An Empirical Investigation of Marketing Programme and Process Elements in the Home-Host Scenario

SUMMARY

The two major strategies often available to international marketers are standardisation and adaptation when deciding to operate in a foreign host market. Both strategies have pros and cons. Drawing on the findings of previous theoretical and empirical studies, this study proposes a “marketing programme/process and performance” framework. The study employed a linear multiple regression (OLS) analysis method to examine the proposed framework, based on the experience of 233 Australian and New Zealand (home markets) firms operating in the Greater China region (host markets). Factors identified as significantly associated with adaptation of programme/process include “employee” and “employer” immigrant effects, government regulations, economic development, competitive environment and product life cycle. Factors identified as influencing firm performance include product adaptation, product type and market entry mode.     

Standardization Versus Adaptation in Global Markets: Is Channel Strategy Different?

The argument over standardization versus adaptation of marketing strategy in international markets has raged for several decades. This argument has generally taken place at the aggregate level to include all four strategic areas of the marketing mix (product, price, promotion, and place) taken together. This article disaggregates the standardization-versus-adaptation argument by focusing on just one strategic area of the marketing mix—channel strategy. We argue that three underlying phenomena or forces in global markets (culturally distant distribution behavior, distributive institution rigidity, and international functional fragmentation) inhibit a firm's ability to standardize channel strategy in global markets to a greater degree than is the case for product, price, and promotional strategies.     

Psychic distance,marketing strategy and performance in export ventures of Brazilian firms

Compared to other issues examined in the exporting literature, less attention has been paid to the performance implications of following a standardisation or adaptation strategy. In addition, despite the interest in the psychic distance construct in the international marketing literature, there has been also little empirical research on the effect of managers' psychic distance on the international marketing strategies of the firm. To address these issues the present study offers an empirical investigation of the relationship among psychic distance, international marketing strategies, and export performance of Brazilian firms. A sample of senior managers of industrial firms in Brazil is used to test the hypotheses. The results reported here indicate that the degree of international marketing strategy adaptation is affected by the manager's psychic distance towards the foreign markets. Product and promotion adaptation were found to have a positive effect on export performance while surprisingly, distribution and price adaptation were found to influence export performance negatively. Contrary to expectations, the results also confirm that psychic distance has a positive effect on the export performance of the firm. Implications of these findings along with the limitations of the study are discussed.     

Do Mexican Companies Culturally Adapt Their Websites?

Although some articles have tried to address the standardization/adaptation strategies of companies on the internet, there is still a lack of guidance on the issue, especially for companies outside of the United States. To help alleviate this shortage of guidance and provide Mexican web designers, web marketers, and IT managers with some insights into web cultural adaptation, this article conducted a comparative analysis of Mexican based companies’ domestic websites and their U.S. international websites, replicating a cultural adaptation framework from prior literature. Thirteen Mexican based Bolsa Mexicana de Valores (2005) companies were evaluated to test for the cultural adaptation of their Mexican and international websites. A content analysis of 26 Mexican domestic and U.S. international websites reveals non-significant cultural adaptation on the web; however, the results of the web content analysis are similar to those of previous research, which consider Mexican culture to score high in power distance, uncertainty avoidance, masculinity, and high-context cultural dimensions. However, for the collectivistic dimension, the results were opposite to those of previous research, which may suggest a need to develop and test other cultural adaptation frameworks for future research.     

