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CHAPTER 16
International Marketing
After studying this chapter, students should be able to:
* Characterize the nature of marketing management in international business.
* Discuss the basic kinds of product policies and decisions made in international business.
* Identify pricing issues and evaluate pricing decisions in international business.
* Identify promotion issues and evaluate promotion decisions in international business.
* Discuss the basic kinds of distribution issues and decisions in international business.
LECTURE OUTLINE
OPENING CASE: Wal-Mart Courts European Shoppers
To continue growing, Wal-Mart has been forced to look at international markets. The case describes Wal-Mart's entry into the U.K. and Germany. In both cases, Wal-Mart chose to enter using an acquisition strategy.
Key Points
0 Wal-Mart entered the U.K. in 1999 by acquiring the Asda retailing chain – which was comprised of over 230 stores.
1 Asda was a good match for Wal-Mart and Wal-Mart is working to replicate its low-cost logistics system in the U.K.
2 In 1997, Wal-Mart acquired the 21-store Wertkauf chain in Germany. In Germany, Wal-Mart's friendly approach to its customers contrasts with the less personalized German way of doing business.
3 Wal-Mart's low prices have upset German regulators who have forced Wal-Mart to raise prices on its "loss-leaders" (e.g., flour, cooking oil, butter). Regulators feared Wal-Mart was engaging in predatory pricing to drive smaller competitors out of business.
4 Wal-Mart still needs to expand significantly in Germany before it will achieve the critical mass needed to implement its high-volume, low cost distribution system.
5 Despite difficulties in Germany, China, and South Korea, Wal-Mart’s international sales grew 38 percent in 2002.
CHAPTER SUMMARY
Chapter Sixteen explores the issue of international marketing. It begins with a discussion of basic international...