Reference : Marketing Management by Philip Kohler

1. PRODUCT AND MARKETING
ADAPTATION
TO EACH FOREIGN
COUNTRY

2. Two types of strategies
possible.

3. Standardized Marketing Program
• Low costs
• Consitency
• But will ignore
• Customer Needs,wants
• Differences in culture
• Differences in legal Environment

4. Adapted Marketing Program
• Consistent with marketing concept
• Will cater to each market individually

5. Factors to be valued for
market adaptation..

6. • Product Features
• Brand Name
• Sales Promotion
• Packaging
• Advertising
• Pricing

7. Global Product Strategies…

8. Product Standardization
Product Adaptation
Strategies
Brand Element
Adaptation
• Standardisation
Product
Standardization
• Standardisation + Customization

9. Product Adaptation Strategies
Product Standardization Product Adaptation
Strategies
Brand Element
Adaptation
• Straight Extension– No change
• Product Adaptation
May fail

10. Brand Element Adaptation
If Adaptation doesn’t happen , errors like Clairol may happen..
Product
Standardization
Product Adaptation
Strategies
Brand Element
Adaptation

11. Global Communication
Strategies…

12. Global Communication Strategies…
• Same message but ADAPT the way it is delivered
• The samae thing may be received differently in
various cultures
• A global pool of ads also may work .(COLA)

13. Global Pricing
Strategies…

14. Price Escalation
1
• Set a Uniform Price everywhere
• Set a Market based price in each
country
• Set a market based price in each
country
A company may incur extra costs… It may do three things..

15. Transfer Prices
2
A company may have to charge a subsidiary a transfer price..
Pay higher duties vs Dumping
SOLUTION??

16. Transfer Prices
2
A company may have to charge a subsidiary a transfer price..
SOLUTION??
ARM”s Length Price

17. Gray Markets
3
Diverting of goods across borders away from authorized channels
SOLUTION??
FREE RIDER’s Problem

18. Gray Markets
3
Diverting of goods across borders away from authorized channels
SOLUTION??
• Policing the distributers
• Raising prices

19. Counterfeit Products
Counterfeiting of Popular brands.
4

20. Global Distribution
Strategies…

21. Channel Entry
CHANNEL ENTRY CHANNEL DIFFERENCES
When companies enter a country , they
prefer to work with local distributors.

22. Channel Entry
CHANNEL ENTRY CHANNEL DIFFERENCES
…But friction may arise later..

23. Channel Differences
CHANNEL ENTRY
Channels vary widely across countries….
They must be studied and marketing strategies
adapted to them.
CHANNEL DIFFERENCES
NOT THE SAME IN ALL
COUNTRIES!!!

24. RECAP
• Global Product Strategies
• Global Communication Strategies
• Global Pricing Strategies
• Global Distribution Strategies

26. Thank You
Chandra Has
Dondapati