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INTERNATIONAL
MARKETING
PHASES OF INETRNATIONAL MARKETING
INTERNATIONAL
TARGETING
INTERNATIONAL MARKET
SEGMENTATION
MODE OF
ENTRY SELECTION
MACROENVIRONMENT
INTERNATIONAL
4PS
INTERNATIONAL MARKET
RESEARCH
MICROENVIRONMENT
MOTIVATORS
OBSTACLES
COMPANY
ORGANISATIONAL
FRAMEWORK
International marketing concepts
• Original classification
–
–
–
–
Ethnocentric
Policentric
Regiocentric
Geocentric
International marketing concepts
• New classification
– Domestic market extension concept
– Multi domestic concept
– Global marketing concept
Companies
•
•
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•
Domestic companies
International companies
Multinational companies
Transnational companies
Can we control anything?
• Controllable elements
• Domestic, not controllable elements
• Foreign, not controllable elements
MOTIVATORS
• Dynamic Management
* New management or
* management already
working for the
company
• Factors
* Proactive or
* Reactive factors
PROACTIVE FACTORS
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•
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•
Profit
Unique product
Unique technology
Unique information
Excess capacity
Economies of scale
REACTIVE FACTORS
• Competitors
• Overproduction
– Safety valve eff.
• Domestic market
is saturated
• Tax incentives
• Closeness to the
customers
OBSTACLES OF
INTERNATIONALISATION
• Internal
• External
• Methodological
INTERNAL OBSTACLES
• Lack of competencies (management,
marketing, language)
• Lack of infrastructure
• Willingness to collaborate and to accept
new ideas
• etc.
EXTERNAL OBSTACLES
• Unforeseeable events coming
* from the domestic marketplace
(competitors, legal entities, consumers, etc)
* from the foreign marketplace
(political, legal, cultural, economic, etc.)
METHODOLOGICAL
OBSTACLES
•
•
•
•
Static analyses
Average counting
Quantifying everything
Rigidity in terms of places
Decision point
• Does it worth?
• Are the motivators strong enough?
• Can we overcome the obstacles?
IF NOT:
• Reformulate the goals or
• Initiate changes inside the company
IF YES
The company is ready to define its
international marketing strategy
Including the
1) the macroenvironment
2) the microenvironment
and
3) the methodology
The macroenvironment
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Geographical environment
Political environment
Legal environment
Economic environment
Technological environment
Cultural environment
Geographical environment
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Climate and topography
Raw materials
Environmental protection
Urbanisation - suburbanisation Reurbanisation
• Population
Political environment
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•
Political system
Changes of the government
Political philosophy
Possible problems with respect to the
property:
- Confiscation
- Expropriation
- Nationalisation
- Domestication
How to protect against the
political risks?
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•
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Good selection of the country
Good selection of the industry
Good selection of the partner
Licensing or franchising?
Planned domestication
Economic environment
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Globalisation
Localisation
Interdependency
Internationalisation of markets, companies
and products
• Diversification
• Assortment of products
Economic environment
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Price equalisation
Information
Partnerships
Belongings
Infrastructure
Technological environment
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Role of human resource
Changes in power
R and D costs
Innovations
Launching the products
Partnerships
Cultural environment
What is culture?
Three modes of defining
culture:
• General aspects
• Enumeration
• Classification
Defining culture by general
aspects
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•
•
•
Something learnt
The elements are linked to each other
Inherited
Cannot be changed revolutionary, only
evolutionary
Defining culture by general
aspects
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A country is not a culture
Stereotypes
Changing the culture
Having more cultures
Defining culture by enumeration
• Herskovits’s enumeration:
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Material culture
Social institution
People and the universe
Estetics
Language
Defining culture by classification
• Context of communication
– high context cultures
– low context cultures
• explicit message
• implicit message
• Hofstede’s classification
– 4 dimensions
Cultural differences in the
evedyday life
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Ideologist - Pragmatic cultures
Associative and Abstractive cultures
Nature of the people
Nature and the people
Individualist and Collectivist cultures
Active and Passive cultures
Time
Cultural differences in the
evedyday life
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Place
Communication
Values
Knowledge
Beliefs
Gifts
Food
Cultural differences in business
• Structure of decision making
• Participants
• Objectives of the participants
Why are we against the other
cultures?
• Cultural racism
• Cultural resistance
• Cultural opposition
How to integrate this knowledge
into the strategy?
