Management of Multinational Corporations

A product may be viewed as a bundle of attributes. Preferences for and the importance of attributes may vary from country to country. Product attributes that depend on cultural and economic conditions, product and technical standards have important implications on the marketing strategy of multinationals. An MNC's distribution strategy in a country is influenced by the type of distribution system prevalent (e.g. concentration of retail outlets, length of channels and accessibility of the channels). Cultural barriers and the image of the country of origin determine the communication strategy of the firm. An MNC may chose push or pull strategy or a combination of both depending on the type of product, level of customer sophistication, length of the channel and the sophistication of the media. Pricing strategy depends on the general pricing structure in the country, the competitive structure and consumer behavior. The marketing mix of the multinationals can be adjusted according to the local differences in culture, economic conditions, competitive conditions, product and technical standards, distribution systems, government regulations, etc. The marketing mix may involve standardization of some P's and customization of others depending on the circumstances in a country.