Sixteen Global Marketing and

Supply Chain.
Sixteen

Learning Concepts – Chapter 16

Chapter

1. Understand how to determine market potential

of a foreign country.
Chapter

2. Understand there are adaptations that are

necessary for a product to sell in another
country.
…/…

Copyright, John Wiley and Sons, Inc.

 Sixteen Global Marketing and
Supply Chain.
Sixteen
three
Learning Concepts – Chapter 16 (cont)
Chapter

3. Understand there can be domestic

manufacturing influence, translating to product
Chapter

demand.
4. Understand that channel decisions are very
important in international marketing.

Copyright, John Wiley and Sons, Inc.

 Marketing Domino’s
Internationally
Chapter Sixteen

Domino’s opened its first foreign store (Winnipeg) in

1983. Japan was in 1984; United Kingdom was in
1985, Mexico was in 1989. It hit Taiwan in 1987,
and Hong Kong in 1984. Per store sales volume in
Asia is more than twice the United States. Their
secret: product adaptation (corn and squid on
pizza??), pricing determination, national promotion
and advertising, and customized transportation (the
scooter in Asia).

Copyright, John Wiley and Sons, Inc.

 The International Marketing
Challenge
Chapter Sixteen

International markets offer vast opportunities for firms

with a product or service in high demand. Newness,
cultural adaptation, attractiveness, and appropriate
marketing strategies can help tremendously.

Copyright, John Wiley and Sons, Inc.

Chapter Sixteen Assessing Market Potential
To assess market potential, firms seek to identify the
aggregate demand for a product and estimate the
costs associated with product introduction and
distribution. Population growth provides a coarse
estimate of future market potential. So do
consumption patterns.

Copyright, John Wiley and Sons, Inc.

 Globalization and Localization in
International Markets
Chapter Sixteen

Striking a balance between globalization and

localization is a key challenge. Generally, the more
closely defines the market segment, the less
important are national stereotypes (Germans and
ecology, Italians on performance). Across national
markets, there is a trend toward greater similarity on
product specifications, price, and packaging. On
the other hand, cultural and national differences
exist and require flexibility in communication with
customers.

Copyright, John Wiley and Sons, Inc.

Chapter Sixteen Globalization Forces

Global Brands (Kellogg’s, McDonalds, Budweiser,

Coke) are products that enjoy worldwide recognition
and are relatively unaltered in terms of brand and
appearance when sold abroad.

Copyright, John Wiley and Sons, Inc.

Chapter Sixteen Localization Forces

Localization forces represent pressures towards

adjustment in product marketing or distribution to
make it more appealing or to meet requirements
particular to a foreign market.

Copyright, John Wiley and Sons, Inc.

Chapter Sixteen Product Adaptation

Faced with a foreign market with different

characteristics, a firm may choose not to offer a
product or a service in that market, to offer the same
product it offers in other markets, or to adapt it to
regional or country requirements. The Benefit/Cost
approach and the User/Needs approach help
determine whether adaptation is necessary.

…/…

Copyright, John Wiley and Sons, Inc.

Chapter Sixteen Product Adaptation

McDonald’s Product Adjustments: The Veggie Mac

(Switzerland), Chicken Rice (Singapore), no pork
(Saudi), McMacos and McFiesta (Paraguay),
McKroket (Netherlands), Teriyaki McBurger
(Japan), Curry Pie (Hong Kong), McRoyal
(Germany), McCafe (Argentina), McCafe (Australia),
McPalta (Chile). Hey, you deserve a break today!!

Copyright, John Wiley and Sons, Inc.

Chapter Sixteen Country-of-Origin Effect

This is the influence of the country of manufacturing

image on the buying decision. The effect consists
of innovativeness; design; and workmanship.
There is strong evidence that country of origin
influences buyer’s decisions.

Copyright, John Wiley and Sons, Inc.

Chapter Sixteen Branding

Branding is the process of creating and supporting

positive perceptions associated with a product or
service. Branding is especially complex in the
international market. Some issues:
• Selecting the right name
• Understand the local market
• Fine tune the size, price, value construct
• Quality/reliability at competitive price
• Holistic marketing using multiple channels
…/…

Copyright, John Wiley and Sons, Inc.

Chapter Sixteen Branding

• Turning trademarks into “trustmarks”

• Establishing leadership brands, and changing
social habits
• Selecting allies and partners

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Chapter Sixteen Channel Decisions

• Export Intermediary choice is very important

• Direct Marketing is a potential channel
• Niche marketing is also very viable

Copyright, John Wiley and Sons, Inc.

Chapter Sixteen Promotion

It is important to choose the right mix marketing

communications like advertising and direct
marketing.

Copyright, John Wiley and Sons, Inc.

Chapter Sixteen Marketing Alliances

Marketing Alliances are frequently very important

because they serve as partners in the marketing
communications effort.

Copyright, John Wiley and Sons, Inc.