1. Chapter 14
Marketing

2. Learning Objectives
Suggest how markets for international expansion can be selected, their demand assessed, and appropriate strategies for their development devised.
Describe how environmental differences generate new challenges for the international marketing manager.
Compare and contrast the merits of standardization versus localization strategies for country markets and of regional versus global market efforts.
Discuss market-specific and global challenges facing the marketing functions: product, price, distribution, and promotion within both the traditional and e-business dimensions.

3. Marketing
A look at:
Target Market
Selection
Marketing
Management

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

5. Preliminary Screening
This process must rely chiefly on secondary data for country-specific factors as well as product and industry specific factors.

6. Estimating Market Potential
The international marketer needs to assess the size of existing markets and forecast the size of future markets.
The marketer uses both quantitative and qualitative techniques for assessment.

7. Estimating Sales Potential
Collect product and market specific data
Competition
Market
Consumers
Product
Channel structure

8. Identifying Segments
Individuals and organizations vary in their wants, resources, geographical locations, buying attitudes, and buying practices.

9. 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.

10. Marketing Management Standardization Adaptation
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.

11. Product Policy The Core of the Firm’s Operations
Goods
Services

12. 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.

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

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

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

16. 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.

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

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

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

20. Distribution Policy
Channels of distribution provide the essential links that connect producers and customers.

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

22. 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.

23. Promotional Policy Advertising Personal Selling Sales Promotion
Publicity