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INTERNATIONAL MARKETING

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INTERNATIONAL MARKETING

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PHASES OF INETRNATIONAL MARKETING

INTERNATIONAL MARKET INTERNATIONAL MODE OF SEGMENTATION TARGETING ENTRY SELECTION

MACROENVIRONMENT

INTERNATIONAL MARKET INTERNATIONAL RESEARCH 4PS

MICROENVIRONMENT

ORGANISATIONAL MOTIVATORS OBSTACLES FRAMEWORK

COMPANY

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International marketing concepts

• Original classification

– Ethnocentric– Policentric– Regiocentric– Geocentric

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International marketing concepts

• New classification

– Domestic market extension concept– Multi domestic concept– Global marketing concept

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Companies

• Domestic companies

• International companies

• Multinational companies

• Transnational companies

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Can we control anything?

• Controllable elements

• Domestic, not controllable elements

• Foreign, not controllable elements

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MOTIVATORS

• Dynamic Management

* New management or

* management already

working for the

company

• Factors

* Proactive or

* Reactive factors

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PROACTIVE FACTORS

• Profit• Unique product• Unique technology• Unique information• Excess capacity• Economies of scale

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REACTIVE FACTORS

• Competitors• Overproduction

– Safety valve eff.

• Domestic market

is saturated• Tax incentives• Closeness to the

customers

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OBSTACLES OF INTERNATIONALISATION

• Internal

• External

• Methodological

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INTERNAL OBSTACLES

• Lack of competencies (management, marketing, language)

• Lack of infrastructure

• Willingness to collaborate and to accept new ideas

• etc.

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EXTERNAL OBSTACLES

• Unforeseeable events coming

* from the domestic marketplace (competitors, legal entities, consumers, etc)

* from the foreign marketplace

(political, legal, cultural, economic, etc.)

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METHODOLOGICAL OBSTACLES

• Static analyses

• Average counting

• Quantifying everything

• Rigidity in terms of places

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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

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IF YES

The company is ready to define its international marketing strategy

Including the

1) the macroenvironment

2) the microenvironment

and

3) the methodology

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The macroenvironment

• Geographical environment

• Political environment

• Legal environment

• Economic environment

• Technological environment

• Cultural environment

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Geographical environment

• Climate and topography

• Raw materials

• Environmental protection

• Urbanisation - suburbanisation - Reurbanisation

• Population

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Political environment

• Political system

• Changes of the government

• Political philosophy

• Possible problems with respect to the property: - Confiscation - Nationalisation

- Expropriation - Domestication

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How to protect against the political risks?

• Good selection of the country

• Good selection of the industry

• Good selection of the partner

• Licensing or franchising?

• Planned domestication

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Economic environment

• Globalisation

• Localisation

• Interdependency

• Internationalisation of markets, companies and products

• Diversification

• Assortment of products

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Economic environment

• Price equalisation

• Information

• Partnerships

• Belongings

• Infrastructure

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Technological environment

• Role of human resource

• Changes in power

• R and D costs

• Innovations

• Launching the products

• Partnerships

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Cultural environmentWhat is culture?

Three modes of defining culture:

• General aspects• Enumeration• Classification

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Defining culture by general aspects

• Something learnt

• The elements are linked to each other

• Inherited

• Cannot be changed revolutionary, only evolutionary

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Defining culture by general aspects

• A country is not a culture

• Stereotypes

• Changing the culture

• Having more cultures

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Defining culture by enumeration

• Herskovits’s enumeration:

– Material culture– Social institution– People and the universe– Estetics– Language

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Defining culture by classification

• Context of communication– high context cultures– low context cultures

• explicit message

• implicit message

• Hofstede’s classification– 4 dimensions

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Cultural differences in the evedyday life

• Ideologist - Pragmatic cultures

• Associative and Abstractive cultures

• Nature of the people

• Nature and the people

• Individualist and Collectivist cultures

• Active and Passive cultures

• Time

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Cultural differences in the evedyday life

• Place

• Communication

• Values

• Knowledge

• Beliefs

• Gifts

• Food

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Cultural differences in business

• Structure of decision making

• Participants

• Objectives of the participants

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Why are we against the other cultures?

• Cultural racism

• Cultural resistance

• Cultural opposition

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How to integrate this knowledge into the strategy?

