International Marketing

INTERNATIONAL MARKETING

PHASES OF INETRNATIONAL MARKETING

INTERNATIONAL MARKET INTERNATIONAL MODE OF SEGMENTATION TARGETING ENTRY SELECTION

MACROENVIRONMENT

INTERNATIONAL MARKET INTERNATIONAL RESEARCH 4PS

MICROENVIRONMENT

ORGANISATIONAL MOTIVATORS OBSTACLES FRAMEWORK

COMPANY

International marketing concepts

• Original classification

– Ethnocentric– Policentric– Regiocentric– Geocentric

International marketing concepts

• New classification

– Domestic market extension concept– Multi domestic concept– Global marketing concept

Companies

• Domestic companies

• International companies

• Multinational companies

• Transnational companies

Can we control anything?

• Controllable elements

• Domestic, not controllable elements

• Foreign, not controllable elements

MOTIVATORS

• Dynamic Management

* New management or

* management already

working for the

company

• Factors

* Proactive or

* Reactive factors

PROACTIVE FACTORS

• Profit• Unique product• Unique technology• Unique information• Excess capacity• Economies of scale

REACTIVE FACTORS

• Competitors• Overproduction

– Safety valve eff.

• Domestic market

is saturated• Tax incentives• Closeness to the

customers

OBSTACLES OF INTERNATIONALISATION

• Internal

• External

• Methodological

INTERNAL OBSTACLES

• Lack of competencies (management, marketing, language)

• Lack of infrastructure

• Willingness to collaborate and to accept new ideas

• etc.

EXTERNAL OBSTACLES

• Unforeseeable events coming

* from the domestic marketplace (competitors, legal entities, consumers, etc)

* from the foreign marketplace

(political, legal, cultural, economic, etc.)

METHODOLOGICAL OBSTACLES

• Static analyses

• Average counting

• Quantifying everything

• Rigidity in terms of places

Decision point

• Does it worth?

• Are the motivators strong enough?

• Can we overcome the obstacles?

IF NOT:

• Reformulate the goals or

• Initiate changes inside the company

IF YES

The company is ready to define its international marketing strategy

Including the

1) the macroenvironment

2) the microenvironment

and

3) the methodology

The macroenvironment

• Geographical environment

• Political environment

• Legal environment

• Economic environment

• Technological environment

• Cultural environment

Geographical environment

• Climate and topography

• Raw materials

• Environmental protection

• Urbanisation - suburbanisation - Reurbanisation

• Population

Political environment

• Political system

• Changes of the government

• Political philosophy

• Possible problems with respect to the property: - Confiscation - Nationalisation

- Expropriation - Domestication

How to protect against the political risks?

• Good selection of the country

• Good selection of the industry

• Good selection of the partner

• Licensing or franchising?

• Planned domestication

Economic environment

• Globalisation

• Localisation

• Interdependency

• Internationalisation of markets, companies and products

• Diversification

• Assortment of products

Economic environment

• Price equalisation

• Information

• Partnerships

• Belongings

• Infrastructure

Technological environment

• Role of human resource

• Changes in power

• R and D costs

• Innovations

• Launching the products

• Partnerships

Cultural environmentWhat is culture?

Three modes of defining culture:

• General aspects• Enumeration• Classification

Defining culture by general aspects

• Something learnt

• The elements are linked to each other

• Inherited

• Cannot be changed revolutionary, only evolutionary

Defining culture by general aspects

• A country is not a culture

• Stereotypes

• Changing the culture

• Having more cultures

Defining culture by enumeration

• Herskovits’s enumeration:

– Material culture– Social institution– People and the universe– Estetics– Language

Defining culture by classification

• Context of communication– high context cultures– low context cultures

• explicit message

• implicit message

• Hofstede’s classification– 4 dimensions

Cultural differences in the evedyday life

• Ideologist - Pragmatic cultures

• Associative and Abstractive cultures

• Nature of the people

• Nature and the people

• Individualist and Collectivist cultures

• Active and Passive cultures

• Time

Cultural differences in the evedyday life

• Place

• Communication

• Values

• Knowledge

• Beliefs

• Gifts

• Food

Cultural differences in business

• Structure of decision making

• Participants

• Objectives of the participants

Why are we against the other cultures?

• Cultural racism

• Cultural resistance

• Cultural opposition

How to integrate this knowledge into the strategy?

