Developing the International Marketing Plan

• Before you can develop international plan, you

must identify and understand the

target market• Determine if there is or is not a

global market

Is there a global homemaker market?

• Global market segments present important opportunities for standardized marketing

• Are there any global markets Global youth segment Global elite

International Target Marketing

Defined as the process of identifying and focusing on those

international market segments that the company can serve most effectively and designing products, services, and marketing programs with these segments in mind.

International Segmentation

The process of identifying countries and/or

consumers that are similar with regard to key traits, such as product-related needs and wants, that would respond to a product and related marketing mix.

MUST BE performed at country level AND at the consumer level.

Effective International Segmentation Requirements (contd.)

• Measurability: The ability to estimate the size of the market. Important questions:

- Are population statistics and economic development data reliable?

- Are consumers accessible for data collection? Are they willing respondents?

Effective International Segmentation Requirements (contd.)

• Substantiality: The extent to which the international market is large

enough to warrant investment. Important questions:

- What is the segment’s growth potential?- What is the projected per capita income in the

following ten years?- Are population statistics and economic development

data reliable?

Effective International Segmentation Requirements (contd.)

• Stability over time: The extent to which international consumer preferences

are stable over time. Important questions:

- What is the likelihood that the segment will change as a result of a rapidly changing environment?

- How often should we re-evaluate our market segment?

Effective International Segmentation Requirements (contd.)

• Accessibility: The ability to communicate with the international target

market. Important questions:

- Are population statistics and economic development data reliable?

- Are consumers willing respondents for marketing research studies?

- Is it possible to effectively communicate with the target consumers?

Effective International Segmentation Requirements (contd.)

• Actionability: The extent to which the international target market is responsive

to the marketing strategies used. Important question:

- Will consumers buy the company’s product?

• Differential response: The extent to which international market segments respond

differently to marketing strategies. Important questions:

- Can we distinguish segments from each other? Do consumers have different preferences in this international market?

Bases for Segmentation

• Demographic: Age Occupation Education Income Ethnicity Race Nationality Life-cycle stage Social class

Bases for Segmentation (contd.)

• Demographic (contd.) Psychographic: lifestyles, values, attitudes, interests, opinions

- Hofstede dimensions: Power-distance Masculinity-femininity Uncertainty avoidance Individualism-collectivism

-

Bases for Segmentation (contd.)

• Benefit Segmentation Example: Cooking oil markets can be

segmented based on benefits sought—olive oil is targeted to consumers who seek health benefits.

• Geographic Segmentation

Bases for Segmentation (contd.)

• Usage and User status (contd.) Usage

- Nonusers- Occasional users- Medium users- Heavy users

User Status- User of competitors’ products- Ex-users- Potential users- First-time users- Regular users

Describe the target market discussed in the article “Women in Italy Like To Clean The Quick and Easy,” Deborah Ball, WSJ, April 25, 2006, p. 1.

Demographic

Geographic

Psychographic

Benefit

User Status

What marketing decision(s) did P&G make regarding its Swiffer product line? Were they effective? Were they standardized or adapted?

• http://www.swiffer.net/index_flash.shtml

What marketing decision(s) did Bosch, Whirlpool, Electrolux AB and Reckitt make regarding their dish washing machine product line? Were they effective?

Were they standardized or adapted?

What marketing decision(s) did Unilever make regarding its Cif product line? Were they effective? Were they standardized or adapted?• http://www.unilever.com/ourbrands/homecare/default.as

p

The arrival of Cif in 1969, first launched in France and later rolled out in 45 countries, heralded the end of scouring powders. Initially, the brand focused on cream cleansers for the kitchen and bathroom, underpinned by its famous 'Skater' ads, which highlighted how scouring powders

can 'scratch like skates on ice'

What marketing decision(s) did Bosch, Whirlpool, Electrolux AB and Reckitt make regarding their dish washing machine product line? Were they effective? Were they standardized or adapted?

http://www.bosch.com/content/language2/html/index.htm

Were P&G’s Target Market Decisions

• Differentiated? Identify or create market segments desiring different

product benefits and target each segment with a different brand and different marketing strategies

• Concentrated? Select only one market segment and target it with a single

brand. Example: Mont Blanc pens

• Undifferentiated? Aim the product at the market with a single strategy

regardless of the number of market segments. Example: powder milk, beans

How was Swiffer duster positioned in Italy?

Attribute/Benefit Price/Quality Uses or Application Product User Product Class Competition

International Target Marketing Is Used by Companies to: Identify consumer segments with similar traits. Select segments company can serve efficiently. Develop products tailored to each segment. Offer products to the target market, communicating through

the marketing mix, product traits and benefits that differentiate it in the consumer’s mind.