MSOM_305_Int_Marketing_&_Supply_Chain_Mtg[1]

MSOM_305_Int_Marketing_&_Supply_Chain_Mtg[1] - MSOM...

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MSOM 305 Managing in a Global Economy International Marketing and Supply Chain Management Constant Cheng George Mason University Fall 2010
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BENEFITS OF GOING GLOBAL Driving forces for standardization Transfer of Experience and Know-How across Countries Uniform Global Image Control and Coordination of Operations
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STANDARDIZATION vs LOCALIZATION Factors for localization Differing use conditions, eg. Electric voltage Government and regulatory influences, eg. Safety standard Differing consumer behavior patterns and preference, eg. Color and package size Local environment and absorptive capacity, eg. Differing stage of technological development and climatic conditions Local competition Factors for standardization Economies of scale in production Economies in product and Economies in marketing “Shrinking” of the global market and margin Global competition
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PRODUCT TYPE Industrial Products Many can be sold unchanged worldwide (e.g. microchips) If changes are required, they may be cosmetic (printing instructions in another language) Local legal requirements In developing countries problems with Overload of equipment Maintenance Consumer Products Require greater modification and localization Some can be sold unchanged to certain market segments small automobiles, sporting equipment, and perfumes Greater dissimilarity as you go down the economic strata
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COMPANY CONSIDERATIONS Competitors’ offerings Market opportunity and potential Profitability Cost of adapting Issues with counterfeiting Policies for production process, e.g. product standard and certification of quality(ISO 9000; ISO 14000 for environmental management compliance; see www.iso.org) Organizational strategy and structure
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COMMON PROMOTIONAL STRATEGIES Same product Adapt product Different product Same message Avon In Japan, Lever Brothers puts Lux soap in fancy boxes to encourage gift sales Product is produced in low cost plastic squeeze bottle for developing countries, but advertised the same Different message Use of English in France In Latin America, Tang is sweetened and promoted as mealtime drink Welding torches rather than automatic welding machines are sold in developing countries
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ADVANTAGES OF GLOBAL ADVERTISING Economies of scale in production and distribution Lower marketing and advertising costs Ability to exploit good ideas and introduce products quickly on a worldwide basis Consistent brand and/or company image in all markets Simplify coordination and control of marketing and promotional programs
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Differences in market and economic development, consumer needs, media availability and legal restrictions Cultural differences make advertising standardization difficult Usage patterns and perceptions of a product may vary from one country to another CHALLENGES WITH GLOBAL ADVERTISING
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This note was uploaded on 01/24/2011 for the course MSOM 305 taught by Professor Fiona during the Fall '10 term at George Mason.

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MSOM_305_Int_Marketing_&_Supply_Chain_Mtg[1] - MSOM...

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