• Congruent strategy
• Planned strategy
• Not planned strategy
Customs
• Cultural imperatives
• Cultural exclusives
• Cultural adiaphora
INTERNATIONAL
MARKETING
• COMPANY WITH INTERNATIONAL
PLANS
• MOTIVATORS
• OBSTACLES
• INTERNATIONAL MARKET(ING)
RESEARCH
– MACRO AND MICRO ENVIRONMENT
– METHODOLOGY
MACRO ENVIRONMENT
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GEOGRAPHIC
POLITICAL
LEGAL
TECHNOLOGICAL
ECONOMIC
CULTURAL
MICRO ENVIRONMENT
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COMPANY
COMPETITORS
CUSTOMERS
SUPPLIERS
PARTNERS
NEW ENTRANTS
COMPANY
• STRATEGY
• MISSION, VISION
• COMPREHENSIVE
SWOT ANALYSIS
• CLARIFYING THE
GOALS
COMPETITORS
• IDENTIFYING
THEM
• AREA OF
OPERATION
• STRATEGY
• STRONG AND
WEAK POINTS
• TACTICS
CONSUMERS
• IDENTIFYING
THEM
• PREFERENCES,
TASTES
• DEMAND
• PRODUCT, PRICE,
PROMOTION
EXPECTATIONS
SUPPLIERS
• DO THEY SUPPORT
OUR IDEA
• QUALITY
• QUANTITY
• CONDITIONS
OR
• WE NEED NEW
SUPPLIERS
PARTNERS
• WILL THEY
MAINTAIN THE
STRONG
COLLABORATION
• CAN THEY
FOLLOW US
• CAN THEY ACCEPT
THE NEW
CONDITIONS
NEW ENTRANTS
• EASY OR
DIFFICULT ENTRY
• POSSIBLE NEW
CONDITIONS IN
THE INDUSTRY
METHODOLOGY OF
INTERNATIONAL MARKET
RESEARCH
• DIFFERENCE BETWEEN MARKET
AND MARKETING RESEARCH
– DYNAMIC OR STATIC ANALYSIS
– QUANTITATIVE OR QUALITATIVE
INFORMATION
– USE OF INFORMATION
THE PROCESS OF THE
RESEARCH
• IDENTIFICATION OF THE OBJECTIVE
OR THE PROBLEM
• IDENTIFICATION OF THE SOURCE OF
INFORMATION AND THE TECHNIQUE
OF INFORMATION COLLECTION
• INFORMATION COLLECTION
• INTERPRETATION OF THE INFO.
• PRESENTATION OF THE RESULTS
OBJECTIVE OR PROBLEM
• CONTINUOUS
RESEARCH
• MICRO
ENVIRONMENT
• PERIODIC
RESEARCH
• MACRO
ENVIRONMENT
SOURCES OF INFORMATION AND
TECHNIQUE OF INFO. COLLECTION
SOURCES OF INFORMATION
PRIMARY INFORMATION SECONDARY INFORMATION MOSAICINFORMATION
PRIMARY INFORMATION
• OWN OBJECTIVE OR PROBLEM
• METHODOLOGY DEFINED BY US
• DATA COLLECTION IS PERFORMED
BY OUR FIRM OR EMPLOYEES
PRIMARY INFORMATION
PRIMARY INFORMATION
ASKING PEOPLE
OBSERVATION
EXPERIMENTATION
ASKING PEOPLE
• WHOM TO ASK?
– INDIVIDUALS
– ORGANISATIONS
– EXPERTS
• HOW TO ASK?
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–
–
–
–
PERSONALLY
POST
TELEPHONE
COMPUTER
COMBINED
ASKING PEOPLE
• WHAT TO ASK?
– OMNIBUS
– SPECIALISED
QUESTIONNAIRE
ASKING PEOPLE
PROBLEMS
• NOT WILLING TO ASK
• NOT ABLE TO ASK
• HOW AND WHAT TO
ASK
• HOW TO ORGANISE
• HOW TO INTERPRET
• SAMPLING
• LANGUAGE SKILLS
• MULTICULTURAL
ASKING
OBSERVATION
• OBSERVE
CONSUMERS OR
USERS
• PASSIVE
PARTICIPATION
• USED USUALLY
TOGETHER WITH
OTHER FORMS
EXPERIMENTATION
• LABORATORY
CONDITIONS
• ONE PARAMETER
IS CHANGED
• OTHER VARIABLES
ARE KEPT
„CETERIS
PARIBUS”
• EXPENSIVE!
SECONDARY INFORMATION
• DIFFERENT OBJECTIVE OR PROBLEM
• METHODOLOGY DEFINED BY
SOMEONE ELSE
• DATA COLLECTION PERFORMED BY
SOMEONE ELSE
• INTERNAL AND EXTERNAL
INFORMATION
INTERNAL INFORMATION
• LETTERS
• ORDERS
• DOCUMENTS PREPARED BY THE
COMPANY
• CERTIFICATES
EXTERNAL INFORMATION
EXTERNAL INFORMATION
PRODUCED ON THE DOMESTICMARKET
PRODUCED ABROAD
AVAILABLE ON THE DOMESTICMARKET AVAILABLE ON THE DOMESTICMARKET
PRODUCED ABROAD
AVAILABLE ABROAD
SECONDARY INFORMATION
PROBLEMS
• NOMENCLATURE IS DIFFERENT
• QUALITY OF THE INFORMATION
• QUALITY OF THE METHODOLOGY
MOSAIC INFORMATION
• IS COLLECTED ADDITIONALLY
• SIDE INFORMATION
• IS COLLECTED TO ACTUALISE AND
TO COMPLETE THE ALREADY
POSSESSED INFORMATION
COLLECT INFORMATION
INTERPRETATION OF THE
INFORMATION
• ANALYSE THE INFORMATION
GAINED
• INTERPRET THE INFORMATION
• WORK WITH NUMBERS AND
FORMULATE ALTERNATIVES
• EXPLAINE THE GIVEN
ALTERNATIVES
PRESENTATION OF THE
RESULTS
• DISTRIBUTE THE
INFORMATION TO THE
USERS
• EXPLAIN THE
ALTERNATIVES
• CONDUCT A TWO
DIRECTION
COMMUNICATION
• HELP THE USERS
INTERPRET THE INFO.
