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International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 13
1 Instructor’s Manual – Module 13 | Geringer, McNett, Minor, Ball © 2016 by McGraw-Hill Education.
Module 13:
Marketing Internationally
Use this Instructor Guide to incorporate the unique content of this product and facilitate your
Face-to-Face, Online, and Hybrid classes. This guide has been designed to be interactive and links
have been created within each title in the Table of Contents to guide you to each section. You
can also link back to the main page by clicking at the button at the bottom of each page.
Here is the Table of Contents highlighting what you’ll be able to find to support you in teaching
this module:
YOUR CONTENT
Summary
Learning Objectives
Key Terms & Key Terms with Definitions
Content Outline
CONNECT TOOLS FOR CLASS PREPARATION
SmartBook
What is SmartBook?
How Does SmartBook Help You/Students?
How to assign SmartBook to ensure students come to class prepared?
ENGAGEMENT & APPLICATION (FACE TO FACE & ONLINE & HYBRID)
BOXED TEXT DISCUSSION QUESTIONS WITH SUGGESTED ANSWERS
IB IN PRACTICE
GLOBAL DEBATE
GET THAT JOB! FROM BACKPACK TO BRIEFCASE
Critical Thinking Questions
Global Edge Research Task
MiniCase
Bonus Activities
Video Suggestions
Team Exercises
Supplemental Lecture
Tools & Tricks
Controversial Issues
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 13
CONNECT TOOLS FOR ASSESSEMENT OF L EARNING
Interactive Applications
Assigning Interactives
Time-Saving Hints:
Connect Content Matrix
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 13
YOUR CONTENT
SUMMARY
This chapter examines international marketing. Although the marketing functions are the same
for marketing domestically and internationally, the markets served vary greatly because of the
differences among the environmental forces. There are advantages in the worldwide
standardization of the marketing mix, but frequently environmental differences necessitate a
modification of the domestic mix or the development of a new one. The extent of the change
will depend on the type of product, the forces, and the degree of market penetration desired by
management. Product, price, distribution and promotional strategies are discussed in this
context.
LEARNING OBJECTIVES
LO 13-1 Discuss why international marketing managers may wish to standardize the
marketing mix.
LO 13-2 Distinguish among the total product, the physical product, and the brand name.
LO 13-3 Compare the way consumer and industrial products and services are modified
for international sale.
LO 13-4 Identify the product strategies that can be formed from three product
alternatives and three kinds of promotional messages. Describe four frameworks
for analyzing culture.
LO 13-5 Discuss some of the effects the Internet may have on international marketing.
Describe the global mindset and the MBI model.
LO 13-6 Explain “glocal” advertising strategies.
LO 13-7 Define pricing and distribution strategies. Describe how culture shows itself.
Discuss cautions for using cultural frameworks in business.
MAIN PAGE
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 13
KEY TERMS AND DEFINITIONS
advertising (p. 337)
Paid, nonpersonal presentation of ideas, goods, or services by an
identified sponsor
corporate visual identity (CVI)(p.
331)
A firm’s name, logo, slogan, graphics, color, and typeface that
help identify the firm to consumers and other interested
constituents
disintermediation (p. 349)
The unraveling of traditional distribution structures popularly
called “cutting out the middlemen.”
foreign national pricing (p. 346)
Policy that sets local pricing based on market forces in another
country
international pricing (p. 346)
Policy that sets prices of goods produced in one country and sold in
another
marketing mix (p. 330)
A set of strategy decisions made about the product and its
promotion, pricing, and distribution in order to satisfy the needs and
desires of customers in a target market
programmed-management
approach (p. 343)
A middle-ground advertising strategy between globally standardized
and entirely local programs
promotion (p. 336)
Any form of communication between a firm and its publics ,
including advertising, public relations, sales promotions such as
rebates and “buy one get one,” and events and experiences, such as
sponsoring events to both yield purchases in the short term and
confidence in the firm in the long run
public relations (p. 345)
Various methods of communicating with the firm’s publics to
secure a favorable impression, rather than immediate sales
sales promotion (p. 344)
Any of the various activities, such as preparation of point-of-
purchase displays, contests, premiums, trade show exhibits,
celebrity-embraced promotion, money-off offers, and coupons
total product(p. 331)
What the customer buys, including the physical product, brand
name, accessories, after-sales service, warranty, instructions for use,
company image, and package
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 13
CONTENT OUTLINE
The following section provides the flow of information using the LEARNING OBJECTIVES as a
guide, KEY TERMS learners will need to take away from the course and a notation of when to use
POWERPOINT SLIDES with LECTURE NOTES to drive home teaching points.
