MKT-P_Int_Marketing_Project_WiSe2425_Session_08_DK.pdf

MKT-P International Marketing Project (WiSe 24/25) – Session 08", is likely a lecture or project guide for an international marketing course in the Winter Semester 2024/2025. It may cover key topics related to global marketing strategies, market entry modes, competitive analysis, and consumer behavior across different countries.

Session 08 could focus on specific case studies, project guidelines, or advanced concepts such as digital globalization, cross-cultural marketing, or branding in international markets. The document may also provide insights into strategic decision-making, frameworks like the PESTEL and SWOT analysis, and practical applications for real-world business scenarios.

This resource is valuable for students, researchers, and professionals looking to enhance their understanding of global marketing challenges and opportunities.

1. © Prof. Dr. Iris Ramme & Dennis Köhler Page 1International Marketing ProjectWiSe24/25
MKT10
Fall Semester 2024
Prof. Dr. Iris Ramme
Dennis Köhler
International Marketing Project

2. © Prof. Dr. Iris Ramme & Dennis Köhler Page 2International Marketing ProjectWiSe24/25
Sessions
Topic
LecturerSession
Kickoff: Self Organization in the teamsIris Ramme1
Meet the researchers on Bio-diversity friendly foodDennis Köhler & Iris Ramme2
Theory: Segmentation in International Marketing/ Global Marketing ProgramDennis Köhler3
Theory: Why international? Differentiation/ StandardizationIris Ramme4
Theory: Communication Policy in International MarketingDennis Köhler5
Theory: Cultural Differences and its implications for MarketingIris Ramme6
Summary of results on onsite research in Mexico and of German marketIris Ramme7
Theory: Pricingin International Marketing/ Distribution ~Dennis Köhler8
Discussion on Story Telling Options GermanyIris Ramme9
Discussion on Story Telling Options MexicoIris Ramme10
CoachingDennis Köhler11
t.b.d. (with Alejandra Tenorio from UP)Iris Ramme12
Final presentationsDennis Köhler & Iris Ramme13
Surprise lectureDennis Köhler & Iris Ramme14

3. © Prof. Dr. Iris Ramme & Dennis Köhler Page 3International Marketing ProjectWiSe24/25
Learning Objectives
•Learn about pricing decisions
•Identify the factors influencing price
•Distinguish between three global pricing strategies for new products
•Compare and contrast objectives and methods of global pricing strategies
•Discuss the issues associated with grey marketing
•Explain the causes and effects of dumping
•Discuss transfer pricing issues and alternatives

4. © Prof. Dr. Iris Ramme & Dennis Köhler Page 4International Marketing ProjectWiSe24/25
Concepts of Today
•Price escalation
•Skimming
•Market pricing
•Penetration pricing
•Pricing across countries
•Standardization vs. differentiation
European pricing
strategy
Transfer pricing
Currency fluctuation
Dumping
Inflation
Euro
Source: Hollensen(2017), ch.14 & Keegan (2013), ch.11

5. © Prof. Dr. Iris Ramme & Dennis Köhler Page 5International Marketing ProjectWiSe24/25
Factors Influencing International Pricing Decisions
•Firm level factors
Internal
•Product factor
•Environmental factors
External
•Market factors
Source: Hollensen(2017), pp 559-563

6. © Prof. Dr. Iris Ramme & Dennis Köhler Page 6International Marketing ProjectWiSe24/25
Firm-level Factors
Corporate and marketing objectives
Competitive strategy
Firm positioning
Product development
Production location
Market entry modes
Country-of-Origin effects
Source: Hollensen(2017), pp 560

7. © Prof. Dr. Iris Ramme & Dennis Köhler Page 7International Marketing ProjectWiSe24/25
Product Factors
Stage in PLC
Place in product line
Most important product features: quality, service etc.
Product positioning (USP)
Product cost structure: manufacturing, experience effects, price escalation, etc.
Source: Hollensen(2017), pp 561