• Congruent strategy

• Planned strategy

• Not planned strategy

Customs

• Cultural imperatives

• Cultural exclusives

• Cultural adiaphora


• COMPANY WITH INTERNATIONAL PLANS

• MOTIVATORS

• OBSTACLES

• INTERNATIONAL MARKET(ING) RESEARCH– MACRO AND MICRO ENVIRONMENT– METHODOLOGY

MACRO ENVIRONMENT

• GEOGRAPHIC

• POLITICAL

• LEGAL

• TECHNOLOGICAL

• ECONOMIC

• CULTURAL

MICRO ENVIRONMENT

• COMPANY

• COMPETITORS

• CUSTOMERS

• SUPPLIERS

• PARTNERS

• NEW ENTRANTS

COMPANY

• STRATEGY• MISSION, VISION• COMPREHENSIVE

SWOT ANALYSIS• CLARIFYING THE

GOALS

COMPETITORS

• IDENTIFYING THEM

• AREA OF OPERATION

• STRATEGY• STRONG AND

WEAK POINTS• TACTICS

CONSUMERS

• IDENTIFYING THEM

• PREFERENCES, TASTES

• DEMAND• PRODUCT, PRICE,

PROMOTION EXPECTATIONS

SUPPLIERS

• DO THEY SUPPORT OUR IDEA

• QUALITY• QUANTITY• CONDITIONS

OR• WE NEED NEW

SUPPLIERS

PARTNERS

• WILL THEY MAINTAIN THE STRONG COLLABORATION

• CAN THEY FOLLOW US

• CAN THEY ACCEPT THE NEW CONDITIONS

NEW ENTRANTS

• EASY OR DIFFICULT ENTRY

• POSSIBLE NEW CONDITIONS IN THE INDUSTRY

METHODOLOGY OF INTERNATIONAL MARKET

RESEARCH

• DIFFERENCE BETWEEN MARKET AND MARKETING RESEARCH– DYNAMIC OR STATIC ANALYSIS– QUANTITATIVE OR QUALITATIVE

INFORMATION– USE OF INFORMATION

THE PROCESS OF THE RESEARCH

• IDENTIFICATION OF THE OBJECTIVE OR THE PROBLEM

• IDENTIFICATION OF THE SOURCE OF INFORMATION AND THE TECHNIQUE OF INFORMATION COLLECTION

• INFORMATION COLLECTION

• INTERPRETATION OF THE INFO.

• PRESENTATION OF THE RESULTS

OBJECTIVE OR PROBLEM

• CONTINUOUS RESEARCH

• PERIODIC RESEARCH

• MICRO ENVIRONMENT

• MACRO ENVIRONMENT

SOURCES OF INFORMATION AND TECHNIQUE OF INFO. COLLECTION

P R IM AR Y INFOR M ATION SECONDAR Y INFOR M ATION M OSAIC INFOR M ATION

SOUR CES OF INFOR M ATION

PRIMARY INFORMATION

• OWN OBJECTIVE OR PROBLEM

• METHODOLOGY DEFINED BY US

• DATA COLLECTION IS PERFORMED BY OUR FIRM OR EMPLOYEES

PRIMARY INFORMATION

ASKING P EOP LE OB SER VATION EXP ER IM ENTATION

P R IM AR Y INFOR M ATION

ASKING PEOPLE

• WHOM TO ASK?– INDIVIDUALS– ORGANISATIONS– EXPERTS

• HOW TO ASK?– PERSONALLY– POST– TELEPHONE– COMPUTER– COMBINED

ASKING PEOPLE

• WHAT TO ASK?– OMNIBUS

– SPECIALISED

QUESTIONNAIRE

ASKING PEOPLEPROBLEMS

• NOT WILLING TO ASK

• NOT ABLE TO ASK

• HOW AND WHAT TO ASK

• HOW TO ORGANISE

• HOW TO INTERPRET

• SAMPLING

• LANGUAGE SKILLS

• MULTICULTURAL ASKING

OBSERVATION

• OBSERVE CONSUMERS OR USERS

• PASSIVE PARTICIPATION

• USED USUALLY TOGETHER WITH OTHER FORMS

EXPERIMENTATION

• LABORATORY CONDITIONS

• ONE PARAMETER IS CHANGED

• OTHER VARIABLES ARE KEPT „CETERIS PARIBUS”

• EXPENSIVE!

