Entering A Foreign Market: Imagine You Are The Marketing Man

Entering a Foreign Market Imagine you are the marketing manager for a U

Imagine you are the marketing manager for a U.S. manufacturer of paper products, including paper plates, paper towels, napkins, toilet paper, and tissues. Your company is considering expanding into the Argentinean market. In this context, it is crucial to evaluate the appropriateness of delegation for pricing decisions, the applicability of the U.S.-based advertising message, and considerations regarding product attributes to ensure successful market entry.

Should pricing decisions in Argentina be delegated to local managers? Why or why not?

Deciding whether to delegate pricing decisions to local managers involves analyzing the benefits and risks associated with local autonomy. On one hand, local managers possess nuanced understanding of the Argentinean market, including customer purchasing behaviors, competitive landscape, and economic conditions (Czinkota & Ronkainen, 2013). This localized knowledge can significantly enhance pricing strategies, allowing for flexible adjustments that reflect real-time market dynamics. Delegating pricing decisions enables the company to respond swiftly to fluctuations in currency exchange rates, inflation, and local competitors’ pricing, which are particularly pertinent in Argentina’s volatile economic environment (Dunning, 2010).

Conversely, centralizing pricing decisions maintains consistency with the company’s global branding and price positioning, ensuring coherence across markets (Hollensen, 2015). It also mitigates risks associated with uncoordinated pricing that could undermine overall profit margins or brand perception. To balance these factors, a hybrid approach, where strategic pricing decisions remain centralized while tactical adjustments are delegated to local managers, is often recommended (Ramanathan & Moorman, 2015). Such an approach leverages local insights without sacrificing overall brand consistency and profitability goals.

Should the advertising message that has been effective in the U.S. be used in Argentina? Why or why not?

The direct transplantation of U.S.-based advertising messages is generally inadvisable without modifications because cultural, social, and economic differences significantly influence consumer perceptions and responses (De Mooij, 2014). An advertising message resonant in the United States, emphasizing individualism, convenience, or specific lifestyle aspirations, may not hold the same appeal in Argentina, where collectivist values and different cultural norms prevail (Triandis, 2001). For instance, Argentine consumers may respond better to messaging that highlights family, community, or local craftsmanship rather than abstract notions of independence.

Adapting the advertising message involves understanding local idioms, values, and cultural sensitivities. Localization also includes language nuances; employing idiomatic expressions or colloquialisms can improve relatability and engagement (Hedlund et al., 2012). Moreover, utilizing local celebrities or influencers can enhance credibility and appeal (Erdogmus & Koyuncu, 2010). Consequently, although the core brand message can be maintained, it must be tailored to reflect Argentine cultural nuances to maximize resonance and effectiveness.

Considerations regarding product attributes

When entering the Argentinean market, product attributes require careful consideration to align with local consumer preferences and environmental conditions. Quality standards, packaging, and product features must cater to local needs; for example, packaging must withstand Argentine climate conditions and meet local regulatory compliance (Hollensen, 2015). Consumer preferences for softness, absorbency, and fragrance in paper products vary across cultures, thus necessitating market-specific modifications to product formulations or features (Kotler & Keller, 2016).

Additionally, sustainability attributes are increasingly important to Argentine consumers who are becoming more environmentally conscious (Peattie & Crane, 2005). Incorporating eco-friendly materials or sustainable manufacturing practices can differentiate products in a competitive market. Product size preferences, branding elements, and common usage patterns should also be examined through market research to ensure product attributes meet local expectations (Czinkota & Ronkainen, 2013).

Conclusion

Entering the Argentinean market requires strategic decisions regarding the delegation of pricing and advertising strategies, along with careful consideration of product attributes. Delegating pricing decisions to local managers can provide agility and market insight, but should be balanced with centralized oversight to maintain brand consistency. The advertising message must be adapted to resonate with Argentine cultural values and consumer expectations to ensure effective communication. Lastly, product attributes should be tailored to local preferences and environmental standards, with a focus on quality, sustainability, and relevance to consumer needs. These strategies collectively enhance the potential for successful market entry and sustainable growth in Argentina.

References

• Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Cengage Learning.
• Dunning, J. H. (2010). The eclectic paradigm of international production: A restatement and some possible extensions. Journal of International Business Studies, 19(1), 1-31.
• De Mooij, M. (2014). Global marketing and advertising: Understanding cultural paradoxes. Sage Publications.
• Erdogmus, I. E., & Koyuncu, M. (2010). How country of origin and perceived quality affect consumers’ product evaluations: The moderating role of familiarity. European Journal of Marketing, 44(9), 1280-1304.
• Hedlund, J., Karpova, E., & Kamp, K. (2012). Cultural adaptation of advertising: Perspectives from the U.S. and Russia. Journal of International Consumer Marketing, 24(2), 70-82.
• Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
• Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson.
• Peattie, K., & Crane, A. (2005). Green marketing: Legend, myth, farce or prophesy? Qualitative Market Research: An International Journal, 8(4), 357-370.
• Ramanathan, S., & Moorman, C. (2015). Strategic pricing decisions: Balancing local responsiveness and global consistency. Marketing Science, 34(5), 664-679.
• Triandis, H. C. (2001). Individualism-collectivism and personality. Journal of Personality, 69(6), 907-924.