(Kotler, Chap. 20-5) To What Extent Must The Company Adapt Its Products And Marketing Program To Each Foreign Country?

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(Kotler, Chap. 20-5) To What Extent Must The Company Adapt Its Products And Marketing Program To Each Foreign Country?

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(Kotler, Chap. 20-5) To What Extent Must The Company Adapt Its Products And Marketing Program To Each Foreign Country?

  1. 1. To What Extent Must The Company Adapt Its Products And Marketing Program To Each Foreign Country? Kotler, Chapter 20 Prof. Sameer Mathur, Ph.D. Prof. Prem P. Dewani, Ph.D.
  2. 2. Sameer Mathur BuddingMarkets.com IIM, Lucknow, Marketing Professor 2013 – Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009 BTech, Indian Institute of Technology, Roorkee 1995 – 1999 2 Prem Prakash Dewani IIM, Lucknow, Marketing Professor 2013 – Ph.D. (Marketing) 2007 – 2013
  3. 3. Contents 3 The Two Ways Global Similarities And Differences Global Product Strategies Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  4. 4. Contents 4 Global Pricing Strategies Global Distribution Strategies Marketing Management | Kotler and Keller
  5. 5. The Two Ways Marketing Program Standardized Marketing Program Adapted Marketing Program Promises lowest costs Consistent with marketing concept  Caters each Market differently 5 Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  6. 6. Pros: Standardized Marketing Economies of scale in production and distribution • Lower marketing costs Consistency in brand image • Uniformity in marketing practices Ability to leverage good ideas quickly Marketing Management | Kotler and Keller 6
  7. 7. Cons: Standardized Marketing Ignores Differences In: Consumer need Consumer Responses Legal environment Administrativ e Procedures 7 Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  8. 8. 4 Dimensions Of Culture… Individualism v/s collectivism High v/s low Power Distance Masculine v/s feminine Weak verses strong uncertainty avoidance Marketing Management | Kotler and Keller 8
  9. 9. Market Adaptation Revenue Product features Sales promotion Brand name Pricing Packaging Advertising 9 Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  10. 10. Different Ranks in Different Markets Heineken • High-end-super-premium in US • Just fine in Dutch Honda • Denotes youth and energy in Japan • Quality and reliability in US. Toyota Camry • Middle class car in US. • High end in China Marketing Management | Kotler and Keller 10
  11. 11. Marketing Adaptation “Think Global, Act Local” CHINA INDIA CAIRO Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com 11
  12. 12. Global Product Strategies i. Product Standardization Standardization Customization standardization Marketing Management | Kotler and Keller 12
  13. 13. ii. Product Adaptation Strategies Straight Extension Beware!! Less R&D expense Less manufacturing costs Less promotional modification 13 Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  14. 14. ii. Product Adaptation Strategies Product Adaptation Regional version Country version City version Retailer version Beware!! Disneyland Paris “Give a local touch” Marketing Management | Kotler and Keller 14
  15. 15. ii. Product Adaptation Strategies Product Invention Backward Forward  Totally new on demand  Reintroducing the well adapted 15 Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  16. 16. iii. Brand Element Adaptation Must change certain brand elements otherwise: Marketing Management | Kotler and Keller 16
  17. 17. Global Communication Strategies One message different language, name and colors Same message and theme but adapt the execution Global Pool of Ads 17 Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  18. 18. Global Pricing Strategies Price Escalation Transfer Prices Counterfeit Products Gray Markets Marketing Management | Kotler and Keller 18
  19. 19. i. Price Escalation Set a Uniform Price Everywhere • But, Price might be too high in poor ones. Set a Market-based Price in a Country • Leads to Gray marketing Set a Cost-based Price in each Country • Costs may get excessively high 19 Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  20. 20. ii. Transfer Prices  Charges which one unit charges another unit in the same company for goods it ships Dumping Arm’s length price Charging less than it costs The same charge as charged by other competitors for similar products Marketing Management | Kotler and Keller 20
  21. 21. iii. Gray Markets Selling products made for low price countries in high price countries Harm distributor relations Undermines the integrity of distribution channel Pose risks to customers IT Market looses $10 billion profit every year 21 Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  22. 22. iv. Counterfeit Products Marketing Management | Kotler and Keller 22