SECONDARY INFORMATION

• DIFFERENT OBJECTIVE OR PROBLEM

• METHODOLOGY DEFINED BY SOMEONE ELSE

• DATA COLLECTION PERFORMED BY SOMEONE ELSE

• INTERNAL AND EXTERNAL INFORMATION

INTERNAL INFORMATION

• LETTERS

• ORDERS

• DOCUMENTS PREPARED BY THE COMPANY

• CERTIFICATES

EXTERNAL INFORMATION

P R ODUCED ON THE DOM ESTIC M AR KETAVAILAB LE ON THE DOM ESTIC M AR KET

P R ODUCED AB R OADAVAILAB LE ON THE DOM ESTIC M AR KET

P R ODUCED AB R OADAVAILAB LE AB R OAD

EXTER NAL INFOR M ATION

SECONDARY INFORMATIONPROBLEMS

• NOMENCLATURE IS DIFFERENT

• QUALITY OF THE INFORMATION

• QUALITY OF THE METHODOLOGY

MOSAIC INFORMATION

• IS COLLECTED ADDITIONALLY

• SIDE INFORMATION

• IS COLLECTED TO ACTUALISE AND TO COMPLETE THE ALREADY POSSESSED INFORMATION

COLLECT INFORMATION

INTERPRETATION OF THE INFORMATION

• ANALYSE THE INFORMATION GAINED

• INTERPRET THE INFORMATION

• WORK WITH NUMBERS AND FORMULATE ALTERNATIVES

• EXPLAINE THE GIVEN ALTERNATIVES

PRESENTATION OF THE RESULTS

• DISTRIBUTE THE INFORMATION TO THE USERS

• EXPLAIN THE ALTERNATIVES

• CONDUCT A TWO DIRECTION COMMUNICATION

• HELP THE USERS INTERPRET THE INFO.


• COMPANY

• MOTIVATORS

• OBSTACLES

• INTERNATIONAL MARKET(ING) RESEARCH

• INTERNATIONAL MARKET SEGMENTATION AND TARGETING

OBJECTIVE OF INTERNATIONAL MARKET

SEGMENTATION

• EFFECTIVE AND EFFICIENT INTERNATIONAL MARKETING PLAN

• ABILITY TO DIFFERENCIATE THE COMPANY FROM THE COMPETITORS

• POINT TO THE NEED TO CREATE A NEW SEGMENT

PROCESS OF INT. MARKET SEGMENTATION

• IDENTIFICATION OF THE LEVEL OF THE MARKET TO BE SEGMENTED

• DETERMINATION OF THE VARIABLES USED FOR SEGM.

• CHOICE OF THE METHOD OF INT. MARKET SEGMENTATION

• IMPLEMENTATION OF INT. MARKET SEGMENTATION

• CHECKING THE VALIDITY OF RESULTS

IDENTIFICATION OF THE LEVEL OF THE MARKET TO BE

SEGMENTED

• LEVEL OF THE PRODUCT

• LEVEL OF THE PRODUCT CATEGORY

• LEVEL OF THE NEED

• LEVEL OF THE MONEY

VARIABLES OF SEGMENTATION

• VARIABLES THAT DESCRIBE THE OBJECT OF THE SEGMENTATION

• VARIABLES THAT DESCRIBE THE RELATIONSHIP BETWEEN THE OBJECTS OF THE SEGMENTATION AND THE MARKETING MIX ELEMENTS

VARIABLES OF THE OBJECTS

• DEMOGRAPHIC

• GEOGRAPHIC

• POLITICAL

• LEGAL

• ECONOMIC

• CULTURAL

• PSYCHOGRAPHIC

A CULTURE BASED CLUSTERING

17 EUROPEAN COUNTRIES ARE SEGMENTED

HOFSTEDE DIMENSIONS

• INDIVIDUALISM

• UNCERTAINTY AVOIDANCE

• POWER DISTANCE

• MASCULINITY

The 17 European countries

• Austria - Switzerland

• Belgium - Portugal

• France - Denmark

• The Netherlands - Sweden

• Spain - Norway

• Italy - Finland

• Turkey

• Greece

• Germany

• GB

• Ireland

THE CLUSTERS

CLUSTER 1.• IND: MED-HIGH• UNC: MED• POW: SMALL• MAS: HIGH

• AUSTR., GER., SWITZ., ITALY, GB., IRELAND

CLUSTER 2.• IND: VAR.• UNC:STRONG• POW:MED• MAS: LOW-MED

• BEL., FR., GREE., PORT., SP., TURKEY

THE CLUSTERS

CLUSTER 3.• IND: HIGH• UNC: WEAK, MILD• POW: SMALL• MAS: LOW

• DEN., SWEDEN, FIN., NETHER., NORWAY

GLOBAL SEGMENTS

• AGRARIAN HEARTLANDS

• BLUE COLLAR SELF SUFFICIENCY

• CAREER FOCUSED MATERIALISTS

• DE-INDUSTRIAL LEGACY

• EDUCATED COSMOPOLITANS

• FARMING TOWN COMMUNITIES

• GREYS, BLUES SEA, MOUNTAIN

• HARDENED DEPENDENCY

• INNER CITY MELTING POINT

• LOWER INCOME ELDERLY

• MIDSCALE METRO OFFICE WORKERS

• NON-PRIVATE RESIDENCES

• OLD WEALTH

• SHACK AND SHANTY

PSYCHOGRAPHIC SEGMENTATION FOR THE

BEER MARKET• SPORTIVE

• MASCULINE

• TAKES NO RESPONSIBILITY

• NO CONSERVATISME

„YOU ONLY GO AROUND ONCE IN LIFETIME”