INTERNATIONAL
MARKETING
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COMPANY
MOTIVATORS
OBSTACLES
INTERNATIONAL MARKET(ING)
RESEARCH
• INTERNATIONAL MARKET
SEGMENTATION AND TARGETING
OBJECTIVE OF
INTERNATIONAL MARKET
SEGMENTATION
• EFFECTIVE AND EFFICIENT
INTERNATIONAL MARKETING PLAN
• ABILITY TO DIFFERENCIATE THE
COMPANY FROM THE COMPETITORS
• POINT TO THE NEED TO CREATE A
NEW SEGMENT
PROCESS OF INT. MARKET
SEGMENTATION
• IDENTIFICATION OF THE LEVEL OF THE
MARKET TO BE SEGMENTED
• DETERMINATION OF THE VARIABLES
USED FOR SEGM.
• CHOICE OF THE METHOD OF INT. MARKET
SEGMENTATION
• IMPLEMENTATION OF INT. MARKET
SEGMENTATION
• CHECKING THE VALIDITY OF RESULTS
IDENTIFICATION OF THE LEVEL OF
THE MARKET TO BE SEGMENTED
•
•
•
•
LEVEL OF THE PRODUCT
LEVEL OF THE PRODUCT CATEGORY
LEVEL OF THE NEED
LEVEL OF THE MONEY
VARIABLES OF
SEGMENTATION
• VARIABLES THAT DESCRIBE THE
OBJECT OF THE SEGMENTATION
• VARIABLES THAT DESCRIBE THE
RELATIONSHIP BETWEEN THE
OBJECTS OF THE SEGMENTATION
AND THE MARKETING MIX
ELEMENTS
VARIABLES OF THE
OBJECTS
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DEMOGRAPHIC
GEOGRAPHIC
POLITICAL
LEGAL
ECONOMIC
CULTURAL
PSYCHOGRAPHIC
A CULTURE BASED
CLUSTERING
17 EUROPEAN COUNTRIES ARE
SEGMENTED
HOFSTEDE DIMENSIONS
• INDIVIDUALISM
• UNCERTAINTY AVOIDANCE
• POWER DISTANCE
• MASCULINITY
The 17 European countries
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Austria
Belgium
France
The Netherlands
Spain
Italy
Turkey
Greece
Germany
GB
Ireland
- Switzerland
- Portugal
- Denmark
- Sweden
- Norway
- Finland
THE CLUSTERS
CLUSTER 1.
• IND: MED-HIGH
• UNC: MED
• POW: SMALL
• MAS: HIGH
CLUSTER 2.
• IND: VAR.
• UNC:STRONG
• POW:MED
• MAS: LOW-MED
• AUSTR., GER.,
SWITZ., ITALY, GB.,
IRELAND
• BEL., FR., GREE.,
PORT., SP., TURKEY
THE CLUSTERS
CLUSTER 3.
• IND: HIGH
• UNC: WEAK, MILD
• POW: SMALL
• MAS: LOW
• DEN., SWEDEN,
FIN., NETHER.,
NORWAY
GLOBAL SEGMENTS
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AGRARIAN HEARTLANDS
BLUE COLLAR SELF SUFFICIENCY
CAREER FOCUSED MATERIALISTS
DE-INDUSTRIAL LEGACY
EDUCATED COSMOPOLITANS
FARMING TOWN COMMUNITIES
GREYS, BLUES SEA, MOUNTAIN
HARDENED DEPENDENCY
INNER CITY MELTING POINT
LOWER INCOME ELDERLY
MIDSCALE METRO OFFICE WORKERS
NON-PRIVATE RESIDENCES
OLD WEALTH
SHACK AND SHANTY
PSYCHOGRAPHIC
SEGMENTATION FOR THE
BEER MARKET
•
•
•
•
SPORTIVE
MASCULINE
TAKES NO RESPONSIBILITY
NO CONSERVATISME
„YOU ONLY GO AROUND ONCE IN
LIFETIME”
VARIABLES FOR RELATIONSHIP
OBJECTS AND PRODUCT
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BUYING SITUATION
LOYALTY
MOTIVATION
USER STATUS
USAGE RATE
ATTITUDE
VARIABLES FOR RELATIONSHIP
OBJECTS AND PRICE
• LOW, MEDIUM OR HIGH PRICE PREFERENCES
• PRICE SENSITIVITY
VARIABLES FOR RELATIONSHIP
OBJECTS AND PROMOTION
• RATIONAL OR EMOTIONAL MESSAGES
• MEDIA
• MOTIVATION
VARIABLES FOR RELATIONSHIP
OBJECTS AND PLACE
• SHOPPING PLACE PREFERENCES
• DISTRIBUTION CHANNEL PREFERENCES
DO ANY BEST SOLUSTIONS EXIST?