8. © Prof. Dr. Iris Ramme & Dennis Köhler Page 8International Marketing ProjectWiSe24/25
Price Escalation
•Adding up all the costs required to get the product to where it is sold
•All costs incurred in getting a product to an international market are
taken into account such as
oShipping
oInsurance
oDistributors’ costs (importer, retailer, …)
oTariffs/import duties
oTaxes
oCurrency fluctuation
Source: Hollensen(2017) pp 561 & Keegan (2013) ch.11

9. © Prof. Dr. Iris Ramme & Dennis Köhler Page 9International Marketing ProjectWiSe24/25
Managing Price Escalation
•Rearrange distribution channel
•Remove layers
•Seek alternative
•Eliminate costly features
•Reduce product to core
•Downsize product
•Assemble/manufacture locally
•Be creative with tariffs/levies

10. © Prof. Dr. Iris Ramme & Dennis Köhler Page 10International Marketing ProjectWiSe24/25
Environmental Factors
Government influences and constraints: import controls, taxes, price controls
Inflation
Currency fluctuations
Business cycle stage
Source: Hollensen(2017), pp 562

11. © Prof. Dr. Iris Ramme & Dennis Köhler Page 11International Marketing ProjectWiSe24/25
Environmental Factors: Governments
Government controls and subsidies
In countries with severe financial difficulties, governments may restrict price
increases or prescribe fixed prices
Examples for fixed prices:
Fixed book price agreement in Germany since 1888
Examples for sales tax
Oregon vs. California
VAT for groceries vs other products in Germany
Source: Keegan (2013) ch.11

12. © Prof. Dr. Iris Ramme & Dennis Köhler Page 12International Marketing ProjectWiSe24/25
Environmental Factors: Currency Fluctuation
Managing currency fluctuations
•Pricing should be consistent with the company's
marketing strategy
•Fix prices in country target markets or fix prices in
home-country currency
•Exchange rate clause
Allows the buyer and seller to agree to supply and purchase at fixed prices in
each company’s national currency
Source: Keegan (2013) ch.11; http://www.xe.com/de/currencycharts/?from=USD&to=EUR&view=10Y
Chart GBP versus EUR
2015-2020

13. © Prof. Dr. Iris Ramme & Dennis Köhler Page 13International Marketing ProjectWiSe24/25
Environmental Factors: Inflation
Pricing in an inflationary environment
Requires periodic adjustments due to rising costs
Must maintain operating profits
LIFO (last-in, first-out) is more appropriate
Chart –historic CPI inflation South Africa (yearly basis) –full term
Source: Keegan (2013) ch.11; http://www.inflation.eu/inflation-rates/south-africa/historic-inflation/cpi-inflation-south-africa.aspx

14. © Prof. Dr. Iris Ramme & Dennis Köhler Page 14International Marketing ProjectWiSe24/25
Market Factors
Customers’ perceptions (needs, tastes)
Customers’ ability to pay
Nature of competition
Competitors’ objectives, strategies, relative strengths and weaknesses
Grey market appeal
Source: Hollensen(2017), pp 563

15. © Prof. Dr. Iris Ramme & Dennis Köhler Page 15International Marketing ProjectWiSe24/25
Market Factors: Dumping
•If competition is very strong, prices tend to decrease
•Dumping: A company exports a product at a price lower than the price it
normally charges in its own home market
•Dumping is an important global pricing issue, because it is sometimes regarded
as unfair competition
Source: Keegan (2013) ch.11

16. © Prof. Dr. Iris Ramme & Dennis Köhler Page 16International Marketing ProjectWiSe24/25
Market Factors: Grey Market Goods
•Trademarked products that are exported form one country to another where
they are sold by unauthorized persons or organizations
•Bring a product produced in one country into another in competition with
authorized importers –parallel importing
Source: Keegan (2013) ch.11

17. © Prof. Dr. Iris Ramme & Dennis Köhler Page 17International Marketing ProjectWiSe24/25
Grey Marketing (Parallel Importing)
Source: Hollensen(2017), pp 622