VARIABLES FOR RELATIONSHIP

OBJECTS AND PRODUCT

• BUYING SITUATION

• LOYALTY

• MOTIVATION

• USER STATUS

• USAGE RATE

• ATTITUDE


OBJECTS AND PRICE

• LOW, MEDIUM OR HIGH PRICE PREFERENCES

• PRICE SENSITIVITY


OBJECTS AND PROMOTION

• RATIONAL OR EMOTIONAL MESSAGES

• MEDIA

• MOTIVATION


OBJECTS AND PLACE

• SHOPPING PLACE PREFERENCES

• DISTRIBUTION CHANNEL PREFERENCES

DO ANY BEST SOLUSTIONS EXIST?

NO!

IT ALWAYS DEPENDS!

BUT WE HAVE CRITERIA!

• MEASURABILITY

• ACCESSIBILITY

• STABILITY IN TIME

• RELATIONSHIP BETWEEN THE OFFER AND THE VARIABLE

• ACCEPTABLE SIZE

• STRICT DIFFERING OF SEGMENTS

METHODS OF INT. MARKET SEGMENTATION

• METHOD THAT ACCEPTS THE EXISTENCE OF NATIONAL BOARDERS

• INTERMARKETING SEGMENTATION

• MICROSEGMENTATION

METHOD THAT ACCEPTS THE EXISTENCE OF BOARDERS

2-PHASE SEGMENTATION:

• FIRST THE GROUP(S) OF COUNTRIES IS (ARE) SELECTED

• SECOND THE GROUPS OF INDIVIDUALS OR ORGANISATIONS ARE SELECETD

ADVANTAGES OF THE METHOD

• SYSTEMATIC• IN CASE OF ERROR

WE CAN CORRECT EASIER

• COUNTS WITH THE DIFFERENCES

DISADVANTAGES OF THE METHOD

• SEPARATES COUNTRIES

• NO POSSIBILITY FOR STAN-DARDISATION

• NO POSSIBILITY FOR LEARNING

• COSTS ARE HIGH

INTERMARKETING SEGMENTATION

• REGARDS THE WHOLE WORLD AS ONE MARKET

• BASED ON (A) WELL SELECTED VARIBLE(S) WE CAN FIND GROUPS OF PEOPLE WHO HAVE SIMILAR BEHAVIOUR


• POSSIBILITY TO TRANSFER KNOWLEDGE

• COMPARE THE BEHAVIOUR


• DOESN’T COUNT WITH THE DIFFERENT BACKGROUND OF THE COUNTRIES

• ENTIRE REPETING IN CASE OF ERROR

• COSTS ARE HIGH

MICROSEGMENTATION

• DURING INTERNATIONAL MARKET SEGMENTATION SEGMENTS OF ONE OF FEW PERTICIPANTS ARE CREATED


• BETTER FOCUS• SPECIALISATION• EFFECTIVE

MARKETING PLAN


• DANGEROUS• APPLICABLE ONLY

ON THE MARKET OF ORGANISATIONS

IMPLEMENTATION OF INT. MARKET SEGMENTATION

• ON THE SELECTED LEVEL OF THE MARKET

• WITH THE SELECTED METHOD

• ON THE BASIS OF THE SELECTED VARIABLES

HOW TO EVALUATE THE OBJECTS ?