Consumer processing of foreign advertisements: roles of country-of-origin perceptions,consumer ethnocentrism,and country attitude

This paper reports the findings of a study that examined the impact of consumers’ three cross-national individual difference variables — country-of-origin perceptions, consumer ethnocentrism, and country attitudes — on their responses and attitudes toward foreign advertisements and advertised products. A model of consumer processing of international advertising has been proposed that consolidates a dual-element thesis comprising research on consumer processing of advertising, and several streams of research on cross-national individual difference variables. Empirical analysis of the hypothetical model through structural equation modeling yields supportive results: positive effects of consumers’ country attitudes on their responses to the creative presentation of international advertising, and positive effects of consumers’ country-of-origin perceptions on their responses to the buying proposal of international advertising. However, the hypothesized negative effects of consumer ethnocentrism on their responses to international advertising was not confirmed. The study contributes to our understanding of cross-national individual difference variables that precede and determine consumers’ attitudes toward foreign advertisements. It has practical implications for standardization versus localization of international advertising strategy.     

Examining the influence of uncertainty on marketing mix strategy elements in emerging business to business export-markets

The degree of adaptation or standardization of the marketing program is critical in international business ventures. However, findings within this important research field and, consequently, implications for practice remain contradictory and confusing. The purpose of this paper is to examine determinants of an international marketing-mix strategy within a specific business-to-business context that includes the effects of uncertainty. Is the degree to which the marketing program is adapted or standardized dependent on the managerial perception of uncertainty? Does a firm's international entrepreneurial ability or the use of networks positively influence the degree of positive assessment of the environment? Data were collected from German companies working in different international business-to-business markets. The results indicate that international entrepreneurship has a greater impact on uncertainty reduction than the use of networks. After having reduced uncertainty, a firm tends to adapt their communication and pricing strategy, whereas the adaptation of the product and distribution strategy in general is not significant.     

Subsidiary Capacity Building in Emerging Markets: How Japanese MNEs Sequence Market Entry and Development Strategies in India

This paper asks the pragmatic question of how and to what extent firms build subsidiary competitiveness over time. By merging international business and international marketing theory, we integrate the unconnected discourses on market entry, development, product sequencing, and diffusion. The context of our research questions is marketing and entry strategies of four Japanese firms in India. All have had to learn the sequencing of both entry and product diversification. While strategies vary between the firms, the cases exhibit that entry and product diversification decisions are interlinked. Market entry configurations are central for developing market‐led solutions in large emerging markets. This study offers insights into how Japanese MNEs build subsidiary competitiveness when faced with the early stages of the Indian consumer market take‐off. Second, through the integration of international business and international marketing theory, we find that new product performance and international diversification interact in specific ways, and this contributes to future theoretical developments. © 2015 Wiley Periodicals, Inc.     

International performance of multinationals: a hybrid model

This study examines multinationals’ performance using a hybrid model. By considering firm-specific assets hypothesis, this study incorporates the structure-conduct-performance paradigm and entry mode choice to develop and test a theoretical argument for international performance. Taiwanese MNCs are chosen to test both the validity of the overall framework and the importance of factors influencing the international entry modes and market performance. The results show that both marketing strategies and entry modes have significant impact on market performance. In addition, firm-specific assets have substantial influence on marketing strategies and entry modes. The empirical finding of this study support the argument that the hybrid framework provides the basis for a more comprehensive theoretical understanding.     

International entrepreneurial marketing strategies of MNCs: Bricolage as practiced by marketing managers

The extant research lacks information on entrepreneurial marketing in large international firms. This study explores the international entrepreneurial marketing strategies of multinational corporations (MNCs), and its results reveal that MNC marketing managers use bricolage to develop international entrepreneurial marketing. A novel finding of the study is that the international entrepreneurial marketing strategies of MNCs include co-innovation, accelerating customer value, and international expansion based on regional market leadership. Marketing managers use both parallel and selective bricolage in their international entrepreneurial marketing. Environmental uncertainty and entrepreneurship culture are important drivers of the implementation of bricolage to develop international entrepreneurial marketing. The research findings can inform MNC management of the options available to utilize corporate venturing to facilitate bricolage and in turn to realize international entrepreneurial marketing strategies.     