18. © Prof. Dr. Iris Ramme & Dennis Köhler Page 18International Marketing ProjectWiSe24/25
Discuss with your Neighbor
The following factors influence the sensitivity of customers to prices. Please find examples.
More distinctive products
Greater perceived quality of product
Consumers are less aware of substitutes in the market
Difficulty in making comparisons e.g. services
The price of the product represents a small proportion of
the total expenditure of the customer
The perceived benefit for the customer increases
The product is used in association with a product bought previously captive pricing
Costs are shared with other parties
The product or service cannot be stored
Source: Hollensen(2017), pp 563

19. © Prof. Dr. Iris Ramme & Dennis Köhler Page 19International Marketing ProjectWiSe24/25
International Pricing Strategies
Strategies for pricing a new product
Source: Hollensen(2017), p. 564

20. © Prof. Dr. Iris Ramme & Dennis Köhler Page 20International Marketing ProjectWiSe24/25
Skimming Pricing
•Deliberate attempt to reach a segment that is willing to pay a premium price
skim the cream!
•Often used in introductory phase of product life cycle
•Goal is to maximize revenue on limited volume and reinforce customer’s perception of
high product value
•Requirements
Unique product
High tech and/or high quality product
Willingness to pay in targeted segments
Source: Hollensen(2017), pp 564 & Keegan (2013) ch.11

21. © Prof. Dr. Iris Ramme & Dennis Köhler Page 21International Marketing ProjectWiSe24/25
Skimming Pricing: Motives
Motives for pricing at high levels in certain foreign markets might include
Achieving the highest possible contribution in a short time
Writing off high and risky investments asap
Source: Hollensen(2017), pp 564

22. © Prof. Dr. Iris Ramme & Dennis Köhler Page 22International Marketing ProjectWiSe24/25
Skimming Pricing: Risks
•Trade off between low market share and high
margin vulnerable toward local competition
•Need for resources to maintain high quality product
image and visibility in a distant market
•If used only in some countries: risk of grey markets
Source: Hollensen(2017), pp 564

23. © Prof. Dr. Iris Ramme & Dennis Köhler Page 23International Marketing ProjectWiSe24/25
Market Pricing
•Option if the new product is already sold in the new market
•Price based on competitor prices requires thorough knowledge on
competition
Source: Hollensen(2017), pp 565

24. © Prof. Dr. Iris Ramme & Dennis Köhler Page 24International Marketing ProjectWiSe24/25
Penetration Pricing
•Is used to stimulate market growth and capture market share
•Price is used as a competitive weapon to gain market position
•Requirements
Mass market
Price-sensitive customers
Reduction in unit costs through economies of scale
Experience curve effects
Source: Hollensen(2017), pp 565 & Keegan (2013) ch.11

25. © Prof. Dr. Iris Ramme & Dennis Köhler Page 25International Marketing ProjectWiSe24/25
Penetration Pricing: Motives
Motives for pricing at low levels in certain foreign markets might include
Intensive local competition from rival companies
Lower income levels of local consumers
Belief: R&D and other overhead costs are covered by home sales 
Exporting = marginal activity aiming at additional revenues
Source: Hollensen(2017), pp 565

26. © Prof. Dr. Iris Ramme & Dennis Köhler Page 26International Marketing ProjectWiSe24/25
Penetration Pricing: Risks
•Prices might be set so low that they are not credible to
customers
•Product may be sold at a loss for a certain time to gain
market share
•Companies new to exporting cannot absorb such losses
Source: Hollensen(2017), pp 565 & Keegan (2013) ch.11

27. © Prof. Dr. Iris Ramme & Dennis Köhler Page 27International Marketing ProjectWiSe24/25
Pricing across Countries
Price standardization
Consistent price image over
the world
Price is set as product leaves
the factory
Adjusted by exchange rate,
tariffs, shipping costs etc.
No adjustment for local
conditions
Price differentiation
Price is set according to local
conditions (willingness to pay,
competition, purchasing
power etc.)
No coordination from country
to country
Lack of control of HQ
Risk of grey markets
Standardization versus differentiation
Source: Hollensen(2017), pp 573