NO!
IT ALWAYS DEPENDS!
BUT WE HAVE CRITERIA!
• MEASURABILITY
• ACCESSIBILITY
• STABILITY IN TIME
• RELATIONSHIP BETWEEN THE OFFER AND THE
VARIABLE
• ACCEPTABLE SIZE
• STRICT DIFFERING OF SEGMENTS
METHODS OF INT. MARKET
SEGMENTATION
• METHOD THAT ACCEPTS THE
EXISTENCE OF NATIONAL BOARDERS
• INTERMARKETING SEGMENTATION
• MICROSEGMENTATION
METHOD THAT ACCEPTS THE
EXISTENCE OF BOARDERS
2-PHASE SEGMENTATION:
• FIRST THE GROUP(S) OF COUNTRIES
IS (ARE) SELECTED
• SECOND THE GROUPS OF
INDIVIDUALS OR ORGANISATIONS
ARE SELECETD
ADVANTAGES OF THE
METHOD
• SYSTEMATIC
• IN CASE OF ERROR
WE CAN CORRECT
EASIER
• COUNTS WITH THE
DIFFERENCES
DISADVANTAGES OF THE
METHOD
• SEPARATES
COUNTRIES
• NO POSSIBILITY
FOR STANDARDISATION
• NO POSSIBILITY
FOR LEARNING
• COSTS ARE HIGH
INTERMARKETING
SEGMENTATION
• REGARDS THE WHOLE WORLD AS
ONE MARKET
• BASED ON (A) WELL SELECTED
VARIBLE(S) WE CAN FIND GROUPS
OF PEOPLE WHO HAVE SIMILAR
BEHAVIOUR
ADVANTAGES OF THE
METHOD
• POSSIBILITY TO
TRANSFER
KNOWLEDGE
• COMPARE THE
BEHAVIOUR
DISADVANTAGES OF THE
METHOD
• DOESN’T COUNT
WITH THE
DIFFERENT
BACKGROUND OF
THE COUNTRIES
• ENTIRE REPETING
IN CASE OF ERROR
• COSTS ARE HIGH
MICROSEGMENTATION
• DURING INTERNATIONAL MARKET
SEGMENTATION SEGMENTS OF ONE
OF FEW PERTICIPANTS ARE CREATED
ADVANTAGES OF THE
METHOD
• BETTER FOCUS
• SPECIALISATION
• EFFECTIVE
MARKETING PLAN
DISADVANTAGES OF THE
METHOD
• DANGEROUS
• APPLICABLE ONLY
ON THE MARKET
OF
ORGANISATIONS
IMPLEMENTATION OF INT.
MARKET SEGMENTATION
• ON THE SELECTED LEVEL OF THE
MARKET
• WITH THE SELECTED METHOD
• ON THE BASIS OF THE SELECTED
VARIABLES
HOW TO EVALUATE THE
OBJECTS ?
TWO TECHNIQUES
• PARALLEL EVALUATION
- MATRIX FORMAT
• SYSTEMATIC EVALUATION
CHECKING THE VALIDITY
OF THE RESULTS
• APPLYING MORE THAN ONE
STATISTICAL METHOD, EG.
– CLUSTER ANALYSIS + SPLIT HALF
METHOD
• REPEATING THE PROCESS
PERIODICALLY
INTERNATIONAL MARKETING
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•
COMPANY
MOTIVATORS
OBSTACLES
INTERNATIONAL MARKET(ING)
RESEARCH
• INTERNATIONAL MARKET
SEGMENTATION AND TARGETING
INTERNATIONAL
TARGETING
• AFTER THE CREATION OF THE
SEGMENTS
• WE SELECT ONE OR MORE
SEGMENTS
• TO WHICH WE WILL PAY ATTENTION
INTERNATIONAL MARKET
SEGMENTATION AND TARGETING
STRATEGIES
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UNDIFFERENTIATED STRATEGY
DIFFERENTIATED STRATEGY
CONCENTRATED STRATEGY
MULTISEGMENTATION STRATEGY
NICHE STRATEGY
INTERNATIONAL MARKETING
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COMPANY
MOTIVATORS AND OBSTACLES
INT. MARKET(ING) RESEARCH
INT. MARKET SEGMENTATION
MODES OF ENTERING THE INT.
