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
Modifying elements of the marketing program to accommodate specific customer requirements in individual foreign markets
Adaptation is appropriate when:
- National preferences
- Laws and regulations
- Living standards and economic conditions
- National infrastructure
Advantages of adaptation
- Meet needs of customers more precisely
- Enjoy unique appeal
- Comply with government regulations
- Achieve greater successes in combating customer resistance
- 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
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
Advantages of Standardization
- Cost reduction
- Improved planning and control
- Ability to portray a consistent image and build global brands
Well known global brands include:
- Personal care products
- Credit cards
- Pop stars
- Sports stars
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
What do managers emphasize when developing international products?
They emphasize their commonalities across countries rather than the differences between them
What does a basic product incorporate?
Only core features that are then varies at the margins for individual markets
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
How do firms conduct advertising?
via media, which includes direct mail, radio, TV, cinema, billboards, transit, print media and the internet
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
How do firms advertise in countries with low literacy rates and limited media infrastructure?
Firms must use creative approaches
Is the most inflexible of the marketing program elements- once established, it may be difficult to change
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
What should firms do to minimize final prices and decrease complexity?
They should seek to minimize channel length