OtsoValo
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6 years ago Chapter 11 International Marketing 11.1 International Marketing Strategies Centralized and Decentralized Marketing Strategies Centralized - why this is good? Brand Building - more consistent marketing strategy leading to stronger brand recognition(higher brand equity) - ex. McDonald is recognized around the world Synergy-when all marketing departments are does together, they produce stronger results. Cost benefits (economies of scale) - when you order or produce content, you do it for all your markets making it cheaper(bigger means cheaper) Decentralize-(Marketing departments in different countries)Why this is good? Proximity to markets - means faster and cheaper for transportation Flexibility - easy to change so when there are changes in the market you can adapt quickly Cultural Sensitivity - your marketing in the host country will know and be able to market to the country more easily Coca cola example - Mixed(centralized for flagship but decentralized for Fanta) Push and Pull Strategies Channels of Distribution-going through business such as importers,wholesalers and retailers( between manufacturer and customer) Ex. Part Manufacturer---Alibaba---Radio maker---Retailer---customer Tim Cook of Apple -he was in charge of finding suppliers and distribution Some Push Options Trade shows - rent a space at industry show to reach customer Ex.Canton Trade Fair Sales agents - hire sales rep to push your products to potential customers Ex. Insurance companies Dealer ad and promos : promoting to dealers that advertises profit potential and also give them incentives to push their products ex. Win a jacket if you sell X amount
Brand Acquisition and Development Strategies -brand Acquisition Strategy -acquire workplace, management and also company goodwill but expensive ex. Lenovo buys IBM PC division Contracts for Distribution Rights Manufacturing and Distribution rights -buying the right to make and sell a company's product ex.Peps buys the right to make and sell Uptons in UK Exclusive Distribution rights-only your is allowed to sell the product in your country ex. If you like a product in a China and then get permission to sell it in Canada, only you can sell it for 2 years. Brand Development Strategy Usually decentralized marketing strategy Ex. Delissio in Canada
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Centralized and Decentralized Marketing Strategies