MARKETS
MODES OF ENTERING
FOREIGN MARKETS
• THE CHOICE DEPENDS ON THE
–
–
–
–
–
–
RISKS
COSTS
CONTROL
PRODUCT/SERVICE
MANAGEMENT
SITUATION - OPPORTUNITIES OR
THREATS
THE MODES OF ENTRY
• PRODUCTION IN THE
DOMESTIC MARKET
• SELLING IN THE
FOREIGN MARKETS
• MODES
– DIRECT
EXPOTRING
– INDIRECT
EXPORTING
• PRODUCTION AND
SELLING ON
FOREIGN MARKETS
• MODES
– LICENCING
– CONTRACTUAL
MANUFACTURING
– FRANCHISING
– JOINT VENTURES
– FDI
INTERNATIONAL
MARKETING
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COMPANY
MOTIVATORS AND OBSTACLES
INT. MARKET(ING) RESEARCH
INT. MARKET SEGMENTATION
MODES OF ENTRY
INT. 4 PS
INTERNATIONAL PRODUCT
POLICY
• PLANNING OF THE PRODUCTS
(SERVICES)
• DEVELOPING THE PRODUCTS
(SERVICES)
• MANAGING THE PRODUCTS IN THE
FOREIGN MARKETS
PLANNING THE OFFER
• SAME PRODUCTS
(SERVICES) GLOBAL
• ADOPTED
PRODUCTS
(SERVICES) MODIFIED
• OR NEW
PRODUCTS
(SERVICES)
GLOBAL STRATEGY
• ONLY THE
BIGGEST AND
MOST AGGRESSIVE
COMPANIES
• ECONOMIES OF
SCALE
• GLOBAL IMAGE
MODIFIED STRATEGY
• REASONS FOR
MODIFYING THE
STRATEGY
• HOW TO
CHANGE
• WHAT TO
CHANGE
REASONS FOR CHANGE
DIFFERENCES IN
• CUSTOMS
• USAGE OF THE PRODUCTS/SERVICES
• LEGAL PLATFORM
• QUALITY REQUIREMENTS
• INFRASTRUCTURE
• CULTURE
• BIOLOGICAL PARAMETERS
HOW TO CHANGE
• INTERNAL CHANGE
MATERIAL,
TECHNICAL,
FUNCTIONAL
CHANGE
• EXTERNAL CHANGE
QUALITY, SHAPE,
COLOUR, SIZE,
SERVICE
• NECESSARY CHAGE
ELECTRONIC OR
LEGAL
REQUIREMENTS
• OPTIONAL CHANGE
WHAT TO CHANGE
• CORE PRODUCT / SERVICE
• ACTUAL PRODUCT/ SERVICE
• AUGMENTED PRODUCT/SERVICE
+ ROLE OF MODULES
NEW OFFER
• TO RESPOND TO
THE DIFFERENT
NEEDS AND
CONDITIONS
• FOR MOST OF THE
COMPANIES
HOW TO DEVELOP NEW
PRODUCTS AND SERVICES
• IDEA GENERATION
• NEED ANALYSIS
• SOCIETAL
ANALYSIS
• BUSINESS
ANALYSIS
– MARKETIBILITY
STUDY
– COMPATIBILITY
STUDY
HOW TO DEVELOP NEW
PRODUCTS AND SERVICES
• PHYSICAL
DEVELOPMENT
AND TESTING
• TEST-MARKETING
– CONCEPT-TEST
– TECHNICAL-TEST
– MARKET-TEST
• LAUNCHING THE
PRODUCT/SERVICE
THE NEWNESS
• NEW FOR THE
COMPANY
• NEW FOR THE
MARKET
– CONGRUENT
INNOVATION
– CONTINUOUS INN.
– DYNAMIC INN.
– BREAKING INN.
PLANNING THE STRUCTURE
• DEPTH
• WIDTH
• MARKET
POSITIONING!
BRANDING
• BRAND NAMES
• FAMILY OR
INDIVIDUAL
BRAND NAMES
• PRIMARY AND
SECONDARY
BRANDS
• SELF
CANNIBALISATION
BRANDING - DECISIONS
• TO USE BRAND
NAMES OR NOT
• IF YES,
–OWN BRAND NAM
– DISTRIBUTORS’
BRAND NAME
– OTHER
• IF OWN,
– IN ONE MARKET
– IN MORE MARKETS
BRANDING - DECISIONS
• IF IN ONE MARKET
– 1 BRAND NAME
– MORE BRAND
NAMES
• IF IN MORE
MARKETS
– LOCAL BRAND
NAMES
– GLOBAL BRAND
NAMES
CRITERIA OF BRAND
NAMES
•
•
•
•
•
PRONOUNCABLE
RETAINABLE
NOT MISUNERSTANDING
SHORT
RESULT IN POSITIVE BRAND
ASSOCIATION
• WRITTEN AND ORAL FORM SHOULD
BE SIMILAR
PACKAGING
• DOUBLE
PACKAGING
• DIFFERENT AS,
– DELIVERY
– CUSTOMS
– LEGAL
REQUIREMENTS
– CULTURAL DIFF.