  23. 23. iv. Counterfeit Products Web Crawling Technology It searches for: Counterfeit storefronts Sales with domain names similar to legitimate brands Unauthorized sites Words like: 23 Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  24. 24. Global Distribution Strategies Seller Seller’s international marketing headquarters Channels b/w nations Channels within foreign nations Final buyers Marketing Management | Kotler and Keller 24
  25. 25. The Killer Sunglasses The Killer Sunglasses 25
  26. 26. A Shocking Story: Counterfeiting The Killer Sunglasses Ever Heard of “DecorMyEyes.com”…??? Launched in 1999 Offers more than 25 International brand At prices up to 70% off retail Has established itself as leading retailer of name brand sunglasses Marketing Management | Kotler and Keller 26
  27. 27. The Killer Sunglasses  Online, discount eyewear. What a great idea..!!  But frightening reality behind the shades is totally different Owner and Operator Vitalyi Borker Has been the subject of hundreds of consumer complaints filed with the FTC by victims The Killer Sunglasses 27
  28. 28. The Killer Sunglasses Not only this, victims presented documented communications and emails containing: Oral abuse Harassment Threatening The Killer Sunglasses 28
  29. 29. The Killer Sunglasses Borker’s return policy If you return or complain about a product: 20% restocking fee Bogus repair charge Forget the product The Killer Sunglasses 29
  30. 30. The Killer Sunglasses Defective Fraud Damaged Used Counterfeit They sold: They rarely came with: 30 Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  31. 31. The Killer Sunglasses Borker’s grievance policy Don’t Dare consulting consumer protection agency if your product doesn’t reaches you or: He has all your personal information Will do anything to assault your family Will Kick your Ass or anally rape you. Marketing Management | Kotler and Keller 31
  32. 32. The Killer Sunglasses Finally got peace in Hell Arrested on December 6, 2010 and was charged with: Cyber stalking Mail fraud Wire fraud Termed 50 years in prison Fine of $250,000 twice the pecuniary loss of the victims The Killer Sunglasses 32
  33. 33. The Killer Sunglasses Surprisingly The site is still up..!!!! Country Loss per year United states $225 Billion Japan $75 Billion China $60 Billion Germany $32 Billion Canada $30 Billion The Killer Sunglasses 33
  34. 34. The Killer Sunglasses Some more stats!! piracy Product Loss per year(world) Counterfeit Drugs $200 Billion Electronics $169 Billion Software $63 Billion Counterfeit Food $49 Billion Counterfeit toys $34 Billion  Only In U.S. The Killer Sunglasses 34
  35. 35. The Killer Sunglasses Some more stats!! The Killer Sunglasses 35
  36. 36. 36 Image Credits • http://ec.europa.eu/taxation_customs/resources/images/customs/graph1_counterfeit.png • http://www.styleite.com/wp-content/uploads/2011/05/0-decormyeyes.png • http://decormyeyes.com/ • http://www.cm-life.com/wp-content/uploads/2013/01/WEB_cyberstalking.jpg • http://www.streetgangs.com/wp-content/uploads/2011/12/WireFraudMGNgraphic-300x224.jpg • http://www.lawyersandsettlements.com/images/boss-yelling.jpg • http://www.forbes.com/sites/billsinger/2011/05/12/decormyeyes-com-borker-felony/2/ • http://www.cbp.gov/sites/default/files/documents/2013%20IPR%20Stats.pdf • http://pwc.blogs.com/fraud_academy/2013/06/counterfeiting-and-illicit-trade-is-it-on-the-rise.html • http://www.havocscope.com/category/counterfeit-goods/ • http://ec.europa.eu/taxation_customs/customs/customs_controls/counterfeit_piracy/statistics/index_en.htm • http://guardianlv.com/wp-content/uploads/2014/01/Google-Moves-Into.png • http://www.presentationmagazine.com/thought-and-speech-bubbles-2285.htm • http://springsbargains.com/2011/11/various-stores-get-up-to-2-50-oyno-when-you-buy-campbells-condensed-soup/ • https://www.novainfosec.com/2012/09/03/philips-police-at-risk-in-latest-breaches/ • http://www.businessinsider.com/name-that-slogan-2011-2?IR=T • http://www.disneylandparis.co.uk/parks-and-activities/ • http://www.createfinancialwealth.com/should-you-fake-it-til-you-make-it/ • http://sellorelse.ogilvy.com/2013/11/19/get-a-chief-data-officer/ • Marketing management, a south Asian perspective- Kotler Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  37. 37. Sameer Mathur BuddingMarkets.com IIM, Lucknow, Marketing Professor 2013 – Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009 BTech, Indian Institute of Technology, Roorkee 1995 – 1999 37 Prem Prakash Dewani IIM, Lucknow, Marketing Professor 2013 – Ph.D. (Marketing) 2007 – 2013
  38. 38. Over 1 Million views from more than 100 countries Top 1% most viewed Prof. Sameer Mathur Over 250 presentations on Marketing www.BuddingMarkets.com

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