• Congruent strategy

• Planned strategy

• Not planned strategy

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Customs

• Cultural imperatives

• Cultural exclusives

• Cultural adiaphora

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INTERNATIONAL MARKETING

• COMPANY WITH INTERNATIONAL PLANS

• MOTIVATORS

• OBSTACLES

• INTERNATIONAL MARKET(ING) RESEARCH– MACRO AND MICRO ENVIRONMENT– METHODOLOGY

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MACRO ENVIRONMENT

• GEOGRAPHIC

• POLITICAL

• LEGAL

• TECHNOLOGICAL

• ECONOMIC

• CULTURAL

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MICRO ENVIRONMENT

• COMPANY

• COMPETITORS

• CUSTOMERS

• SUPPLIERS

• PARTNERS

• NEW ENTRANTS

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COMPANY

• STRATEGY• MISSION, VISION• COMPREHENSIVE

SWOT ANALYSIS• CLARIFYING THE

GOALS

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COMPETITORS

• IDENTIFYING THEM

• AREA OF OPERATION

• STRATEGY• STRONG AND

WEAK POINTS• TACTICS

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CONSUMERS

• IDENTIFYING THEM

• PREFERENCES, TASTES

• DEMAND• PRODUCT, PRICE,

PROMOTION EXPECTATIONS

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SUPPLIERS

• DO THEY SUPPORT OUR IDEA

• QUALITY• QUANTITY• CONDITIONS

OR• WE NEED NEW

SUPPLIERS

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PARTNERS

• WILL THEY MAINTAIN THE STRONG COLLABORATION

• CAN THEY FOLLOW US

• CAN THEY ACCEPT THE NEW CONDITIONS

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NEW ENTRANTS

• EASY OR DIFFICULT ENTRY

• POSSIBLE NEW CONDITIONS IN THE INDUSTRY

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METHODOLOGY OF INTERNATIONAL MARKET

RESEARCH

• DIFFERENCE BETWEEN MARKET AND MARKETING RESEARCH– DYNAMIC OR STATIC ANALYSIS– QUANTITATIVE OR QUALITATIVE

INFORMATION– USE OF INFORMATION

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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

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OBJECTIVE OR PROBLEM

• CONTINUOUS RESEARCH

• PERIODIC RESEARCH

• MICRO ENVIRONMENT

• MACRO ENVIRONMENT

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SOURCES OF INFORMATION AND TECHNIQUE OF INFO. COLLECTION

P R IM AR Y INFOR M ATION SECONDAR Y INFOR M ATION M OSAIC INFOR M ATION

SOUR CES OF INFOR M ATION

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PRIMARY INFORMATION

• OWN OBJECTIVE OR PROBLEM

• METHODOLOGY DEFINED BY US

• DATA COLLECTION IS PERFORMED BY OUR FIRM OR EMPLOYEES

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PRIMARY INFORMATION

ASKING P EOP LE OB SER VATION EXP ER IM ENTATION

P R IM AR Y INFOR M ATION

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ASKING PEOPLE

• WHOM TO ASK?– INDIVIDUALS

– ORGANISATIONS

– EXPERTS

• HOW TO ASK?– PERSONALLY

– POST

– TELEPHONE

– COMPUTER

– COMBINED

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ASKING PEOPLE

• WHAT TO ASK?– OMNIBUS

– SPECIALISED

QUESTIONNAIRE

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ASKING PEOPLEPROBLEMS

• NOT WILLING TO ASK

• NOT ABLE TO ASK

• HOW AND WHAT TO ASK

• HOW TO ORGANISE

• HOW TO INTERPRET

• SAMPLING

• LANGUAGE SKILLS

• MULTICULTURAL ASKING

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OBSERVATION

• OBSERVE CONSUMERS OR USERS

• PASSIVE PARTICIPATION

• USED USUALLY TOGETHER WITH OTHER FORMS

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EXPERIMENTATION

• LABORATORY CONDITIONS

• ONE PARAMETER IS CHANGED

• OTHER VARIABLES ARE KEPT „CETERIS PARIBUS”

• EXPENSIVE!

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SECONDARY INFORMATION

• DIFFERENT OBJECTIVE OR PROBLEM• METHODOLOGY DEFINED BY

SOMEONE ELSE• DATA COLLECTION PERFORMED BY

SOMEONE ELSE• INTERNAL AND EXTERNAL

INFORMATION

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INTERNAL INFORMATION

• LETTERS

• ORDERS

• DOCUMENTS PREPARED BY THE COMPANY

• CERTIFICATES

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EXTERNAL INFORMATION

P R ODUCED ON THE DOM ESTIC M AR KETAVAILAB LE ON THE DOM ESTIC M AR KET

P R ODUCED AB R OADAVAILAB LE ON THE DOM ESTIC M AR KET

P R ODUCED AB R OADAVAILAB LE AB R OAD

EXTER NAL INFOR M ATION

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SECONDARY INFORMATIONPROBLEMS

