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Global marketers may also adapt their communication message. For instance,the same product may be sold in many countries but advertised differently. As anexample, L'Oreal, a French health and beauty products marketer, introduced itsGolden Beauty brand of sun care products through its Helena Rubenstein subsidiary in Western Europe with a communication adaptation strategy. Recognizing that cultural and buying motive differences related to skin care and tanningexist, Golden Beauty advertising featured dark tanning for northern Europeans,skin protection to avoid wrinkles among Latin Europeans, and beauti/iJ/ ;/dn fotEuropeans living along the Mediterranean Sea, even though the products were identical.ISame communicationOfferingextensionstrategyAdaptcommunicationCommunicationadaptationstrategyOfferingadaptationstrategyOffering invention strategyDualadaptationstrategy
624CHAPTER 10 GLOBAL MARKETING STRATEGY AND MANAGEMENTMarketing Channel and Pricing StrategiesRecall that successful global marketers standardize marketing programs whenever possible and customize them whenever necessary. Compared with offeringand communication strategies, standardization presents a unique challenge formarketing channel and pricing strategies due to country trade regulations andconsumer buying preferences and practices.Consider the case of Dell, Inc. when it recently decided to enter the mar ketfor personal computers in Asia, notably China and India.8 The company's vauntedonline direct marketing channel that worked well in North America and Europehad to be replaced with a marketing channel featuring retail stores in China andIndia. Why? First-time personal computer buyers in these countries, especially,want face-to-face help from store clerks when making purchase deci sions. Dellsubsequently signed distribution agreements with Chinese and Indian retailchains to sell its desktop and notebook models.Competitive, political, tax and exchange rates, and legal constraints affect thepricing latitude and strategy of global marketers. Walmart's experience in Gennanyis an example. Antitrust authorities in Germany limited Walmart from selling someitems below cost to lure shoppers. Without this practice, which is considered acceptable in most countries, Walmart was unable to compete against German discountstores. This, along with other factors, prompted Walmart to leave Germany in 2006following eight years without posting a profit.9 Today, global marketers of expensiveconsumer goods sell their products within a narrow price range to discourage "graymarkets" whereby individuals buy items in a lower-priced country from a manufacturer's authorized retailer, ship them to higher-priced countries, and then sell thembelow the manufacturer's suggested retail price through unauthorized retailers.