Export marketing

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  • Export marketing

    1. 2. Learning Objectives <ul><li>Differentiation b/w Local and foreign market </li></ul><ul><li>Understanding of communication & Promotion </li></ul>
    2. 3. INTRODUCTION <ul><li>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. </li></ul><ul><li>major export marketing efforts get failed due to lack of implementing strategic marketing action plan. </li></ul>
    3. 4. <ul><li>Export marketing </li></ul><ul><li>Cross culture communication </li></ul>
    4. 5. Promotion & Communication
    5. 6. Importance of Communication <ul><li>Helpful in Buyers & Sellers </li></ul><ul><li>Decision power </li></ul><ul><li>Product/service education </li></ul><ul><li>Open door policy </li></ul><ul><li>Two way communication. </li></ul>
    6. 7. Exporter’s massage sent (encoded) Foreign buyer’s receipt of massage (decoded)
    7. 8. Dimensions of attitude & Behavior on Communication <ul><li>Hierarchy Sequence </li></ul><ul><li>Traditional learning---------------Learn-feel-Do </li></ul><ul><li>Low involvement------------------Learn-Do-Feel </li></ul><ul><li>Dissonance attribution----------Do-feel-learn </li></ul><ul><li>Dependency------------------------Feel-Do-Learn </li></ul>
    8. 9. Promotion & Communication Decisions <ul><li>Decisions are taken on the basis of </li></ul><ul><li>What Massage? </li></ul><ul><li>What Communication Media? </li></ul><ul><li>How Much Effort Or Money to Spend? </li></ul>
    9. 10. Push Vs Pull strategy
    10. 11. Factors Affecting Promotion Mix <ul><li>Funds Availability </li></ul><ul><li>promotion Cost </li></ul><ul><li>Degree of competition </li></ul><ul><li>type of product </li></ul><ul><li>Entry Mode </li></ul><ul><li>Market type. </li></ul><ul><li>Non monitory resources </li></ul><ul><li>Market size </li></ul><ul><li>Media availability </li></ul>
    11. 12. Export Marketing As Communication (verbal & Non verbal) <ul><li>Verbal( Spoken or written) </li></ul><ul><li>Non verbal (gestures & Acts ) </li></ul>
    12. 13. Non verbal (gestures & Acts ) Communication <ul><li>Appearance </li></ul><ul><li>Chornemics </li></ul><ul><li>Haptics </li></ul><ul><li>Kinesics </li></ul><ul><li>ocukesics </li></ul><ul><li>Olfaction </li></ul><ul><li>Oreentation </li></ul><ul><li>Paralinguistic's </li></ul><ul><li>Posture </li></ul><ul><li>proxemics </li></ul>
    13. 14. Communication & Promotion Blunders <ul><li>Blunders /mistakes </li></ul><ul><li>They Happen due to Differences : </li></ul><ul><ul><ul><li>Language </li></ul></ul></ul><ul><ul><ul><li>Culture </li></ul></ul></ul><ul><ul><ul><li>Norms </li></ul></ul></ul><ul><ul><ul><li>Values </li></ul></ul></ul><ul><ul><ul><li>Incomplete/weak plan </li></ul></ul></ul><ul><li>What are the After Effects? </li></ul><ul><ul><ul><li>Loss </li></ul></ul></ul>
    14. 15. Alternative Techniques of promotion
    15. 16. Alternative Techniques of promotion <ul><li>Personal selling </li></ul><ul><li>Sales Promotion </li></ul><ul><li>Publicity </li></ul><ul><li>Advertising </li></ul><ul><li>Direct Marketing </li></ul>
    16. 17. 1. Personal selling <ul><li>“ Person to person Communication between a companies representative and perspective buyer.” </li></ul><ul><li>Domestic & International Personal selling differentiate on the basis of behavior. </li></ul><ul><li>Personal selling tools include </li></ul><ul><ul><li>Personal presentation </li></ul></ul><ul><ul><li>Trade shows (exhibitions and fairs. Le marche) </li></ul></ul>
    17. 18. Functions of Sales People in international scenario (Personal selling) <ul><li>The Actual selling Activity </li></ul><ul><li>Customer Relation </li></ul><ul><li>Information Gathering And Communicating. </li></ul>
