[국제경영론] Global Marketing and R&D

국제경영론 International Business

Chapter. Global Marketing and R&D

 

Global marketing

• (4p strategy) marketing mix (choices the firm offers to its targeted market) is comprised of : product attributes (product itself), distribution strategy (place) , communication strategy(promotion), pricing strategy

product attributes

• product = bundle of attributes → sell well when their attributes match consumer needs
• Consumer needs vary from country to country depending on → So, 전 세계적으로 같은 상품을 잘 팔고자 하는 것은 한계가 있음
  • 문화적 차이
    • countries differ cultural dimensions : tradition, social structure, language, religion, education (these elements are interconnected)
    • (culture norms and value systems : social structure, language, religion, political philosophy, economic philosophy, education)
    • While tastes and preferences are becoming more cosmopolitan but the global culture that Theodore Levitt proposed is still a long way off “global culture” (할리우드, 맥도날드 등) 세계의 문화가 점점 획일화 되고 homogeneous이 되고 있다고 convergence를 주장함 하지만 여전히 멀었음 !!
  • 경제 발전의 정도
    • highly developed countries : tend to demand a lot of extra performance attributes into their products
    • less developed nations : tend to prefer more basic products (car options).
  • product and technical standards
    • National differences in product and technological standardsex. Idiosyncratic decisions made in the past on → technical standards : influence future marketing strategies (DVD)
    • ex. Government → product standards : make mass production difficult (government regulation )

distribution strategy

• typical distribution system
  • how to deliver product to the consumer : 최종 소비자에게 얼마나 효율적으로 전달되는지를 봐야함
  • manufacturers its product in the particular country → it can sell directly to the consumer, to the retailer, or to the wholesaler
  • manufactures outside the country → same options available or the firm could sell to an import agent
• which to choose?Since each intermediary in a channel adds its own markup to the products, there is a link between channel length, final selling price, and profit margin
  • price important → short channel length (fewer intermediary)
  • retail sector is fragmented → long channel inevitable (일본, 중국처럼)
• depends on relative costs and benefits of each alternative
• 국가마다 distribution network의 simplicity와 complexity가 다름
• retail concentration (concentrated ↔ fragmented)
  • concentrated system : few retailers supply most of the market (US and Wal-Mart) (소수가 독점하는 마켓)
  • fragmented system : many retailers, no one of which has a major share of the market (Japan, China)
• channel length (number of intermediaries from producer to consumer)
  • sells directly to consumer → the channel is very short // sells through an import agent, wholesaler, retailer → a long channel
  • Fragmented retail systems tend to have longer channels (US -shorter vs. Japan -longer → (intermediary가 너무 많으면 비싸지므로 이들을 잘 관리하는게 중요함)
• channel exclusivity (accessibility of outsider)
  • exclusive distribution channel : difficult for outsiders to access
  • Retailers usually prefer to carry products from established manufacturers (perceived reliability of established brand and consistency of product quality 등)
  • Japan's system is an example of a very exclusive system.
• channel quality (expertise, competencies, skills of established retailers in a nation, and their ability to sell products of international businesses)
  • good in most developed countries // variable in emerging markets and less developed countries
  • A poor quality channel can impede market entry

communication strategy

• 회사가 상품의 속성들을 잠재고객에게 알리려고 소통하는 방법
• channel : (1) direct selling (detailed contribute of product 설명 가능), (2) sales promotion (coupon, 일시적인), (3)advertising, (4) social media (firm to engage with customer more interactively and personal)
• push vs pull strategies
  • push vs pull 중에 선택해야함 !! push 는 personnel selling 강조 (밀다) , pull은 mass media advertising 강조 (당기다)
  • 다음과 같은 것들을 고려해야함
    1. Product type and consumer sophistication
    2. Channel length
    3. Media availability
  • Push strategies emphasized
    1. for industrial products and/or complex new products to educate customer due to the complexity or lack of familiarity, → push product through channel to convince customer)
    2. when distribution channels are short (intermediary가 많은데 push전략을 이용하면 비용이 더 증가하므로,,)
    3. when few print or electronic media are available 담배나 술처럼 limited access to mass media 라면 push 가 나음
  • Pull strategies emphasized
    1. for consumer goods products (well known product) (to sell to a large segment of the market)
    2. when distribution channels are long (more intermediary - take margin, more complicate - expensive - pull전략을 써야함)
    3. when sufficient print and electronic media are available to carry the marketing message
• global advertising : should firm standardize its advertising worldwide?
  • Standardized advertising makes sense when
    • it has significant economic advantages
    • creative talent is scarce and one large effort to develop a campaign will be more successful than numerous smaller efforts
    • brand names are global
  • Standardized advertising is not appropriate when
    • cultural differences among nations are significant (아랍 지역에서 종교 고려하는 것 등)
    • country differences in advertising regulations may block the implementation of standardized advertising

pricing strategy

• how should firm price its product or service in foreign market?
• must consider: (1) price discrimination, (2) strategic pricing, (3) government-mandated price controls
• price discrimination : same price everywhere? or market by market?
  • Firms can maximize profits through price discrimination (charging consumers in different countries different prices for the same product)
  • willingness to pay, cost structure, competitor price in market 가 다르기 때문
  • For price discrimination to work
    • firm must be able to keep national markets separate
    • different price elasticities of demand must exist in different countries
  • Price elasticity of demand : measure of the responsiveness of demand for a product to changes in price
    • Demand is elastic : small change in price → large change in demand
    • Demand is inelastic : large change in price → only a small change in demand
    • Elasticity of demand is determined by (1) income level (low income - > high..), (2) competitive conditions
    • In general price elasticities tend to be greater in countries with lower income levels and greater numbers of competitors
• strategic pricing2.Multi-point pricing - firm’s pricing strategy in one market may have an impact on a rival’s pricing strategy in another market
  • Aggressive pricing in one market can prompt a competitive response from a rival in another market (one country but also another country, all around the market)
  • So, central monitoring of pricing decisions around the world is important
  3. Experience curve pricing
  • Pricing low worldwide to build global sales volume as rapidly as possible, even if this means taking large losses initially (learning curve 랑 비슷 , 초반에 낮다가 market share이 높아지면서 점점 높아지다가 어느순간 감소)
  • Firms believe that several years in the future, after achieving the economies of scale, they will be making substantial profits and have a cost advantage over less aggressive competitors
  • (price discrimination and strategic pricing can be constraint by national or international regulation)
• 1. Predatory pricing - the profit gained in one market is used to support aggressive pricing designed to drive competitors out, in another market
• regulatory influences on prices
  • The use of either price discrimination or strategic pricing may be limited by national or international regulations
  • Antidumping Regulations
    • Dumping : 생산비용보다 더 낮은 가격으로 판매할 때 → Antidumping rules set a floor under export prices (minimum level of price) → protect domestic industry
  • competition policy
    • many developed nations have regulations promoting competition and restricting monopoly practices (to protect fair trade and competion)
    • regulations limit the prices a firm can charge

• how should firm configure its marketing mix?
• 취사선택! Standardization versus customization is not an all, Most firms standardize some things and customize others (McDonald’s 데리야끼버거처럼)
• Decisions about what to standardize and what to customize should be made after exploring costs and benefits of each option