Chapter 16

Marketing Globally

By: Muhammad Sohail Rashid

 Introduction
Marketing is the process of planning and
executing the ideas, pricing, promotion, and
distribution of goods and services to create
exchanges that satisfy individual and organizational
objectives.

Global Marketing is the extension of these activities

across national boundaries.

Manager need to promote sales and maintaining

profitable relationship with customers and other
actors in the international business environment.
International Marketing as an Integrated
Functional Area

Operations
Accounting
Management
Marketing
Human
Finance Resource
Management
International Marketing and Business
Strategies

Differentiation
Cost Leadership
Focus Strategy
Standardization versus
Customization

Ethnocentric
Polycentric
Geocentric
 Marketing Strategies
Overall international marketing strategies
should depend on the companys:
Marketing Orientation
Target Market
 Market Orientation
Production Orientation
Company focuses on products rather
than customers' wants or desires
Focus only on efficiently building a
quality product
Sales Orientation
A business approach or philosophy
that focuses on promoting sales
Aggressive marketing
 Customer Orientation
Company-wide philosophy that the
customer's wants and needs are the
first priority of all management and
employees
Strategic Marketing Orientation
Satisfying customer needs & monitoring
competitors actions and their effect on
customer preferences
Social Marketing Orientation
Company should make marketing
decisions by considering consumers'
wants, the company's requirements,
and society's long-term interests.
 Segmenting & Targeting Markets
Mass Markets
Market (a product) on a large
scale
i.e. "mobile technologies have
hit the mass market
Niche Markets
It is also a small market
segment
A niche market is the subset of
the market on which a specific
product is focused
i.e. Binocular
 Why Firms Alter Products
Legal Forces
The laws and regulations of host
countries also may affect the
product policies adopted by
international firms

Cultural Influences
International firms often must
adapt their products to meet the
cultural needs of local markets.
 Economic Factors
A countrys level of economic
development may affect the
desired attributes of a product.
Price Consideration
Price consideration of target
customer influences firms for
customization of product.
Target Customer
One important factor is the nature
of the products target
customersare they industrial
users or individual consumers?
 Potential Obstacles in International
Pricing
Government intervention

Market diversity

Fluctuations in currency value

Fixed versus variable pricing

Relations with suppliers

 Promotion Strategies
Push Strategy
A push promotional strategy works to create
customer demand for your product or service
through promotion.
Push strategies include trade shows, showrooms,
getting retailers to stock a product, and creating a
supply chain to facilitate distribution.
Pull Strategy
A pull promotional strategy uses advertising to build
up customer demand for a product or service.
For example, advertising children's toys on
children's television shows is a pull strategy.
 Distribution Strategies
The challenge for international marketing
managers is to find the optimal distribution
channel that matches the firms competitive
strengths and weaknesses with the
requirements of each national & international
market it serves.
 Distribution Strategies

Foreign Home-Country
Distributors Methods

Local-Market
Joint Ventures
Systems
 International Distribution

Mode Advantages Disadvantages

Train Reliable, Low Cost Rail Routes Only, Slow

Airplane Safe, Reliable Costly, Limited Access

Truck Versatile, Low Cost Size Limitations

Ship Low Cost, Large Items Slow, Indirect

Online Fast Delivery Product Limitations

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 Channels of Distribution
Manufacturer Manufacturer Manufacturer
Import Import Import
Agent Agent Agent

Customer Retailer Wholesaler

Customer Retailer

Customer
 Channel Length

Distribution Channel Stages

Direct Sales to Customers

Use of Retailers

Use of Wholesalers
The Challenge of Getting Distribution

Distributors choose which companies and

products to handle. Companies:
May need to give incentives
Must ensure quality production
Must convince distributors that product and
company are viable
Hidden Costs and Gains in Distribution
Factors that contribute to cost differences
among countries in distribution:
Infrastructure conditions
Number of levels in distribution system
Retail inefficiencies
Size and Operating Hour Restrictions
Inventory Stock-Outs
 E-Commerce and the Internet
Evidence suggests online shoppers
universally have some similar characteristics:
Desire convenience
Are heavy users of e-mail and the Internet
Have favorable attitudes toward direct marketing
and advertising
Opportunities
Managing the Marketing Mix

Product Pricing

Promotion Place