    18. 19. Stages Of personal Selling 1.Prospecting 2.Pre approaching 3.Problem solving 4.Approaching 5.Presenting 6.Handling Objections 7.Closing The sale 8. Follow-up
    19. 20. Personal Selling is best in Situations Like: <ul><li>Restrictions on Advertising </li></ul><ul><li>Closed Media Facilities </li></ul><ul><li>Strong & rigid Govt. Hold </li></ul><ul><li>Risky Political Situations. </li></ul>
    20. 21. 2. Sales Promotion <ul><li>“ This includes all sales activities that supplement & Strengthen personal selling & advertising .” </li></ul><ul><li>Short-term incentives to encourage the purchase or sale of a product or service </li></ul><ul><li>Sales promotion is done with vast array of devices . </li></ul>
    21. 22. Sales Promotion devices (best for export Marketing) <ul><li>Foreign catalogs. </li></ul><ul><li>Samples. </li></ul><ul><li>House origin & company published Magazines. </li></ul><ul><li>Films Slides & personal computers. </li></ul><ul><li>Trade fairs Exhibitions. </li></ul><ul><li>Point Of Purchase materials. </li></ul><ul><li>Consumer promotion materials. </li></ul>
    22. 23. Sales Promotion devices (best for export Marketing) Foreign catalogs <ul><li>Ever Present </li></ul><ul><li>Silent </li></ul><ul><li>Accurate </li></ul><ul><li>All knowing </li></ul>
    23. 24. Foreign catalogs (Purpose ) <ul><li>Creates interest & Attract leadership </li></ul><ul><li>Mirror the personality of manufacturer or Exporter </li></ul><ul><li>Carry the reputation of the manufacturer or Exporter . </li></ul><ul><li>Make buying easy </li></ul><ul><li>Create the Desire for ownership </li></ul><ul><li>Supply all the facts that a sales person would present in person. </li></ul>
    24. 25. Sales Promotion devices (best for export Marketing) Samples <ul><li>“ Means of avoiding distance business difficulties” </li></ul><ul><li>Sampling types </li></ul><ul><li>Direct Sampling </li></ul><ul><li>Residential Agents, branch office mangers& traveling Sales People. </li></ul>
    25. 26. Sales Promotion devices (best for export Marketing) House organ & company published Magazines <ul><li>Gives knowledge on competitors strategy </li></ul><ul><li>good will building & Institutional Advertising. </li></ul>
    26. 27. Sales Promotion devices (best for export Marketing) Films ,Slides & personal computers <ul><li>Motion picture & video tape </li></ul><ul><ul><ul><li>Combining the illustration with spoken words </li></ul></ul></ul><ul><ul><ul><li>Expensive </li></ul></ul></ul><ul><ul><ul><li>Time Consuming </li></ul></ul></ul><ul><li>Slide films </li></ul><ul><ul><ul><li>Less Expensive </li></ul></ul></ul><ul><ul><ul><li>Time Effective </li></ul></ul></ul><ul><li>Personal Computers </li></ul><ul><ul><ul><li>Easy access </li></ul></ul></ul><ul><ul><ul><li>Wider Range </li></ul></ul></ul>
    27. 28. Sales Promotion devices (best for export Marketing) Trade fairs Exhibitions <ul><li>“ A concentrated exhibition of the products of many manufacturers/exporters. “ </li></ul><ul><li>Types </li></ul><ul><li>The broad general </li></ul><ul><li>Specialized </li></ul>
    28. 29. Sales Promotion devices (best for export Marketing) Point Of Purchase materials
    29. 30. Sales Promotion devices (best for export Marketing) Consumer promotion materials
    30. 31. Sales Promotion, Pro and Con <ul><li>Advantages: </li></ul><ul><li>Motivation method for special efforts </li></ul><ul><li>Short-term sales increase </li></ul><ul><li>Defined target audience </li></ul><ul><li>Defined role/objectives </li></ul><ul><li>Indirect roles (e.g., wider distribution) </li></ul><ul><li>Disadvantages: </li></ul><ul><li>Only short-term </li></ul><ul><li>Hidden costs </li></ul><ul><li>Confusion </li></ul><ul><li>Price cutting -Brand image </li></ul><ul><li>Postponement effect </li></ul><ul><li>Significant government regulation </li></ul><ul><li>Lack of effectiveness sometimes (learning effect) </li></ul>