TWO TECHNIQUES

• PARALLEL EVALUATION

- MATRIX FORMAT

• SYSTEMATIC EVALUATION

CHECKING THE VALIDITY OF THE RESULTS

• APPLYING MORE THAN ONE STATISTICAL METHOD, EG.– CLUSTER ANALYSIS + SPLIT HALF

METHOD

• REPEATING THE PROCESS PERIODICALLY


• COMPANY

• MOTIVATORS

• OBSTACLES

• INTERNATIONAL MARKET(ING) RESEARCH

• INTERNATIONAL MARKET SEGMENTATION AND TARGETING

INTERNATIONAL TARGETING

• AFTER THE CREATION OF THE SEGMENTS

• WE SELECT ONE OR MORE SEGMENTS

• TO WHICH WE WILL PAY ATTENTION

INTERNATIONAL MARKET SEGMENTATION AND TARGETING

STRATEGIES

• UNDIFFERENTIATED STRATEGY

• DIFFERENTIATED STRATEGY

• CONCENTRATED STRATEGY

• MULTISEGMENTATION STRATEGY

• NICHE STRATEGY


• COMPANY

• MOTIVATORS AND OBSTACLES

• INT. MARKET(ING) RESEARCH

• INT. MARKET SEGMENTATION

• MODES OF ENTERING THE INT. MARKETS

MODES OF ENTERING FOREIGN MARKETS

• THE CHOICE DEPENDS ON THE – RISKS– COSTS– CONTROL– PRODUCT/SERVICE– MANAGEMENT– SITUATION - OPPORTUNITIES OR

THREATS

THE MODES OF ENTRY

• PRODUCTION IN THE DOMESTIC MARKET

• SELLING IN THE FOREIGN MARKETS

• MODES

– DIRECT EXPOTRING

– INDIRECT EXPORTING

• PRODUCTION AND SELLING ON FOREIGN MARKETS

• MODES

– LICENCING

– CONTRACTUAL MANUFACTURING

– FRANCHISING

– JOINT VENTURES

– FDI


• COMPANY

• MOTIVATORS AND OBSTACLES

• INT. MARKET(ING) RESEARCH

• INT. MARKET SEGMENTATION

• MODES OF ENTRY

• INT. 4 PS

INTERNATIONAL PRODUCT POLICY

• PLANNING OF THE PRODUCTS (SERVICES)

• DEVELOPING THE PRODUCTS (SERVICES)

• MANAGING THE PRODUCTS IN THE FOREIGN MARKETS

PLANNING THE OFFER

• SAME PRODUCTS (SERVICES) - GLOBAL

• ADOPTED PRODUCTS (SERVICES) - MODIFIED

• OR NEW PRODUCTS (SERVICES)

GLOBAL STRATEGY

• ONLY THE BIGGEST AND MOST AGGRESSIVE COMPANIES

• ECONOMIES OF SCALE

• GLOBAL IMAGE

MODIFIED STRATEGY

• REASONS FOR MODIFYING THE STRATEGY

• HOW TO CHANGE

• WHAT TO CHANGE

REASONS FOR CHANGE

DIFFERENCES IN• CUSTOMS• USAGE OF THE PRODUCTS/SERVICES• LEGAL PLATFORM• QUALITY REQUIREMENTS• INFRASTRUCTURE• CULTURE• BIOLOGICAL PARAMETERS

HOW TO CHANGE

• INTERNAL CHANGE

MATERIAL, TECHNICAL, FUNCTIONAL CHANGE

• EXTERNAL CHANGE

QUALITY, SHAPE, COLOUR, SIZE, SERVICE

• NECESSARY CHAGE

ELECTRONIC OR LEGAL REQUIREMENTS

• OPTIONAL CHANGE

WHAT TO CHANGE

• CORE PRODUCT / SERVICE

• ACTUAL PRODUCT/ SERVICE

• AUGMENTED PRODUCT/SERVICE

+ ROLE OF MODULES

NEW OFFER

• TO RESPOND TO THE DIFFERENT NEEDS AND CONDITIONS

• FOR MOST OF THE COMPANIES

HOW TO DEVELOP NEW PRODUCTS AND SERVICES

• IDEA GENERATION• NEED ANALYSIS• SOCIETAL ANALYSIS• BUSINESS ANALYSIS

– MARKETIBILITY STUDY

– COMPATIBILITY STUDY

HOW TO DEVELOP NEW PRODUCTS AND SERVICES

• PHYSICAL DEVELOPMENT AND TESTING

• TEST-MARKETING– CONCEPT-TEST

– TECHNICAL-TEST

– MARKET-TEST

• LAUNCHING THE PRODUCT/SERVICE

THE NEWNESS

• NEW FOR THE COMPANY

• NEW FOR THE MARKET– CONGRUENT

INNOVATION

– CONTINUOUS INN.

– DYNAMIC INN.

– BREAKING INN.

PLANNING THE STRUCTURE

• DEPTH• WIDTH• MARKET

POSITIONING!

BRANDING

• BRAND NAMES• FAMILY OR

INDIVIDUAL BRAND NAMES

• PRIMARY AND SECONDARY BRANDS

• SELF CANNIBALISATION

BRANDING - DECISIONS

• TO USE BRAND NAMES OR NOT

• IF YES,–OWN BRAND NAM

– DISTRIBUTORS’ BRAND NAME

– OTHER

• IF OWN,– IN ONE MARKET

– IN MORE MARKETS

BRANDING - DECISIONS

• IF IN ONE MARKET– 1 BRAND NAME

– MORE BRAND NAMES

• IF IN MORE MARKETS– LOCAL BRAND

NAMES

– GLOBAL BRAND NAMES

CRITERIA OF BRAND NAMES

• PRONOUNCABLE

• RETAINABLE

• NOT MISUNERSTANDING

• SHORT

• RESULT IN POSITIVE BRAND ASSOCIATION

• WRITTEN AND ORAL FORM SHOULD BE SIMILAR

PACKAGING

• DOUBLE PACKAGING

• DIFFERENT AS,– DELIVERY

– CUSTOMS

– LEGAL REQUIREMENTS

– CULTURAL DIFF.

