MKT 360 Lecture Notes - Lecture 24: Nespresso, Intellectual Property, Variable Pricing

15 views5 pages
14 Nov 2016
Areas of potential legal problems in international marketing
Patents, trademarks, copyright laws
o Each country has their own laws in patents, trademarks, etc.
USA: they protect the inventor long period of protection
Individualism high so thats h the potet the idiidual.
Japan: benefits society short period of protection, you made public your
patent application so it gives a long time to get people ideas from your
Colletiis is high so thats h the potet the soiet.
Distributor & Wholesaler agreements
o In many countries overseas distributors and wholesalers are protected from
getting fired
o If you want to give away with them, you have to give them compensation
Product quality laws and controls
o You cannot market a food, ediie o shapoo uless its ee appoed 
the FDA. (in the US)
Packing laws
o What kind of info you have to put in your nutritional packages the government
picks this: size, type, order in ingredients, etc.
Retail price maintenance laws
o Wal-Mart in Germany: the eet ale to use the sae piig tehiue the
were using in the US.
To sell elo o at ost to attat the to oe podut ut the thell
sell you other stuff price leader.
They were accused of dumping.
Price controls, limitations on markups or markdowns
o Political risks like in Venezuela when they give you a ceiling
o You at ake oe tha this  pofit
Warranty and after-sales exposure
o If you are a manufacturer and you sell interstate, you have to keep replacements
for an x amount of time say like you sell coffeemakers Nespresso(a local coffee
machine not Nespresso but one made in the US) needs to keep replacements for
5 years after they discontinue the product in case of anything.
Rules of competition on:
o Collusion
Manufacturers meet secretly and set prices
o Buyer discrimination
Against age, race, etc.
o Promotional methods
find more resources at
find more resources at
Unlock document

This preview shows pages 1-2 of the document.
Unlock all 5 pages and 3 million more documents.

Already have an account? Log in
Here in the US, comparative advertising: you mention your competitor by
name and you say mine is better than yours
You cannot do that in South America or France.
o Variable pricing
Changing different prices for different areas, Publix in coral gables and
Hoestead: ut the a sa its because of different taxes or
o Exclusive territory agreements (gray marketing)
Exclusive territories (explained detail)
Gray marketing is when you want to distribute a product overseas and
something the distributer might ask is exclusivity to the project.
When someone is not the elusie distiuto of a out, thell ig
in some other products and thats grey marketing
Non-authorized distributer sells their product in a region where there is
an authorized distributer.
Problem for the manufacturer:
Distributer in Argentina is losing their business to the distributers
in Florida so the Argentinians quit.
Catepilla had a peaeful deisio ad issued a e ule:
o Each individual distributer can only service tractors that
are physically in their territory.
o They started checking with serial number.
What is legal/illegal about this?
o Supreme court has declared that it is legal.
o You as a manufacturer sell to somebody something in your
territory, they can do whatever they want with it bc you
at tell the hat to do ith it
(No class Oct. 7)
Bases for Legal systems
Common Law
o Derived from English law
o England, US, Canada and other influenced English countries.
o As a itl akete, its ot the sae la eehee.
o Basis for common law:
Past practices: previous law passed by a previous court (previous cases
precedents supreme court)
Legal precedents set by courts
o Intellectual property law: first to use
Who used it for the first time and who is continuing to use it?
find more resources at
find more resources at
Unlock document

This preview shows pages 1-2 of the document.
Unlock all 5 pages and 3 million more documents.

Already have an account? Log in

Get OneClass Notes+

Unlimited access to class notes and textbook notes.

YearlyBest Value
75% OFF
$8 USD/m
$30 USD/m
You will be charged $96 USD upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.