– ECONOMIC DIFF.
FURTHER QUESTIONS
• WARRANTY
• NOTE FOR APPLICATION
• AFTER SALE SERVICE
– SAME OR ADOPTED?
INTERNATIONAL
PROMOTION POLICY
• INTERNATIONAL PLANNING
• INTERNATIONAL IMPLEMENTATION
• MANAGEING THE PROMOTIONAL
STRATEGY IN INTERNATIONAL
MARKETS
INTERNATIONAL
PROMOTION
PROMOTION IS NOT ONLY FOR
CONVINCING AND MANIPULATING
PEOPLE BUT FOR INFORMING THEM
AND FOR COMMUNICATING WITH
THEM AS WELL!
ELEMENTS OF PROMOTION
•
•
•
•
ADVERTISING
SALES PROMOTION
PUBLICITY
DIRECT SELLING
ADVERTISING
• STRENGTH OF
SOURCE
• CREDIBILITY OF
SOURCE
• PRESTIGE OF
SOURCE
• HOMOPHILY
OBJECT OF ADVERTISING
•
•
•
•
BRAND
PRODUCT
FIRM
COUNTRY
NEW PHENOMENA IN
ADERTISING
• PATTERN
ADVERTISING
• PAN EUROPEAN
ADVERTISING
• PAN EAST
EUROPEAN
ADVERTISING
FACTORS TO DETERMINE
• WHAT TO SAY
– WHAT TO ADVERTISE
• HOW TO SAY IT
– RATIONAL OR EMOTIONAL MESSAGES
• WITH THE USAGE OF WHO OR WHAT TO SAY
IT
– FAMOUS OR EVERY DAY PEOPLE OR
THINGS
• HOW TO DETERMINE WHAT TO DO
SALES PROMOTION
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•
•
•
•
PRICE REDUCTION
SALE
CUPONS
TRIAL
PAY FOR ONE,
RECEIVE TWO
• GIFT
• GAME
WHEN TO USE SP?
WHEN LAUNCHING A NEW PRODUCT OR
SERVICE ON THE MARKET
• TO MAKE THE PEOPLE TRY THE PRODUCT
• MAKE THE PEOPLE TRY A NEW RETAIL
SHOP OR SELLING FORM
• CONVINCE THE RETAILERS TO HOLD THE
PRODUCT OR OFFER THE SERVICE
WHEN TO USE SP?
• SHORT TERM EFFECT
• USED TOGETHER WITH ADVERTISING
• INFLUENCE THE TIMING OF THE
BUYING
• EFFICIENCY OF THE USAGE OF SP
CAN BE REDUCED IF OFTEN USED
SPONSORING
• GOOD CHOICE OF
THE EVENT WHAT
WE SPONSOR
• POSITIVE IN THE
EYE OF THE CUST.
• CONNECTION
BETWEEN THE
EVENT AND OFFER
• CONN. BETWEEN
THE EVENT AND
TARGET MARKET
PUBLICITY
• CHEAP WAY OF MAKING THE PEOPLE
TALK AND WRITE ABOUT OUR OFFER
OR COMPANY
• TIMING IS OF CRITICAL IMPORTANCE
• DIRECT PAYMENT IS MISSING
DIRECT SELLING
• DIRECT - PERSONAL COMMUNICATION
• THE CHANNEL IS THE PERSON - WHO
HAS TO SELL HIM(HER)SELF
• ACTIVE PARTICIPATION IS NEEDED
AS THE CHECKING OF THE
CUSTOMERS’ UNDERSTANDING AND
ACCEPTANCE IS NECESSARY.
INTERNATIONAL
PROMOTION STRATEGIES
• PUSH
• PULL
• GRAVITATION
STANDARDISATION OR
DIFFERENTIATION?
