15.3: Deciding on the Global Marketing Program

Question 1

What is the difference between global marketing and adapted global marketing?

Answer 1

Global marketing uses standardized marketing strategy approaches and marketing mix worldwide, while adapted global marketing adjusts the marketing strategy and mix elements to each target market.

Question 2

What is the debate surrounding whether to adapt or standardize marketing strategies and programs in foreign markets?

Answer 2

The debate centers on whether consumer needs around the world are becoming more similar due to technology and whether global branding and standardization result in greater brand power and reduced costs from economies of scale.

Question 3

What are some potential benefits of global branding and standardization?

Answer 3

Greater brand power and reduced costs from economies of scale.

Question 4

What are some potential drawbacks of global branding and standardization?

Answer 4

The strategy may not be effective in all markets due to differences in consumer needs and preferences.
The strategy may face cultural barriers or legal restrictions in some markets.

Question 5

What is the marketing concept, and how does it relate to adapting marketing programs to local conditions?

Answer 5

The marketing concept holds that marketing programs will be more engaging if tailored to the unique needs of each targeted customer group. If this concept applies within a country, it should apply even more across international markets.

Question 6

What are some factors that vary among consumers in different countries?

Answer 6

Cultural backgrounds, needs and wants, spending power, product preferences, and shopping patterns.

Question 7

What is the recommended approach to global standardization and adaptation?

Answer 7

Companies should seek a balance between standardization and adaptation, leveraging global brand recognition but adapting their marketing, products, and operations to specific markets.

Question 8

What is meant by the phrase “think globally but act locally” in the context of international marketing?

Answer 8

Companies should think about their global marketing strategy but adapt their actions to the local conditions and needs of each market.

Question 9

Figure 15.3 Five Global Product and Communications Strategies

Answer 9

Question 10

What is straight product extension?

Answer 10

Straight product extension means marketing a product in a foreign market without making significant changes to the product.

Question 11

What is the first step in straight product extension?

Answer 11

The first step in straight product extension should be to find out whether foreign consumers use that product and what form they prefer.

Question 12

What are some examples of successful straight product extension?

Answer 12

Apple iPads, Gillette razors, and Black & Decker tools are all sold successfully in about the same form around the world.

Question 13

What is product adaptation?

Answer 13

Product adaptation involves modifying a product to meet the needs and preferences of a specific market.

Question 14

Why is product adaptation necessary?

Answer 14

Product adaptation is necessary because consumer preferences and cultural differences vary from one market to another.

Question 15

What challenges must be overcome when adapting products for global markets?

Answer 15

Adapting products for global markets requires addressing cultural differences, legal requirements, and technical issues such as language and communication barriers.

Question 16

Why is product adaptation important for global marketing success?

Answer 16

Product adaptation is important for global marketing success because it ensures that products meet the unique needs and preferences of each market, improving customer satisfaction and increasing sales.

Question 17

What are some key considerations for adapting products for new global markets?

Answer 17

Some key considerations for adapting products for new global markets include cultural norms, language and communication differences, legal requirements, and market demand.

Question 18

What is the ultimate goal of product adaptation in global marketing?

Answer 18

The ultimate goal of product adaptation in global marketing is to create products that are tailored to each market, maximizing sales and profitability while ensuring customer satisfaction.

Question 19

What is product invention in marketing?

Answer 19

Product invention involves creating new products to meet the specific needs and preferences of consumers in a given market.

Question 20

Why is product invention important in global marketing?

Answer 20

Product invention is important in global marketing because it allows companies to address unique market needs and preferences, increasing customer satisfaction and sales.

Question 21

What is the ultimate goal of product invention in global marketing?

Answer 21

The ultimate goal of product invention in global marketing is to create innovative products that meet the unique needs and preferences of consumers in different markets, increasing customer satisfaction and driving sales growth.

Question 22

What is promotion in marketing?

Answer 22

Promotion refers to the communication strategies used by companies to promote their products or services to customers.

Question 23

Can companies use the same communication strategy for all global markets?

Answer 23

Companies can either adopt the same communication strategy they use in the home market or change it for each local market.

Question 24

What is an example of a standardized advertising theme used by a global company?

Answer 24

Coca-Cola uses a standardized advertising theme around the world, unifying its global advertising around a “Taste the Feeling” theme.

Question 25

What adjustments might be required for standardized communication campaigns in different global markets?

Answer 25

Adjustments might be required for language and cultural differences in different global markets.

Question 26

What is the risk of crossing the language barrier in global marketing?

Answer 26

The risk of crossing the language barrier in global marketing is that seemingly innocuous brand names and advertising phrases can take on unintended or hidden meanings when translated into other languages.

Question 27

What is Interbrand’s “hall of shame” list?

Answer 27

Interbrand’s “hall of shame” list contains foreign brand names that have embarrassing or inappropriate meanings in other languages.

Question 28

Why is it important for companies to be aware of cultural differences in advertising themes?

