The document discusses different strategies companies can take when adapting their marketing approach to foreign countries. It contrasts standardized vs adapted marketing programs. Standardized programs use the same marketing globally but ignore cultural differences, while adapted programs modify the approach for each local market. The best global brands are consistent in theme but reflect significant differences in consumer behavior and competitive forces between countries. Companies must consider adapting their products, branding, communications, pricing and distribution strategies when entering foreign markets.

1. To what extent must the company adapt its
products and marketing program to each
foreign country?

2. Standardized marketing program
developing same marketing
program for multiple countries

3. Adapted marketing program
Modifying marketing program
to reflect characteristics of a market

4. • Economies of scale
• Lower marketing costs
• Power and scope
• Brand Consistency
• Leverage ideas quickly and
efficiently
• Uniformity of marketing
practices
Standardized
Marketing

5. Disadvantages
Ignores differences in:
• Consumer needs, wants,
and usage patterns
• Consumer response
• Brand and product
development
• Legal environment
• Marketing institutions
• Administrative procedures

6. Global Similarities and Differences

7. The development of the Web and global linking of
telecommunications networks have led to a convergence of
lifestyles
Similarities

8. Soft Drink Consumption
Differences
Americans 760
Mexicans 674
Brazilians 315
Russians 149
Chinese 39
Median Age

9. Cultural Differences
Individualism
Collectivism
Uncertainty avoidance Power distance

10. Consumer behavior differences as well as
historical market factors lead marketers to
position brands differently in different
markets.

11. Netherlands - Mid-tier
Toyota Camry
middle-class car - United States
high end - China

12. Marketing Adaptation

13. Product features

14. Best global brands are consistent in theme but reflect
significant differences in consumer behavior,brand
development and competitive forces

15. Global Product Strategies

16. PRODUCT STANDARDIZATION
Standardization - developing same product
for multiple countries

17. High-end products also benefit from
standardization,because quality and prestige
often can be marketed similarly across countries
Food and beverage marketers find it more
challenging to standardize given widely varying
tastes and cultural habit

18. PRODUCT ADAPTATION STRATEGIES
Product Adaptation - modifying product
to reflect characteristics of a market

19. Straight extension introduces the product in the
foreign market without any change
No additional R&D expense,
No manufacturing retooling
No promotional modification
successful for cameras, consumer
electronics, and many machine
tools

20. Product adaptation alters the product to
meet local conditions or preferences
Nokia customized its 6100
series phone for every major
market

21. Product invention
Backward invention Forward invention
Creates a new product to meet
a need in another country
Reintroduces earlier product
forms well adapted to a foreign
country’s needs

22. BRAND ELEMENT ADAPTATION

23. When they launch products and services
globally,marketers may need to change certain brand
elements
A laundry soap ad claiming to
wash “really dirty parts” was
translated in French-speaking
Quebec to read “a soap for
washing private parts.”
When Coors put its
brand slogan “Turn
it loose” into
Spanish, some read
it as “suffer from
diarrhea

24. Global Communication Strategies

25. Changing marketing communications for each local market is a
process called communication adaptation. If it adapts
both the product and the communications, the company
engages in dual adaptation

26. The company can use one message everywhere,
varying only the language, name, and perhaps
colors to avoid taboos in some countries

27. ge
The second possibility is to use the same message and
creative theme globally but adapt the execution

28. coce
Developing a global pool of ads from which
each country selects the most appropriate.

29. Global Pricing Strategies

30. PRICE ESCALATION
A Gucci handbag may sell for $120 in Italy and $240 in
the United States. Why?
Gucci must add the cost of transportation, tariffs,
importer margin, wholesaler margin, and retailer

31. Companies have three choices for setting prices in
different countries:
Set a uniform price everywhere
Set a market-based price in each country.
Set a cost-based price in each country

32. TRANSFER PRICES
A different problem arises when one unit charges another
unit in the same company a transfer price for goods it ships
to its foreign subsidiaries.
If the company charges a subsidiary too high a price, it may end up
paying higher tariff duties, If the company charges its subsidiary too
low a price, it can be accused of dumping,

33. GRAY MARKETS
Selling products made for low price in high price countries
Risk to the customers
Gray market activity accounts for billions of dollars in
revenue each year and makes up about 8 percent of total
global IT sales of $725 billion

34. COUNTERFEIT PRODUCTS

35. Counterfeiting is estimated to cost over a
trillion dollars a year

36. Global Distribution Strategies

37. CHANNEL
ENTRY
Seller
Channels within
foreign nations
Channels between
nations
Seller’s marketing
headquarters
Final buyer