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International marketing can be defined as marketing of goods and
services
outside the firms home country. International marketing has the
following two
forms of marketing.
1,Segmentation
Firms that serve global markets can be segregated into several
clusters based on
their similarities. . Each such cluster is termed as a segment.
Segmentation helps
the firms to serve the markets in an improved way. arkets can be
segmented
into nine categories, but the most common method of segmentation
is on the
basis of individual characteristics, which include the
behavioural,
psychographic, and demographic segmentations
!. International product policy
Some thinkers of the industry tend to draw a distinction between
conventional
products and services, stressing on service characteristics such
as heterogeneity,
inseparability from consumption, intangibility, and
perishability. "ypically,
products are composed of some service component like,
documentation, awarranty, and distribution. "hese service
components are an integral part of the
product and its positioning. "hus, it is important to consider
the findings of
marketing research and determine customers desires, motives, and
e#pectations
in buying a product. Firms have a choice in marketing their
products across
markets. any a times, firms opt for a strategy which involves
customisation,
through which the firm introduces a uni$ue product in each
country, believing
that tastes differ so much between countries that it is
necessary to create a new
product for each market. Standardi%ation proposes the marketing
of one globalproduct, with the belief that the same product can be
sold in different countries
without significant changes.
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"he basis of behavioural segmentation is the general behavioural
aspects of the
customers. &emographic segmentation considers the factors
like age, culture,
income, education and gender. 'sychographic segmentation takes
into account(beliefs, values, attitudes, personalities, opinions,
lifestyles and so on.
). arket positioning
"he ne#t step in the marketing process is, the firms should
position their product
in the global market. 'roduct positioning is the process of
creating a favourable
image of the product against the competitors products. In global
marketsproduct positioning is categorised as high*tech or
high+touch positioning. "he
classification of high*tech and high*touch products. ne
challenge that firms
face is to make a trade*off between ad-usting their products to
the specific
demands of a country and gaining advantage of standardi%ation
such as the
maintenance of a consistent global brand image and cost
savings.
1.International pricing decisions
'ricing is the process of ascertaining the value for the product
or service that
will be offered for sale. In international markets, making
pricing decisions is
entangled in difficulties as it involves trade barriers,
multiple currencies,
additional cost considerations, and longer distribution
channels. efore
establishing the prices, the firm must know its target market
well because when
the firm is clear about the market it is serving, then it can
determine the price
appropriately. "he pricing policy must be consistent with the
firms overall
ob-ectives. Some common pricing ob-ectives are( profit, return
on investment,
survival, market share, status $uo, and product $uality. "he
strategies for
international pricing can be classified into the following three
types(/
!. arket penetration(
It is the techni$ue of selling a new product at a lower price
than the current
market price.
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)..arket holding(
It is a strategy to maintain buy orders in order to maintain
stability in a
downward trend
0.arket skimming(
It is a pricing strategy where price of the goods are set high
initially to skim the
revenue from the market layer by layer.
.International advertising
International advertising is usually associated with using the
same brand name
all over the world. 2owever, a firm can use different brand
names for historicreasons. "he ac$uisition of local firms by global
players has resulted in a
number of local brands. 3 firm may find it unfavorable to change
those names
as these local brands have their own distinctive market.
"herefore, the company
may want to come*up with a certain advertising approach or theme
that has
been developed as a result of e#tensive global customer
research. 4lobal
advertising themes are advisable for marketing across the world
with customers
having similar tastes. "he purpose of international advertising
is to reach and
communicate to target audiences in more than one country. "he
target audiencediffers from country to country in terms of the
response towards humour or
emotional appeals, perception or interpretation of symbols and
stimuli and level
of literacy. Standardi%ation is re$uired for products by some
firms.
Standardi%ation helps to achieve economies of scale and a
consistent image can
be established across markets. Standardisation also assists in
utilising creative
talent across markets, and facilitates good ideas to be
transplanted from one
market to other
5. International promotion and distribution
of goods from manufacturer to the end user is an important
aspect of business.
6ompanies have their own ways of distribution. Some companies
directly
perform the distribution service by contacting others whereas a
few companies
take help from other companies who perform the distribution
services.
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"he distribution services include(/ "he purchase of goods./ "he
assembly of an
attractive assortment of goods./ 2olding stocks./ 'romoting sale
of goods to the
customer./ "he physical move
1.
