To what extent must the company adapt its product and marketing program to each foreign country? Texts from Marketing management: A South Asian Perspective. By Rahul Nk NIT Trichy

2. Global Similarities
and Differences

3. Globally Standardized Marketing
• Economies of scale in
production and
distribution
• Lower power marketing
costs
• Power and scope
• Consistency in brand
image
• Ability to leverage good
ideas quickly and
efficiently
• Uniformity of marketing
Advantages Disadvantage
s
• Ignores differences in
consumer needs,
wants, usage patterns,
consumer response to
marketing programs,
brand and product
development, legal
environment,
marketing institutions
and administrative
procedures

5. Marketing Adaption
• Product features
• Labeling
• Colors
• Materials
• Sales Promotion
• Advertising
media
• Brand name
• Packaging
• Advertising
Execution
• Prices
• Advertising
themes

6. Global Product
Strategies

7. Product Standardization
Quality and prestige can be marketed
similarly across countries
Influenced by culture and wealth
factors
Emphasize products across different
markets

8. Product Adaptation
Product
Intervention

9. • Backward intervention :
reintroduces earlier product forms
well adapted to a foreign country’s needs.
• Forward Intervention :
creates a new product to meet a
need in another country
Product
Intervention

10. Marketers need to change certain
brand elements
Brand slogans or ad taglines
sometimes need to be changed too
Brand element
adaptation

11. Global
Communicatio
n
Strategies

12. Global
Adaptations
Ensure that communications are legally
and culturally acceptable
Must check their creative strategies and
communication for appropriateness
Must be prepared to vary their messages
appeal

13. Priceescalation
• Set a uniform price everywhere
Price too high in poor countries and
not high enough in rich countries
• Set a market-based price in each country
• Set a cost based price in each country

14. TransferPrices
• Transfer: price for goods it ships to its
foreign subsidiaries
• Dumping: If company charges its
subsidiary too low a price
• Arm’s length price: the price charged by
other competitors for the same product

15. Image credits
flickr users
• 401(K) 2012
• Barbera*