International marketing mix decisionsPresentation Transcript
International marketing mix decisions
14- Figure 1 Environmental factors influencing the balance between standardization and adaptation
14- Figure 2 Standardization and adaptation of the international marketing mix
Figure 14.1 The three levels of a product 14- functional features, performance, perceived value, image, technology Delivery, installation, guarantees, after-sales service, spare parts brand, quality, design, packaging, price, country of origin, staff behaviour, size Core product benefits Product attributes Support services Ability to standardize product elements Low High
Figure 14.3 The product life cycle 14-
Figure 14.7 PLCs of different countries for a specific product 14-
Figure 14.11 Product/ communication mode 14- Promotion Product Standard Adapt New Adapt Standard Straight extension Promotion adaptation Product adaptation Dual adaptation Product invention Source: Source: adapted from Keegan, 1995.
Kellogg ’s dual adaption for Indian market 14- http://www.kelloggcompany.com
Orgasmic Chocolates stimulate more than the sense of taste 14-
Figure 15.1 International pricing framework 15- Firm-level factors Environmental factors Product factors Market factors Firm performance Other elements Pricing strategies Terms
Internal factors affecting international pricing decisions
Corporate and marketing objectives
Market entry modes
Stage in PLC
Place in product line
Most important product features
Product cost structure
External factors affecting international pricing decisions
Government influences and constraints
Business cycle stage
Customers ’ perceptions
Customers ’ ability to pay
Nature of competition
Competitors ’ objectives, strategies, strengths and weaknesses
Grey market appeal
Gillette relies on product line pricing 15- www. gillette .com/
Basic approaches to pricing across countries 15- Price standardization Price differentiation
Figure 15.5 Structural factors of standardized versus differentiated pricing 15- Source: Reprinted from European Management Journal , Vol. 12, No. 2, Diller. H. and Bukhari, I. (1994) ‘Pricing conditions in the European Common Market’, p. 168, Copyright 1994, with permission from Elsevier.
Figure 16.2a Japanese car parts distribution channels 16- Sources : Cateora (1993); Onkvisit and Shaw (1993); Pirog and Lancioni (1997).
Figure 16.2b US car parts distribution channels 16- Sources : Cateora (1993); Onkvisit and Shaw (1993); Pirog and Lancioni (1997).
Figure 16.5 Factors influencing channel width 16- Source: adapted from Lewison, 1996, p. 279.
Figure 16.7 Criteria for evaluating foreign distributors 16- Overall qualifications/ selection criteria Financial and company strengths Product factors Marketing skills Commitment Facilitating factors Source: Adapted from Cavusgil et al . (1995).
Cathay Pacific chose standardized advertising throughout its markets 17- http://www.cathaypacific.com
Courvoisier cognac used a localization strategy 17- http://www.courvoisier.com/