Developing and Marketing Products 14 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Globalization and Marketing Standardized product and promotion Adapted product and/or marketing Consistent image/message Contain costs Consistent image/message Contain costs Respond to local needs Exploit unique image Respond to local needs Exploit unique image
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Cultural differences Laws and regulations National image Counterfeit goods National Business Environments
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Brand and Product Names Brand name Competitive advantage Consistent image Consider connotation Product name Select carefully Respect cultures Obey local laws
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Product Life Cycles New product development efforts Result is shorter product life cycles Consecutive market introductions Technology and travel make obsolete
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Push and Pull Strategies Push StrategyPull Strategy Pressure channel members to carry a product and promote it to final users Create buyer demand that will encourage channel members to stock a product
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Choosing Push or Pull Powerful channel members make push difficult Fewer media outlets in emerging markets makes pull difficult Brand loyalty makes pull easier
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall International Advertising Standardize where possible Lessons from the European Union Consider cultural nuances Exploit global advertising outlets
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Marketing Communications
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Communication Strategy 1 Extend product and communications Simple and profitable Simple and profitable Luxury goods Luxury goods Global strategy Global strategy
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Communication Strategy 2 Extend product / adapt communications Different buyer, need, or function Different buyer, need, or function Level of economic development Level of economic development Can help contain costs Can help contain costs
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Communication Strategy 3 Adapt product / extend communications Local content laws Local content laws Can be expensive Can be expensive Safety codes, infrastructure Safety codes, infrastructure
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Communication Strategy 4 Adapt product and communications Satisfy preferences or needs Satisfy preferences or needs Needs large, profitable segment Needs large, profitable segment Explain product benefits Explain product benefits
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Communication Strategy 5 Product invention Low purchasing power Low purchasing power Level of economic development Level of economic development Different infrastructure Different infrastructure
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Distribution Strategy Planning, implementing, and controlling the physical flow of a product from origin to consumption Physical goods Consulting services News providers
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Distribution Channels Cost implications Number of intermediaries Channel length Intensive channel Many resellers Exclusive channel One / few resellers Degree of exposure
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Product Characteristics Value density Value density Product’s value relative to its weight and volume Product’s value relative to its weight and volume The lower a product’s value density, the more localized is its distribution system The lower a product’s value density, the more localized is its distribution system
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Distribution Problems Financial loss Strategic impact Lack of market understanding Theft and corruption
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Pricing Strategy Must match overall firm strategy Low-cost leadership Differentiation Focus
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Worldwide Pricing Single selling price for all international markets Difficulties Local production cost Export / distribution cost Local purchasing power Exchange rates
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Dual Pricing Different selling price abroad than at home Price escalation Lower local price Separate international from domestic buyers If not, arbitrage possible
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Pricing Issues Intra-company transfer Free-market price Upper or lower limits Unfairly low export price Transfer price Arm’s length price Price controls Dumping