LO 13-1
Discuss why international marketing managers
may wish to standardize the marketing mix.
• Differences between domestic and
international trade
• The marketing mix
• Standardize, adapt or start from scratch
o Standardize
o Adapt
o Start fr scratch
Key Terms:
• marketing mix
• corporate visual identity (CVI)
Lecture Outline and Notes:
I. Differences between domestic and international trade
A. Marketing functions the same, but country-level environmental forces (uncontrollable)
vary widely (sociocultural, resource and environmental, economic, socioeconomic)
B. Controllable forces also vary across markets—distribution channels, taste and aesthetic
preferences, pricing structure of markets
II. Marketing mix
C. Strategy decisions made about the product and its promotion, price and distribution
D. International marketing decisions: can mix be standardized, adapted, or is a new mix
required?
1. Standardization is less costly, allows for longer production runs (economies of scale and
learning). Plus standardized corporate visual identity creates consistent image
2. Adaptation often required. Marketing principle centers on needs of buyer, not seller.
Localization often practiced.
3. New mix might be required for significant local penetration
LO 13-2
Distinguish among the total product, the physical product,
and the brand name.
• Total product
• Physical product
Key Terms:
• total product
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 13
• Brand name
•
I. Total product: physical product, brand name, accessories, after-sales service, warranty,
instructions for use, company image, and package. Everything the consumer buys. (Fig. 13.1)
II. Physical product is the product itself, without packaging, branding.
III. Brand name is part of the product’s identity
A. Many opportunities for adaptation may be less costly than changing the physical product
B. Examples are tonic water, a standardized physical product but localized total product.
Chocolate is a localized physical product. Nescafe is a localized physical product with
standardized look and slogan.
LO 13-3
Compare the way consumer and industrial products and
services are modified for international sale.
• Depends on whether consumer/industrial product or
service
o Industrial products
o Consumer products
o Services
• Major environmental forces that may affect products
o Sociocultural forces
o Legal forces
o Economic forces
o Physical forces
Key Terms:
I. Product modification depends on type of product (Fig. 13.2)
A. Industrial products require less adaptation than consumer products
1. Sometimes necessary to meet legal requirements/ standards (safety, health, emissions,
noise)
2. Requirements may be trade barriers
B. Consumer products often require more adaptation, except for luxury products
1. One approach is to introduce standardized product to luxury segments and then
pushed downward
2. Social and cultural values become more distinct in lower economic strata
3. Adaptation may not be necessary in physical product, but in its other aspects (Mars
M&Ms in Bahrain)
C. Services—marketing less complex than marketing of consumer products, some adaptation
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 13
for legal requirements may be necessary
II. Major environmental forces that may affect products
A. Sociocultural forces reflect consumer preferences
1. Differences among approaches to washing clothes (French-top load, British-front load,
Germans-extractors, Italians-slow speed spins)
2. Whirpool’s mistakes trying to standardize in Europe
3. Colors, brand name connotations significant
B. Legal forces exert significant impact on marketing decisions
1. Safety standards, food, pharmaceutical requirements
2. Varying legal approaches—brand name in many countries belongs to first registrant,
not U.S. approach (order of use)
C. Economic forces affect pricing, packaging, production
D. Physical forces such as climate and terrain often require adjustment in product and
production
LO 13-4
Identify the product strategies that can be formed from three
product alternatives and three kinds of promotional messages.
