International Marketing

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1) Many companies adapt their products to the country they enter based on the culture the country has. In a physical sense, not everyone will be attracted to how a product looks when marketed towards America. International marketers are aware of this, so it is their job to make the physical appearance of their product appear more profitable for the country they enter. The book provides the example of Coke and when they had to change Diet Coke brand to Coke Light when it was introduced in Japan, (pg. 388). This is because Japan sees dieting in a negative way and, therefore, someone would look bad drinking a Diet drink. Although it is essentially the same product, its appearance has been altered to appeal to the market of a foreign country. Cultural adaptation of products is a bit more complex than physical adaptation. It requires more creativity as some products will just flat-out not do as well as in their home country. The book gives examples of McDonalds pies and other menu items in different countries (pg. 385). Since the tastes of countries are different, they must adapt their item to the ingredients in that country. This not only helps them stay competitive against restaurants in those countries, but also helps them save money by using ingredients that are local to that area.

2) One reason products considered old in one place can be an innovation in another market is that every country defines quality and value differently. The book gives the example of nonroaming cell phones doing well in China, India, and Vietnam, as opposed to Japan's preference for sleek, new Apple phones. Japan's cultural values of constant innovation, staying on top of trends, and the social validation that comes from the perceived prestige of particular brands makes it more likely to seek out the newest edition of a technology at higher monetary expense. But China, India, and Vietnam may not value newness as prestigious, with the average citizens opting for less expensive -- thus more financially responsible -- technologies. (379) One country perceives newness, the bells-and-whistles, as providing more value; the other believes it is better to be functional and affordable than stylish. The infrastructure of a target market is also important to consider, particularly with technology. A more rural area may need to be sold older models of communications systems, depending on what network is existing and what changes are being undergone. Diffusion must be considered as well: if a target market has yet to be introduced to a product in any capacity, it is an innovation to them, even if it is in its maturity or decline stage in the home market. (390) One example I have thought of in the last five to ten years is the advent of K-beauty. Methods such as double-cleansing, attentiveness to natural ingredients, and the famous ten-step routine have been fairly common in Korean beauty routines for decades. But in the U.S., these methods and products gained explosive popularity very recently, so it felt more innovative

3) Japan has recently seen a change in its retailing that can be compared to the case of the United States. From what we saw happen to the United States after World War II, many foreign markets opened to the U.S. and new methods of business were introduced along with them. A similar phenomenon can be claimed about the Japans situation. As the book states, the number of small stores is declining as they are being replaced by the by larger discount and specialty stores, (pg. 452). The large wave of consumerism that the U.S. underwent in the mid-20th century allowed for many larger stores to take over and expand quickly. Although Japans economy has had a great boom, it does not mean it is free game for large companies to come in and take over. From what the textbook says, Japanese law gives the small retailer enormous advantage over the development of larger stores and competition, (pg. 453). This means that the big companies coming in will have a tough time trying to make people give up their customs of going to small businesses regularly. The customs that the Japanese people live by remain mostly preserved by their laws and allow smaller businesses to remain open. This not only keeps from Japan hindering the livelihoods of their people, but also helps in keeping their same business philosophy the emphasizes loyalty, harmony, and friendship

4) There are many different factors when it comes to selecting a distribution channel. One of those is size patterns. What size patterns are is how much of a presence a company has in a country. For example, one could look at how many retail stores are available in a country per person (456). Looking at these patterns can decide how hard one would want to market there or how much product is necessary to get to those stores.Another factor of choosing distribution channels is how resistant a channel is to change. To some people, improving the efficiency and changing traditional ways of doing business is seen as threatening and are resisted in most places. There are laws in some countries that effect how fast or slow change is made to a distribution channel. For example, in Italy a new retail outlet must get a license from a municipal board that contains local tradespeople. In the book, it states that only ten licenses are granted out of every 200 applicants (459). This means that the local tradespeople get to decide what comes in their markets.