• NOMENCLATURE IS DIFFERENT

• QUALITY OF THE INFORMATION

• QUALITY OF THE METHODOLOGY

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MOSAIC INFORMATION

• IS COLLECTED ADDITIONALLY

• SIDE INFORMATION

• IS COLLECTED TO ACTUALISE AND TO COMPLETE THE ALREADY POSSESSED INFORMATION

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COLLECT INFORMATION

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INTERPRETATION OF THE INFORMATION

• ANALYSE THE INFORMATION GAINED

• INTERPRET THE INFORMATION

• WORK WITH NUMBERS AND FORMULATE ALTERNATIVES

• EXPLAINE THE GIVEN ALTERNATIVES

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PRESENTATION OF THE RESULTS

• DISTRIBUTE THE INFORMATION TO THE USERS

• EXPLAIN THE ALTERNATIVES

• CONDUCT A TWO DIRECTION COMMUNICATION

• HELP THE USERS INTERPRET THE INFO.

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INTERNATIONAL MARKETING

• COMPANY

• MOTIVATORS

• OBSTACLES

• INTERNATIONAL MARKET(ING) RESEARCH

• INTERNATIONAL MARKET SEGMENTATION AND TARGETING

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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

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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

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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

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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

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VARIABLES OF THE OBJECTS

• DEMOGRAPHIC

• GEOGRAPHIC

• POLITICAL

• LEGAL

• ECONOMIC

• CULTURAL

• PSYCHOGRAPHIC

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A CULTURE BASED CLUSTERING

17 EUROPEAN COUNTRIES ARE SEGMENTED

HOFSTEDE DIMENSIONS

• INDIVIDUALISM

• UNCERTAINTY AVOIDANCE

• POWER DISTANCE

• MASCULINITY

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The 17 European countries

• Austria - Switzerland

• Belgium - Portugal

• France - Denmark

• The Netherlands - Sweden

• Spain - Norway

• Italy - Finland

• Turkey

• Greece

• Germany

• GB

• Ireland

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THE CLUSTERS

CLUSTER 1.• IND: MED-HIGH• UNC: MED• POW: SMALL• MAS: HIGH

• AUSTR., GER., SWITZ., ITALY, GB., IRELAND

CLUSTER 2.• IND: VAR.• UNC:STRONG• POW:MED• MAS: LOW-MED

• BEL., FR., GREE., PORT., SP., TURKEY

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THE CLUSTERS

CLUSTER 3.• IND: HIGH• UNC: WEAK, MILD• POW: SMALL• MAS: LOW

• DEN., SWEDEN, FIN., NETHER., NORWAY

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GLOBAL SEGMENTS

• 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

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PSYCHOGRAPHIC SEGMENTATION FOR THE

BEER MARKET• SPORTIVE

• MASCULINE

• TAKES NO RESPONSIBILITY

• NO CONSERVATISME

„YOU ONLY GO AROUND ONCE IN LIFETIME”

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VARIABLES FOR RELATIONSHIP

OBJECTS AND PRODUCT

• BUYING SITUATION

• LOYALTY

• MOTIVATION

• USER STATUS

• USAGE RATE

• ATTITUDE

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VARIABLES FOR RELATIONSHIP

OBJECTS AND PRICE

• LOW, MEDIUM OR HIGH PRICE PREFERENCES

• PRICE SENSITIVITY

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VARIABLES FOR RELATIONSHIP

OBJECTS AND PROMOTION

• RATIONAL OR EMOTIONAL MESSAGES

• MEDIA

• MOTIVATION

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VARIABLES FOR RELATIONSHIP

OBJECTS AND PLACE

• SHOPPING PLACE PREFERENCES

• DISTRIBUTION CHANNEL PREFERENCES

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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

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METHODS OF INT. MARKET SEGMENTATION

• METHOD THAT ACCEPTS THE EXISTENCE OF NATIONAL BOARDERS

• INTERMARKETING SEGMENTATION

• MICROSEGMENTATION

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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

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ADVANTAGES OF THE METHOD

• SYSTEMATIC• IN CASE OF ERROR

WE CAN CORRECT EASIER

• COUNTS WITH THE DIFFERENCES

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DISADVANTAGES OF THE METHOD

• SEPARATES COUNTRIES

• NO POSSIBILITY FOR STAN-DARDISATION

• NO POSSIBILITY FOR LEARNING

• COSTS ARE HIGH

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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

