international marketing plan and entry mode selection

Monday, May 1, 2023Iternational marketing plan and entry mode selection 1

INTERNATIONAL MARKETING PLAN AND ENTRY MODE SELECTION

Presented by,

ANJU MOHANANNISHAD P S

MOHAMMAD ANWAR ALI(MBA 2013 BATCH)

FROM, KERALA UNIVERSITY OF FISHERIES

AND OCEAN STUDIES

Monday, May 1, 2023 2

International marketing is the performance of business activities designed to plan , price , promote and direct the flow of company’s goods and services to consumers or users in more than one nations for a profit.

Iternational marketing plan and entry mode selection

INTERNATIONAL MARKETING


INTERNATIONAL MARKETING PLAN

Whether a company is marketing in several countries or is entering a foreign market for the first time ,planning is essential to success.

The first time foreign marketer must decide what products to develop , in which market

and with what level of resources commitment.

Guidelines and systematic procedures are necessary for evaluating international opportunities and risks and developing strategic plans to take advantage of such opportunities.


PHASES OF INTERNATIONAL MAKETING PLAN

Phase 1 preliminary analysis and

screening

Phase 2 .Adapting the marketing mix to target markets

Phase 3:developing the marketing plan

Phase 4: Implementation and control of marketing plan.


INTERNATIONAL PLANNING PROCESS Phase 1: Preliminary analysis and screening: matching company / country needs (Environmental factors ,company character and screening

criteria)Company character

• Philosophy•Objectives• Resources•Management style•Organization• Financial limitations•Management and marketing skills• Products• others

Home country constraints

• Political • Legal • Economic• others

Host country constraints

• Political/legal• Competitive• Level of technology• Culture• Structure of distribution• Economic• Geography• competition

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Whether the company is new into international marketing or heavily involved , an evaluation of potential markets is the first step in the planning process.

Critical first step is deciding in which existing country market to make a market investment.

A companies strength and weakness , products, philosophies, and objectives must be matched with a countries constraining factors and market potential.

o Countries are analyzed and screened to eliminate those that do not offer sufficient potential for further considerations.

Iternational marketing plan and entry mode selection

INTERNATIONAL PLANNING PROCESS CON’D…


The next step is to establish screening criteria against which prospective countries can be evaluated.

This criteria are ascertained by an analysis of company objectives ,resources, and other corporate capabilities and limitations.

It is important to determine the reasons for entering a foreign market and the returns expected from such an investment.

A companies commitment to international business and its objectives for going international are important in establishing criteria.



Minimum market potential ,minimum profit , return on investment ,acceptable competitive levels , standards of political stability ,acceptable legal requirements and other measures appropriate for the company’s products are examples of the evaluation criteria to be established.

Once evaluation criteria are set, a complete analysis of the environment within which a company plans to operate is made.

The environment consist of uncontrollable elaments,it includes both home country and host country constraints , marketing objectives, and any other company limitations or limitations that exist at the beginning of each planning period.



Understanding of uncontrollable factors is more complex in foreign marketing because each country under consideration presents the foreign marketer with a different set of unfamiliar environmental constraints.

The result of phase 1 provide the marketer with the basic information necessary to evaluate the potential of a proposed market.



PHASE 1 HELPS TO:

Identify problems that would eliminate the country from further considerations.

Identify environmental elements that need further analysis

Determine which part of the marketing mix can be standardized and how the marketing mix must be adapted to meet local needs.

Develop and implement marketing action plan.


PHASE 2: ADAPTING THE MARKETING MIX TO TARGET MARKETS More detailed examination of the components of the

marketing mix is the purpose of phase 2.

When target markets are selected , the market mix must be evaluated in light of the data generated in phase 1.

Incorrect decisions at this point lead product inappropriate for the intended market or to costly mistakes in pricing ,advertising ,and promotion.

The primary goal of phase 2 is to decide on a marketing mix adjusted to the cultural constraints imposed by the uncontrollable elements of the environment that effectively achieves corporate objectives and goals.


MARKETING MIX REQUIREMENTS

PRODUCT;AdaptationBrand nameFeatures PackagingService WarrantyStyle Standards

PRICE Credit

Discounts

PROMOTIONAdvertisingPersonal selling Media Message Sales promotion

DISTRIBUTION Logistics Channel


PHASE 3:DEVELOPING THE MARKETING PLAN

At this stage of planning process ,a marketing plan is developed for a target market –whether it is a single country or a global market set.

The marketing plan begins with a situation analysis and culminates in the selection of an entry mode and a specific action program for the market.


