Marketing Strategy

1. Slide 9.1
Alan M Rugman and Simon Collinson, International Business, 5th
Edition, © Pearson Education Limited 2009
Marketing strategy
Chapter 11

2. Slide 9.2
Alan M Rugman and Simon Collinson, International Business, 5th
Edition, © Pearson Education Limited 2009
Introduction
• International marketing is the process of identifying
the goods and services that customers outside the
home country want and then providing them at the
right price.
• Process is similar to that carried out at home but with
some modifications to adapt marketing efforts to the
needs of the specific country or region.

3. Slide 9.3
Alan M Rugman and Simon Collinson, International Business, 5th
Edition, © Pearson Education Limited 2009
• These changes fall into five major areas
– Market assessment
– Product decisions
– Promotion strategies
– Pricing decisions
– Place/Distribution strategies

4. Slide 9.4
Alan M Rugman and Simon Collinson, International Business, 5th
Edition, © Pearson Education Limited 2009
International Market Assessment
• An evaluation of the goods and services that the
firm can sell in the global marketplace
• Involves five steps
• Initial screening: Determining the basic need and
potential of the MNEs goods and services in foreign
markets.
– Examine current import policies of other countries
– Determining local production
– Examining demographic changes in the country
• Second screening: Financial and economic
conditions

5. Slide 9.5
Alan M Rugman and Simon Collinson, International Business, 5th
Edition, © Pearson Education Limited 2009
• Third screening: Political and legal forces
– Entry barriers
– Stability of Govt.
– Protection offered for patents, copyrights and
trademarks
• Fourth screening: Sociocultural forces
• Fifth screening: Competitive environment
• Final selection
– On-site visit

6. Slide 9.6
Alan M Rugman and Simon Collinson, International Business, 5th
Edition, © Pearson Education Limited 2009
Product Strategies
• Little or no modification
• Moderate to high modification: Depends on a number of
factors
– Economics
– Culture
– Local laws
– Product life cycle

7. Slide 9.7
Alan M Rugman and Simon Collinson, International Business, 5th
Edition, © Pearson Education Limited 2009
Promotion
• The process of stimulating demand for a company’s
goods and services. Specific approach used depends on
the nature of the product.
• Four variations used in this regard
– Identical product and identical message
– Identical product but different message
– Modified product but same message
– Modified product and modified message

8. Slide 9.8
Alan M Rugman and Simon Collinson, International Business, 5th
Edition, © Pearson Education Limited 2009
• Advertising
– A non personal form of promotion in which a firm
attempts to persuade consumers of a particular point of
view.
• Personal selling
– A direct form of promotion used to persuade customers
of a particular product

9. Slide 9.9
Alan M Rugman and Simon Collinson, International Business, 5th
Edition, © Pearson Education Limited 2009
Pricing
• Influenced by a number of factors
– Government controls
• Minimum and maximum price
• Dumping
– Market diversity
• Varying consumer tastes and demands
• Perceived quality of product
– Currency fluctuations
– Price escalation forces

10. Slide 9.10
Alan M Rugman and Simon Collinson, International Business, 5th
Edition, © Pearson Education Limited 2009
Place
• Distribution is the course that goods take between
production and the final consumer.
• Different distribution systems
• Choosing the best distribution system
– Financial strength of the distributor
– Is the distributor well connected?
– Number of product lines the distributor carries