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ADVANTAGES OF THE METHOD

• POSSIBILITY TO TRANSFER KNOWLEDGE

• COMPARE THE BEHAVIOUR

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DISADVANTAGES OF THE METHOD

• DOESN’T COUNT WITH THE DIFFERENT BACKGROUND OF THE COUNTRIES

• ENTIRE REPETING IN CASE OF ERROR

• COSTS ARE HIGH

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MICROSEGMENTATION

• DURING INTERNATIONAL MARKET SEGMENTATION SEGMENTS OF ONE OF FEW PERTICIPANTS ARE CREATED

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ADVANTAGES OF THE METHOD

• BETTER FOCUS• SPECIALISATION• EFFECTIVE

MARKETING PLAN

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DISADVANTAGES OF THE METHOD

• DANGEROUS• APPLICABLE ONLY

ON THE MARKET OF ORGANISATIONS

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IMPLEMENTATION OF INT. MARKET SEGMENTATION

• ON THE SELECTED LEVEL OF THE MARKET

• WITH THE SELECTED METHOD

• ON THE BASIS OF THE SELECTED VARIABLES

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HOW TO EVALUATE THE OBJECTS ?

TWO TECHNIQUES

• PARALLEL EVALUATION

- MATRIX FORMAT

• SYSTEMATIC EVALUATION

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CHECKING THE VALIDITY OF THE RESULTS

• APPLYING MORE THAN ONE STATISTICAL METHOD, EG.– CLUSTER ANALYSIS + SPLIT HALF

METHOD

• REPEATING THE PROCESS PERIODICALLY

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INTERNATIONAL MARKETING

• COMPANY

• MOTIVATORS

• OBSTACLES

• INTERNATIONAL MARKET(ING) RESEARCH

• INTERNATIONAL MARKET SEGMENTATION AND TARGETING

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INTERNATIONAL TARGETING

• AFTER THE CREATION OF THE SEGMENTS

• WE SELECT ONE OR MORE SEGMENTS

• TO WHICH WE WILL PAY ATTENTION

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INTERNATIONAL MARKET SEGMENTATION AND TARGETING

STRATEGIES

• UNDIFFERENTIATED STRATEGY

• DIFFERENTIATED STRATEGY

• CONCENTRATED STRATEGY

• MULTISEGMENTATION STRATEGY

• NICHE STRATEGY

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INTERNATIONAL MARKETING

• COMPANY

• MOTIVATORS AND OBSTACLES

• INT. MARKET(ING) RESEARCH

• INT. MARKET SEGMENTATION

• MODES OF ENTERING THE INT. MARKETS

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MODES OF ENTERING FOREIGN MARKETS

• THE CHOICE DEPENDS ON THE – RISKS– COSTS– CONTROL– PRODUCT/SERVICE– MANAGEMENT– SITUATION - OPPORTUNITIES OR

THREATS

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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

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INTERNATIONAL MARKETING

• COMPANY

• MOTIVATORS AND OBSTACLES

• INT. MARKET(ING) RESEARCH

• INT. MARKET SEGMENTATION

• MODES OF ENTRY

• INT. 4 PS

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INTERNATIONAL PRODUCT POLICY

• PLANNING OF THE PRODUCTS (SERVICES)

• DEVELOPING THE PRODUCTS (SERVICES)

• MANAGING THE PRODUCTS IN THE FOREIGN MARKETS

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PLANNING THE OFFER

• SAME PRODUCTS (SERVICES) - GLOBAL

• ADOPTED PRODUCTS (SERVICES) - MODIFIED

• OR NEW PRODUCTS (SERVICES)

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GLOBAL STRATEGY

• ONLY THE BIGGEST AND MOST AGGRESSIVE COMPANIES

• ECONOMIES OF SCALE

• GLOBAL IMAGE

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MODIFIED STRATEGY

• REASONS FOR MODIFYING THE STRATEGY

• HOW TO CHANGE

• WHAT TO CHANGE

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REASONS FOR CHANGE

DIFFERENCES IN• CUSTOMS• USAGE OF THE PRODUCTS/SERVICES• LEGAL PLATFORM• QUALITY REQUIREMENTS• INFRASTRUCTURE• CULTURE• BIOLOGICAL PARAMETERS