Marketing strategy in emerging markets: a conceptual framework

Citing difference between emerging and developed markets, scholars highlight need for different approaches to marketing in emerging markets. In this paper, we argue that while there are some unique characteristics of emerging markets, all countries within emerging markets do not have similar levels of product penetration and consumption. As a result, it is wrong to assume that emerging markets are untapped and under-served across the product categories. To a list of characteristics identified as unique to emerging markets, we add large population as an important characteristic and discuss its strategic implications. We develop a conceptual framework that factors in combined effect of varying degrees of product penetration & consumption levels with large population of emerging market countries. The conceptual framework identifies four strategic alternatives for marketing in emerging markets. Instead of recommending any generic marketing strategy, we propose that marketers need to choose an appropriate mix of strategies aimed at primary and selective demand creation in emerging markets.     

Global Marketing Channels and the Standardization Controversy

Abstract

Since the early 1960s, standardization has often been viewed as an efficient strategy for global marketers while others have argued for the relative merits of adaptation. A review of the literature reveals two important points: first, relative to other areas of marketing, channels of distribution are given short shrift in the standardization versus adaptation debate; second, of the existing literature on the standardization of global marketing channels, academicians and practitioners generally concur that marketing channels cannot be standardized. This conclusion may be premature. Thus, this paper offers a conceptual framework for the possible standardization of global marketing channels. A schematic model of the domestic marketing channel development process is extended to the global arena and a framework for the evaluation of the standardization alternatives in the international marketing channels development context is presented.     

Is marketing agility important for emerging market firms in advanced markets?

Marketing agility has recently gained the attention of international marketing managers and scholars. However, scholars have not examined how this capability directly and indirectly influences firm performance and how the effects change under the complex market conditions facing emerging market (EM) firms in advanced economy (AE) markets. Hence, underpinned by the dynamic capability and complexity theories, this study investigates the direct effect of marketing agility—a dynamic meta-capability involving market sensing, speed, flexibility and responsiveness—on firm performance and its indirect effect via marketing program adaptation. Moreover, it explores changes in these direct and indirect relationships under varying market complexity levels. EM firms are often disadvantaged owing to AE market complexity, such as the presence of low-cost advantage of local AE firms. Hence, investigating this framework in this context is valuable. Using data on Pakistani firms exporting to AE markets, the study finds that marketing agility influences firm performance, and the influence is stronger under high market complexity. When market complexity is low, the influence is mediated by the firms’ ability to adapt their marketing program to meet AE market requirements. Supporting theoretical and managerial implications are offered.     

Consequences of sales management control in field sales organizations: a cross-national perspective

In this study we explore the effects of behavior-based sales management control on salesperson characteristics, salesperson performance and sales organization effectiveness with data collected from field sales managers in Australia and Austria. Considering this cross-national perspective, knowledge should be added to the limited international sales management literature. The study findings provide strong support for positive relationships between behavior-based control and salesperson characteristics, salesperson outcome performance, and sales organization effectiveness. The results offer encouraging support of the cross-national relevance of the sales management behavior-based control model.     

Multinational corporate website strategies and influencing factors: A comparison of US and Korean corporate websites

This study, using a content analysis method, explored whether and to what extent multinational corporate websites targeting different markets are standardized. It also tested three organizational factors – country of origin, company size, and product type – for their potential influence on the level of corporate website standardization. A sample of 52 top US-based multinational companies and 52 Korea-based multinational companies was drawn and a total of 104 pairs of websites for these companies were content-analyzed. Overall, the degree of website standardization was not significantly different between companies based in the two countries. The results suggest that both US and Korean multinational corporations tend to maintain their websites in a similar way when targeting the home and foreign markets. Among the three organizational factors, only product type – B2B versus B2C products and durables versus non-durables – was found to be significantly associated with the level of website standardization. This study makes important contributions to the research literature by offering new information on the current state of multinational corporate website strategies and advancing our knowledge about international marketing communications on the Internet and influencing factors.     