28. © Prof. Dr. Iris Ramme & Dennis Köhler Page 28International Marketing ProjectWiSe24/25
Standardization versus Differentiation
Structural factors of standardized versus differentiated
pricing in European consumer goods markets
Source: Hollensen(2017), p. 573

29. © Prof. Dr. Iris Ramme & Dennis Köhler Page 29International Marketing ProjectWiSe24/25
Pricing Example

30. © Prof. Dr. Iris Ramme & Dennis Köhler Page 30International Marketing ProjectWiSe24/25
Pricing Example
USA EU China

31. © Prof. Dr. Iris Ramme & Dennis Köhler Page 31International Marketing ProjectWiSe24/25
Pricing Example
Mercedes
E-class
BMW
5 series
Audi
A6
Prices converted
to €in 2014
€ 61,400€ 60,900€ 54,000China
€ 51,000€ 51,800€ 48,600
EU: Average France, Germany,
Italy, Spain, UK
€ 40,700€ 41,100€ 37,100USA
Source: Hollensen(2017), pp 564

32. © Prof. Dr. Iris Ramme & Dennis Köhler Page 32International Marketing ProjectWiSe24/25
International Pricing Strategy Classification
There are four strategies in terms of international pricing practices based on
industry globalism and preparedness for internationalization:
(1)The local price follower firm
(2)The global price follower firm
(3)The multi-local price setter firm
(4)The global price leader firm (3) (4)
(1) (2)
Industry globalism
Preparedness for internationalization
Source: Hollensen(2017), pp 574

33. © Prof. Dr. Iris Ramme & Dennis Köhler Page 33International Marketing ProjectWiSe24/25
Four Strategies
Source: Hollensen(2017), p. 575

34. © Prof. Dr. Iris Ramme & Dennis Köhler Page 34International Marketing ProjectWiSe24/25
Special: European Pricing Strategy
Implications of the Euro introduced in 2002
Lower prices through transparency: consumer can shop in the lowest-priced markets
(internet!)
No transaction costs
No costs through fluctuating currencies
No costs through exchanging currencies
Easier to enter foreign markets, especially for SMEs
Lower risks through absence of exchange rate fluctuations
Establish inflation and interest rate stability via the “new” European Central Bank
Source: Hollensen(2017), pp 578

35. © Prof. Dr. Iris Ramme & Dennis Köhler Page 35International Marketing ProjectWiSe24/25
Transfer pricing
•Transfer pricing: prices charged for intra-company
movement of goods and services
•Important for cross-border taxation purposes
•OECD standards and EU standards
•The price shall amount to what two independent,
unrelated entities would negotiate
•Risk of manipulation: Companies sometimes use transfer
prices to shift profits from high-tax to low-tax countries
Source: Hollensen(2017), pp 580 &Keegan (2013) ch.11

36. © Prof. Dr. Iris Ramme & Dennis Köhler Page 36International Marketing ProjectWiSe24/25
Terms of Sale and Delivery
EXW: Ex-works
FAS: Free alongside ship
FOB: Free on board
CFR: Cost and freight
Some of the most popular terms of sale and delivery
CIF:Cost, insurance and freight
DAT:Delivered at terminal
DDP:Delivered duty paid
Source: Hollensen(2017), pp 583

37. © Prof. Dr. Iris Ramme & Dennis Köhler Page 37International Marketing ProjectWiSe24/25
Terms of Sale and Delivery
Incoterms: International commercial terms
Some of the most popular terms of sale and delivery
Source: Hollensen(2017), p. 583

38. © Prof. Dr. Iris Ramme & Dennis Köhler Page 38International Marketing ProjectWiSe24/25
Terms of Payment
Source: Hollensen(2017), pp 585

39. © Prof. Dr. Iris Ramme & Dennis Köhler Page 39International Marketing ProjectWiSe24/25
How Gas Prices Vary around the Globe
Source: https://www.youtube.com/watch?v=zcANo7Axgf0

