International Business Notes Essay

1070 Words Apr 21st, 2015 5 Pages
International Business Final
Chapter 16: Marketing Globally
- country differences may cause companies to apply marketing principles differently

Marketing Strategies
- worldwide marketing commonly found and market segmentation and targeting

Marketing Orientations
- five common marketing orientations around the world: production, sales, customer, strategic marketing and social marketing

1. Product Orientation
- when companies focus on production and little emphasis is on marketing (commodity sales, passive exports, foreign niches)

2. Sales Orientation
- companies sell abroad what they sell domestically with the same approach – assume consumers are similar

3. Customer Orientation
- country or type of customer
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– charge high price for a new product by aiming first at consumers willing to pay that much, then progressively lowering the price to sell to other consumers
*penetration strategy – introducing a product at a low price to induce a maximum number of consumers to try it
*cost-plus strategy – pricing at a desired margin over cost
*gray market/product diversion – selling and handling of goods through unofficial distributors
- legal but unauthorized by original manufacturer

Promotion Strategies
*promotion – presentation of messages intended to help sell a product or service
*push – direct selling techniques
*pull – mass media
Advantages of Standardized Advertising
- cost savings
- better quality at local level
- common global image
- rapid entry into multiple countries
Disadvantages of Standardized Advertising
- translation
- legalities
- market needs
Branding Strategies
*brand – an identifying mark for a product or service
Advantages of a Worldwide Brand
- global image
- global player identification (identifies companies as a worldwide player)
Problems with Worldwide Brands
- language
- brand acquisition (when you acquire foreign companies)
- country-of-origin (people care where its from)
- generic and near-generic names – names (Kleenex) can become available for everyone to use
Distribution Strategies
*distribution – the course – physical path or legal title – that goods take between production and consumption
- distribution can vary

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