WE PREFER THE STANDARDISED
VERSION, AS
• CREATIVE IDEAS
• COSTS
• SYNERGIE
• GLOBAL IMAGE
INTERNATIONAL PRICING
POLICY
• INTERNATIONAL PLANNING
• INTERNATIONAL IMPLEMENTATION
• INTERNATIONAL MANAGEMENT OF
THE PRICES
PRICE PLANNING
• OBJECTIVE OF PRICE SETTING
• METHODS OF PRICE SETTING
OBJECTIVES OF PRICE
SETTING
•
•
•
•
•
PROFIT
SALES VOLUME
MARKET SHARE
IMAGE TRANSFER
IMAGE
METHODS OF PRICE
SETTING
BASED ON INTUITION
BASED ON
CALCULATION
•
•
•
•
•
OBJECTIVE ORIENTED
DIFFERENTIATED
SALES PROMOTION
COST PLUS
INTENTION ORIENTED
(PEN-SKI)
• PSYCHOLOGICAL
DIFFERENTIATION OR
STANDARDISATION
3 POSSIBILITIES:
• STANDARDISED
• DUAL
• DIFFERENTIATED
TECHNIQUE AND LEVEL
MANAGEING
INTERNATIONAL PRICES
• MEASURE THE EFFICIENCY OF THE
PRICES
• COMPARE THE RESULTS WITH THE
SET OBJECTIVES
• METHODS:
– MULTI VARIATE STATISTICS
– MOTIVATION ANALYSIS
INTERNATIONAL
DISTRIBUTION CHANNEL
POLICY
• INTERNATIONAL PLANNING
• INTERNATIONAL IMPLEMENTATION
• INTERNATIONAL MANAGEMENT OFT
THE CHANNELS
INTERNATIONAL PLANNING
OF THE D. CH.
• DIRECT OR INDIRECT CHANNELS TO
USE?
• INTENSITY OF DISTRIBUTION
• CHANNEL DESIGN
• STANDARDISED OR DIFFERENTIATED
MESSAGE
DIRECT OR INDIRECT?
IT DEPENDS ON:
• AVERAGE COSTS
OF DISTRIBUTING I
UNIT
• DELIVERY TIME
EXPECTATIONS
• PRODUCT/SERVICE
• FACILITIES
• CONDITIONS
INTENSITY OF
DISTRIBUTION
• EXCLUSIVE
• SELECTIVE
• INTENSIVE
CHANNEL DESIGN
•
•
•
•
MARKET COVERAGE ASPECTS
PRODUCT CHARACTERISTICS
CUSTOMER SERVICE ASPECTS
PROFITABILITY
MARKET COVERAGE
ASPECTS
•
•
•
•
CUSTOMER BUYING BEHAVIOUR
INTENSITY OF DISTRIBUTION
CHANNEL STRUCTURE
CONTROL
PRODUCT
CHARACTERISTICS
•
•
•
•
•
•
•
•
•
VALUE OF THE PRODUCT
TECHNICALITY
MARKET ACCEPTANCE
SUBSTITUTABILITY
BULK, STEWABILITY
PERISHABILITY
MARKET CONCENTRATION
SEASONABILITY
WIDTH AND DEPTH
CUSTOMER SERVICE
ASPECTS
• AVAILABILITY
• ORDER CYCLE
• COMMUNICATION
PROFITABILITY ASPECTS
• ESTIMATION OF COSTS AND
REVENUE
• OPPORTUNITY COSTS
• MARKET SEGMENT MARGIN
• ESTIMATION FOR FUTURE
CHANNEL STRUCTURE
BASED ON THE FOUR DIMESIONS
MAKE A DECISION ABOUT THE
• LENGTH OF THE CHANNEL
• PARTICIPANTS OF THE CHANNEL
• WAY OF MEASURING THE
PERFORMANCE OF THE
PARTICIPANTS
STANDARDISATION OR
DIFFERENTIATION
• HOW TO LINK THE NATIONAL
CHANNELS TO EACH OTHER?
• HOW TO COMPARE THE
PERFORMANCE DATA?
• POSSIBILITY FOR STANDARDISED
MEANS OF DELIVERING GOODS TO
INTERNATIONAL CUSTOMERS
ORGANISATIONAL
FRAMEWORK
• WHAT DEPARTMENT OR WHO IS
RESPONSIBLE FOR THE
INTERNATIONALISATION?
• WHAT ARE THE COMMUNICATION
LINKS INSIDE THE COMPANY?
• HOW TO FIND THE BEST PEOPLE FOR
THE INTERNATIONALISATION
PROJECT? HOME - HOST - THIRD
COUNTRY PEOPLE?
SELECTION CRITERIA FOR
FOREIGN ASSIGNMENTS
• COMPETENCE FACTORS
–
–
–
–
–
TECHNOLOGICAL KNOWLEDGE
LEADERSHIP ABILITY
EXPERIENCE, PAST PERFORMANCE
AREA EXPERTISE
LANGUAGE
SELECTION CRITERIA FOR
FOREIGN ASSIGNMENTS
• ADAPTABILITY FACTORS
–
–
–
–
INTEREST IN FOREIGN WORK
RELATIONAL ABILITIES
CULTURAL EMPATHY
APPRECIATION OF NEW MANAGEMENT
STYLES
– APPRECIATION OF NEW
ENVIRONMENTAL CONSTRAINTS
– ADAPTABILITY OF FAMILY
SELECTION CRITERIA FOR
FOREIGN ASSIGNMENTS
• PERSONAL CHARACTERISTICS
–
–
–
–
–
–
AGE
EDUCATION
SEX
HEALTH
,ARITAL RELATIONS
SOCIAL ACCEPTABILITY
CULTURAL SHOCK
•
•
•
•
INITIAL EUPHORIA
IRRITATION AND HOSTILITY
ADJUSTMENT
REENTRY
REPATRIATION
• PROFESSIONAL
• PERSONAL
COMPENSATION
• BASE SALARY AND SALARY
RELATED ALLOWANCES
(HARDSHIP ALL., COLA, HOUSING ALL.)