40. © Prof. Dr. Iris Ramme & Dennis Köhler Page 40International Marketing ProjectWiSe24/25
Summary
•Factors that influence international pricing comprise Firm level factors,
product factors, environmental factors, as well as market factors
•Different strategies to setting prices for new products are skimming,
market pricing and penetration
•Pricing across countries can be done with standardization or
adaptation
•Some issues like grey markets, dumping, transfer pricing are of ethical
nature
•Terms of sale and delivery and terms of payment must be negotiated
in global marketing

41. © Prof. Dr. Iris Ramme & Dennis Köhler Page 41International Marketing ProjectWiSe24/25
Sessions
Topic
LecturerSession
Kickoff: Self Organization in the teamsIris Ramme1
Meet the researchers on Bio-diversity friendly foodDennis Köhler & Iris Ramme2
Theory: Segmentation in International Marketing/ Global Marketing ProgramDennis Köhler3
Theory: Why international? Differentiation/ StandardizationIris Ramme4
Theory: Communication Policy in International MarketingDennis Köhler5
Theory: Cultural Differences and its implications for MarketingIris Ramme6
Summary of results on onsite research in Mexico and of German marketIris Ramme7
Theory: Pricing in International Marketing/ Distribution~Dennis Köhler8
Discussion on Story Telling Options GermanyIris Ramme9
Discussion on Story Telling Options MexicoIris Ramme10
CoachingDennis Köhler11
t.b.d. (with Alejandra Tenorio from UP)Iris Ramme12
Final presentationsDennis Köhler & Iris Ramme13
Surprise lectureDennis Köhler & Iris Ramme14

42. © Prof. Dr. Iris Ramme & Dennis Köhler Page 42International Marketing ProjectWiSe24/25
Learning Objectives
•Discuss the development of global marketing channels and current distribution trends
•Identify the factors that affect channel strategy decisions
•Describe the characteristics of distribution channels
•Discuss physical distribution issues and logistics
Source: Keegan (2013) ch.12

43. © Prof. Dr. Iris Ramme & Dennis Köhler Page 43International Marketing ProjectWiSe24/25
Objective of Distribution
To make
…
available
the right
product
at the
right
time
in the
right
quantity
in the
right
place
Source: Keegan (2013) ch.12

44. © Prof. Dr. Iris Ramme & Dennis Köhler Page 44International Marketing ProjectWiSe24/25
Global Marketing Distribution: Development
•Global distribution has been the method of operation for large companies for years
•Small and medium sized companies (SMEs) have been preoccupied with home markets
•In recent years, SMEs have entered the global marketplace
Source: Keegan (2013) ch.12

45. © Prof. Dr. Iris Ramme & Dennis Köhler Page 45International Marketing ProjectWiSe24/25
Access to Foreign Markets
Channel decisions for foreign distribution
•External determinants of channel decisions
•The structure of the channel
•Managing and controlling distribution channels
•Managing logistics
•Implications of the internet for distribution decisions
Decisions on
international logistics
Source: Hollensen(2017), pp 599

46. © Prof. Dr. Iris Ramme & Dennis Köhler Page 46International Marketing ProjectWiSe24/25
External Determinants of Channel Decision
•Customer characteristics: # customers, geographic distribution,
income, shopping habits, reactions to different selling methods
•Nature of product: Perishability, service requirements, bulk
•Nature of demand/location: Transportation infrastructure, geography,
climate
•Competition: How many, how strong, which substitutes
•Legal regulations: e.g. pharmaceuticals or alcohol
Source: Hollensen(2017), pp 599 & Keegan (2013) ch.12; https://www.youtube.com/watch?v=XjpbKKZg1jI

47. © Prof. Dr. Iris Ramme & Dennis Köhler Page 47International Marketing ProjectWiSe24/25
The Structure of the Channel
•Market coverage
•Channel length
•Control/cost
•Degree of integration

