Factors Affecting International Marketing Strategies: Pricing, Channel Structures and Advertising McLeish Ukomatimi Otuedon

Abstract

This paper examined the basic factors that affect price in any market and the factors that influence channel structures and strategies, as well as the debate over standardisation and localisation of international advertising. Price is one of the key elements of the marketing mix. As in any domestic market, pricing is central in international market. The paper discussed some of the basic factors that affect pricing decisions in international market, including cost, price elasticity of demand, competition, nature of products and exchange rate fluctuations. The paper also analysed some of the key variables that influence global channel structures and strategies, including characteristics of the global distribution system, product characteristics and competitive climate. Although the debate of “standardisation versus localisation” of international advertising has been on since the early 1960s, there is still no end in sight to the debate. The study also analysed the three schools of thought that have emerged from the debate, including the compromise school of thought and the assumptions and benefits put forward by each school of thought.

Keywords: Channel structure, distribution channel, pricing, advertising, standardisation, localisation, adaptation, international marketing, contingency approach