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The production orientation assumes that customers want lower prices or higher
quality. This approach is generally only used for commodity sales, passive exports,
and foreign niches.
The sales orientation assumes that foreign customers are similar to domestic
customers, so the company simply sells abroad what it can sell at home.
The customer orientation, in contrast, holds the country as a constant and varies
the product and marketing method.
Finally, the social marketing orientation considers decisions from the perspective of
all stakeholders. Firms using this approach try to act in a socially responsible way
[6-7] The big-car syndrome explains that U.S. marketers assume that products
designed for Americans are superior and that they will be preferred by foreign
consumers. U.S. automakers believe that the American desire for big cars means
that only big cars should be exported to overseas markets.
complexity (negative relationship). The more complex a product is, the less likely
the product adoption will be. Computers have become much less complex due to
ready-made software.
price (negative relationship). The higher a product's price is, the less likely the
product adoption will be. Such American durable products as refrigerators and
washing machines carry high prices, making it difficult for foreign consumers to
afford them
A skimming strategy involves charging a high price for a new product by aiming first
at consumers willing to pay the price, and then progressively lowering the price.
A cost-plus strategy involves pricing at a desired margin over cost. Keep in mind
that export price escalation may occur. This typically happens for two reasons.
Promotion can vary significantly depending on the company, the product, and the
country of operation. Push promotion uses direct selling while pull relies on mass
media. [17-23]
Keep in mind that even if a standardized approach is possible it may not always be
beneficial.
17-41 The difference between total market potential and a companys sales is a
result of gaps.
A usage gap exists when collectively, all competitors sell less than the market
potential.
A product line gap exists when the company lacks some product variations.
A competitive gap exists when competitors sales are not explained by product line
and distribution gaps.