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©2004 Prentice Hall16-1 Chapter 16: International Marketing International Business, 4 th Edition Griffin & Pustay.

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Presentation on theme: "©2004 Prentice Hall16-1 Chapter 16: International Marketing International Business, 4 th Edition Griffin & Pustay."— Presentation transcript:

1 ©2004 Prentice Hall16-1 Chapter 16: International Marketing International Business, 4 th Edition Griffin & Pustay

2 ©2004 Prentice Hall16-2 Chapter Objectives_1 Characterize the nature of marketing management in international business Discuss the basic kin of product policies and decisions made in international business Identify pricing issues and evaluate pricing decisions in international business

3 ©2004 Prentice Hall16-3 Chapter Objectives_2 Identify promotion issues and evaluate promotion decisions in international business Discuss the basic kinds of distribution issues and decisions in international business

4 ©2004 Prentice Hall16-4 Marketing Process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individuals and organizational objectives

5 ©2004 Prentice Hall16-5 Figure 16.1 International Marketing as an Integrated Functional Area Operations Management Finance Human Resource Management Accounting Marketing

6 ©2004 Prentice Hall16-6 Marketing Mix How to develop the firms product(s) How to price those products How to sell those products How to distribute those products to the firms customers

7 ©2004 Prentice Hall16-7 Figure 16.2 The Elements of the Marketing Mix for International Firms ProductPlacePromotionPricing Marketing Mix

8 ©2004 Prentice Hall16-8 Key Decision-Making Factors Standardization versus customization Legal forces Economic factors Changing exchange rates Target customers Cultural influences Competition

9 ©2004 Prentice Hall16-9 Standardization versus Customization Should the firm adopt an ethnocentric approach? Should it adopt a polycentric approach? Should it adopt a geocentric approach?

10 ©2004 Prentice Hall16-10 Table 16.1 Standardized International Marketing Advantages Reduces 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

11 ©2004 Prentice Hall16-11 Table 16.1 Customized International Marketing Advantages Reflects different conditions of product use Acknowledges local legal differences Accounts for differences in buyer behavior patterns Promotes local marketing initiatives Accounts for other differences in individual markets Disadvantages Increases marketing costs Inhibits centralized control of marketing Creates inefficiency in R&D Reduces economies of scale in production Ignores the trend toward a single global marketplace

12 ©2004 Prentice Hall16-12 Prices of these t-shirts in Rome converted from several hundred lira to less than 13 Euro

13 ©2004 Prentice Hall16-13 Pricing Policies Standard price policy Two-tiered pricing Market pricing

14 ©2004 Prentice Hall16-14 Figure 16.3a Determining the Profit- Maximizing Price

15 ©2004 Prentice Hall16-15 Figure 16.3b Determining the Profit- Maximizing Price

16 ©2004 Prentice Hall16-16 Conditions for Market Pricing Firm must face different demand and/or cost conditions in the countries in which it sells its products Firm must be able to prevent arbitrage

17 ©2004 Prentice Hall16-17 Risks to Market Pricing Complaints about dumping Damage to its brand name Development of a gray market for its products Consumer resentment against discriminatory prices

18 ©2004 Prentice Hall16-18 Promotion Mix Advertising Personal Selling Sales Promotion Public Relations

19 ©2004 Prentice Hall16-19 Factors affecting Advertising Strategy The message it wants to convey The media available for conveying the message The extent to which the firm wants to globalize its advertising effort

20 ©2004 Prentice Hall16-20 A customer entering this domino parlor in Egypt encounters no language barriers in knowing that the establishment serves Coke

21 ©2004 Prentice Hall16-21 Advantages of Personal Selling for International Firms Local sales representatives understand local culture, norms, and customs Personal selling promotes close, personal contact with customers Personal selling makes it easier for firm to adopt valuable market information

22 ©2004 Prentice Hall16-22 Distribution Issues Physically transporting its goods and services from where they are created to the various markets in which they are to be sold Selecting the means by which to merchandise its good in the markets it wants to serve

23 ©2004 Prentice Hall16-23 Table 16.2 Advantages and Disadvantages of Different Modes of Transportation for Exports ModeAdvantagesDisadvantagesSample Products TrainSafe, reliable, inexpensive Limited to rail routes, slow Automobiles, grains AirplaneSafe, reliable, fast Expensive, limited access Jewelry, medicine TruckVersatile, inexpensive Small sizeConsumer goods ShipInexpensive, good for larger products Slow, indirectAutomobiles, furniture Electronic Media FastUnusable for many products Information

24 ©2004 Prentice Hall16-24 Basic Parts of a Distribution Channel The manufacturer A wholesaler The retailer The actual customer

25 ©2004 Prentice Hall16-25 Figure 16.4 Distribution Channel Options


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