Chapter 17* Flashcards
Marketing Globally (33 cards)
Marketing principles are global, but
companies may need to apply them differently abroad
Serving niche markets abroad may
forgo the need to be nationally responsive
The unaltered product may have appeal at home and abroad because of
- globally similar demand
- spillover in product information from its home country
- foreign and domestic input in development
Customer orientation
takes geographic areas as given and seeks products to sell there
Companies consider
the effects on all stakeholders when producing and selling their products
Companies must decide
their target markets, which may include segments that exist in more than one country
Direct and indirect legal factors
are usually related to safety, health, and environmental protection
Although some global product standardization would eliminate wasteful alterations, there is resistance because
- a changeover would be costly
- people are familiar with the “old”E
Examination of cultural differences
may pinpoint possible product problems
Personal incomes and infrastructures affect product demand, thus firms may
- aim product variations at different income levels
- tailor products to compensate for infrastructure differences
The cost of product alterations
should be compares with their expected sales generation
Broadening the product line may
gain distribution economies, but not all of a company’s line has sales appeal everywhere
Some nationalities
simply like certain products more and are willing to pay more for them
Export prices generally
rise by more than incremental transport and duty costs, thus exporters may have to lower margins to make sales
Gray market (product diversion)
is the selling and handling of goods through unofficial distributors, thus enabling the import of cheaper supplies from abroad to compete against official ones
There are country-to-country differences in
- whether prices are fixed or bargained
- where bargaining occurs
- what products’ prices are bargained
Markets’ dominant companies
have strong negotiating power
Using the same brand name globally
- helps develop a common image
- may increase consumers’ demand if they think global products are better
- is hampered by language differences
- has a drawback in the case of acquisitions
Images of products
are affected by where they are made
When the country of origin affects consumers’ opinion of a product
- a positive brand image may help overcome a negative country-of-origin image
- these opinions can change over time
If a brand name is used for a class of product
a company may lose its trademark
Distribution
is the course - physical pather or legal title - that goods take between production and consumption
Because distribution reflects different country environments
- it may vary substantially among countries
- it is difficult to change
A company may enter a market
gradually by limiting geographic coverage