– ECONOMIC DIFF.

FURTHER QUESTIONS

• WARRANTY

• NOTE FOR APPLICATION

• AFTER SALE SERVICE

– SAME OR ADOPTED?

INTERNATIONAL PROMOTION POLICY

• INTERNATIONAL PLANNING

• INTERNATIONAL IMPLEMENTATION

• MANAGEING THE PROMOTIONAL STRATEGY IN INTERNATIONAL MARKETS

INTERNATIONAL PROMOTION

PROMOTION IS NOT ONLY FOR CONVINCING AND MANIPULATING PEOPLE BUT FOR INFORMING THEM AND FOR COMMUNICATING WITH

THEM AS WELL!

ELEMENTS OF PROMOTION

• ADVERTISING

• SALES PROMOTION

• PUBLICITY

• DIRECT SELLING

ADVERTISING

• STRENGTH OF SOURCE

• CREDIBILITY OF SOURCE

• PRESTIGE OF SOURCE

• HOMOPHILY

OBJECT OF ADVERTISING

• BRAND• PRODUCT• FIRM• COUNTRY

NEW PHENOMENA IN ADERTISING

• PATTERN ADVERTISING

• PAN EUROPEAN ADVERTISING

• PAN EAST EUROPEAN ADVERTISING

FACTORS TO DETERMINE

• WHAT TO SAY

– WHAT TO ADVERTISE

• HOW TO SAY IT

– RATIONAL OR EMOTIONAL MESSAGES

• WITH THE USAGE OF WHO OR WHAT TO SAY IT

– FAMOUS OR EVERY DAY PEOPLE OR THINGS

• HOW TO DETERMINE WHAT TO DO

SALES PROMOTION

• PRICE REDUCTION• SALE• CUPONS• TRIAL• PAY FOR ONE,

RECEIVE TWO• GIFT• GAME

WHEN TO USE SP?

WHEN LAUNCHING A NEW PRODUCT OR SERVICE ON THE MARKET

• TO MAKE THE PEOPLE TRY THE PRODUCT• MAKE THE PEOPLE TRY A NEW RETAIL

SHOP OR SELLING FORM• CONVINCE THE RETAILERS TO HOLD THE

PRODUCT OR OFFER THE SERVICE

WHEN TO USE SP?

• SHORT TERM EFFECT

• USED TOGETHER WITH ADVERTISING

• INFLUENCE THE TIMING OF THE BUYING

• EFFICIENCY OF THE USAGE OF SP CAN BE REDUCED IF OFTEN USED

SPONSORING

• GOOD CHOICE OF THE EVENT WHAT WE SPONSOR

• POSITIVE IN THE EYE OF THE CUST.

• CONNECTION BETWEEN THE EVENT AND OFFER

• CONN. BETWEEN THE EVENT AND TARGET MARKET

PUBLICITY

• CHEAP WAY OF MAKING THE PEOPLE TALK AND WRITE ABOUT OUR OFFER OR COMPANY

• TIMING IS OF CRITICAL IMPORTANCE

• DIRECT PAYMENT IS MISSING

DIRECT SELLING

• DIRECT - PERSONAL - COMMUNICATION

• THE CHANNEL IS THE PERSON - WHO HAS TO SELL HIM(HER)SELF

• ACTIVE PARTICIPATION IS NEEDED AS THE CHECKING OF THE CUSTOMERS’ UNDERSTANDING AND ACCEPTANCE IS NECESSARY.

INTERNATIONAL PROMOTION STRATEGIES

• PUSH

• PULL

• GRAVITATION

STANDARDISATION OR DIFFERENTIATION?

