Five strategies are used for adapting product and marketing communication

Five strategies are used for adapting product and

This preview shows page 51 - 53 out of 53 pages.

Five strategies are used for adapting product and marketing communication strategies to a global market Straight product extension- marketing a product in a foreign market without making any changes to the product Product adaptation- adapting a product to meet local conditions or wants in foreign markets Product invention- consists of creating new products or services for foreign markets. Companies can either adopt the same communication strategy they use in the home market or change it for each local market. Other companies follow a strategy of communication adaptation- fully adapting their advertising messages to local markets. An international company must take a whole-channel view (designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network) of the problem of distributing products to final consumers. There are two major links between the seller and the final buyer. The first link, channels between nations , moves company products from points of production to the borders of countries within which they are sold. The second link, channels within nations , moves products from their market entry points to the final consumers. The whole-channel view takes into account the entire global supply chain and marketing channel. It recognizes that to compete well internationally, the company must effectively design and manage an entire global value delivery network . Channels of distribution within countries vary greatly from nation to nation. LO4 Deciding on the global marketing organization Companies manage their international marketing activities in at least three different ways: Most companies first organize an export department, then create an international division, and finally become a global organization. A firm normally gets into international marketing by simply shipping out its goods. If its international sales expand, the company will establish an export department with a sales manager and a few assistants. As sales increase, the export department can expand to include various marketing services so that it can actively go after business. If the firm moves into joint ventures or direct investment, the export department will no longer be adequate. Many companies get involved in several international markets and ventures. A company may export to one country, license to another, have a joint ownership venture in a third, and own a subsidiary in a fourth. Sooner or later it will create international divisions or subsidiaries to handle all its international activity. International divisions are organized in a variety of ways. An 51
Image of page 51
international division’s corporate staff consists of marketing, manufacturing, research, finance, planning, and personnel specialists. It plans for and provides services to various operating units, which can be organized in one of three ways. They can be geographical organizations , with country managers who are responsible for salespeople, sales branches, distributors, and licensees in their respective countries. Or the operating units can be world product groups
Image of page 52
Image of page 53

You've reached the end of your free preview.

Want to read all 53 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture