IBT Chapter 6

Standardization Approach

Signifies that the marketing strategies used in its international operations will be the same as those being used domestically

Keeping the product the same everywhere

Adaptation Approach

Marketing strategies used in international markets that are different from those used in its domestic market

Tailoring the product to local needs

Will be more costly

Cultural Factors

In France, wine is tied to tradition; In the U.S., it’s about lifestyle.

Economic Factors

In Russia, affordability matters. In Western Europe, premium pricing could signal quality.

Regulatory Factors

EU has strict labeling laws – Vinchel must comply or face fines

Glocalization

It refers to the practice of adapting a global product, service, or strategy to fit the specific needs, preferences, and cultural nuances of local markets.

Performance objectives

involve bottom-line goals, such as net profit, ROI, market share, and market penetration.

Prevention objectives

can be used to keep competitors out of a foreign market-usually by low prices that competitors have difficulty matching, deterring scrutiny by home and host country governments.

Maintenance pricing objectives

are designed to keep the status quo: maintaining the same competitive landscape or maintaining favorable dealer relations.

Pricing objective

is a survival objective where a pricing strategy must be used to allow a company to survive in an international market.

Dumping

Refers to the practice of a company exporting a product to another country at a price lower than what it charges in its home market—or sometimes even below the cost of production.
The goal is often to undercut competitors in the foreign market, gain market share, or offload excess inventory.

Transfer Pricing

Refers to the pricing of goods, services, or intangible assets (like intellectual property) when they are exchanged between related entities within the same multinational company

Direct Sales

Vinchel sells straight to consumers—winery tours in Russia or online in the U.S. - Limited Reach

Intermediaries

Partner with wholesalers or retailers, like U.S. liquor chains - Wider reach, Limited Control

Agents/Brokers

Hire locals who know the market- They bridge cultural gaps, but take commissions- Pricing might be higher to cover the costs.

Physical Distribution

Refers to a company’s storage and transportation operations used in moving its products to their foreign markets

Containerization

in which shipments are placed in trailer-sized containers (usually 40x8x8 feet) that can be moved from one type of transportation to another type without needing the contents to be unloaded and reloaded.

Hyper-Personalized Digital Campaigns

AI and machine learning have evolved to deliver ultra-specific promotions tailored to individual preferences, even across diverse markets.
Companies use real-time data—like browsing habits, location, and cultural context—to craft ads on the fly.

Sustainability-Centric Messaging

With climate concerns peaking, brands are weaving sustainability into their international promotions, appealing to eco-conscious buyers globally.

Immersive Technologies (AR/VR/Metaverse)

Augmented reality (AR), virtual reality (VR), and metaverse platforms are transforming how products are showcased internationally.

Localized Influencer Ecosystems

Brands are tapping micro- and nano-influencers with strong regional followings rather than relying solely on global celebrities.

Cross-Platform Social Commerce

Social media platforms like Instagram, WeChat, and TikTok are doubling as shopping hubs, with seamless “buy now” features.

Ethical and Inclusive Storytelling

Promotions now emphasize diversity, equity, and social responsibility, reflecting global calls for inclusion.
Campaigns avoid cultural stereotypes and highlight universal values.

AI-Generated Content with Human Oversight

AI tools are creating ads, social posts, and even music for promotions, but human input ensures cultural nuance.

This speeds up global campaigns while keeping them authentic.

Real-Time Global Event Tie-Ins

Brands are capitalizing on live global events—sports, holidays, or even viral moments—for instant promotion, using digital tools to adapt messaging regionally.