WE PREFER THE STANDARDISED VERSION, AS

• CREATIVE IDEAS

• COSTS

• SYNERGIE

• GLOBAL IMAGE

INTERNATIONAL PRICING POLICY



• INTERNATIONAL MANAGEMENT OF THE PRICES

PRICE PLANNING

• OBJECTIVE OF PRICE SETTING

• METHODS OF PRICE SETTING

OBJECTIVES OF PRICE SETTING

• PROFIT• SALES VOLUME• MARKET SHARE• IMAGE TRANSFER• IMAGE

METHODS OF PRICE SETTING

BASED ON INTUITION BASED ON CALCULATION

• OBJECTIVE ORIENTED

• DIFFERENTIATED

• SALES PROMOTION

• COST PLUS

• INTENTION ORIENTED (PEN-SKI)

• PSYCHOLOGICAL

DIFFERENTIATION OR STANDARDISATION

3 POSSIBILITIES:

• STANDARDISED

• DUAL

• DIFFERENTIATED

TECHNIQUE AND LEVEL

MANAGEING INTERNATIONAL PRICES

• MEASURE THE EFFICIENCY OF THE PRICES

• COMPARE THE RESULTS WITH THE SET OBJECTIVES

• METHODS:– MULTI VARIATE STATISTICS– MOTIVATION ANALYSIS

INTERNATIONAL DISTRIBUTION CHANNEL

POLICY



• INTERNATIONAL MANAGEMENT OFT THE CHANNELS

INTERNATIONAL PLANNING OF THE D. CH.

• DIRECT OR INDIRECT CHANNELS TO USE?

• INTENSITY OF DISTRIBUTION

• CHANNEL DESIGN

• STANDARDISED OR DIFFERENTIATED MESSAGE

DIRECT OR INDIRECT?

IT DEPENDS ON:• AVERAGE COSTS

OF DISTRIBUTING I UNIT

• DELIVERY TIME EXPECTATIONS

• PRODUCT/SERVICE• FACILITIES• CONDITIONS

INTENSITY OF DISTRIBUTION

• EXCLUSIVE

• SELECTIVE

• INTENSIVE

CHANNEL DESIGN

• MARKET COVERAGE ASPECTS

• PRODUCT CHARACTERISTICS

• CUSTOMER SERVICE ASPECTS

• PROFITABILITY

MARKET COVERAGE ASPECTS

• CUSTOMER BUYING BEHAVIOUR

• INTENSITY OF DISTRIBUTION

• CHANNEL STRUCTURE

• CONTROL

PRODUCT CHARACTERISTICS

• VALUE OF THE PRODUCT• TECHNICALITY• MARKET ACCEPTANCE• SUBSTITUTABILITY• BULK, STEWABILITY• PERISHABILITY• MARKET CONCENTRATION• SEASONABILITY• WIDTH AND DEPTH

CUSTOMER SERVICE ASPECTS

• AVAILABILITY

• ORDER CYCLE

• COMMUNICATION

PROFITABILITY ASPECTS

• ESTIMATION OF COSTS AND REVENUE

• OPPORTUNITY COSTS

• MARKET SEGMENT MARGIN

• ESTIMATION FOR FUTURE

CHANNEL STRUCTURE

BASED ON THE FOUR DIMESIONS

MAKE A DECISION ABOUT THE

• LENGTH OF THE CHANNEL

• PARTICIPANTS OF THE CHANNEL

• WAY OF MEASURING THE PERFORMANCE OF THE PARTICIPANTS

STANDARDISATION OR DIFFERENTIATION

• HOW TO LINK THE NATIONAL CHANNELS TO EACH OTHER?

• HOW TO COMPARE THE PERFORMANCE DATA?

• POSSIBILITY FOR STANDARDISED MEANS OF DELIVERING GOODS TO INTERNATIONAL CUSTOMERS

ORGANISATIONAL FRAMEWORK

• WHAT DEPARTMENT OR WHO IS RESPONSIBLE FOR THE INTERNATIONALISATION?

• WHAT ARE THE COMMUNICATION LINKS INSIDE THE COMPANY?

• HOW TO FIND THE BEST PEOPLE FOR THE INTERNATIONALISATION PROJECT? HOME - HOST - THIRD COUNTRY PEOPLE?

SELECTION CRITERIA FOR FOREIGN ASSIGNMENTS

• COMPETENCE FACTORS– TECHNOLOGICAL KNOWLEDGE– LEADERSHIP ABILITY– EXPERIENCE, PAST PERFORMANCE– AREA EXPERTISE– LANGUAGE


• ADAPTABILITY FACTORS– INTEREST IN FOREIGN WORK– RELATIONAL ABILITIES– CULTURAL EMPATHY– APPRECIATION OF NEW MANAGEMENT

STYLES– APPRECIATION OF NEW ENVIRONMENTAL

CONSTRAINTS– ADAPTABILITY OF FAMILY


• PERSONAL CHARACTERISTICS– AGE – EDUCATION– SEX – HEALTH– ,ARITAL RELATIONS– SOCIAL ACCEPTABILITY

CULTURAL SHOCK

• INITIAL EUPHORIA

• IRRITATION AND HOSTILITY

• ADJUSTMENT

• REENTRY

REPATRIATION

• PROFESSIONAL

• PERSONAL

COMPENSATION

• BASE SALARY AND SALARY RELATED ALLOWANCES(HARDSHIP ALL., COLA, HOUSING ALL.)

