to change the marketing programs
significantly, or find new suppliers
for changing materials,…
Create the worldwide
uniformity and strengthen the
brand image: provide the
customers with experience of
using new and exotic products that
they cannot find from their
domestic producers.
reactive or proactive strategies. For
example, if your competitor adds a
feature consumers want and starts
taking market share from you, you
might be left behind not to add that
same feature. If your revenues are
good enough that you can add a new
feature your competitor can’t afford in
order to take market share away from
your competitor.
Drawbacks Cultural difference: each region
has its own perception, valuation,
taste their product may be not
accepted, even though they have
shown a significant success in
home country.
Variation in government
policies: this is considered as one
of the major obstacles: different
nations has different views and
regulations, an advertising may be
viewed as creative and interesting
in one society, but their contents
may be viewed as illegal and
offensive in others.
Difference in living standard
among markets: applying the
same product for all markets,
including advanced countries and
less developed countries may not
be appropriate, because if the firm
charge the same price, citizens in
poor regions cannot afford to
them, whereas lowering price
while the cost of production
remain unchanged, the firm may
run a budget deficit.
Increase cost production: in
manufacturing, development,
packaging and gain no benefit from
economies of scale due to each
product design vary from country to
country.
Stress on Resources: Modifying a
single product or offering two versions
of the same product can put a stress on
your production, marketing and sales
departments that doesn’t justify the
decision. When you change a product,
you might need to modify your
marketing materials, production
methods, packaging, sales efforts and
shipping procedures.
Brand: Changing your product can
alter your brand or your image in the
marketplace. If you decrease the
quality of your materials to save on
production costs and make it possible
to sell at a lower price, your strategy
might backfire if your customers buy
from you because they want quality or
status. If a competitor lowers prices,
you might adapt by improving your
product -- even if it requires you to
raise prices -- consumers will come to
you for superior quality and the better
warranty you can offer.
It is noticeable that the two strategies above are opposite to each other, but they are
all efficient methods in international marketing that worth considering. It is important to
make a profound and careful decision about which tool to apply. As for our group’s task, we