Answer 28

It is important for companies to be aware of cultural differences in advertising themes because themes often lose—or gain—something in the translation, and inappropriate or offensive advertising can damage brand reputation and sales.

Question 29

What is an example of a lost-in-translation advertising theme?

Answer 29

An example of a lost-in-translation advertising theme is KFC’s slogan “finger-lickin’ good,” which translated to “eat your fingers off” in Chinese.

Question 30

What is communication adaptation in advertising?

Answer 30

Communication adaptation is a strategy in which companies adapt their advertising messages to suit the preferences and cultural norms of local markets.

Question 31

How do Chinese parents’ views on play differ from those of parents in most Western countries?

Answer 31

Chinese parents tend to view play negatively as a distraction from schoolwork, while most Western parents see play as beneficial to child development and creativity.

Toymakers emphasize the benefits of play for children’s knowledge, skills, and creativity to align with Chinese parents’ focus on education and development.

Question 32

Why do media need to be adapted internationally?

Answer 32

Media need to be adapted internationally because media availability and regulations vary from country to country, affecting the channels and methods used for advertising.

Question 33

How do TV advertising regulations differ between the United States, France, and Sweden?

Answer 33

While TV advertising has few regulations in the United States, France bans retailers from advertising on TV, and Sweden forbids TV advertising to children.

Question 34

How do mobile phone ads and newspaper advertising vary across different countries?

Answer 34

Mobile phone ads are more widely accepted in Europe and Asia than in North America. Newspapers are national in the United Kingdom, local in Spain, the leading advertising medium in Germany, and require ads to be booked up to six months in advance in India due to paper shortages.

Question 35

What are the challenges faced by companies in setting international prices?

Answer 35

Companies face challenges such as finding a balance between uniform global pricing and accommodating variations in consumer purchasing power,

accounting for differences in costs across countries,

and adjusting for varying market conditions and competition levels.

Question 36

Why are foreign prices often higher than domestic prices for comparable products?

Answer 36

Foreign prices are often higher due to added costs such as transportation, tariffs, importer margin, wholesaler margin, and retailer margin. These additional costs can lead to significant price escalation in international markets.

Question 37

How do companies overcome price escalation problems when targeting less-affluent consumers in emerging markets?

Answer 37

Companies often offer simpler or smaller versions of their products at lower prices or sell older models at discounted rates to cater to less-affluent consumers in emerging markets.

Question 38

How has Apple adapted its product offerings and pricing for the Indian market?

Answer 38

Apple sells its older 5S model online in India for less than $250 to compete with low-price competitors and offers a subscription to Apple Music service in India at only $2 per month, compared to $10 in the United States.

Question 39

What is Samsung’s strategy for competing with low-end competitors in emerging economies?

Answer 39

Samsung developed the low-priced Galaxy J line, which carries the Galaxy name and style but with fewer high-end features. The J models are priced under $150, targeting consumers in emerging economies like Indonesia, India, and Pakistan

Question 40

How has the internet impacted global pricing?

Answer 40

The internet has made global price differences more visible, allowing customers to compare prices across countries and order products from the location or dealer offering the lowest price. This has forced companies to move towards more standardized international pricing.

Question 41

What is the whole-channel view in international distribution?

Answer 41

The whole-channel view is an approach that considers the entire global supply chain and marketing channel. It recognizes that to compete effectively internationally, a company must design and manage an entire global value delivery network.

Question 42

What are some challenges faced by Western companies in navigating India’s distribution system?

Answer 42

Western companies often find India’s distribution system complex and hard to penetrate due to factors like the prevalence of small neighborhood stores (kirana shops), complex government regulations, and poor infrastructure.

Question 43

How does China’s rural market distribution system compare to that of the United States?

Answer 43

China’s rural market distribution system is fragmented, decentralized, and composed of many distinct submarkets with unique subcultures. Its logistics costs amount to nearly 15% of the nation’s GDP, while U.S. logistics costs account for about 7.5% of its GDP

Question 44

How does Nestlé adapt its distribution strategy in low-income neighborhoods in Brazil?

Answer 44

Nestlé supplements its distribution with self-employed salespeople who sell Nestlé products from refrigerated carts door to door, catering to consumers with limited access to supermarkets.

Question 45

How do fast-food restaurants like McDonald’s and KFC adapt their distribution strategies in big cities in Asia and Africa?

Answer 45

In cities where crowded streets and high real estate costs make drive-throughs impractical, fast-food restaurants like McDonald’s and KFC offer delivery through motorbike delivery drivers in colorful uniforms.

Question 46

What challenges do international marketers face when designing channel systems for various country markets?

Answer 46

International marketers face challenges such as navigating complex, competitive, and hard-to-penetrate distribution systems, dealing with local regulations and infrastructure, and adapting to local conditions and preferences.

Designing efficient and effective channel systems between and within various country markets poses a difficult challenge.

Question 47

Figure 15.4 Whole-Channel Concept for International Marketing

Answer 47