Ch 18, International Marketing
Ch 18, International Marketing MGT 3314
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This 3 page Class Notes was uploaded by Abby Butterfield on Friday April 1, 2016. The Class Notes belongs to MGT 3314 at Virginia Polytechnic Institute and State University taught by Dr. Pooja Wernz in Spring 2016. Since its upload, it has received 10 views. For similar materials see International Business in Business, management at Virginia Polytechnic Institute and State University.
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Date Created: 04/01/16
GLOBAL MARKETING AND R&D Marketing is the one area that multinational ﬁrms screw up the most often Segmentation: Identifying distinct groups of consumers 1. Geographic 2. Demographic 3. Socio-cultural 4. Psychological • Example: Yager in Germany is digestive aid for old people, in US is a party drink for young people Marketing Mix 1. Product attributes ◦ Highlight diﬀerent features in diﬀerent countries ▪ BMW 7: US is innovation, luxury; Germany is performance and power; Sweden is safety ◦ Economic and cultural diﬀerences determine attributes 2. Distribution strategy 1. Retail concentration 1. Where a few, big retailers control market 2. Not common within MDC (Japan is exception) ▪ Walmart failed in Mexico because they prefer specialty shops 2. Channel 1. Length ▪ Directness between retailers and wholesalers 2. Exclusive ▪ Prime spots are reserved for national brands (ex. tabloid aisle on checkout, eye-level on shelves) 3. Quality ▪ Salesforce quality 3. Communication strategy 1. Direct selling ▪ LDC strategy: No televisions, so it’s the most sense option 2. Sales promotion ▪ Holiday 50% oﬀ ▪ May appear that retailers are exploiting margins if they can oﬀer a sale 3. Direct marketing ▪ Catalog 4. Advertising ▪ Television, radio, or billboard ads ◦ Barriers: ▪ Careful with language translations (ex. Coca-cola 'bringing back China’s dead') ▪ Country of origin eﬀect: positive association with product because it comes from a speciﬁc country (Ex. French wine or cheese) ▪ Countries will try to hide country of origin if it creates a negative associative (HSBC from China or Haagan-Daas from US) ▪ Cultural barriers ▪ Source and country of origin eﬀects ▪ Noise level: How many ads people are subjected to in a short time (Ex. billboards in Houston commute) 2. Pricing strategy 1. Case for price discrimination ▪ Changing prices depending on where product is sold ▪ Only works when: ▪ Markets are separate ▪ Diﬀerent price elasticities of demand (Price sensitivity) 2. Strategic pricing 1. Predatory pricing (Dumping) 2. Multipoint pricing (Changing prices in competitors’ home market rather than changing prices in home market) 3. Experience curve pricing (Economies of scale (high experience) makes ability to charge lower prices) 3. Regulations that aﬀect pricing decisions 1. Antidumping regulations 2. Competition policy R&D - last feature to go international out of fear of losing Intellectual Property • Solve by fragmenting product research • Works with marketing as knowledge source for what customers want