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Global Market Segment
- A group of customers that share common characteristics across many national markets
- Firms target these buyers with relatively uniform marketing programs, regarding product, pricing, communications and distribution
- Such segments often follow global media, embrace new fashions or trends, and have much disposable income
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Adaptation
Modifying elements of the marketing program to accommodate specific customer requirements in individual foreign markets
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Adaptation is appropriate when:
- National preferences
- Laws and regulations
- Living standards and economic conditions
- National infrastructure
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Advantages of adaptation
- Meet needs of customers more precisely
- Enjoy unique appeal
- Comply with government regulations
- Achieve greater successes in combating customer resistance
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Standardization
- Efforts to make marketing program elements uniform, so as to target entire regions of countries, or even the global marketplace, with a similar product or service.
- However, targeting the same product everywhere is not usually feasible
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Standardization is appropriate when:
- Similar markets exist across countries
- Customer seek similar features in the product or service
- Products have universal specifications
- Business customers have converging expectations or needs regarding specifications, quality, performance, and other product attributes
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Advantages of Standardization
- Cost reduction
- Improved planning and control
- Ability to portray a consistent image and build global brands
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Well known global brands include:
- Electronics
- Personal care products
- Toys
- Food
- Beverages
- Credit cards
- Movies
- Pop stars
- Sports stars
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A strong global brand enhances:
- Efficiency and effectiveness of marketing programs
- Facilitates the ability to charge premium prices
- Increases the firm’s leverage with resellers
- Stimulates brand loyalty
- Inspires trust and confidence in the product
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What do managers emphasize when developing international products?
They emphasize their commonalities across countries rather than the differences between them
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What does a basic product incorporate?
Only core features that are then varies at the margins for individual markets
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Global New-Product Planning Team
Is a group within a firm that determines which product elements will be standardized and which will be adapted locally, and how products will be launched
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How do firms conduct advertising?
via media, which includes direct mail, radio, TV, cinema, billboards, transit, print media and the internet
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What is advertising influenced by?
Local factors, such as availability of media, literacy, regulations, culture, and local customs as well as the goals of the firm
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How do firms advertise in countries with low literacy rates and limited media infrastructure?
Firms must use creative approaches
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Distribution
Is the most inflexible of the marketing program elements- once established, it may be difficult to change
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The most common international distribution approaches are:
- via independent intermediaries (for exporters) and establishing a subsidiary directly in the market (FDI)
- Both types of channels must perform a range of downstream marketing activities
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What should firms do to minimize final prices and decrease complexity?
They should seek to minimize channel length
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