Lecture 15: International Marketing

Question 1

What is the Shower approach and the WaterFall approach in terms of investing/selling in new countries?

Answer 1

The Shower approach refers to a company that starts investing/selling into multiple countries at the same time.
Pros:
- Penetrating multiple markets at the same time
- Diversify risk
- Penetrate multiple markets
Cons:
- Spread too thing
- Need a lot more investment

The Waterfall Approach is when a company first invests in one country at a time slowly growing their international market, country at a time.
Pros:
- Allows company to go on a case by case basis, learn solidify and then move on to next country market
- Less investment needed
Cons:
- All eggs in one basket
- Other companies are taking up other markets already
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Question 2

(WHERE)

Companies with characteristics should choose Waterfall Approach? Shower Approach?

Answer 2

Companies that choose the Shower approach should have the following characteristics:
- Companies with limited market knowledge
- Unable to finely differentiate between markets
- Can get good local managerial talent

Companies that choose the Waterfall approach should have the following characteristics:
- Can pick the best markets
- Are having difficulties finding local managerial talent
- Are seeking growth through market penetration

Question 3

(WHEN)

What are the Pros and Cons of Delaying Expansion?

What are the Pros and Cons of Going to New Markets NOW?

Answer 3

Delaying Expansion (Pros):
- You can wait for others to pioneer and penetrate market, learn from their mistakes
- Focus on growing and researching market
- Postpone the money drain of entering new markets
- Avoid risks of expansion

Delaying Expansion (Cons)
- Competitors are taking market share in those new countries
- The more you delay expansion, the harder it may become to enter the market (increasing barriers to entry)
- Will be a “me too” product rather than new, innovative product
- Will be looking for selective share rather than premium share

Entering New Market Now (Pros):
- Have an advantage on competitors
- Newest entries can set the rules of the game
- Can get the best local talent, and distributors

Entering New Market Now (Cons)
- Pioneering Risk, as well as costs
- Need to divert attention and resources from domestic markets

Question 4

(WHAT)
Marketing Mix and PMC

What is the difference between a standardized and adapted marketing strategy/mix?

Answer 4

A standardized marketing mix refers to the use of the regular marketing mix using the 4 Ps (Price, Place, Product, Promotion) throughout all of their markets.
- It’s usually countries that are moving to international markets for the first time.
- It’s more costly to be use adaptive style marketing
- Speed, Consistency, Admin Efficiency

An adaptive marketing mix is where a company uses different marketing strategies in the different markets it operates in.
- It is more geared towards effectiveness in order serve the different needs of the different markets.
- Sales Upside Citizenship, Motivation,
Extra costs of adaptation are offset by additional profits.

Question 5

What are some of the steps in Global brand management?

Answer 5

• Conduct market analysis (5 C’s, CAGE, Brand audit)
• CAGE = Cultural, Administrative, Geographic and Economic
• Develop brand objective (USP, Value Prop)
• Communicate brand identity (media, message)
• Measure/Track brand equity (measurement)