International Business Marketing

Learning Objectives 1. Define global marketing. 2. Discuss why businesses expand into foreign markets. 3. Identify advertising (integrated marketing) media and pricing used in foreign markets including social, print, and digital media. 4. Describe how language, culture, media availability, and regulations affect global marketing strategies. 5. List factors that affect competition in the global market

Marketing Overview Marketing is the process of planning, pricing, promoting, selling, and distributing products to satisfy customers’ needs and wants. Marketing mix consists of the four P’s :: Product, Price, Place, Promotion

Marketing Overview A market is a set of people who chare similar wants and needs or who are capable of buying specific products Market Segmentation is the process of analyzing and classifying customers in a market to create smaller more precise markets to communicate with. Markets are segmented Demographically, Geographically, and Psychographically

Concentration Versus Diversification Major alternatives for choosing an expansion policy: Concentration on a small number of markets. Diversification is growth in a relatively large number of markets in early stages.

Marketing Overview The Promotional Mix is only one portion of marketing and includes a tool box of different promotional approaches that appeal to different market segments The promotional mix consists of: Advertising, personal selling, sales promotions, public relations, and publicity

International Marketing International Considerations with: Product Price Place Promotions

International Marketing Plan Step 1 Set company goals for sales, market share, and production levels Step 2 Define the target market and customers. USe demographics, geographics, and psychographics. Identify any B2B customers Step 3 Make a list of competitors and potential competitors. Step 4 Identify and social, legal, economic, or technological challenges in the foreign country Step 5 Prepare finaincial information, such as how to fund the expansion and when to expect a profit Step 6 Identify how nationality will apply to prospective staff (expatriates, local nationals, third country cnationals Step 7 Decide on appropriate promotions mix. Step 8 Set a time line and create aplan of implementation. Step 9 Follow up to see if the goals have been met and make adjustments

Identification and Screening Preliminary Screening Estimating Market Potentials by Product Type Estimating Sales Potential for Company’s Product Identifying Segments in Target Market

International Marketing International Considerations with Promotions Mix: Advertising Personal selling Sales promotions Public relations Publicity

Advertising and Advertising Appeal Fear Humor Romance Music Rational Thinking Emotions Scarcity

Learning Objectives 1. Discuss products and product modifications to meet international needs 2. Discuss pricing strategies in global markets 3. Discuss distribution strategies and issues with distribution in other countries.

Marketing Management Products, Pricing, and Distribution Standardization The extent to which elements of the marketing mix should be standardized. Adaptation Marketers may consider every situation independently, or rely on decision-support systems to aid in program adaptation.

Product Policy The Core of the Firm’s Operations Goods Services Consumer goods Industrial Goods Consumer – credit, insurance, banking General – cleaning, lawn care, dry cleaning

Factors in Product Adaptation Regional, Country, or Local Characteristics. Governments hold stringent requirements. Consider nontariff barriers. Competitive offerings may provide a baseline for resource measurement. Economic development must be accounted for. Customer preferences must be considered. Consider economic status of users. Consideration of geography. Purchase patterns must be considered.

Product Characteristics Product characteristics are the inherent features of the product offering.

Company Considerations Is It Worth It? Resources Cost of adapting Organization Market Opportunity Profitability

Pricing Policy The only element in the marketing mix that is revenue generating. Export Pricing Foreign Market Pricing Price Coordination Intracompany Pricing

Export Pricing Strategies Standard worldwide pricing is based on average unit costs of fixed, variable, and export-related costs. Dual pricing differentiates between domestic and export prices. Market-differentiated pricing is based on demand-oriented strategy making it more consistent with the marketing concept.

Foreign Market Pricing Determined By Corporate Objectives. Costs. Consumer Behavior and Market Conditions. Market Structure. Environmental Constraints.

Price Coordination Standard worldwide pricing may be mostly theoretical. Significant price gaps lead to the emergence of gray markets.

Intracompany Pricing The pricing of sales to members of the corporate family.

Factors in Price Adaptation Regional, Country, or Local Characteristics. Exchange Rates Economic situation Per capita income Values Access to resurces

Distribution Policy Channels of distribution provide the essential links that connect producers and customers. Direct – direct from producer to customer Indirect – utilizes an intermediary - producer to retailer to customer

Channel Design Determined by the 11 C-Factors Cost Coverage Control Continuity Communication Customers Culture Competition Company Character Capital

Factors in Distribution Adaptation Regional, Country, or Local Characteristics. Infrastructure Retail outlets Warehousing/storage Geographic landforms

E-Commerce Is forecast to grow at a compound annual rate of 50+ percent within 5 years. Western Europe has most growth. Governments work to come to terms with security, privacy, and access to the Internet.