All topics covered in lectures will be examined as part of the MCQs

Other topics to review relate to researching

new markets
segmentation and targeting
marketing mix standardisation
localisation for each element Product, Price, Promotion and Place.
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Examples from the Pie Face Case Study
QUESTION THREE
Pie Face is currently looking at opening stores in Europe. What macro environmental
research would you recommend that they undertake prior to entering the country you
studied this semster? Why would it need to undertake this research? (10 marks)
QUESTION FOUR
Make recommendations for Pie Face if it opens in your country. Should its product
range be the same as here in Australia? Why or why not? How would you
recommend it launch its new stores in your country? (20 marks)
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Standardise or adapt?
The ongoing debate keep the same or change?
central to the discussion of international marketing
Standardise offering a uniform marketing strategy globally
a fastener or screw manufacturer who works to a global standard and offers
essentially the same product globally
Adaptation
an approach used by organisations that focus on cross border differences in
the needs and wants of an organisations target consumers
Adaptation strategy
reflects a customer focus
meets local conditions
ultimately increases consumer satisfaction
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Elements of Culture
Identity
Material life
Language
Social interactions
Aesthetics
Religion
Education
Value systems
Cross-cultural comparisons
High-context versus low-context cultures
High-context
a culture that communicates mostly through implicit messages
Chinese rich in metaphor
Low-context
a culture that communicates mostly through explicit message
English rich in depth of language
Cross-cultural comparisons
Hofstedes classification scheme
Power distance
Uncertainty avoidance
Individualism vs. collectivist society
Masculinity
Long-term orientation
Hofstede website - country information
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Standardise or adapt? 4Ps + 1 = 5Ps so that is your marketing mix

Standardise or adapt?
The ongoing debate
Is it possible to see it differently to just standardise vs. customise?
can we have a blend of the two?
glocalise
can we make our local nature a key feature rather than a disadvantage?
Localize
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Glocalisation versus localization
Glocalisation
a strategy of offering a uniform product across a region or worldwide, with
minor modifications to meet local regulations or market conditions
McDonalds offer rice in Thailand, beer in France and Tofu burgers in
India but still keeps the Big Mac and Fries in all three markets
Localisation
a strategy that proposes that local organisations should capitalise on the
local culture and diversity to offer something different from global
organisations
Dick Smith Food Products sells products based on their Australianness

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What do we mean by Product?
Product Component Model

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Multinational diffusion
Essentially driven by 3 factors:
1. Individual differences
2. Personal influences
3. Product characteristics
Multinational diffusion is it all the same? (click on graphic for video)

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Developing new products for international markets

New product development steps:
The idea
Screening
Test marketing
Timing of entry
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The idea itself
Source of new products
The 4 Cs
company, customers, competition and channels
Frontline troops
salesforce
Overseas success
McCaf is a roaring success in Australia and the concept is rolled out
overseas
But how do we screen for new products?
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Developing new products for international markets

Creative strategy

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Global brands
Advantages of a global brand
Economies of scale, across dimensions
product design
communication strategies
distribution networks
Global awareness could mean local awareness
global television programming and the internet provide access to consumers
How consumers value global brands:
Quality Signal
often believe that global brands have better quality
Global Myth
consider global brand engender cultural ideals
Social Responsibility
consumers expect global players to be good global citizens
Inter-country differences in brand equity due to:
History
Some brands are stronger/weaker in some
local markets
Competitive climate
Few competitors in one country but many in another
Marketing support
Communication strategy used varies
Cultural receptivity to brands
Product category penetration
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Local branding
A global company can continue to market a local brand it owns
National Australia Bank continues to use Bank of New Zealand as a brand in
that country
Sometimes a local brand is more powerful than a global brand
Jollibee versus McDonalds in the Philippines
Sometimes language demands a local brand name
In mainland China:
Perrier translates directly as Paris Water (Bali Shui)
Hoegaarden Beer translates as Belgian White Beer (Bilishi Bai Pi)
Park Hyatt is Bo Yue with Yue meaning Imperial
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Global or local brands?

Organisations need to consider their brand structure (brand portfolio)
4 types of branding approaches:
solo branding
hallmark branding
family branding
extension branding
Brand architecture
guidelines for use of brand names
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Private-label branding
In a number of industries, retailers have backward integrated brands into their retail brand
where once Nescaf and Illy commanded the shelves at retail now sit
Carrefour or Metros own brand of coffee
One of the most significant global phenomena of the last decade in retailing
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Other elements of the marketing communication mix
Advertising is a critical element of the marketing mix but not the only element
An integrated approach is needed
Integrated Marketing Communication (IMC)
there are also a number of other elements which need to be considered
sales promotion
direct marketing
event sponsorship
trade shows
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Sales promotion
Usually a local effort
Many of the same promotions as domestic SP
point of sale
coupons
discounts
allowances
digital
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Sales promotion
Why so local?
level of economic development
developing countries like sampling
Market maturity
products in an early stage of their introduction may warrant promotions that
allow the consumer to trial the product
Government regulations
coupons are used heavily in the US and less so in Australia
Fantastic snack promotion
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Direct marketing
Telemarketing
Japanese telemarketing firms based in Shanghai now
Direct Mail
demonstrations
Mary Kay cosmetics throughout Asia
Developing home grown data bases
internal customer data used to build an effective Customer Relationship
Management system (CRM)
Online
Internet, social, mobile
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Event sponsorship
Globally one of the fastest growing promotional tools
Heavily skewed towards sports
other events gaining ground
concerts
There is the risk of ambush marketing
non-sponsors giving the impression to consumers
they are in fact sponsors
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Trade shows
Over 15,000 trade shows a year now
Good opportunity for business-to-business
Can provide immediate access to customers in foreign markets
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Personal selling
Used more extensively by industrial companies
Need to be aware of cultural differences between countries
Down to business Western approach
Subtle approach in Asia
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International marketing research process

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Currency quotation
Which currency should be used in international business transactions?
which party should bear the risk?
Quoting a common currency could be a way of sharing the risk
US dollar across countries with their own currency
trading between Australia and New Zealand
You should know your exchange rates to Euro

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Global-pricing contracts

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What is segmentation?
The process of dividing a market into distinct subsets of consumers with common needs and
selecting one or more segments to target with a distinct marketing strategy.
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As opposed to Mass Marketing look at petrol, sugar, electricity, water relatively
undifferentiated products
Or micro / niche marketing specialised services and products such as medical, hobby,
sports etc
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Standardisation versus customization
Should the company aim for a standardised or country-tailored product strategy?
There are 5 common forces that favour a more standardised approach:
1. common customer needs
2. global customers
3. economies of scale
4. time to market
5. regional market agreements
Oreos
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First: The Wheel of International Marketing

a summary of our course you use this in your assignment and also for your case studies

FOREIGN
ENVIRONMENT
(Uncontrollable)

Political/Legal
forces

DOMESTIC
ENVIRONMENT
(Uncontrollable)

FIRM
Political/Legal
ENVIRONMENT
forces

Social/Cultural
forces

(Controllable)
Product
Price

Economic
forces
2

Commercial/
Financial
forces

Promotion Channels of
Distribution

Financial
forces

Economic forces
Geography and
Infrastructure
4

Level of
Technology