international business chapter 15 test 3

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marketing mix

four ps really three ps and a d. product, price, place (distribution), and promotion.

product

changes a company must make to its products to move into a new country. all packaging, instructions, and any software included must be translated. garnier changes their faces of the model and the writing on the box. lady crying that no one could tell she got her hair done and she wanted to look expensive so she went and put purple highlights in her hair.

price

in Norway they pay 7.99 for a big mac because there food is very bland and tasteless, so McDonald's is considered prestige. in hong kong it is 1.71 because chinese went there and saw cool was a big mac so then all the chinese went home and wanted to be cool there.

place (distribution)

getting product to your customer. a company that wishes to maintain prestige imaging will need to work hard in most overseas market to earn it. where it is placed and how it is distributed matter.

promotion

how do you modify your product to make it work. in some countries getting generating endorsements from local leaders is the only way to garner support. in others ads work best.

potential need screening

go to a country and find they have a need for housing, but in the US the idea of a house is completely different than a house in bulgaria. so its not only what do they needs but what is the idea of what they need and how do they fulfill that.

satisfaction screening

why did Mongolians move out of apartments back into tents? Why are they happier there? What can I do to make them happy? Take exact need and modify it

Legal and political analysis

marketing in many ways sets a culture. Countries are very protective of what they do in the marketing system.

Sociacultural screening

take what you've got and take what they need. Takes social aspect and mix it with your product and try to make it all work. Mcdonalds changes it product in India just by chicken instead of beef, no other modification.

Ranking and clustering of markets

circles around all the countries and combining them with similar markets, by combining them together into separate markets you can be successful.

Field trips, market research and testing

kfc dominates Chinese market, not an easy place to get, was there for 10 yrs before they figured out he had to write marketing mix. Employees were unhappy cause there was no career path. Testing is very important part.

market segmentation

a company tries to divide its potential customers into meaningful groups with special needs or interests associated with its product. the key to good segmentation is figuring out how customers think of your product. traditional or psychographic or behavioral.

Traditional- geographic, demographic

cant take one factor to one country and then take it to another. Girls from 16-25 run it in the US. Fashion is driven in japan by men 50 and older.

Psychographic- lifestyle, personality

Mountain dew been around for 50 yrs pepsi cola bought it and decided how do they wanna sell it to? Started advertising to extreme sports and it took off. Now they have redbull and stuff like that.

Behavioral- benefit sought, brand loyalty

Try to get ppl to buy cause of that. Arm and hammer baking soda odor eater, took off and sell so well.

Measurability

find something that can be measured. extreme sports, want to be able to make things work need to find something you can measure them on.

Accessibility

us transsexuals maybe make up 3 million ppl but cant market to them cause they aren't willing to identify themselves but in the UK they can do that. Illegal to be a nazi in germany so they cant identify themselves.

Reasonability of size

sizes that work and sizes that don't. cant try and target india, cant find consistencies among them.

Product and promotion extension

take exact product put it in country and take exact promotion to other countries. If you can do this you can be very successful. One product that could was coca cola. They kept the same product but tried to find the same promotions, the polar bear ads, before they tried to tie themselves to Christmas, associated with cool, so they sold Christmas first and then sold coke. very low prices for products overseas.

Product extension promotion adaptation

have to go to every country and get new ways to sell. Pepsi sold America, and specialized promotion to the same country. They kept the same product and changed advertising campaign and sales.

Product adaptation, promotion extension

change product but modify promotions. Nike did this with their shoes. Modify shoes according to country cause everyone was running on different surfaces. Advertised basketball and made it famous and then tied nike shoes to it. They sold Michael Jordan for billions and billions of dollars. Most famous person in the world was Michael Jordan up until 2 yrs ago, now it is lady gaga.

Product and promotion adaptation

it is suicide, Campbell's did it because every country has different taste in soup, promotions had to change to. America chicken noodle soup as thing u do when you have a cold. The rest of the world eats it cause its cold and hot others consider it brain food.

Laws

promotion strategy- advertising is so popular that it dictates culture. Most of the rest of the world is adamant about America not running it so they have laws against it. Up until a few years ago it was illegal to interrupt a tv show in great Britain so they had to be in between shows. China is now adopting this law and are outlawing most American tv programs. Trying to fight back.

Media availability

promotion strategy- in America use commercials to drive you to website and so on. Many people in the world don't even own television sets, radios, newspapers, and magazines. How do I get product in front of people? Need to find ways to reach them, billboards by tying self to a picture and associate products with pictures.

Cultural preferences

promotion strategy- will drive advertising campaign. US uses television as primary driver. Most households around the world uses Smartphone so advertising goes to a Smartphone and it has a position locator so the advertisers know where you are and accept advertisements every time you walk somewhere.

Communication practices

promotion strategy- how people communicate to each other and how they get information out. Czech republic and seagrams starts advertising, couldn't go through tv or newspaper cause nobody believed it and went out and hired supermodels and they ordered seagrams 7 and 7 and they went through the roof, they took over the country. They took over eastern European block.

Acceptable level of persuasion

promotion strategy- how hard are you allowed to sell? Middle eastern, "buy from me" Americans don't bother.

Price

promotion strategy- signal of price of the good. The good can be the same price but how you market it can make a difference. Acceptance of human sexuality is different all around the world. Americans are considered prudes. Need to know acceptable level of it

Product features

promotion strategy- every phone is the exact same, so not selling a phone, selling a little computer. But in Africa cares about a phone that can just make a phone call and is sturdy.

distribution strategy

a company must decide how it will gets its product to end consumers. includes plans for transporting a good through wholesale and or retailers all the way to the end consumer.

reasons distribution strategy is so difficult

-1st- often across national borders so customs issues and government relations can become a challenge for International businesses
-2nd- most countries do not have nearly as developed retail systems as the united states, so american companies often have far greater difficulty finding acceptable outlets for their products.
-3rd- distribution is far more important to other economies than it is to the US.

national retail and wholesale structure availibilites

distribution strategy- a company begins its distribution strategy by studying the existing retail and wholesale structures within the country. the company needs to discover what wholesale structures are required,most of the countries of the world are to small and poor compared to the US to have walmart sell their goods for them. carrefour- french company available in most bigger cities of the world. about 3 quarters of the world are still shopping at little ma and pa shops, very hard to get product into these shops, and need to figure out how to get it through that retailer to make it work. in india you are only allowed to own 51% of an operation. so as an american retailer you can not set up a large chain in india

competition with others in channel

distribution strategy- smaller countries may only have one distribution system for a given product type. coca cola went out to sell soft drinks so they put bottling plants all around the world and then pepsi wanted to do it too so coca cola offered to bottle pepsis soft drinks but they went and created redundant assets and lost millions doing so.

does firm normally sell direct

distribution strategy- some companies will start own distribution chain, so nike did it in europe and then moved them to asia and then back to the US. same thing with apple. start own store chain but as a manfufacturer you will be horrible and starting own store chain. levis did this to and build there own stores so levis are much more expensive in other countries. very few companies pull it off.

desirable level of channel control

distribution strategy- how much control is needed over a product throughout the distribution process. if a company sells a commodity, goods distribution will no be difficult. if the company sells prestige goods for a premium prices, more control over the distribution channel will be needed. a company needs to be prepared for the political and competitive challenges of controlling a good though a challenging distribution environment.

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