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Going Global An Introduction to International Marketing.

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Presentation on theme: "Going Global An Introduction to International Marketing."— Presentation transcript:

1 Going Global An Introduction to International Marketing

2 2 Going Global: Introduction to International Marketing - V2.0 What is Marketing? Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives The aim of marketing is to make selling unnecessary

3 3 Going Global: Introduction to International Marketing - V2.0 Elements of Marketing Product mix product, place, price, and promotion Building blocks of marketing market customers product/service value positioning promotion pricing distribution relationship feedback

4 4 Going Global: Introduction to International Marketing - V2.0 Key Marketing ConceptsDifferentiationCreativity Market segmentation Relationships as assets Associations Partnerships and alliances Importance of planning

5 5 Going Global: Introduction to International Marketing - V2.0 Marketing FunctionsPlanning Order processing and customer service SalesPromotionDistribution After-sales service

6 6 Going Global: Introduction to International Marketing - V2.0 International Marketing is Different! Getting and staying close to the customer is more difficult at long range Understanding customers with different cultural values is more difficult Surveying foreign markets may require new methods Modifying or adapting products may be costly Being perceived as foreign adds to the barrier Communicating may be different

7 7 Going Global: Introduction to International Marketing - V2.0 International Marketing is Different! (con’t…) Distribution may pose logistical problems Providing certain features may not be cost- effective Providing after-sales service may be difficult Monitoring customer satisfaction may be impossible

8 8 Going Global: Introduction to International Marketing - V2.0 Why Prepare an International Marketing Plan? It helps: Specify competitive advantages Forecast expected returns Detail probable costs Outline likely trade-offs Set priorities Specific suitable marketing techniques Suggest the communications and logistics systems required to serve the market Develop an action plan

9 9 Going Global: Introduction to International Marketing - V2.0 The Elements of an International Marketing Plan Type of business Reasons to export Sources of market information Target market Product Market entry strategy Methods of sale and distribution Marketing and promotional techniques Implementation: resources needed, risks…

10 10 Going Global: Introduction to International Marketing - V2.0 Implementing the International Marketing Plan Sufficient financial resources? Staff is trained and has needed skills? Human resources program is export focused? Qualified sales organization is in place?

11 11 Going Global: Introduction to International Marketing - V2.0 Presenting the International Marketing Plan Open the discussion Focus on bottom-line priorities Remain open to options and alternatives Respect the meeting schedule Make note of criticisms or objections in order to modify strategy or improve the plan Access “An Exporter’s Guide to Effective Presentations”, at:

12 12 Going Global: Introduction to International Marketing - V2.0 Some Basic INCOTERMS EXW – An EXWorks price is calculated when you sell at your warehouse, plant, factory or mill CIF – A CIF (cost, insurance, freight) price is calculated when you deliver goods to your buyer port in the foreign market

13 13 Going Global: Introduction to International Marketing - V2.0 Niche Marketing When critical mass and financial resources do not permit a broad market entry Specializing in narrowly focused products or service areas Look for markets that are too small and fast moving for large corporations that cannot react quickly

14 14 Going Global: Introduction to International Marketing - V2.0 Indirect Exporting Through intermediaries: Canadian-based trading houses Export management companies Foreign government purchasers Representatives of foreign companies Canadian federal agencies acting for foreign clients Canadian manufacturers who export

15 15 Going Global: Introduction to International Marketing - V2.0 Direct Exporting Unmediated relationship between the supplier and a foreign buyer Allows control over pricing and promotion Direct exports from small and medium enterprises in Canada are usually on a CIF basis

16 16 Going Global: Introduction to International Marketing - V2.0 Social Considerations Marketing strategies must consider: Religion Attitudes to social factors Values, principles, morals Ethics Taboos and restrictions For more information on social considerations, visit:

17 17 Going Global: Introduction to International Marketing - V2.0 Business Protocol Correct use of names and titles Adapt to greeting style Learn the use of business cards Proper attire for business and social Watch out for offensive body language, gestures, jargon or slang Be patient For more information on business etiquette, visit:

18 18 Going Global: Introduction to International Marketing - V2.0 Tips For Successful Cross-Cultural Negotiations Successful negotiators: Are comfortable with being the foreigners Get organized in advance Learn about local manners and customs Adjust their pace and style to their hosts Develop negotiating skills Learn when to say no and when to walk away Have enough authority to negotiate the deal Don’t meddle in local affairs Respect the contract terms and deadlines Are very clear on the terms of the agreement

19 19 Going Global: Introduction to International Marketing - V2.0 Cultural Sensitivities in Mass Marketing Some marketing horror stories: Parker Pen Jotter in Mexico Coca-Cola in China “Pepsi Comes Alive” in Taiwan Ford Pinto in Brazil Colgate Cue in Brazil Electrolux in the United States Kinki Nippon Tourist Company

20 20 Going Global: Introduction to International Marketing - V2.0 Rules and Regulations Fiscal legislation Pricing Business environment Standards Conditions of employment Intellectual property

21 21 Going Global: Introduction to International Marketing - V2.0 Regulations Affecting MarketingPoliticalLegalRegulatoryImmigration

