INBS 250 INBS 250
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This 5 page Class Notes was uploaded by Maria Notetaker on Thursday September 15, 2016. The Class Notes belongs to INBS 250 at Montclair State University taught by Nahra in Spring 2015. Since its upload, it has received 8 views. For similar materials see Introduction to International Business in International Business at Montclair State University.
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Date Created: 09/15/16
Ch. 18 - Global Marketing and R&D Friday, April 17, 2015 10:02 AM Marketing mix (choices the firm offers to its targeted market) Product attributes Distribution strategy Communication strategy Pricing strategy Strategies used to approach a marketplace Product orientation: focuses on the product itself/selling a product as is; product line is extremely small; easy to manage and use (mostly commodities) Sales orientation: standardize the product and try to sell as much as possible (focus is on economies of scale and standardizing that product from market to market) Customer orientation: change the features of the product from market to market based on wants and needs of that consumer you are targeting (incorporate wants and needs of consumer into product so they buy it) Strategic marketing orientation: combination of sales and customer orientation; mix and match strategies from market to market (more challenging and more expensive than two above used separate) Social marketing orientation: mainly used in industrial countries by multinational companies (need substantial revenues); think of social programs, giving back to society/environment *product component model* Why do you have to change the product? Legal reason: legal requirements vary widely by country; usually meant to protect customers, the environment Cultural reason: change features because of tastes/preferences of consumers Economic reason: income of consumers; if they cannot afford, they will not buy it; have to make sure your target market can afford your product How to segment the market Market Segmentation: identifying distinct groups of consumers; their behaviors are different How do product attributes influence marketing strategy? 1 Culture: tradition, religion, etc. 2 Level of economic development: how well educated they are; the more advanced=the more knowledgeable they become and the easier selling is; lower developed= prefer more basic products 3 Product and technical standards: how simple/complicated a product is to use; convenience has to be incorporated in the features of the product. Distribution: How does distribution influence marketing strategy? 1 Citizen attitudes towards their own retailers 2 Ability or inability to pay retail workers/size of retailers/retailers' trust in their employees 3 Legislation affecting chain and individually owned stores 4 Restrictions on the size of stores and their hours of operation 5 The efficiency of the national postal system 6 The geographical coverage of wholesaler and distributors How do distribution systems differ? 1 Retail concentration: concentrated or fragmented Concentrated: a few retailers supply most of the market (common in developed countries) Fragmented: there are many retailers; no one of which has a major share of the market (developing countries) 2 Channel length: the number of intermediaries between the producer and the consumer Short channel: producer sells directly to the consumer (concentrated) Long channel: producer sells through an import agent, a wholesalers and a retailer (fragmented) 3 Channel exclusivity: how difficult it is for outsiders to access (standard in developing countries) 4 Channel quality: capabilities of wholesalers & distributors of covering the market (getting the job done)/servicing the retailers Which channel should a firm choose? Optimal strategy depends on the relative costs and benefits of each alternative When price is important, a shorter channel is more beneficial Communication channels available to a firm Direct selling Sales promotion* (U.S. uses coupons) (work directly with the retailer in foreign country) Direct marketing Advertising What are barriers to international communication? Cultural barriers: translation of message is in most cases inaccurate; firms need to develop crosscultural literacy Source and country of origin effect Source effect: message receiver evaluates the message on basis of status/image of the sender Country of origin: place of manufacturing influences product Noise level: interference that takes place from competitors doing an ad campaign at the same time; amount of other messages competing How do firms communicate with customers? 1 Push strategy: sales force pushes product on distribution channel (industrial products, not consumer products) 2 Pull strategy: trying to pull the consumer to come into your store and buy your product (mass media) What strategy should a firm use? 1 Product type a pull strategy for consumers; push strategy for industrial products 2 Channel length pull strategy works better with longer distribution channels 3 Media availability pull strategy relies on access to ad media; push strategy works when media is not available Pricing Strategies 1 Price discrimination: if you sell the same product to different countries at different prices *companies are better off standardizing prices 2 Price elasticity: measure of responsiveness of demand for a product to changes in price Elastic: small change in price = large change in demand Inelastic: large change in price = small change in demand 3 Strategic pricing: 3 aspects Predatory pricing Multipoint pricing Experience curve pricing 4 Regulations that affect pricing decisions Antidumping regulations Dumping: firm sells a product for a price3 that is less than the cost of production Competition policy Government may limit prices VIDEO: BP 4 P's Advertising (1 main advertising agency; use local people) Branding Bought Amaco: (American gas station = entry into US market) Cobranded; kept Amaco's gas Nurtured the brand (gave it funding) Bought Aral chain (German gas station) Gave it funding Concepts that unified companies to make them work towards the same goals and objectives Performance Green Innovation
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