6 Planning & Adapting for International Markets Flashcards
List the examples and elaborate.
- Mcdonalds - eu, india - adapts breakfast foods
2. Oreo - china - new product adaptation in the market can then go back to existing market
What are the 2 ends of the Spectrum for adaptation?
- Standardisation - product driven
2. Adaptation - market driven
Why standardise?
- Common consumer needs - similar MAUM
- Global consumers - ppl desire global goods
- Economies of scale - reduce cost
- Time to market - can focus on fewer ideas
- Regional market agreement - reduce trade restriction
Why adapt?
- C ompetitive
- L egal
- L inguistic
- F iscal
- C ultural
- E conomic
- P olitical
What are the considerations for adaption strategies?
- Product standard and regulation
- Measurement & calibration
- TM
- Climate & usage
- Language & symbolism
- Sensory appeals
- Style, design. taste
- Tech issues, performance styles
- Warranty & servicing issues
General adaptation strategies?
Please refer to lecture slides.
BOP consumers are ?
- Brand conscious
- Well connected (WOM networks)
- Readily accepted new tech
- Have collective purchasing power
- Motivation to improve situation
What’s a good trick to modify features?
Adjust product by stripping back the least important feature.
What are the 4 A’s of BOP marketing?
- Awareness - Make sure that everyone understands that it is available and knows how to use it
- Access - Facilitate customer access. May require overcoming several structural challenges. A lot of these consumers don’t have access to the typical channels
- Affordable - You must be able to supply the product at a low base cost
- Available - Requires different customer relationship skills that can create a market and foster brand confidence and loyalty
Define Branding.
“A name, term, sign, symbol or combination of them that is intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors”
Define Name.
Due to language use and style, names do not always translate well.
Need to be understandable and create positive image in consumers’ minds
Define Translation.
Directly into new language. Works fine if using same script
Define Transliteration.
Testing to see if the new brand name denoted the same meaning/feeling
Define Transparency.
Develop an entirely meaningless name to avoid linguistic and trademark issues
Define Transculture.
Intentionally using a foreign word to associate with a positive COO
What should a logo be?
- Rarely messed with
- Simple works best
Explain what is a slogan.
- Often requires adaptation
- Simple slogans can be easier to maintain
- Sometimes original language is retained
List the brand name strategies.
- Use the same brand name worldwide
- Modify the brand name in each market
- Use different names in different markets
- Use the company name as the brand name
What are the characteristics of a Global Brand?
- Dominates domestic market
- Meets universal consumer need
- Demonstrates balanced market coverage
- Reflects consistent position worldwide
- Benefits from positive country of origin image
- Focus is on the product category
What are the benefits of a Global Brand?
- Quality signal
- Global Myth
- Social Responsibility
- Economies of scale
What are the characteristics of Brand Equity?
- a collection of assets and accountabilities that a brand name invokes in consumers mind
- value attributed to a firm because of its brand
- created/controlled by consumers not firms
Cross-country differences occur due to:
- History
- Competitive climate
3, Marketing support - Cultural receptivity
- Product category penetration
Classic strategic planning sequence
Refer to lecture slides
What are the Internal Reasons for Market Failure.
- Resistance to change
- Lack of stakeholder commitment
- Strategic drift
- Strategic dilution
- Failure to understand progress
- Initiative fatigue
- Impatience
- No celebration of success
Hooley, Pierce & Nicoulaud (2008)
List the different scenario planning ways.
- Familiarisation - understanding the organisation, key stakeholders, their needs and expectations
- Discovery - gaining an understanding of current trends and events and anticipating possible future discontinuities in the international environment
- Scenario Building - developing and progressively upgrading a range of scenarios that reflect events, patterns and discontinuities.
- Action & Integration - developing appropriate business and marketing strategies that enable the organisation to operate effectively within the scenarios generated.
What are the 2 main types of market to enter?
- Lead Market
2. Lag Market
What is a Lead Market?
Pioneers successful adoption of an innovative product design and usually where it is invented.
Alternatively it is also where a subsidiary of a multinational corporation is given responsibility for launching product
What are the characteristics of a Lead Market?
1. Certain type of customers:
willing to take risk
demand innovative new products
high per capita income
high usage of similar products
- Strong competitive markets
- Lower government regulation and protection
Describe what is a Lag Market?
- Introduced after the lead market.
- Potentially greater or faster adoption – consumers have had time to consider
- Product has been further developed and modified for global preferences
What are the 2 kinds of strategy for entering?
- Waterfall Strategy
2. Sprinkler Strategy
Define Waterfall Strategy.
A sequential design process in which progress is seen as flowing steadily downwards (like a waterfall) through the phases of Conception, Initiation, Analysis, Design, Construction, Testing, Production/Implementation and Maintenance.
Define Sprinkler Strategy.
A market entry strategy based on the principle of diversification in which a company attempts to enter as many markets as possible in a relatively short time.