22 22 Going Global: Introduction to International Marketing - V2.0 Should You Standardize or Adapt Your Product/Service? Advantages of standardization Economies of scale Lower costs Key component of a standard marketing mix Rapid recovery of investments Easier control Some disadvantages Loss of marketing flexibility Discouraging creativity and innovation May not be accepted by customers May not conform to local regulations

23 23 Going Global: Introduction to International Marketing - V2.0 Product Adaptation and the Market Environment Factors in designing products for a specific market Target market electrical current (100v, 110v, 220v)? Size Quality Translations of slogans Restricted ingredients Regulations (packaging, recycling, safety…) Customers’ tastes and preferences Distribution channels

24 24 Going Global: Introduction to International Marketing - V2.0 Decision Factors: To Adapt or Not to Adapt?ProfitabilityCulture Local competition Economic development

25 25 Going Global: Introduction to International Marketing - V2.0 Adaptation of Services Services destined for export must also suit the target market All providers of services will be affected by linguistic and cultural differences

26 26 Going Global: Introduction to International Marketing - V2.0 Some Strategies on Product /Service Adaptation Same product, same message Same product, different message Different product, same message Dual adaptation Invention

27 27 Going Global: Introduction to International Marketing - V2.0 Business Trips to Foreign Markets Personal contact facilitates: Following up on leads and building relationships Gathering market intelligence and assessing opportunities Raising awareness of the company’s capabilities Conducting negotiations and finalizing agreements Selling and taking orders Addressing clients concerns and complaints Getting customer feedback and input for product improvement

28 28 Going Global: Introduction to International Marketing - V2.0 Objectives of Business Trips Market assessment Exploring business conditions Determining product/service suitability Competitor intelligence Developing leads Risk assessment Strategic planning

29 29 Going Global: Introduction to International Marketing - V2.0 Preparing for a Business Trip Sources of information and assistance: Internet Other Canadian exporters to the foreign market Team Canada Inc Chambers of commerce, business associations Get info on Planning a Business Trip Abroad at:

30 30 Going Global: Introduction to International Marketing - V2.0 Planning a Business Trip Travel preparations: Itinerary, hotel reservations, travel documents Business cards and marketing materials Contact Canadian officials in the country (Canadian Trade Commissioner Service) Arrange meetings Study cultural issues Gifts Travel conditions Assess political situation Currency

31 31 Going Global: Introduction to International Marketing - V2.0 During the Trip Meet potential customers Determine product/service suitability Obtain market information and data Identify potential agents and distributors Determine pricing range

32 32 Going Global: Introduction to International Marketing - V2.0 After the Trip Follow-up, living up to promises made, and ongoing communication are the best ways to develop new networks that facilitate business now and in the future Write letters to people who were met Fulfil promises or engagements taken Initiate follow-up activities

33 33 Going Global: Introduction to International Marketing - V2.0 Trade Shows and Exhibitions World expositions The granddaddies of all trade shows Expos are really giant trade shows where companies make sure their names are known and countries show off their culture, science and technology Find information re: Canadian Participation at EXPO 2005 online at: Team Canada Inc’s Trade Show Locator at

34 34 Going Global: Introduction to International Marketing - V2.0 Trade Shows and Exhibitions (Con’t…) Types of trade shows and exhibitions (fairs): Major general fairs Major specialized fairs Secondary trade fairs Consumer fairs Find Trade Shows and useful information online at: www2.tsnn.com

35 35 Going Global: Introduction to International Marketing - V2.0 Trade Shows and Exhibitions (Con’t…) Determine their importance and their relevance to the market objectives Select the right trade show or exhibition Prepare for the trade show or exhibition Bring along the required materials: business cards, promotional kits samples, other marketing aids Obtain assistance: Team Canada Inc, Canadian Trade Commissioner Services Get info on Successful International Trade Show Marketing at:

36 36 Going Global: Introduction to International Marketing - V2.0 Pricing Strategies Static pricing Flexible pricing Penetration pricing Skimming Market maintenance

37 37 Going Global: Introduction to International Marketing - V2.0 Setting the Export Price Use an export costing sheet Determine the intended price Ensure transaction viability (acceptable price in the market) Note: Make sure you know your Incoterms - Don’t mix up Incoterms with American ForeignTrade Definitions

38 38 Going Global: Introduction to International Marketing - V2.0 The Challenge of Marketing Services Internationally The intangibility of services Services must often be tailored to the client’s needs Consider environmental factors: language, education and levels of skills attitudes towards service tasks employment legislation male and female roles in society working conditions motivational techniques and pay equity Find Services Export Opportunities at:

39 39 Going Global: Introduction to International Marketing - V2.0 Choosing a Marketing Strategy for Services Marketing Goods or Services: how they are different Understand the client’s needs and perceptions with regard to: Experience and reputation of the service provider Superior characteristics of the service Corporate image Effective sales pitch Cost of the services Meeting the client’s expectations

40 40 Going Global: Introduction to International Marketing - V2.0 Promoting Services in International Markets Use targeted approaches involving personal contacts Obtain references from past and present clients Use media effectively Tailor the message to the contact being made Provide service guarantees Find Best Practices and Export Success Stories for Service Companies at: uamo.nsf/vwGeneratedInterE/h_qv01673e.html


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