Teaching International Marketing
description
Transcript of Teaching International Marketing
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Teaching International Marketing
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Agenda The Basics
– Basics of marketing• Segmentation, Targeting and Positioning• Marketing Mix
– Basics of international marketing Teaching Approaches
– Presentation: Global vs. Comparative– Observational– Experiential– Application
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Focus
Marketing is an organizational function and a set of processes for
creating, communicating and delivering value to customers and for managing customer relationships in
ways that benefit the organization and its stakeholders.
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Segmentation, Targeting and
Positioning
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The Complete Process
MarketSegmentation
Identify and describemarket segments
MarketTargeting
Evaluate segmentsand decide whichto go after
MarketPositioning
Design a product orservice to meet a segment’s needs and develop a marketing mix that will create a competitive advantage in the minds of the selected target market
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Market Segmentation
Identifying distinct groups of consumers whose purchasing behavior differs from other in important ways.
Marketing mix adjusted to reflect differing purchasing patterns in segments.– Geography– Demographics– Socio-cultural factors– Psychological factors
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Market Segmentation
Two main issues in the differences between countries–The structure of market segments
–The existence of segments that transcend national borders
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Market Targeting and Positioning Marketers evaluate the attractiveness of each
potential segment and decide which of these groups they will try to turn into customers– Mass– Differentiated– Concentrated– Custom
Developing a marketing strategy aimed at influencing how a particular market segment perceives a product or service in comparison to the competition– 4 common positioning errors
• Underpositioning: lack of differentiation• Overpositioning: too narrow• Confused: too many things to too many people• Doubtful: consumer just doesn’t believe it
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Marketing Mix
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ProductPrice
Place
Promotion
Consumers
Marketing Mix
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Marketing Mix:Product
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Product Attributes
A product is a bundle of attributes. If consumer needs were the same all over, a firm could simply sell the same product worldwide. Unfortunately, differences in the three following areas often necessitate adaptations– Cultural differences– Economic differences– Product and technical standards
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Cultural Differences
Range of dimensions:– Social structure– Language– Religion– Education
Most important - the impact of tradition Some tastes and preferences becoming
cosmopolitan
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Economic Differences
Consumer behavior is influenced by economic development– Consumers in highly developed countries
tend to have extra performance attributes in their products
– Consumers in less developed countries tend not to demand these extra performance attributes
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Government standards can prevent the introduction of global products
Different technical standards impede global markets, as well– Come from idiosyncratic decisions
made long ago
Product and Technical Standards
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Marketing Mix:Place
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Distribution Strategy Three different distribution systems:
– Retail concentration: number of retailers• Cost/benefit of each alternative
vary from country to country– Channel length: levels of channel members
• Longer the channel in a country, the higher the price• Shorter channel in a country, lower price
– Channel exclusivity: access• Match to positioning of product in country
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A Typical Distribution System
Manufacturer Inside the Country
Manufacturer Outside the
Country Import Agent
Wholesale Distributor
Retail Distributor
Final Customer
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Marketing Mix:Price
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Pricing Strategy
Price discrimination Strategic pricing Regulatory factors
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Pricing Strategy Price discrimination: Different prices, different
countries, same product– Charging what the market will bear– Two factors:
• Must keep national markets separate• Different price elasticities
Arbitrage:Charging different prices in different countries for same product– Doesn’t always work– Sometimes it does
Income level and competitive conditions determine elasticity– Elasticity (price) tends to be be greater in countries with low
income levels– Elasticity (demand) tends to be greater in countries where
there are many competitors
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Strategic Pricing Predatory pricing:
– Using price as a competitive weapon Multipoint pricing strategy:
– When two or more international firms compete against each other in two or more national markets
– A firm’s pricing strategy in one market may impact a rival in another market
Experience curve pricing:– Firms price low worldwide to build market share.
Incurred losses are made up as company moves down experience curve
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Regulatory Influences on Prices
Antidumping regulations:– Selling a product for a price that is less than the cost of
producing it• Predatory pricing and experience curve pricing may violate
regulations– Antidumping rules place a floor under export prices and limit
a firm’s ability to pursue strategic pricing Competition Policy:
– Promote competition– Restrict monopoly practices– Can limit the prices a company can charge in a given country
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Price discrimination across marketsMulti-point pricing
Nike Pricing Strategy
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Marketing Mix:Promotion
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Communications Strategy
Effectiveness of international communications can be impacted by:– Cultural barriers
• Need to develop cross-cultural literacy
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Communications Strategy
Effectiveness of international communications can be impacted by:– Cultural barriers
• Need to develop cross-cultural literacy– Source and country of origin effects
• Receiver of the message evaluates it based upon the status of the sender
– Country of origin effects:• Emphasize/de-emphasize foreign origin
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Communications Strategy
Effectiveness of international communications can be impacted by:– Cultural barriers.
• Need to develop cross-cultural literacy– Source and country of origin effects
• Receiver of the message evaluates it based upon the status of the sender
– Country of origin effects:• Emphasize/de-emphasize foreign origin
– Noise levels• Tends to reduce the effectiveness of a message• Developed countries - high• Less developed countries - low
– Push versus Pull:• Push emphasizes personal selling• Pull depends on mass media advertising