Chapter 16 - Global marketing and R&D. After studying this chapter you will be able to understand: Explain why it might make sense to vary the attributes of a product from country to country, recognize why and how a firm's distribution strategy might vary among countries, identify why and how advertising and promotional strategies might vary among countries,. | Global Business Today 8e by Charles . Hill Chapter 16 Global Marketing and R & D Introduction Question: How can marketing and R&D be performed so they reduce the costs of value creation and add value by better serving customer needs? The marketing mix (the choices the firm offers to its targeted market) is comprised of: Product attributes Distribution strategy Communication strategy Pricing strategy Globalization of Markets and Brands Levitt - world markets are becoming increasingly similar making it unnecessary to localize the marketing mix Theory has become a lightening rod in the debate about globalization Most experts believe that while there is a trend towards global markets, cultural and economic differences among nations act as a major brake on any trend toward global consumer tastes and preferences Trade barriers and differences in product and technical standards also limit the ability of firms to sell a standardized product to a global market Market Segmentation Question: What is market segmentation? Market segmentation involves identifying distinct groups of consumers whose purchasing behavior differs from others in important ways Global market segments are more likely to exist in industrial products than in consumer products Product Attributes Products can be thought of as a bundle of attributes Products sell well when their attributes match consumer needs Consumer needs vary from country to country depending on: Culture Levels of economic development So, the ability of firms to sell the same product worldwide is limited National differences in product and technological standards can also force a customized marketing mix Distribution Strategy A firm’s distribution strategy (the means it chooses for delivering the product to the consumer) is a critical element of the marketing mix The main differences between distribution systems across countries are: Retail concentration Channel length Channel exclusivity Channel quality Distribution Strategy . | Global Business Today 8e by Charles . Hill Chapter 16 Global Marketing and R & D Introduction Question: How can marketing and R&D be performed so they reduce the costs of value creation and add value by better serving customer needs? The marketing mix (the choices the firm offers to its targeted market) is comprised of: Product attributes Distribution strategy Communication strategy Pricing strategy Globalization of Markets and Brands Levitt - world markets are becoming increasingly similar making it unnecessary to localize the marketing mix Theory has become a lightening rod in the debate about globalization Most experts believe that while there is a trend towards global markets, cultural and economic differences among nations act as a major brake on any trend toward global consumer tastes and preferences Trade barriers and differences in product and technical standards also limit the ability of firms to sell a standardized product to a global market Market Segmentation Question:
