marketing strategy
TRANSCRIPT
Slide 11.1
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Slide 11.2
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
International marketing: the process of identifying the goods and services that customers outside the home country want and then providing them at the right price and place.
Slide 11.3
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Slide 11.4
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
International market assessment: an evaluation of the goods and services that the multinational can sell in the global marketplace.◦ Initial screening: basic need and potential ◦ Second screening: financial and economic
conditions◦ Third screening: political and legal forces◦ Fourth screening: socio-cultural forces◦ Fifth screening: competitive environment◦ Final selection.
International market assessment
Slide 11.5
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Market indicators: Indicators used for measuring the relative market strengths of various geographic areas.
Market size: An economic screening consideration used in international marketing; it is the relative size of each market as a percentage of the total world market.
Market intensity: The richness of a market or the degree of purchasing power in one country as compared to others.
Market growth: The annual increase in sales in a particular market.
International market assessment (Continued)
Slide 11.6
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Slide 11.7
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Little or no modification◦ For example: industrial goods and technical
services. Moderate to high modification
◦ Factors to consider: Economics Culture Local laws Product life cycle.
Product strategies
Slide 11.8
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Figure 11.1 Selected examples of product modification in the international arena
How to classify these groups?
Slide 11.9
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Slide 11.10
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Promotion: the process of stimulating demand for a company’s goods and services.
The specific approach will be determined by the nature of the product:
◦ identical product and identical message◦ identical product but different message ◦ modified product but same message ◦ modified product and modified message.
Advertising: a nonpersonal form of promotion in which a firm attempts to persuade consumers to a particular point of view.
Personal selling: a direct form of promotion used to persuade customers to a particular point of view.
Promotion
Slide 11.11
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Slide 11.12
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Pricing is influenced by:◦ Government controls
minimum prices, maximum prices and anti-dumping
◦ Market diversity differences in consumer tastes and demands
◦ Currency fluctuations exchange rate risk
◦ Price escalation forces.
Pricing
Slide 11.13
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Table 11.1 The effect of MNE pricing on final consumer costs
Slide 11.14
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Some multinational enterprises (MNEs) use high pricing with high quality to skim the cream off the top of the market.
Others employ a low-price strategy designed to penetrate and capture a larger share of the middle and lower parts of the market.
Slide 11.15
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Slide 11.16
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Distribution: the course that goods take between production and the final consumer.
Different distribution systems ◦ It is often difficult to use the distribution system in
every country.◦ There are many individual differences to be
considered. For example: traditional distribution systems in each market; consumer preferences about location; availability of consumer finance and credit cards.
Choosing the best distribution system◦ Get the best possible distributors to carry their
products. Factors: financial strength, inventory capacity,
knowledge of government and business and the number and types of product lines.
Distribution systems