages
Extend to which the firm wants to globalize its advertising effort
Basic Parts of
Distribution Channel
Manufacturers
Wholesaler
Retailer
Customer