International marketing


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International marketing

  1. 1. Introduction to International Marketing Presentor - Neeraj Bali
  2. 2. <ul><li>The Basics </li></ul><ul><ul><li>Basics of marketing </li></ul></ul><ul><ul><ul><li>Segmentation, Targeting and Positioning </li></ul></ul></ul><ul><ul><ul><li>Marketing Mix with reference to International marketing. </li></ul></ul></ul><ul><ul><li>Definition of international marketing </li></ul></ul><ul><ul><li>Difference between international trade and international marketing. </li></ul></ul><ul><ul><li>Difference between Marketing and Sales </li></ul></ul>
  3. 3. MEANING OF INTERNATIONAL MARKETING <ul><li>“ The marketing of goods and services across national frontiers,could also be Marketing in an internationally competitive environment , no matter whether the market is home or foreign” </li></ul><ul><li>Example-Nirma has competition with P&G,unilever etc in India. </li></ul>
  4. 4. INTERNATIONAL ORIENTATION <ul><li>Ethnocentrism(home country orientation) </li></ul><ul><li>Example- Surplus food grains are exported. </li></ul><ul><li>Polycentrism(host country orientation) </li></ul><ul><li>Example- Mc donald has launched burgers with indian flavors. </li></ul><ul><li>Regiocentrism(regional orientation) </li></ul><ul><li>Example- sarees-kanchipuram silk saree. </li></ul><ul><li>Geocentrism(world orientation) </li></ul>
  5. 5. Basic concepts- <ul><li>Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. </li></ul>
  6. 6. The Complete Process Market Segmentation Identify and describe market segments Market Targeting Evaluate segments and decide which to go after Market Positioning Design a product or service to meet a segment’s needs and develop a marketing mix that will create a competitive advantage in the minds of the selected target market
  7. 7. Market Segmentation <ul><li>Identifying distinct groups of c onsumers whose purchasing behavior differs from other in important ways. </li></ul><ul><li>Marketing mix adjusted to reflect differing purchasing patterns in segments. </li></ul><ul><ul><li>Geography </li></ul></ul><ul><ul><li>Demographics </li></ul></ul><ul><ul><li>Socio-cultural factors </li></ul></ul><ul><ul><li>Psychological factors </li></ul></ul>
  8. 8. Market Targeting and Positioning <ul><li>Marketers TARGETS the attractiveness of each potential segment and decide which of these groups they will try to turn into customers </li></ul><ul><ul><li>Mass </li></ul></ul><ul><ul><li>Differentiated </li></ul></ul><ul><ul><li>Concentrated </li></ul></ul><ul><ul><li>Custom </li></ul></ul><ul><li>Developing a marketing strategy aimed at influencing how a particular market segment perceives a product or service in comparison to the competition </li></ul><ul><ul><li>4 common positioning errors </li></ul></ul><ul><ul><ul><li>Underpositioning: lack of differentiation </li></ul></ul></ul><ul><ul><ul><li>Overpositioning: too narrow </li></ul></ul></ul><ul><ul><ul><li>Confused: too many things to too many people </li></ul></ul></ul><ul><ul><ul><li>Doubtful: consumer just doesn’t believe it </li></ul></ul></ul>
  9. 9. Marketing Mix
  10. 10. Product Price Place Promotion Consumers Marketing Mix
  11. 11. Marketing Mix: Product
  12. 12. Product Attributes <ul><li>A product is a bundle of attributes. If consumer needs were the same all over, a firm could simply sell the same product worldwide. Unfortunately, differences in the three following areas often necessitate adaptations </li></ul><ul><ul><li>Cultural differences </li></ul></ul><ul><ul><li>Economic differences </li></ul></ul><ul><ul><li>Product and technical standards </li></ul></ul>
  13. 13. Cultural Differences <ul><li>Range of dimensions: </li></ul><ul><ul><li>Social structure </li></ul></ul><ul><ul><li>Language </li></ul></ul><ul><ul><li>Religion </li></ul></ul><ul><ul><li>Education </li></ul></ul><ul><li>Most important - the impact of tradition </li></ul>
  14. 14. Economic Differences <ul><li>Consumer behavior is influenced by economic development </li></ul><ul><ul><li>Consumers in highly developed countries tend to have extra performance attributes in their products </li></ul></ul><ul><ul><li>Consumers in less developed countries tend not to demand these extra performance attributes </li></ul></ul>
  15. 15. <ul><li>Government standards can prevent the introduction of global products </li></ul><ul><li>Different technical standards impede global markets, as well </li></ul><ul><ul><li>Come from idiosyncratic decisions made long ago </li></ul></ul>Product and Technical Standards
  16. 16. Marketing Mix: Place
