1. International Business Environments & Operations
Daniels ● Radebaugh ● Sullivan
International Business Environments and Operations 15e by Daniels, Radebaugh, and Sullivan
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Chapter 17
Marketing Globally
Chapter 17: Marketing Globally
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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
The Learning Objectives for this chapter are
To understand a variety of international product policies and their appropriate circumstances
To discuss the pros and cons of product alterations when deciding between standardized and differentiated marketing programs among countries
To appreciate the pricing complexities when selling in foreign markets
To recognize differences that may necessitate alterations in promotional practices
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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
International marketing is like domestic marketing in that a firm needs a desirable product or service, must tell people about it, price it at an acceptable level, and offer it in the right location. However, because international marketing managers operate in an unfamiliar environment each of these activities becomes more complex.
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5. The Marketing Environment
Economic
Social
Demographic
Marketing Mix
Product
Price
Promotion
Place
Marketer
Target Market
Political
Cultural
Feedback
Technological
Legal

6. 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
Companies have to segment markets and identify specific segments to target. Three basic ways to do this is are by country, by global segment, and using multiple criteria.
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7. Standardization-Adaptation Debate
Standardization Adaptation Debate and Continuum
Standardization______________Adaptation
Product 5______4______3______2______1
Price 5______4______3______2______1
Promotion 5______4______3______2______1
Distribution 5______4______3______2______1
Planning 5______4______3______2______1
Factors favoring Standardization or Adaptation

8. Product Policy Considerations
Legal Considerations
Cultural Considerations
Economic Considerations
Product Line/Mix-width and depth of product lines
Product Life Cycle Considerations

9. 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

10. Pricing Strategies Why Cost-Plus Pricing Pushes Up Prices
This Figure shows why cost-plus pricing pushes up prices. Keep in mind that export price escalation can make it difficult to compete in foreign markets.
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11. Pricing Strategies Negotiating Import-Export Prices
This Table shows ways that exporters can negotiate prices more effectively.
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12. 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

13. 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

14. 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.

15. Discussion Questions
Define international marketing and explain how it differs from domestic marketing.
Explain the standardization adaptation debate in international marketing
Explain Product Considerations in international marketing. I may ask you to explain any of the four P’s in marketing.
How does Internet affect marketing? Explain.

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