Learning Objectives

Differentiation b/w Local and foreign marketUnderstanding of communication & Promotion

INTRODUCTION• Export marketing is not just a process to find

buyers/importers and approach them with the expectation of export orders but a well planned strategic marketing process one should follow and performed well to get success in International Market.

• major export marketing efforts get failed due to lack of implementing strategic marketing action plan.

Export marketing

Cross culture communication

Promotion &Communication

Importance of Communication

Helpful in Buyers & Sellers• Decision power• Product/service education• Open door policy• Two way communication.

Exporter’s massage

sent (encoded)

Foreign buyer’s

receipt of massage

(decoded)

Dimensions of attitude & Behavior on Communication

Hierarchy SequenceTraditional learning---------------Learn-feel-DoLow involvement------------------Learn-Do-FeelDissonance attribution----------Do-feel-learnDependency------------------------Feel-Do-Learn

Promotion & CommunicationDecisions

Decisions are taken on the basis of• What Massage?• What Communication Media?• How Much Effort Or Money to Spend?

Push Vs Pull strategy

Factors Affecting Promotion Mix

1. Funds Availability

2. promotion Cost

3. Degree of

competition

4. type of product

5. Entry Mode

6. Market type.

7. Non monitory

resources

8. Market size

9. Media availability

Export Marketing As Communication(verbal & Non verbal)

1. Verbal( Spoken or written)

2. Non verbal (gestures & Acts )

Non verbal (gestures & Acts )Communication

1. Appearance2. Chornemics3. Haptics4. Kinesics5. ocukesics

6. Olfaction7. Oreentation8. Paralinguistic's9. Posture 10. proxemics

Communication & Promotion Blunders• Blunders /mistakes They Happen due to Differences :

• Language • Culture• Norms • Values• Incomplete/weak plan

What are the After Effects?• Loss

Alternative Techniques of promotion

Alternative Techniques of promotion

1. Personal selling2. Sales Promotion3. Publicity4. Advertising5. Direct Marketing

1. Personal selling

“Person to person Communication between a companies representative and perspective

buyer.”Domestic & International Personal selling differentiate on the basis of behavior.Personal selling tools include

– Personal presentation – Trade shows (exhibitions and fairs. Le marche)

Functions of Sales People in international scenario

(Personal selling)

• The Actual selling Activity• Customer Relation• Information Gathering And Communicating.

Stages Of personal Selling

1.Prospecting2.Pre approaching

3.Problem solving 4.Approaching

5.Presenting 6.Handling Objections

7.Closing The sale 8. Follow-up

Personal Sellingis best in Situations Like:

• Restrictions on Advertising• Closed Media Facilities• Strong & rigid Govt. Hold • Risky Political Situations.

2. Sales Promotion

“This includes all sales activities that supplement & Strengthen personal selling & advertising.”

• Short-term incentives to encourage the purchase or sale of a product or service

• Sales promotion is done with vast array of devices .

Sales Promotion devices(best for export Marketing)

1. Foreign catalogs.2. Samples.3. House origin & company published

Magazines.4. Films Slides & personal computers.5. Trade fairs Exhibitions.6. Point Of Purchase materials.7. Consumer promotion materials.

Sales Promotion devices(best for export Marketing)

Foreign catalogs

• Ever Present• Silent• Accurate• All knowing

Foreign catalogs (Purpose )1. Creates interest & Attract leadership2. Mirror the personality of manufacturer or

Exporter 3. Carry the reputation of the manufacturer or

Exporter .4. Make buying easy5. Create the Desire for ownership6. Supply all the facts that a sales person would

present in person.

Sales Promotion devices(best for export Marketing)

Samples

“Means of avoiding distance business difficulties”Sampling types• Direct Sampling• Residential Agents, branch office mangers&

traveling Sales People.

Sales Promotion devices(best for export Marketing)

House organ & company published Magazines

• Gives knowledge on competitors strategy• good will building & Institutional Advertising.

Sales Promotion devices(best for export Marketing)

Films ,Slides & personal computers

Motion picture & video tape• Combining the illustration with spoken words• Expensive• Time Consuming

Slide films• Less Expensive• Time Effective

Personal Computers• Easy access• Wider Range

Sales Promotion devices(best for export Marketing)

Trade fairs Exhibitions

“A concentrated exhibition of the products of many manufacturers/exporters. “

Types• The broad general • Specialized

Sales Promotion devices(best for export Marketing)

Point Of Purchase materials

Sales Promotion devices(best for export Marketing)

Consumer promotion materials

Sales Promotion, Pro and Con

Advantages:•Motivation method for special efforts•Short-term sales increase•Defined target audience•Defined role/objectives•Indirect roles (e.g., wider distribution)

Disadvantages:•Only short-term•Hidden costs•Confusion•Price cutting -Brand image•Postponement effect•Significant government regulation•Lack of effectiveness sometimes (learning effect)

4. Publicity & Public Relations

Publicity: A special form of public relations that involves news stories about an organization or its products.

Public relations: A planned communication effort by an organization to contribute to generally favourable attitudes and opinions toward an organization and its products.