  17. 17. Distribution Strategy <ul><li>Three different distribution systems: </li></ul><ul><ul><li>Retail concentration: number of retailers </li></ul></ul><ul><ul><ul><li>Cost/benefit of each alternative vary from country to country </li></ul></ul></ul><ul><ul><li>Channel length: levels of channel members </li></ul></ul><ul><ul><ul><li>Longer the channel in a country, the higher the price </li></ul></ul></ul><ul><ul><ul><li>Shorter channel in a country, lower price </li></ul></ul></ul><ul><ul><li>Channel exclusivity: access </li></ul></ul><ul><ul><ul><li>Match to positioning of product in country </li></ul></ul></ul>
  18. 18. A Typical Distribution System Manufacturer Inside the Country Manufacturer Outside the Country Import Agent Wholesale Distributor Retail Distributor Final Customer
  19. 19. Marketing Mix: Price
  20. 20. Pricing Strategy <ul><li>Price discrimination </li></ul><ul><li>Strategic pricing </li></ul><ul><li>Regulatory factors </li></ul>
  21. 21. Pricing Strategy <ul><li>Price discrimination: Different prices, different countries, same product </li></ul><ul><ul><li>Charging what the market will bear </li></ul></ul><ul><ul><li>Two factors: </li></ul></ul><ul><ul><ul><li>Must keep national markets separate </li></ul></ul></ul><ul><ul><ul><li>Different price elasticities </li></ul></ul></ul><ul><li>Arbitrage: Charging different prices in different countries for same product </li></ul><ul><ul><li>Doesn’t always work </li></ul></ul><ul><ul><li>Sometimes it does </li></ul></ul><ul><li>Income level and competitive conditions determine elasticity </li></ul><ul><ul><li>Elasticity (price) tends to be be greater in countries with low income levels </li></ul></ul><ul><ul><li>Elasticity (demand) tends to be greater in countries where there are many competitors </li></ul></ul>
  22. 22. Strategic Pricing <ul><li>Predatory pricing: </li></ul><ul><ul><li>Using price as a competitive weapon </li></ul></ul><ul><li>Multipoint pricing strategy: </li></ul><ul><ul><li>When two or more international firms compete against each other in two or more national markets </li></ul></ul><ul><ul><li>A firm’s pricing strategy in one market may impact a rival in another market </li></ul></ul>
  23. 23. Regulatory Influences on Prices <ul><li>Antidumping regulations: </li></ul><ul><ul><li>Selling a product for a price that is less than the cost of producing it </li></ul></ul><ul><ul><ul><li>Predatory pricing pricing may violate regulations </li></ul></ul></ul><ul><li>Competition Policy: </li></ul><ul><ul><li>Promote competition </li></ul></ul><ul><ul><li>Restrict monopoly practices </li></ul></ul><ul><ul><li>Can limit the prices a company can charge in a given country </li></ul></ul>
  24. 24. Marketing Mix: Promotion
  25. 25. Communications Strategy <ul><li>Effectiveness of international communications can be impacted by: </li></ul><ul><ul><li>Cultural barriers </li></ul></ul><ul><ul><ul><li>Need to develop cross-cultural literacy </li></ul></ul></ul>
  26. 26. Communications Strategy <ul><li>Effectiveness of international communications can be impacted by: </li></ul><ul><li>Self reference criterion </li></ul><ul><li>Example-P&G in Japan. </li></ul><ul><ul><li>Cultural barriers </li></ul></ul><ul><ul><ul><li>Need to develop cross-cultural literacy </li></ul></ul></ul><ul><ul><li>Source and country of origin effects </li></ul></ul><ul><ul><ul><li>Receiver of the message evaluates it based upon the status of the sender </li></ul></ul></ul><ul><ul><li>Country of origin effects: </li></ul></ul><ul><ul><ul><li>Emphasize/de-emphasize foreign origin </li></ul></ul></ul>
  27. 27. Communications Strategy <ul><li>Effectiveness of international communications can be impacted by: </li></ul><ul><ul><li>Cultural barriers. </li></ul></ul><ul><ul><ul><li>Need to develop cross-cultural literacy </li></ul></ul></ul><ul><ul><li>Source and country of origin effects </li></ul></ul><ul><ul><ul><li>Receiver of the message evaluates it based upon the status of the sender </li></ul></ul></ul><ul><ul><li>Country of origin effects: </li></ul></ul><ul><ul><ul><li>Emphasize/de-emphasize foreign origin </li></ul></ul></ul><ul><ul><li>Noise levels </li></ul></ul><ul><ul><ul><li>Tends to reduce the effectiveness of a message </li></ul></ul></ul><ul><ul><ul><li>Developed countries - high </li></ul></ul></ul><ul><ul><ul><li>Less developed countries - low </li></ul></ul></ul><ul><ul><li>Push versus Pull: </li></ul></ul><ul><ul><ul><li>Push emphasizes personal selling </li></ul></ul></ul><ul><ul><ul><li>Pull depends on mass media advertising </li></ul></ul></ul>
  28. 28. <ul><li>ANY QUESTIONS? </li></ul>