Deciding on the Marketing Program Essay

International companies or securities industryers may choose between two alternative approaches in developing its marketing strategies or marketing shamble. These two approaches are a. orbicular Marketing Strategy defines a stock(a) marketing mix and implements it with minimal modifications in all of its domestic and exotic markets. This standard approach saves money because it allows large-scale productionion runs and reinforces the brands image. It can foster collaborative innovation. Through global marketing schema, world(a) firms can effectively market some goods and services to segments in some nations that share cultures and languages.This approach works best for products with strong, universal appeal much(prenominal) as McDonalds and for luxury products that target upscale consumers everywhere. b. Multidomestic Marketing Strategy- assumes the differences between market characteristics and competitive situations in certain nations require firms to customize their ma rketing decisions to effectively r all(prenominal) individual marketplaces. In other words, it is an application of market variance to contrary markets by tailoring the firms marketing mix to match specific target markets in each nation. Keegan has distinguished fin adaptation strategies of product and promotion to a unconnected market (see build below).1. Global Product Strategiesa. Straight Extension introducing the product in the unlike market without any changes. This strategy permits economies of scale in production and marketing, for it involves no additional R&D expense, manufacturing retooling, or promotional modification. Once use successfully, it cerates universal recognition of a product for consumers from artless to country.b. Product Adaptation- involves repair the product to trifle local conditions or preferences. There are several(prenominal) level of adapatations, it could be regional version, country version, city version and retail merchant version. c. Product Invention- consists of creating something new. It can take two forms, rearwards invention and fore invention. It is a costly strategy but the payoffs can be great. i. Backward Invention is reintroducing esrlier product forms that are well adapted to a foreign countrys needs. ii. Forward Invention- is creating a new product to meet a need in another country.2. Global Promotion Strategiesd. talk Adaptation is the process in which a company run the resembling advertising and promotion campaigns used in the home market or change them for each local market. e. Dual Adaptation- is the process in which both(prenominal) the product and communication are being changed for each market/country.3. Global Pricing StrategiesGlobal Firms faces several pricing problems when selling abroad, they must withdraw with price escalation, transfer prices, dumping charges, and gray markets. f. Price Escalation- needs to prepare the marginal cost depending on the added be including the curr ency-fluctustions risks to the products manufacturing plant price inorder to attain the akin profit locally. Because the price escalation varies from country to country, the headway is how to sell the prices in antithetical countries. Companies have three choicesiii. Setting like price everywhereiv. Setting a market-based price in each countryv. Setting a cost-based price in each countryg. Transfer Price- different prices that is being charged to its subsidiary in different countries/market h. Dumping it occurs when a company charges either less than its costs or less than it charges in its home market, inorder to enter or net a market. i. Arms-lenght price the rpice charged by other competitors for the uniform or a similar product j. Gray market it occurs when the same product sells at different prices geographically. 4. Global Place (Distribution conveys)StrategiesMany companies/manufactuers signify their job is done oncethe product leaves the factory, however they shou ld pay attention to how the product moves within the foreign country. They should take a whole-channel view of the problem of distributin products to concluding users. k. Sellers international marketing headquarters- the export department or international division makes decisions on channels and other marketing mix- elements l. Channels between nation- gets the products to the borders of the foreign nation. The decision that is made on this affaire includes the types of intermediaries, type of tranportation, and financing and risk arrangements. m. Channels within foreign nations- gets the products from their entry point to final buyers and users.II. Deciding on the Marketing OrganizationsCompanies repugn their international marketing activities in three ways through export departments, international divisions, or global organization. a. Export Departmentb. International breakdowni. Geographical Organization-each with vice presidents per region and each regional vice presidents has country managers who are responsible for a sales force, sales branches, distributors, and licensees in their various(prenominal) country. ii. World Product Group-each with an international vice president responsible for global sales of each product group iii. International Subsidiaries- each headed by a presidentc. Global OrganizationSeveral firms have proceed truly global organizations, these companies however faces several organisational complexities thus bartlett pear and Ghoshal have proposed circumstances under which different approaches work best. They describe forces that opt global integration versus national responsiveness. They distinguish three organizational strategies d. A gloabl strategy treats the world as single market. e. A transnational strategy treats the world as a portfolio of national opportunities. f. A glocal strategy standardizes certain core elemetns and localizes oter elemets.