PR tools– Press releases– Sponsorships (Mc Donald’s and the hospital 53753)– Special events (Vodafone and the charity complex)

Activity

• Snatch a Picture

4. Advertising

“Any paid form of non-personal presentation and promotion of ideas, goods, or services”

Advertising categories •Short Run (Awareness) •Long Run (Brand Establishment)

Profiles of major media types

Print - Newspaper

Flexibility; timeliness; good local marketcoverage; broad acceptability; believability

Short life; poor production quality

Television Good mass-market coverage; low cost per exposure; combines sight, sound, and motion; appealing to the senses

High absolute cost; high clutter; less audience selectivity

Radio Good local acceptance; high geographic and demographic selectivity; low cost

Audio only; low attention (“half heard”); fragmented audiences

Print - Magazine

High geographic and demographic selectivity; credibility and prestige; quality production; long life; good pass-along

high cost; no guarantee of position

Outdoor Flexibility; high repeat exposure; low cost; low message competition; good positional selectivity

Little audience selectivity; creative limitations

Online High selectivity; low cost; immediacy; interactive capabilities

Small, demographically skewed audience; low impact; audience controls exposure

Medium AdvantagesMedium Advantages Limitations Limitations

Advertising

• Climate For Advertising• Foreign Media• International media• Media mix

Climate For Advertising“Its result of factors present in socio-economic Cultural

System”Dimensions of the Climate for Advertising• Economic system• Social culture• Cultural Background• Religious climate• monopoly• Censorship• Restrictions on advertising

International media

“Vary considerably from Country-to-country”Print Media• Business Consumer Magazines• News PapersElectronic Broadcast Media• Radio • Television• Internet

Foreign Media

“That circulates & Seen /heard in 2 or more nations.”

1. Print Media2. Electronic Broadcast Media3. Direct marketing

Media mix

Effectiveness in accomplishing advertising objectives which are:

1. Reach2. Frequency3. Continuity4. Size5. Availability

5. Direct marketing

• Direct communications with carefully targeted individual consumers-the use of telephone, mail, fax, e-mail, the internet, and other tools to communicate directly with specific consumers

• Direct marketing– Sending catalogues– Telemarketing

Export Promotion Strategy Involves

• Setting promotional objectives.• Deciding on the types of advertising &

promotional messages.• Selecting media.• Determining how much time, effort &

money to spend.

Export Promotion Strategy Levels

• Enterprise level• Industry Level • Individual level

Objectives of Export Promotional Programs & Strategy

• Specific Attainable goals• Must accomplish specific objective

– To convince buyers of the durability of a product– To illustrate the effectiveness of the product in

satisfying a particular want.– To create an image of the company as a

dependable supplier.

Steps of strategy formulation

• Assessment of size& extent of market• Customer behavior• Buying habits• Competitive circumstances

Export Strategy CategoriesChipsy BMW

Planning advertising Strategy

Planning phase is facing two major Issues• Standardization VS Adaptation• Advertising Transference

Standardization And Adaptation

Standardization versus Adaptation

• The fundamental international product decision after the decision to internationalize.

• International market approach alternatives to adaptation– Sell the product as it is internationally.– Modify product for different countries or regions.– Design new products for foreign markets.– Incorporate all differences into one product and introduce

it globally.

Factors Encouraging Standardization

• Economies of scale in production• Economies in product R&D• Economies in marketing• “Shrinking” of the world marketplace and

increasing economic integration• Global competition

Factors Encouraging Adaptation

• Differing use conditions• Government and regulatory influences• Differing consumer behavior patterns• Local competition• True to the marketing concept

Strategic Adaptation to Foreign Markets

LowLow

HighHigh

Industrial/ Technology IntensiveIndustrial/ Technology Intensive ConsumerConsumer

Need for Need for AdaptationAdaptation

DegrDegree of ee of CultuCultu

ral ral GrouGroundinndin

gg

Nature Nature of of

ProductProduct

Source: Adapted from W. Chan Kim and R. A. Mauborgne, “Cross-Cultural Strategies,” The Journal of Business Strategy 7

(Spring 1987): 31; and John A. Quelch and Edward J. Hoff, “Customizing Global Marketing,” Harvard Business Review 64

(May-June 1986): 92-101.

Factors Affecting Adaptation

Regional, Regional, Country, or Country, or

Local Local CharacteristicsCharacteristics

ProductProductCharacteristicsCharacteristics

CompanyCompanyConsiderationsConsiderations

Decision to Alter the Domestic ProductDecision to Alter the Domestic Product

Advertising Transference

Advertising Transference

“Entry of marketing activity or strategy in a foreign market”

factors of Advertising Transference

• influences of the appeal• mechanics of encoding and decoding• the silent languages

Extension Adjustment Combinations.

• A simple model of transference assumes that 2 countries are either the same or different for each of These factors &

• this leads to 8 different types of Extension Adjustment Combinations

Extension Adjustment Combinations.

Complete Extension

(Nike)

Symbolic Extension.

(Vicks)

Literal Extension.

(Telenor)

Symbolic and Literal Extension.

(Coca Cola)

Simple Adjustment.

(Scooty)

Symbolic Adjustment.

(Instant coffee)

Literal Adjustment.

(Gillete)

Complete Adjustment.

Complete Extension (Nike)China,UAE,India

Symbolic Extension.(Vicks)

Literal Extension.(Telenor)

Simple Adjustment.(Scooty)

Symbolic and Literal Extension.(Nescafe)

Literal Adjustment.(Gillete)

Complete adjustments

Management Issues

Management IssuesControl over planning promotional strategy depends on many factors such as objectives of promotional programs, availability of information on the relevant possible promotional forms and media selection.Broadly control is divided into•Centralized Control•Decentralized Control

References

• http://www.unescap.org/tid/publication/tipub2107_chap3.pdf

• www.wikipedia.com• www.youtube.com• www.slideshare.net• http://www.picsearch.com/• TEXT Book