MARKETING PLAN DEVELOPMENT

Situation analysis

Objectives and goals Strategy and tactics

Selecting mode of entry

Budget

Action program


IMPLEMENTATION AND CONTRL Phase 3 triggers implementation of specific plans and

anticipation of successful marketing.

Information derived from each phase ,market research and evaluation of program performance will lead to phase 4.

All marketing plans require coordination and control during the period of implementation.

IMPLEMENTATION ,EVALUATION AND CONTROL;ObjectivesStandardsAssign responsibilityMeasure performanceCorrect for error


ADVANTAGES OF INTERNATIONAL MARKETING PLAN

Utilizing planning process encourages the decision maker to consider all variables that affect the success of a company’s plan.

As a company’s expands into more foreign markets with several products , it becomes more difficult to efficiently manage all products across all markets.

With the information developed in the planning process and a country market selected ,the decisions regarding the entry mode can be made.


ENTRY MODE SELECTION Different modes of entry strategies are

adopted by companies to enter foreign market.

A company has four different modes of foreign entry from which to select.

1. Exporting 2.contractual agreements 3. Strategic alliances 4.Ownership


EXPORTING Exporting can be either direct or indirect.

In direct exporting most of the company sell to a customer in another country.

This is the most common approach employed by companies taking their first international step because the risk of financial risk can be minimized.

Exporting is a common approach for mature international companies with strong international capabilities.


EXPORTING

INTERNET

EXPORTER

IMPORTERDISTRIB

UTER

DIRECT SALES

INDIRECT EXPORTINGIt means that a company sells to a buyer (importer or distributor) in the home country ,who in turn export the product.

Consumers include large retailers such as WALMART ,Wholesale supply houses , trading companies , and others that buy to supply customers abroad.


ADVANTAGES OF EXPORTING

Low risk and easy to manage and minimum capital is require

It require minimum capital and time.


THE INTERNET The internet is becoming increasingly

important as a foreign market entry method.

Initially , internet marketing focused on domestic sales .

DIRECT SALES

Particularly for high technology and big ticket industrial products ,a direct sales force may be required in a foreign country.


CONTRACTUAL AGREEMENTS

Contractual agreements are long term ,non equity associations between a company and another in foreign market.

Contractual agreements generally involves the transfer of technology ,processes , trade mark or human skills.

They serves as a means of transfer of

knowledge rather than equity.


LICENSING A means of establishing a foothold in foreign

markets without large capital outlays is licensing.

Patent rights , trademark rights , and the right to use technological processes are granted in foreign licensing .

Common examples of industry that use licensing arrangements in foreign markets are television programming and pharmaceuticals.

Licensing may be least profitable way of entering

a market ,the risks and headaches are less than for direct investments.


Licensing takes several forms . licenses may granted for production processes , for the use of trade name or for the distribution of imported products.

It is a good alternative where increasing domestic and foreign government regulations and restrictions and tough international competition.

LICENSING CONT’D…


FRANCHISING Franchising is a rapidly growing form of

licensing in which the franchiser provides a standard package of products ,systems and management services ,and the franchise provides market knowledge , capital ,and personnel involvement in management.

The franchiser can follow through on marketing of the products to the point of final sale.


Franchise system provides an effective blending of skill centralization and operational decentralization .

Franchising enables company to expand quickly with minimum capital

There are costs associated with servicing franchisees.

FRANCHISING CONT’D…


STRATEGIC INTERNATIONAL ALLIANCES (SIA)

SIA is a business relationship established by two or more companies to corporate out of mutual needs and to share risk in achieving a common objective.

Firms enter into strategic international alliances due to following reasons;

1.opportunities for rapid expansion into new markets .

2.access to new technology. 3.more efficient production and innovation4.reduced marketing costs. 5.access to additional source of products and capital.


INTERNATIONAL JOINT VENTURE

IJVs as a means of foreign market entry have accelerated sharply during the last 20 years .

The choice of partners and the qualities of relationships between the executives are important factors leading to success.

o IJVs provide a way to enter foreign markets that pose legal and cultural barriers that is less risky than acquisition of an existing company.

Joint venture is partnership of two or more participating companies that have jointed force to create a separate legal entity.


Four characteristics define JVs;

Joint ventures are established , separate legal entities.

They acknowledge intent by the partners to share in the management of JVs .

They are partnerships between legally incorporated entities such as companies , chartered organizations, or governments ,and not between individuals and,

Equity positions are held by each of the partners


CONSORTIA Consortia are similar to JVs and could be

classified such except for two unique characteristics;

1. They typically involve a large number of participants.

2. They frequently operate in a country or market in which none of the participants is currently active.

Consortia are developed to financial and managerial resources and to lessen risks.


THANK YOU

international marketing plan and entry mode selection

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