The Effects of Retail Banner Standardization on the Performance of Global Retailers

Global retailers often face an important decision about the extent to which they should standardize or adapt their retail banners, a choice that the authors refer to as retail banner standardization (RBS). Drawing on the international marketing and retailing literatures, this study investigates how RBS affects the performance of global retailers in a longitudinal sample of 69 global retailers from multiple countries and sectors, across ten years. Findings indicate that the role of banner standardization in the successful performance of global retailers depends on retailer and market-level characteristics. Specifically, the results demonstrate that RBS improves retailer profitability as retailers increase their global penetration and emphasize status-based differentiation. Findings also suggest that banner standardization has stronger effects on profitability as retailers increase their focus on emerging markets and e-commerce. However, the authors also find that while RBS increases profits at low levels of global diversity, this effect becomes non-significant as retailers expand to highly diverse foreign markets. As such, the study provides important implications for global retailers while also filling the gap in banner/brand standardization/adaptation research that lies at the intersection of retailing and international marketing.     

Demand forecast information sharing in the competitive online and traditional retailers

An important strategic issue for retailing business managers to study is the information strategy. In this paper, we develop a profit-maximization model to investigate the benefits of demand forecast information sharing for the competitive online and traditional retailers with the consideration of the compatibility of the product with online marketing. Both retailers use a Bertrand model to compete. We analyze and compare two scenarios: (1) when forecast information is not shared between the online and traditional retailers; (2) when forecast information is shared between the online and traditional retailers. Our results show that both the online and traditional retailers will be better off from information sharing. Especially when the channel forecast is less accurate, the product is more compatible with online marketing, and the market is more volatile, both retailers will profit more. Based on our results, optimal strategies are derived and probable paths of future research are identified.     

Adaptation of Marketing Mix Elements in International Markets

ABSTRACT

This research identifies the extent to which individual marketing mix elements are adapted for international markets and how company, industry, and market factors influence the level of adaptation. The study is based on a survey of executive-level managers in U.S.-based companies that market products internationally. The survey obtained information on the extent of adaptation across the marketing mix elements and on company, industry, and market factors that influence this process. The results indicate that adaptation is greatest for distribution, followed by price, promotion, and product. Product adaptation is influenced by market factors, price adaptation is influenced by market and industry factors, promotion adaptation is influenced by market factors, and distribution adaptation is influenced by company factors. The results of the research can be used to both understand and manage the extent of adaptation necessary for products in international markets.     

Coordinating manufacturing and marketing in international firms

In this article, the authors argue that manufacturing experiences much of the turbulence and conflict imposed by the dynamic global marketplace through its relationship with marketing, because marketing is usually responsible for introducing changing competitive priorities and demand patterns to the organization. Through a survey of manufacturing and marketing managers within international firms, the authors develop a profile of manufacturing-marketing conflicts experienced in each of four international strategy environments: export, multidomestic, global, and transnational. As international strategies became more complex, firms made use of more techniques for coordinating between marketing and manufacturing, with more use of decentralized and informal approaches. Coordinating techniques included individual MBO-reward systems, joint task forces for problem-solving, and direct involvement of manufacturing and marketing in establishing the competitive priorities of the firm.     

Influence of Language of Packaging Labels on Consumers’ Buying Preferences

Can packaging labels of three different foreign languages (Korean, Japanese, and English) affect consumers’ preferences? In a month of field experiment involving 203 Chinese undergraduate students, this study used coffee as an experimental product and created a fictitious brand “7 AM COFFEE.” Using analysis of variance (ANOVA) as a statistical tool, the results of the experiment show that the English language represents the strongest effect for (1) consumers’ attention, (2) trust, (3) perceived quality, (4) taste perception, and (5) purchase intention. Moreover, consumers with high or low frequencies of drinking a coffee do not have a specific preference in relations to their attitude. The findings and discussion of this research provide better direction for marketing managers of beverages in establishing market strategies to promote products and generating appeal among coffee drinker.