Competing in the global marketplace.

The CEO should not consider using the U.S. message as a marketing tool to reach the Brazilian market. The first is that market entry advertising does not conform to existing market methods. The purpose of market entrance advertising in the American market is generate demand. In Brazil, however, it is the goal to promote the brand. A second reason is that there’s a large cultural gap between both markets. According to Doole and Lowe (2012), Brazilian advertisements should reflect their culture and beliefs. It is important to build a relationship with locals when you enter a new country. This will encourage brand ownership (Hill 2008). Brazilians can see the corporation as foreign if it uses an American message. As such, it is important that the message includes a local celebrity to help people identify with the organisation. However, delegating price decisions to Brazilian managers in Brazil has many disadvantages. This strategy initially would centralize the company’s pricing structure (Szymanski and Bharadwaj; Varadarajan 2013, 2013). Brazil may adopt a different pricing model, which could lead to consumers being overcharged and revenue per unit decreasing. It is therefore essential that goods are priced using the existing system. The parent firm should fix pricing to avoid the threat of currency change. Brazil’s status of a developing nation means that the value of the local currency might be less than the price in the United States. Local management may find this confusing. Finally, the company imports products from the United States. This means that there are significant factors which can impact the product’s price and local management should be involved.

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