Marketing

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Chapter 14

• Marketing

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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.

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Marketing

• A look at

Target Market Selection
Marketing Management
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Identification and Screening

• Preliminary Screening
• Estimating Market Potentials by Product Type
• Estimating Sales Potential for Companys Product
• Identifying Segments in Target Market

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Preliminary Screening

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

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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.

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Estimating Sales Potential

• Collect product and market specific data
• Competition
• Market
• Consumers
• Product
• Channel structure

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Identifying Segments

• Individuals and organizations vary in their
  wants, resources, geographical locations, buying
  attitudes, and buying practices.

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Concentration Versus DiversificationMajor
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.

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Marketing Management

• 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.

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Product PolicyThe Core of the Firms Operations

• Goods
• Services

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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.

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Product Characteristics

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

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Company Considerations

• Resources
• Cost of adapting
• Organization
• Market Opportunity
• Profitability

• Is It Worth It?

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Pricing Policy

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

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Export PricingStrategies

• 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.

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Foreign Market Pricing

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

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Price Coordination

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

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Intracompany Pricing

• The pricing of sales to members of the corporate
  family.

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Distribution Policy

• Channels of distribution provide the essential
  links that connect producers and customers.

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Channel DesignDetermined by the 11 C-Factors

• Cost
• Coverage
• Control
• Continuity
• Communication

• Customers
• Culture
• Competition
• Company
• Character
• Capital

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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.

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Promotional Policy

• Advertising
• Personal Selling
• Sales Promotion
• Publicity