2. OHT 10.1 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 International Marketing

3. OHT 10.2 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Market Segmentation: Occupation GroupDescription% of population AHigher managerial and professional 3 BMiddle management11 C1C1 Supervisory and clerical22 C2C2 Skilled manual32 DSemi-skilled and manual workers 23 EPensioners and unemployed 9

4. OHT 10.3 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Market segmentation: VALS Uses psychological, demographic and life- style factors –Innovators –Thinkers –Believers –Strivers –Experiencers –Makers –Survivors

5. OHT 10.4 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Marketing mix International marketing must still respond to the 4 Ps –Product itself (What characteristics?) –Price (What pricing strategies might be pursued?) –Promotion (How do we make consumers aware of this product?) –Place (What routes to market?)

6. OHT 10.5 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Why International Marketing? Increasing market size Extending product life cycle Supporting international specialisation Establishing ‘first-mover’ advantages

7. OHT 10.6 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Market-entry methods

8. OHT 10.7 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Starbucks: capital-light expansion through partnerships

9. OHT 10.8 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Desk Research (1) Secondary data source, using already published information International organisations: OECD, UN, IMF, World Bank, EU National publications: UK National Statistics, HMSO National Trade Associations/Chambers of Commerce

10. OHT 10.9 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Desk research (2) Trade journals: e.g. Campaign (Advertising) Financial Press: e.g. in FT, broadsheet newspapers, Economist Internet

11. OHT 10.10 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Field Research (1) Primary data source, deriving new information Focus groups: selection of individuals in groups again depends on target market

12. OHT 10.11 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Field research (2) Questionnaires –Question important: avoid ambiguous, rhetorical, cultural bias etc. –Sample design important: use random, stratified or cluster samples (segmented market) as appropriate to target market –Data analysis important: spreadsheets using measures of central location, dispersion, regression, correlation, hypothesis testing

13. OHT 10.12 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Product Standardisation: case for Rapid technological change, reducing product life cycles (places a premium on rapid global penetration) Substantial scale economies International product standards established Short cultural distance to overseas market Strong and favourable brand image Homogeneous consumer preferences Global competition Centralised management of MNE

14. OHT 10.13 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Price discrimination Setting different prices for identical products Must be able to separate out the dearer/cheaper markets: i.e. barriers between markets Must be different price elasticities of demand in each separate market Profit maximising condition: MC for whole output = MR in each separate market Price will tend to be higher where price elasticity of demand is lower, and vice versa

15. OHT 10.14 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Promotion International promotion campaigns depend on various factors –What is the technological infrastructure of the country? –What appeals culturally in the advertisement? –What are the regulations on advertising in that country? –What are the media habits of the country? –What type of packaging is effective and acceptable in the country?

16. OHT 10.15 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Consumer–product relationships

17. OHT 10.16 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Place Routes to market will depend upon: –The value and type of product –The cost and speed of alternative types of transport –The ease with which a route (channel) to market can be managed –What the competitors are doing