• NONSALARY RELATED ALLOWANCES
(MOBILITY ALL., TRAVEL EXP.,
EDUCATION ALL.)
GREEN MARKETING
• ENVIRONMENTALISTS
• MEDIA
• == CONSUMERS’ NEW PREFERENCES
GREEN CONSUMERS
LOOK FOR PRODUCTS
• PACKAGED IN RECYCLABLE MATERIALS
• NOT EXCESSIVELY PACKAGED
• PERCEIVED AS ENVI. FRIENDLY
• MADE FROM RECYCLED MATERIALS
• THAT DON’T CONTAIN DYES OR TOXIC
MATERIALS
• THAT ARE NOT PACKAGED IN FOAM
INTERMARKETING
SEGMENTS OF PEOPLE
• GREEN LEADERS
– TRUE BLUE GREENS
– GREEN BACK GREENS
• GREAN FOLLOWERS - SPROUTS
• NONENVIRONMENTALISTS
– GROUSERS
– BASIC BROWNS
TYPES OF COMPANIES
•
•
•
•
IGNORE THE GREEN
PASS AS GREEN
GENUINE GREEN
PROGREEN
– 4RS: RETHINKING LIFESTYLES, REFUSE
PRODUCTS CONTAINING A LOT OF
RESSOURCES, REUSE THE PRODUCTS,
RECYCLE PACKAGING
MARKETING ASPECTS
• PRODUCT: GREEN IN ALL PHASES
• PRICE: COMPETITIVE, AS
STANDARDISED GREEN PRODUCTS
ARE MANUFACTURED
• PROMOTION: TO INFORM AND
EDUCATE
• PLACE RECYCLING CENTERS, OR
MANUF. PROGRAMS
COUNTRY OF ORIGIN
EFFECTS
• AFFECT TRANSFER PROCESS
• COGNITIVE MEDIATION PROCESS
• PURCHASE INTENTION EFFECT
STRATEGIES TO MINIMISE
THE INFLUENCE
• AFFECT TRANSFER PROCESS
- DEMONSTRATE THE USAGE OF
PRODUCTS COMING FROM C.X.
• COGNITIVE MEDIATION PROCESS
- DEMONSTRATE THE ATTRIBUTES OF
PRODUCTS
• PURCHASE INTENTION PROCESS
- BECOME NATIONAL!
GREY MARKETING
• MARKETING?
• DUE TO THE:
– INFORMATION
– GLOBAL BRANDS
• THREE POSSIBILITIES
– REIMPORTATION
– PARALLEL IMPORTATION
– LATERAL IMPORTATION
CONSEQUENCES OF GREY
MARKETING
• POSITIVE CONSEQUENCES
– NEW TARGETS
• NEGATIVE CONSEQUENCES
– IMAGE
– RELATIONSHIP WITH DISTRIBUTION
CHANNEL MEMBERS
– SELF CANNIBALISATION
INTERNATIONAL
MARKETING PLAN
THE STRUCTURE OF THE
INTERNATIONAL MARKETING PLAN
1. BRIEF SUMMARY OF THE
MANAGER/OWNER
– READER - EMPLOYEE, PARTNER,
AUDITOR, FINANCIAL INSTITUTION
– OBJECTIVE, REASON
2. THE COMPANY
– HISTORY
– PARAMETERS
3. MOTIVATORS AND OBSTACLES
– MACRO AND MICRO MOTIVATORS
– INTERNAL AND EXTERNAL OBSTACLES
4. INTERNATIONAL MARKET RESEARCH
– OBJECTIVE
– METHODS
5. REVIEW OF THE MICRO AND MACRO
ENVIRONMENT
– MICRO ENVIRONMENT
COMPETITORS,
NEW ENTRANTS,
SUBSTITUTES,
POWER OF THE CLIENTS
POWER OF THE SUPPLIERS
– MACRO ENVIRONMENT
GEOGRAPHICAL
ECONOMIC
POLITICAL
LEGAL
TECHNOLOGICAL
CULTURAL
6. INTERNATIONAL MARKET SELECTION
– INTERNATIONAL MARKET SEGMENTATION
– INTERNATIONAL TARGETING
7. MODE OF ENTRY
8. MARKETING MIX
–
–
–
–
PRODUCT / SERVICE
PRICE (COST)
PROMOTION
DISTRIBUTION CHANNEL
9. ORGANISATIONAL FRAMEWORK
10. SCHEDULING
11. BUDGETING
12. EFFECT STUDY
13. CONCLUSION