1. THE INSTITUTE OF CHARTERED ACCOUNTANTS OF SRI LANKA
MARKETING STRATEGY
International Marketing Strategy
Hafeez Rajudin
Chartered Marketer
MBA(SJSU), DipM(UK), PG. Dip. Bsc & Fin Adm (ICASL),
FInstCM(UK), FCIM(UK), FSLIM

2. INTERNATIONAL MARKETING
“The world is shrinking rapidly with the advent of faster communication, transportation and financial flows – products developed in one country are finding enthusiastic acceptance in other countries”.

3. MAJOR DECISIONS IN INTERNATIONAL MARKETING
Looking at the Global
Marketing environment
Deciding whether to go
International
Deciding which markets to
enter
Deciding how to enter
the markets
Deciding on the global
Marketing program
Deciding on the global
Marketing organization

4. Looking at the Global Marketing Environment
Economic Environment
Legal & Political Environment
Cultural Environment

5. Economic Environment Subsistence Economies
Raw Materials Exporting Economies
Industrializing Economies
Industrial Economies

6. Political & Legal Environment
Attitude towards International buying
Government bureaucracy
Political Stability
Monetary regulations

7. Cultural Environment
Each country has its own folkways, norms and taboos.
When deciding global marketing strategies, companies must understand how cultures affect consumer reactions in each of its world markets.
In turn they must also understand how their strategies affect local cultures/

8. Deciding Whether to go International
Not all companies need to venture into international markets to survive.
This decision depends upon the stage of the company life cycle. (Explanation)

9. Deciding which Markets to Enter
Before going abroad, the company should try to define its:
International marketing objectives and policies.
Choose how many countries to enter.
Market potential

10. Indicators of Market Potential
Demographic Characteristics
Education
Population size and growth
Population age composition
Geographic
Characteristics
Climate
Country size
Population density (urban, rural)
Transportation structure and market accessibility

11. Indicators of Market Potential
Economic factors
GDP size and growth
Income distribution
Industrial infrastructure
Natural resources
Financial and human resources
Socio cultural factors
Consumer lifestyles, beliefs and values
Business norms and approaches
Social norms.
Languages

12. Indicators of Market Potential
Political and Legal factors
National priorities
Political stability
Government attitude towards global trade
Government bureaucracy
Monetary and trade regulations

13. Deciding How to Enter the Market
“Once a company has decided to sell in a foreign country, it must determine the best mode of entry”

14. MARKET ENTRY STRATEGIES
EXPORTING
Direct
Indirect
Direct Investment
Assembly facilities
Manufacturing
facilities
Joint Venturing
Licensing
Contract
Manufacturing
Management Contracting
Joint Ownership
Amount of Commitment, Risk, Control and Profit Potential

15. MARKET ENTRY STRATEGIES
Exporting:
Entering a foreign market by selling goods produced in the company’s home country, often with little or no modifications.

16. MARKET ENTRY STRATEGIES
Joint Venturing
Entering foreign markets by joining with foreign companies to produce or market a product or service

17. MARKET ENTRY STRATEGIES
Licensing
A method of entering a foreign market in which the company enters into an agreement with a licensee in the foreign market, offering the right to use a, manufacturing process, trade mark, patent, trade secret, or other item of value for a fee or royalty.

18. MARKET ENTRY STRATEGIES
Contract Manufacturing
A joint venture in which a company contracts with manufacturers in a foreign market to produce the product or provide its service.

19. MARKET ENTRY STRATEGIES
Management Contracting
A joint venture in which the domestic firm supplies the management know-how to a foreign company that supplies the capital; the domestic form exports management services rather than products.

20. MARKET ENTRY STRATEGIES
Joint Ownership
A joint venture in which a company joins investors in a foreign market to create a local business in which the company shares joint ownership and control.

21. MARKET ENTRY STRATEGIES
Direct Investment
Entering a foreign market by developing foreign-based assembly or manufacturing facilities.

22. Deciding on the Global Marketing Program
Companies that operate in one or more foreign markets must decide how much, if at all, to adapt their marketing mixes to local conditions.
At one extreme are global companies that use a STANDARDADIZED MARKETING MIX, selling largely the same products and use the same marketing approaches worlwide.

23. Deciding on the Global Marketing Program
At the other extreme is an ADAPTED MARKETING MIX. In this case, the producer adjusts the marketing mix elements to each target market, bearing more costs but hoping for a larger market share and return.

24. ADAPTING PRODUCT & PROMOTION TO A GLOBAL MARKET
Straight Extension
Communication adaptation
Product Adaptation
Dual Adaptation
Product Invention

25. FIVE INTERNATIONAL PRODUCT AND PROMOTION STRATEGIES
Don’t change Product Adapt Product Develop new Product
3. Product Adaptation
5. Product
Invention
1. Straight Extension
Don’t change
Promotion
Adapt
PROMOTION
4. Dual Adaptation
2. Communication
Adaptation

26. FIVE INTERNATIONAL PRODUCT AND PROMOTION STRATEGIES
Straight Product Extension
Marketing a product in a foreign market without any change.
Product Adaptation
Adapting a product to meet local conditions or wants in foreign markets.
Product Invention
Creating new products or services for foreign markets.
Communication Adaptation
A global communication strategy of fully adapting advertising messages to local markets.

27. DISTRIBUTION CHANNELS
WHOLE-CHANNEL CONCEPT FOR INTERNATIONAL MARKETING
Seller’s
Headquarters
Organization for
International
marketing
Channels
Between
nations
Final User Or
Buyer
seller
Channels
Within
nations