    31. 32. 4. Publicity & Public Relations <ul><li>Publicity: A special form of public relations that involves news stories about an organization or its products. </li></ul><ul><li>Public relations: A planned communication effort by an organization to contribute to generally favourable attitudes and opinions toward an organization and its products. </li></ul><ul><li>PR tools </li></ul><ul><ul><li>Press releases </li></ul></ul><ul><ul><li>Sponsorships (Mc Donald’s and the hospital 53753) </li></ul></ul><ul><ul><li>Special events (Vodafone and the charity complex) </li></ul></ul>
    32. 33. Activity <ul><li>Snatch a Picture </li></ul>
    33. 34. 4. Advertising <ul><li>“ Any paid form of non-personal presentation and promotion of ideas, goods, or services” </li></ul><ul><li>Advertising categories </li></ul><ul><li>Short Run (Awareness) </li></ul><ul><li>Long Run (Brand Establishment) </li></ul>
    34. 35. Profiles of major media types Medium Advantages Limitations Print - Newspaper Flexibility; timeliness; good local market coverage; 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
    35. 36. Advertising <ul><li>Climate For Advertising </li></ul><ul><li>Foreign Media </li></ul><ul><li>International media </li></ul><ul><li>Media mix </li></ul>
    36. 37. Climate For Advertising <ul><li>“ Its result of factors present in socio-economic Cultural System ” </li></ul><ul><li>Dimensions of the Climate for Advertising </li></ul><ul><li>Economic system </li></ul><ul><li>Social culture </li></ul><ul><li>Cultural Background </li></ul><ul><li>Religious climate </li></ul><ul><li>monopoly </li></ul><ul><li>Censorship </li></ul><ul><li>Restrictions on advertising </li></ul>
    37. 38. International media <ul><li>“ Vary considerably from Country-to-country” </li></ul><ul><li>Print Media </li></ul><ul><li>Business Consumer Magazines </li></ul><ul><li>News Papers </li></ul><ul><li>Electronic Broadcast Media </li></ul><ul><li>Radio </li></ul><ul><li>Television </li></ul><ul><li>Internet </li></ul>
    38. 39. Foreign Media <ul><li>“ That circulates & Seen /heard in 2 or more nations.” </li></ul><ul><li>Print Media </li></ul><ul><li>Electronic Broadcast Media </li></ul><ul><li>Direct marketing </li></ul>
    39. 40. Media mix <ul><li>Effectiveness in accomplishing advertising objectives which are: </li></ul><ul><li>Reach </li></ul><ul><li>Frequency </li></ul><ul><li>Continuity </li></ul><ul><li>Size </li></ul><ul><li>Availability </li></ul>
    40. 41. 5. Direct marketing <ul><li>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 </li></ul><ul><li>Direct marketing </li></ul><ul><ul><li>Sending catalogues </li></ul></ul><ul><ul><li>Telemarketing </li></ul></ul>
    41. 43. Export Promotion Strategy Involves <ul><li>Setting promotional objectives. </li></ul><ul><li>Deciding on the types of advertising & promotional messages. </li></ul><ul><li>Selecting media. </li></ul><ul><li>Determining how much time, effort & money to spend. </li></ul>
    42. 44. Export Promotion Strategy Levels <ul><li>Enterprise level </li></ul><ul><li>Industry Level </li></ul><ul><li>Individual level </li></ul>
    43. 45. Objectives of Export Promotional Programs & Strategy <ul><li>Specific Attainable goals </li></ul><ul><li>Must accomplish specific objective </li></ul><ul><ul><li>To convince buyers of the durability of a product </li></ul></ul><ul><ul><li>To illustrate the effectiveness of the product in satisfying a particular want. </li></ul></ul><ul><ul><li>To create an image of the company as a dependable supplier. </li></ul></ul>
