Chapter 14

Marketing

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.

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.

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.
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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 Policy
The 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

Is It Worth
It?

Resources
Cost of
adapting
Organization
Market
Opportunity
Profitability
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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 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.
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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 Design
Determined by the 11 C-Factors
Customers
Culture
Competition
Company
Character
Capital

Cost
Coverage
Control
Continuity
Communicatio
n
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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

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