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rajnish kumar accman institute of management
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INTERNATIONAL MARKETING
Rajnish Kumar Roopak Sharma Pawan jain Praveer Sinha Rahul Kumar Saumya Singh Dibyendu
Kumar
MARKETING
Marketers everywhere must
Know their markets
Develop products or services to satisfy customers’ needs
Price the products or services so that they are readily available
Make them available to the buyers
Inform potential customers and persuade them to buy
INTERNATIONAL MARKETING
• Refers to the process of identifying the goods and services that customer outside the home country wants and then providing them at the right price and place.
DOMESTIC AND INTERNATIONAL MARKETING
On the basis of DOMESTIC INTERNATIONAL
SCOPE Limited and will eventually dry up.
Endless opportunities and scope.
BENIFITS Less as compared to international marketing.
As is obvious, more benefits.
SHARING OF TECNOLOGY Limited in the use of technology.
Allows use and sharing of latest technologies.
POLITICAL RELATION Nothing to do with political relations.
Leads to improvement in political relations between countries and also increased level of cooperation as a result.
BARRIERS No barriers. Many barriers such as cross cultural differences, language, currency, traditions and customs.
ACTIVITIES IN INTERNATIONAL MARKETING
International Customer
Product Price
Promotion Distribution
International Economic Institutions and Agreements
Economic Env. Political/Legal Env.Fi
nanc
ial
Envi
ronm
ent
Soci
o-cu
ltura
l En
viro
nmen
t
ACTIVITIES IN INTERNATIONAL MARKETING
MARKETING AND OTHER FUNCTIONS
OperationsManagement
FinanceHuman
ResourceManagement
Accounting
Marketing
INTERNATIONAL MARKETING STRATEGY
INTERNATIONAL MARKET ASSESSMENT
Assess alternative
foreign market
Select market for
entry or expansion
Evaluate : cost, benefits
and risk
INTERNATIONAL PRODUCT STRATEGIES
Local and International Environment
Competitive Situation
Firm’s Internal
Situation
Customer Needs &Price
Elasticity
ProductStrategies
STANDARISATION AND ADAPTATION
Developing same product for multiple countries.
Premise:-consumers share some common values, beliefs, and consumption patterns.
Advantages: economies of scale and scope, price competitiveness,
uniform image
Modifying product to reflect characteristics of a market.
Premise-- consumers are not the same.
Advantages: improved fit between product and consumer, expanded penetration
FACTORS FAVORING PRODUCTS STANDARDIZATION VERSUS
ADAPTATIONStandardization
• High cost of Localization
• Primarily industrial products
• Convergence and similar tastes in diverse country markets
• Predominant use in urban environments
• Marketing to predominantly similar countries e.g. Scandinavia
• Centralized management of international operations when mode of entry is mainly exports
• Strong country-of-origin image and effect
• Scale economies in production, marketing, and R&D
• Standardized products marketed competitors
Adaptation • Differences in technical standards
• Primarily consumer and personal-use products
• Variation in consumer needs and applications
• Variations in conditions of use
• Variations in ability to buy-differences in income levels
• Fragmentation, with autonomous national subsidiaries
• Strong cultural differences, language, etc., affecting purchase and use
• Local environment-induced adaptation: differences in raw material available,
government-required standards and regulations
• Adaptation strategy successfully used by competitors
Brand Decision
• What is Brand ?
• Brand name are one of the most valuable assets which companies possess.
• Brand Equity
Issues Relating to Brand Name
• Whether or not to use uniform brand internationally…?
• Expansion to the overseas market
• Image issue
• Legal and cultural factors
Pricing issue & Policies
• Standard Price Policy
• Two tiered pricing
• Market Pricing
PROMOTION ISSUES AND POLICIES
4 elements of promotion mix:-
a)Advertisingb)Personal sellingc) Sales promotiond)Public relation
Constraints on advertising
• Language difference
• Government control
• Agency availability
• Economic difference
• Cultural diversity
Advertising programs
• Message The message it wants to convey
• Medium The media available to convey the message
• Global vs. local advertising The extent to which the firm wants to globalize its advertising
efforts
Advantages of Personal Selling for International Firms
• Local sales representatives understand local culture, norms, and customs.
• Personal selling promotes close, personal contact with customers.
• Personal selling makes it easier for firm to adopt valuable market information
Sales Promotion
Sales promotion comprises specialized marketing efforts designed to offer an incentive for behavior such as coupons, in-store promotions, sampling, direct mail campaigns, cooperative advertising, and trade fair attendance.
Unique forms of international promotion
Government Role
Trade Fair
Barter And Countertrade
Bribery
Miscellaneous Measures
Public Relations
Public relations consists of efforts aimed at enhancing a firm’s reputation and image with the general public, as opposed to touting the specific advantages of an individual product or service.
Firms make use of two principles channels of distribution when marketing
1) Indirect selling-also known as local or domestic channel ,is employed when a manufacture markets its product through another firm form the same country that acts as intermediary.
2) Direct Selling-Is employed when a manufacturer develops an overseas channel Here the firm directly deals with a foreign party without going through an intermediary in the home country.
Channels of Distribution
Eight guidelines have been advocated to make multinational distributors partnership
1) Select distributor , don’t let them select you.
2) Treat the local distributors as long term partners , not temporary
market entry vehicles.
3) Support marketing entry by committing money, mangers , and proven
marketing ideas
4) From the start, maintain control over marketing strategy.
5) Make sure distributors provide you with detailed market and financial
performance data.
6) Build links among national distributors at the earliest opportunity.
7) Understand host country culture
Physical Distribution
Average time required to move a product from “firm to shelf “ is four to five months .Although it takes only about seventeen minutes to produce a product, the rest of the time is spent on logistical activities – storage handling ,transition, packaging etc .
International logistics costs can account for 25 to 35 percent of the sales value of a product
MODES OF TRANSPORTATION
The three fundamental means of transportation are:-
1.Air
2.Water (ocean and inland)
3.Land (rail and truck)
Appropriate transportation mode depends on
1. Market location
2. Speed
3. Cost
Que 1 Are the 4 ps of international marketing of equal importance to all the firms ?
Que 2
Why do international firms use market pricing ?
Que 3
Why are brand names an important market tool for international business ?
Que 4
Bring out the benefits of international marketing ?