Module 134

Module Overview

  • Learning theme: Learning changes everything.

  • Focus: International Marketing

  • Publisher: McGraw Hill, LLC, 2023

Learning Objectives

13-1: International Marketing Mix Standardization

  • Importance for international marketing managers to standardize.

13-2: Product Definitions

  • Distinction among total product, physical product, and brand name.

13-3: Product Modification for International Sale

  • Comparing adaptations for consumer vs. industrial products.

13-4: Product Strategies

  • Strategies formed from three product alternatives and three kinds of promotional messages.

13-5: Internet Effects on International Marketing

  • Discussing how the Internet influences international marketing.

13-6: Glocal Advertising Strategies

  • Definition and significance of ‘glocal’ strategies in advertising.

13-7: Pricing and Distribution Strategies

  • Understanding critical pricing and distribution strategies.

Market Dynamics in China

Marketing Luxury Goods

  • Transition from traditional channels to social media.

  • Social media appeals to millennial shoppers in China.

  • E-commerce market: Approx. $1 trillion in online sales.

  • Use of smartphones for online purchases, especially for luxury items.

  • Importance of peer reviews and opinion leaders in shaping brand perception.

Differences Between Domestic and International Trade

Key Variations

  • Sociocultural Differences: Cultural norms and consumer behavior.

  • Resource and Environmental Factors: Variability in resources across nations.

  • Economic/Socioeconomic Factors: Levels of economic development impact trade strategies.

  • Legal and Financial Frameworks: Differences in regulations and financial systems.

The Marketing Mix Defined

  • Set of strategic decisions regarding the product, promotion, pricing, and distribution to meet consumer needs in target markets.

Approaches to International Marketing

Standardization vs. Adaptation

  • Standardization: Cost savings and consistent marketing albeit challenging.

  • Corporate Visual Identity (CVI): Name, logo, slogan, graphics that identify the firm.

  • Need for modifications in marketing mix in many cases.

Critical Thinking Question

Considerations for Standardizing Marketing Mix

  • Assess benefits and drawbacks of standardization on an international scale.

Product Strategies Overview

Total Product Definition

  • Comprehensive understanding: Physical product, brand name, accessories, after-sale service, warranty, usage instructions, corporate image, packaging.

Types of Product Modification

Industrial Products

  • Require less adaptation than consumer products.

  • Need alterations for safety, health, or emission regulations.

Consumer Products

  • Demand more adaptation; luxury products can sometimes maintain standards.

  • Product adaptation must address varied cultural and social values.

Services

  • Marketing tends to be simpler with some adaptations necessary.

  • Adjustments for legal requirements may still apply.

Foreign Environmental Forces

Sociocultural Impacts on Marketing

  • Cultural Differences: Variations in consumer preferences, colors, and brand perceptions.

  • Importance of language and cultural nuances in marketing messages.

Legal and Regulatory Impacts

  • Diverse safety standards and legal requirements effect marketing strategies.

  • Differences in brand registration and internet regulations across countries.

Economic Influences

  • Pricing, packaging, and production impacted by global income disparities.

  • Physical environmental factors (e.g., climate) may necessitate product modifications.

Promotional Strategies

Promotion Defined

  • All forms of communication between firms and their publics.

  • Includes advertising, public relations, sales promotions, and experiences.

Common Advertising Strategies

  1. Same product–same message.

  2. Same product–different message.

  3. Product adaptation–same message.

  4. Product adaptation–message adaptation.

  5. Different product–same message.

  6. Different product for the same use–different message.

Cultural Dimensions in Advertising

  • Aspects such as directness, humor, cultural values, and sophistication affect advertising success.

Media Strategy Considerations

  • Cost, quality, regional organization, and consumer familiarity matter in messaging and brand strategy.

Internet Advertising Advantages

  • Access to affluent audiences, cost-effective, less regulation, and interactivity with consumers.

Global Marketing Considerations

Pricing Strategies

  • Understanding complex interactions involving culture and environmental forces impacting pricing decisions.

Distribution Strategies

  • Local conditions and long-term decisions affect distribution channels and strategies.

Case Studies and Reflections

Personal Experience: Danielle Demaria

  • Emphasizes bravery and cultural engagement in international business.

MiniCase: Dollar Shave Club’s International Approach

  • Examining the viability of Dollar Shave Club's marketing tactics abroad.