    44. 46. Steps of strategy formulation <ul><li>Assessment of size& extent of market </li></ul><ul><li>Customer behavior </li></ul><ul><li>Buying habits </li></ul><ul><li>Competitive circumstances </li></ul>
    45. 47. Export Strategy Categories Chipsy BMW
    46. 48. Planning advertising Strategy <ul><li>Planning phase is facing two major Issues </li></ul><ul><li>Standardization VS Adaptation </li></ul><ul><li>Advertising Transference </li></ul>
    47. 49. Standardization And Adaptation
    48. 50. Standardization versus Adaptation <ul><li>The fundamental international product decision after the decision to internationalize. </li></ul><ul><li>International market approach alternatives to adaptation </li></ul><ul><ul><li>Sell the product as it is internationally. </li></ul></ul><ul><ul><li>Modify product for different countries or regions. </li></ul></ul><ul><ul><li>Design new products for foreign markets. </li></ul></ul><ul><ul><li>Incorporate all differences into one product and introduce it globally. </li></ul></ul>
    49. 51. Factors Encouraging Standardization <ul><li>Economies of scale in production </li></ul><ul><li>Economies in product R&D </li></ul><ul><li>Economies in marketing </li></ul><ul><li>“ Shrinking” of the world marketplace and increasing economic integration </li></ul><ul><li>Global competition </li></ul>
    50. 52. Factors Encouraging Adaptation <ul><li>Differing use conditions </li></ul><ul><li>Government and regulatory influences </li></ul><ul><li>Differing consumer behavior patterns </li></ul><ul><li>Local competition </li></ul><ul><li>True to the marketing concept </li></ul>
    51. 53. Strategic Adaptation to Foreign Markets Low High Industrial/ Technology Intensive Consumer Need for Adaptation Degree of Cultural Grounding Nature of Product 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.
    52. 54. Factors Affecting Adaptation Regional, Country, or Local Characteristics Product Characteristics Company Considerations Decision to Alter the Domestic Product
    53. 55. Advertising Transference
    54. 56. Advertising Transference <ul><ul><li>“ Entry of marketing activity or strategy in a foreign market ” </li></ul></ul>
    55. 57. factors of Advertising Transference <ul><li>influences of the appeal </li></ul><ul><li>mechanics of encoding and decoding </li></ul><ul><li>the silent languages </li></ul>
    56. 58. Extension Adjustment Combinations. <ul><li>A simple model of transference assumes that 2 countries are either the same or different for each of These factors & </li></ul><ul><li>this leads to 8 different types of Extension Adjustment Combinations </li></ul>
    57. 59. 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.
    58. 60. Complete Extension (Nike) China,UAE,India
    59. 61. Symbolic Extension. (Vicks)
    60. 62. Literal Extension. (Telenor)
    61. 63. Simple Adjustment. (Scooty)
    62. 64. Symbolic and Literal Extension. (Nescafe)
    63. 65. Literal Adjustment. (Gillete)
    64. 66. Complete adjustments
    65. 67. Management Issues
    66. 68. Management Issues <ul><li>Control 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. </li></ul><ul><li>Broadly control is divided into </li></ul><ul><li>Centralized Control </li></ul><ul><li>Decentralized Control </li></ul>
    67. 70. References <ul><li>http://www.unescap.org/tid/publication/tipub2107_chap3.pdf </li></ul><ul><li>www.wikipedia.com </li></ul><ul><li>www.youtube.com </li></ul><ul><li>www.slideshare.net </li></ul><ul><li>http://www.picsearch.com/ </li></ul><ul><li>TEXT Book </li></ul>

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