• NONSALARY RELATED ALLOWANCES

(MOBILITY ALL., TRAVEL EXP., EDUCATION ALL.)

GREEN MARKETING

• ENVIRONMENTALISTS

• MEDIA

• == CONSUMERS’ NEW PREFERENCES

GREEN CONSUMERS

LOOK FOR PRODUCTS • PACKAGED IN RECYCLABLE MATERIALS• NOT EXCESSIVELY PACKAGED• PERCEIVED AS ENVI. FRIENDLY• MADE FROM RECYCLED MATERIALS• THAT DON’T CONTAIN DYES OR TOXIC

MATERIALS• THAT ARE NOT PACKAGED IN FOAM

INTERMARKETING SEGMENTS OF PEOPLE

• GREEN LEADERS– TRUE BLUE GREENS– GREEN BACK GREENS

• GREAN FOLLOWERS - SPROUTS

• NONENVIRONMENTALISTS– GROUSERS– BASIC BROWNS

TYPES OF COMPANIES

• IGNORE THE GREEN

• PASS AS GREEN

• GENUINE GREEN

• PROGREEN– 4RS: RETHINKING LIFESTYLES, REFUSE

PRODUCTS CONTAINING A LOT OF RESSOURCES, REUSE THE PRODUCTS, RECYCLE PACKAGING

MARKETING ASPECTS

• PRODUCT: GREEN IN ALL PHASES

• PRICE: COMPETITIVE, AS STANDARDISED GREEN PRODUCTS ARE MANUFACTURED

• PROMOTION: TO INFORM AND EDUCATE

• PLACE RECYCLING CENTERS, OR MANUF. PROGRAMS

COUNTRY OF ORIGIN EFFECTS

• AFFECT TRANSFER PROCESS

• COGNITIVE MEDIATION PROCESS

• PURCHASE INTENTION EFFECT

STRATEGIES TO MINIMISE THE INFLUENCE

• AFFECT TRANSFER PROCESS

- DEMONSTRATE THE USAGE OF PRODUCTS COMING FROM C.X.

• COGNITIVE MEDIATION PROCESS

- DEMONSTRATE THE ATTRIBUTES OF PRODUCTS

• PURCHASE INTENTION PROCESS

- BECOME NATIONAL!

GREY MARKETING

• MARKETING?

• DUE TO THE:– INFORMATION– GLOBAL BRANDS

• THREE POSSIBILITIES– REIMPORTATION– PARALLEL IMPORTATION– LATERAL IMPORTATION

CONSEQUENCES OF GREY MARKETING

• POSITIVE CONSEQUENCES– NEW TARGETS

• NEGATIVE CONSEQUENCES– IMAGE– RELATIONSHIP WITH DISTRIBUTION

CHANNEL MEMBERS– SELF CANNIBALISATION

INTERNATIONAL MARKETING PLAN

THE STRUCTURE OF THE INTERNATIONAL MARKETING PLAN

1. BRIEF SUMMARY OF THE MANAGER/OWNER

– READER - EMPLOYEE, PARTNER, AUDITOR, FINANCIAL INSTITUTION

– OBJECTIVE, REASON

2. THE COMPANY– HISTORY– PARAMETERS

3. MOTIVATORS AND OBSTACLES– MACRO AND MICRO MOTIVATORS– INTERNAL AND EXTERNAL OBSTACLES

4. INTERNATIONAL MARKET RESEARCH– OBJECTIVE– METHODS

5. REVIEW OF THE MICRO AND MACRO ENVIRONMENT

– MICRO ENVIRONMENT

COMPETITORS,

NEW ENTRANTS,

SUBSTITUTES,

POWER OF THE CLIENTS

POWER OF THE SUPPLIERS

– MACRO ENVIRONMENT

GEOGRAPHICAL

ECONOMIC

POLITICAL

LEGAL

TECHNOLOGICAL

CULTURAL

6. INTERNATIONAL MARKET SELECTION

– INTERNATIONAL MARKET SEGMENTATION

– INTERNATIONAL TARGETING

7. MODE OF ENTRY

8. MARKETING MIX

– PRODUCT / SERVICE– PRICE (COST)– PROMOTION– DISTRIBUTION CHANNEL

9. ORGANISATIONAL FRAMEWORK

10. SCHEDULING

11. BUDGETING

12. EFFECT STUDY

13. CONCLUSION

International Marketing

Marketing

Transcript of International Marketing