mass producing and standardized output unit cost reductions from experience curve effects and other economies of scale Theodore Levitt's HBR article 1. Importance of technology in globalization Refers to identifying distinct groups of consumers whose needs, wants, and purchasing behaviour differs from others in important ways issues for marketing managers in foreign countries 1. difference in structure segment Products sell well when their attributes match consumer needs Social structure, language, religion, education and others and tradition highly developed countries = a lot of extra performance attributes into their products typical distribution channel Channel with a wholesale distributor and a retailer Differences between countries 1. retail concentration exclusive distribution channel one that is difficult for outsiders to access Refers to the expertise, competencies, and skills of established retailers in a nation and their ability to sell and support the products of international businesses choosing a distribution channel Determined by the relative costs and benefits of retail concentration, channel length, channel exclusivity and channel quality
Direct selling barriers to international communication 1. Cultural barriers Make it difficult to communicate messages occur when the receiver of the message evaluates the message on the basis of status or image of the sender The extent to which the place of manufacturing influences product evaluation: Consumer may use country of origin as a cue when evaluating a product Refers to the number of other messages competing for a potential consumer’s attention emphasize personal selling 1. consumer sophistication large
segment of market = pull strategy except when illiterate The longer the distribution channel, the more intermediaries A pull strategy relies on access to advertising media The optimal mix between push and pull strategy depends on product type, consumer sophistication, channel length and media sophistication 1. For industrial products or complex new products 1. For consumer goods For standardized advertising -economic advantages (lower cost of value creation by taking one ad and bringing it international) against standardized advertising -cultural differences (message successful in one country could fail in another) Exists whenever consumers in different
countries are charged different prices for the same product or for slightly different variations of the product 2 conditions for price discrimination 1. national markets be kept separate 1. predatory pricing price as competitive weapon to drive weaker
competitors out of a national market a firm’s pricing strategy in one market may have an impact on its rivals’ pricing strategy in another market Firms pursuing an experience curve pricing strategy on an international scale will price low world wide in attempting to build global sales volume as rapidly as possible, even if this means taking large losses initially Regulatory influence on prices antidumping regulations Questions to address marketing mix Product strategy Product strategy question 1. Product core: Do the customers have similar product needs across international market segments? Distribution strategy question 1. Distribution channels: Where is the product typically bought by customers in the international market segments? Communication strategy question 1. Advertising: How is product awareness created for a product to reach customers in the international market segments targeted? pricing strategy question 1. Value: Is the price of a product critical to the customer’s understanding (or perception) of the value of the product itself among customers in the international market segments? international market research defined as the systematic collection, recording, analysis and interpretation of data to provide knowledge that is useful for decision making in a global company New product success is a product of: A typical distribution system 1. From a manufacturer inside the country, goods flow to a wholesale
distributor, a retail distributor, and the final customer. Most international market research conduct for 1. data on country and potential market segments International market research steps 1. Defining the research objectives What is a main difference between a concentrated retail system and a fragmented retail system?Retail Concentration
In a concentrated system, a few retailers supply most of the market. A fragmented system is one in which there are many retailers, no one of which has a major share of the market.
Which of the following is the first step in the international market research process?The first step in the marketing research process is defining the problem or the question your research is trying to answer, followed by developing a research plan to answer that question, collecting and analyzing the data, and then producing a report.
What are the three variables that can jeopardize a company's international communication?There are three main barriers on the way to international communication: linguistic, cultural and psychological.
Which of the following is a main difference between a concentrated retail system?Which of the following is a main difference between a concentrated retail system and a fragmented retail system? A few retailers supply most of the market in a concentrated system whereas many retailers are present in a fragmented system.
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