48. © Prof. Dr. Iris Ramme & Dennis Köhler Page 48International Marketing ProjectWiSe24/25
The Structure of the Channel: Market Coverage
Market coverage is a flexible term and can refer to
Geographical areas of country
Number of outlets
Three different approaches
Intensive coverage
Selective coverage
Exclusive coverage
Source: Hollensen(2017), pp 601

49. © Prof. Dr. Iris Ramme & Dennis Köhler Page 49International Marketing ProjectWiSe24/25
Three Strategies for Market Coverage
Source: Hollensen(2017), p. 602

50. © Prof. Dr. Iris Ramme & Dennis Köhler Page 50International Marketing ProjectWiSe24/25
The Structure of the Channel: Channel Length
Channel length
Is determined by the number of levels (or layers) of different types of intermediary
Longer channels, those with several intermediaries, tend to be associated with
convenience goods and mass distribution
Source: Hollensen(2017), pp 601

51. © Prof. Dr. Iris Ramme & Dennis Köhler Page 51International Marketing ProjectWiSe24/25
Channel Length
Short:Directinvolvement
Ownsalesforce
Ownretailstores
etc.
Long:Indirectinvolvement
Independentagents
Distributors
Wholesalersorretailers
Source: Keegan (2013) ch.12

52. © Prof. Dr. Iris Ramme & Dennis Köhler Page 52International Marketing ProjectWiSe24/25
Example Tupperware
•Tupperwarewasintroducedonthemarketin1945
•FounderEarlTupper
Source: Hollensen(2017), pp 627

53. © Prof. Dr. Iris Ramme & Dennis Köhler Page 53International Marketing ProjectWiSe24/25
Tupperware’s Direct Selling Model
Source: Hollensen(2017), p. 629

54. © Prof. Dr. Iris Ramme & Dennis Köhler Page 54International Marketing ProjectWiSe24/25
Channels in B2C and B2B
Consumer products
Manufacturer-owned store
Franchise operations
Door-to-door selling
Wholesaler -Retailer
Combination structures
Industrial Products
Manufacturer’s sales forces
Distributors (or agents)
Wholesalers
Source: Keegan (2013) ch.12

55. © Prof. Dr. Iris Ramme & Dennis Köhler Page 55International Marketing ProjectWiSe24/25
The Structure of the Channel: Control and Costs
Control and cost
The ability to enhance the decisions and actions of other channel members establishes
international brands and consistent image of quality and service worldwide
High degree of control is provided by the use of the firm’s own sales force in international
markets
The use of intermediaries will automatically lead to loss of some control over the
marketing of the firm’s product
Source: Hollensen(2017), pp 603

56. © Prof. Dr. Iris Ramme & Dennis Köhler Page 56International Marketing ProjectWiSe24/25
The Structure of the Channel: Use of
Intermediaries
Intermediaries typically perform certain functions:
Carrying of inventory
Demand generation or selling
Physical distribution
After-sales service
Extending credit to customers
Source: Hollensen(2017), pp 603

57. © Prof. Dr. Iris Ramme & Dennis Köhler Page 57International Marketing ProjectWiSe24/25
Example De Beers
Source: Hollensen(2017), pp 626

58. © Prof. Dr. Iris Ramme & Dennis Köhler Page 58International Marketing ProjectWiSe24/25
De Beers‘ Diamond Distribution
Source: Hollensen(2011), p. 625

59. © Prof. Dr. Iris Ramme & Dennis Köhler Page 59International Marketing ProjectWiSe24/25
The Structure of the Channel: Degree of Integration
Vertical integration:
seeking control of channel members at different levels of the channel, e.g. forward
integration
Horizontal integration:
seeking control of channel members at the same level of the channel
Source: Hollensen(2017), pp 603

