chapter

15

Global Marketing and R&D

McGraw-Hill/Irwin Global Business Today, 5e

2008 The McGraw-Hill Companies, Inc., All Rights Reserved.

Chapter 15: Global Marketing and R&D

INTRODUCTION The marketing mix (the choices the firm offers to its targeted market) is comprised of: product attributes distribution strategy communication strategy pricing strategy

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Chapter 15: Global Marketing and R&D

THE GLOBALIZATION OF MARKETS AND BRANDS
Theodore Levitt argued that world markets becoming increasingly similar eliminating the need for localization of the marketing mix Levitts theory has become a lightening rod in the debate about globalization The current consensus is that although the world is moving towards global markets, the continuing persistence of cultural and economic differences among nations acts as a major brake on any trend toward global consumer tastes and preferences In addition, trade barriers and differences in product and technical standards also constrain a firm's ability to sell a standardized product to a global market
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Chapter 15: Global Marketing and R&D

MARKET SEGMENTATION
Market segmentation involves identifying distinct groups of consumers whose purchasing behavior differs from others in important ways.

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Chapter 15: Global Marketing and R&D

PRODUCT ATTRIBUTES Products sell well when their attributes match consumer needs If consumer needs were the same everywhere, a firm could sell the same product worldwide But, consumer needs do vary from country to country depending on culture and the level of economic development

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Chapter 15: Global Marketing and R&D

Cultural Differences Economic Development Product and Technical Standards

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Chapter 15: Global Marketing and R&D

DISTRIBUTION STRATEGY A firms distribution strategy (the means it chooses for delivering the product to the consumer ) is a critical element of the marketing mix If the firm manufacturers its product in the particular country, it can sell directly to the consumer, to the retailer, or to the wholesaler The same options are available to a firm that manufacturers outside the country

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Chapter 15: Global Marketing and R&D

Differences between Countries Choosing a Distribution Strategy

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Chapter 15: Global Marketing and R&D

COMMUNICATION STRATEGY Communicating product attributes to prospective customers is a critical element in the marketing mix and is partly determined the channel choice. Communication channels available to a firm include direct selling sales promotion direct marketing advertising

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Chapter 15: Global Marketing and R&D

Barriers to International Communication Push Versus Pull Strategies Global Advertising

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Chapter 15: Global Marketing and R&D

PRICING STRATEGY
How should a firm price its product or service in foreign markets? Price Discrimination Strategic Pricing Regulatory Influences on Prices

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Chapter 15: Global Marketing and R&D

CONFIGURING THE MARKETING MIX
Standardization versus customization is not an all or nothing concept Most firms standardize some things and customize others

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Chapter 15: Global Marketing and R&D

NEW PRODUCT DEVELOPMENT
Firms that successfully develop and market new products can earn enormous returns. The Location of R&D Integrating R&D, Marketing, and Production Cross-Functional Teams Building Global R&D Capabilities

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