• Promotional strategies
• Advertising
Key Terms:
• promotion
• advertising
I. Promotional strategies
A. Market same product everywhere (same message: Avon) (different message: Honda)
B. Adapt the physical product for foreign markets (same message: Lever Bros. in Japan)
(adapted message: Tang, Kraft)
C. Design a different physical product (same, adapted or different message) (same message:
manual washing machine)
(different message: lower tech machines)
II. Advertising—tends to change the least among the promotional messages
A. Cultural dimensions play a role in these preferences
1. Directness vs. indirectness (U.S. vs. Japan)
2. Comparison—banned in most countries
3. Humor does not translate well
4. Gender roles—what is appropriate differs by culture
5. Explicitness—cultures have different tolerance levels
6. Sophistication varies by culture
7. Popular vs traditional culture varies
8. Information content vs fluff
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 13
B. Global and regional advertising increasingly used due to
1. Cost savings
2. Quality more easily achieved
3. Brand image on regional level
4. Regionalization
5. Easily transmitted
6. Economies of scale
LO 13-5
Discuss some of the effects the Internet may have on international
marketing.
• Advantages
• Type of product
• Foreign environmental forces
•
Key Terms:
•
I. Advantages the internet brings to marketing
A. Reaches an affluent, accessible audience
B. Is cheap
C. Less heavily regulated
D. Interactive, which increases customization
E. Good way to reach specific audiences
II. Internet effects on types of goods
A. Industrial and luxury goods--supports standardization.
B. Capital goods: supports standardization (Caterpillar, GE) Bridging is communicating across
these differences and building awareness of shared values.
C. Consumer goods: if low-priced, consumed in the same way and bought for the same
reasons, supports standardization
III. Internet and environmental forces
A. Positioning product as foreign or local major decision
B. Many brands appeal to segments across markets
1. Translations may be required, packaging modifications made
2. Global product with local brands may be result of mergers
LO 13-6
Explain “glocal” advertising strategies
• Glocal advertising
• Personal selling
Key Terms:
• programmed-
management approach
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 13
9 Instructor’s Manual – Module 13 | Geringer, McNett, Minor, Ball © 2016 by McGraw-Hill Education.
• Sales promotion
• Public relations
I. Glocal advertising—movement toward middle of standardized-localized spectrum on
advertising
A. Gillette organizes advertising in regional clusters
B. Programmed-management approach regionalizes marketing objectives, subsidiaries put
together marketing campaigns
II. Personal selling—depends on type of product, funds available, cost, available media
A. Widely used in industrial sales
B. Internet may be useful, depending on the building of trust
C. Many businesses that use personal selling follow the home market model
D. Staffing may be challenging
III. Sales promotion
A. Displays, couponing, contests, premiums, trade shows
B. Face cultural constraints (space, appropriate and meaningful promotions)
IV. Public relations
A. Overlooked tool in many international markets
B. May be help during periods of public criticism in international markets
LO 13-7
Define pricing and distribution strategies.
• Pricing strategies
o standardized pricing
o foreign national pricing
o international pricing
• Distribution strategies
o Standardizing
o Foreign environmental forces
Key Terms:
• foreign national pricing
• international pricing
• disintermediation
I. Pricing strategies
A. Complex process because pricing influences other aspects of the firm, including profits
B. Pricing strongly influenced by culture (sale concept undercuts quality concept in Britain and
Japan)
C. Standardized pricing involves foreign and international pricing
1. Foreign pricing is based on the forces in a foreign market. Reflects cost differentials
across borders. May use price skimming to recover development costs or penetration,
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 13
to establish product in new market
2. International pricing for exports, good produced in one country and sold in another
3. Internet information is making price comparison easy and may lead to a world price
II. Distribution strategies—get product to international market and then distribute locally within
it
A. Subsidiaries usually design local distribution channels; decisions tend to be long-term
B. Standardizing distribution locally may not be a realistic expectation due to local conditions;
start with home model and change as necessary (McDonalds uses franchisers)
C. Foreign environmental forces affect distribution
D. Disintermediation is the unraveling of traditional distribution structures, cutting out the
middle man, and often combines Internet sales with quick delivery