60. © Prof. Dr. Iris Ramme & Dennis Köhler Page 60International Marketing ProjectWiSe24/25
Managing and Controlling Distribution Channels
•Select distribution –do not let them select you
•Look for distributors capable of developing markets, rather than those with a few obvious
contacts
•Treat the local distributors as long-term partners, not temporary market-entry vehicles
•Suppose market entry by committing money, managers and proven marketing ideas
•From the start, maintain control over marketing strategy
•Make sure distributors provide you with detailed market and financial performance data
•Build links among national distributors at the earliest opportunity
Source: Hollensen(2017), pp 609

61. © Prof. Dr. Iris Ramme & Dennis Köhler Page 61International Marketing ProjectWiSe24/25
Managing and Controlling Distribution Channels
Management process
•Screening and selecting intermediaries
•Contracting (distributor agreements)
•Motivating
•Controlling
•Termination
If the international marketer has established a sales subsidiary in the country
If the international marketer is unsatisfied with the performance of the intermediary
Source: Hollensen(2017), pp 609-613

62. © Prof. Dr. Iris Ramme & Dennis Köhler Page 62International Marketing ProjectWiSe24/25
Implication of the Internet for Distribution
Decision
•Internet has the power to change drastically the balance of power among consumers,
retailers, distributors, manufacturers and service providers
•Internet may eliminate the traditional ‘physical’ distributors, but in the transformation
process of the value chain new types of intermediaries could appear
•Typical problems (not only caused by the internet)
oDisintermediation: elimination of a layer
oChannel conflict: about goals and roles
Source: Hollensen(2017), pp 614

63. © Prof. Dr. Iris Ramme & Dennis Köhler Page 63International Marketing ProjectWiSe24/25
Disintermediation and Reintermediation
Source: Hollensen(2017), p. 614

64. © Prof. Dr. Iris Ramme & Dennis Köhler Page 64International Marketing ProjectWiSe24/25
Mobile Commerce
Benefits for consumers
Comparison shopping
Bridge the gap between bricks and clicks
Opt-in searches
Convenience in travel
Benefits for merchants
Impulse buying
Drive traffic (to online or
offline)
Education of consumers
Perishable products:
manage inventory
Drive efficiency
Target markets more
efficiently
Source: Hollensen(2017), pp 617

65. © Prof. Dr. Iris Ramme & Dennis Köhler Page 65International Marketing ProjectWiSe24/25
Online Retail Sales
Source: Hollensen(2017), pp 615; http://sloanreview.mit.edu/article/how-to-win-in-an-omnichannel-world/

66. © Prof. Dr. Iris Ramme & Dennis Köhler Page 66International Marketing ProjectWiSe24/25
Discuss with your Neighbor
Banana Split Model:
How much (in percentage of
the retail value in the UK)
stays with each chain actor
to cover costs and margin
Source: Hollensen(2017), p. 619

67. © Prof. Dr. Iris Ramme & Dennis Köhler Page 67International Marketing ProjectWiSe24/25
Grey Marketing (Parallel Importing)
Possible strategies to reduce grey marketing
Seek legal address
Change the marketing mix
Product strategy
Pricing strategy
Warranty strategy
Source: Hollensen(2017), pp 623

68. © Prof. Dr. Iris Ramme & Dennis Köhler Page 68International Marketing ProjectWiSe24/25
Decisions on International Logistics
Channel Logistics
•Physical movement of goods through channel system
•Order processing
•Transportation
•Inventory management
•Storage/warehousing
Source: Keegan (2013) ch.12

69. © Prof. Dr. Iris Ramme & Dennis Köhler Page 69International Marketing ProjectWiSe24/25
DHL Example
•Founded in 1969 in San Francisco
by
AdrianDalsey
Larry Hillblom
RobertLynn
•Sold in 2002 to Deutsche Post
DHL Group as DHL International
GmbH

70. © Prof. Dr. Iris Ramme & Dennis Köhler Page 70International Marketing ProjectWiSe24/25
Summary
•Channel decisions are difficult to manage globally
•A global marketer must
Tailor the marketing program to different types of channels or….
Introduce new retail concepts
•Many companies are reconfiguring their supply chains to cut costs and improve efficiency
Source: Keegan (2013) ch.12