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HOW TO CHANGE

• INTERNAL CHANGE

MATERIAL, TECHNICAL, FUNCTIONAL CHANGE

• EXTERNAL CHANGE

QUALITY, SHAPE, COLOUR, SIZE, SERVICE

• NECESSARY CHAGE

ELECTRONIC OR LEGAL REQUIREMENTS

• OPTIONAL CHANGE

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WHAT TO CHANGE

• CORE PRODUCT / SERVICE

• ACTUAL PRODUCT/ SERVICE

• AUGMENTED PRODUCT/SERVICE

+ ROLE OF MODULES

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NEW OFFER

• TO RESPOND TO THE DIFFERENT NEEDS AND CONDITIONS

• FOR MOST OF THE COMPANIES

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HOW TO DEVELOP NEW PRODUCTS AND SERVICES

• IDEA GENERATION• NEED ANALYSIS• SOCIETAL ANALYSIS• BUSINESS ANALYSIS

– MARKETIBILITY STUDY

– COMPATIBILITY STUDY

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HOW TO DEVELOP NEW PRODUCTS AND SERVICES

• PHYSICAL DEVELOPMENT AND TESTING

• TEST-MARKETING– CONCEPT-TEST

– TECHNICAL-TEST

– MARKET-TEST

• LAUNCHING THE PRODUCT/SERVICE

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THE NEWNESS

• NEW FOR THE COMPANY

• NEW FOR THE MARKET– CONGRUENT

INNOVATION

– CONTINUOUS INN.

– DYNAMIC INN.

– BREAKING INN.

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PLANNING THE STRUCTURE

• DEPTH• WIDTH• MARKET

POSITIONING!

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BRANDING

• BRAND NAMES• FAMILY OR

INDIVIDUAL BRAND NAMES

• PRIMARY AND SECONDARY BRANDS

• SELF CANNIBALISATION

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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

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BRANDING - DECISIONS

• IF IN ONE MARKET– 1 BRAND NAME

– MORE BRAND NAMES

• IF IN MORE MARKETS– LOCAL BRAND

NAMES

– GLOBAL BRAND NAMES

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CRITERIA OF BRAND NAMES

• PRONOUNCABLE

• RETAINABLE

• NOT MISUNERSTANDING

• SHORT

• RESULT IN POSITIVE BRAND ASSOCIATION

• WRITTEN AND ORAL FORM SHOULD BE SIMILAR

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PACKAGING

• DOUBLE PACKAGING

• DIFFERENT AS,– DELIVERY

– CUSTOMS

– LEGAL REQUIREMENTS

– CULTURAL DIFF.

– ECONOMIC DIFF.

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FURTHER QUESTIONS

• WARRANTY

• NOTE FOR APPLICATION

• AFTER SALE SERVICE

– SAME OR ADOPTED?

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INTERNATIONAL PROMOTION POLICY

• INTERNATIONAL PLANNING

• INTERNATIONAL IMPLEMENTATION

• MANAGEING THE PROMOTIONAL STRATEGY IN INTERNATIONAL MARKETS

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INTERNATIONAL PROMOTION

PROMOTION IS NOT ONLY FOR CONVINCING AND MANIPULATING PEOPLE BUT FOR INFORMING THEM AND FOR COMMUNICATING WITH

THEM AS WELL!

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ELEMENTS OF PROMOTION

• ADVERTISING

• SALES PROMOTION

• PUBLICITY

• DIRECT SELLING

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ADVERTISING

• STRENGTH OF SOURCE

• CREDIBILITY OF SOURCE

• PRESTIGE OF SOURCE

• HOMOPHILY

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OBJECT OF ADVERTISING

• BRAND• PRODUCT• FIRM• COUNTRY

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NEW PHENOMENA IN ADERTISING

• PATTERN ADVERTISING

• PAN EUROPEAN ADVERTISING

• PAN EAST EUROPEAN ADVERTISING

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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

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SALES PROMOTION

• PRICE REDUCTION• SALE• CUPONS• TRIAL• PAY FOR ONE,

RECEIVE TWO• GIFT• GAME

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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

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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

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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

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PUBLICITY

• CHEAP WAY OF MAKING THE PEOPLE TALK AND WRITE ABOUT OUR OFFER OR COMPANY

• TIMING IS OF CRITICAL IMPORTANCE

• DIRECT PAYMENT IS MISSING

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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.

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INTERNATIONAL PROMOTION STRATEGIES

• PUSH

• PULL

• GRAVITATION

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STANDARDISATION OR DIFFERENTIATION?

WE PREFER THE STANDARDISED VERSION, AS

• CREATIVE IDEAS

• COSTS

• SYNERGIE

• GLOBAL IMAGE

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INTERNATIONAL PRICING POLICY

• INTERNATIONAL PLANNING

• INTERNATIONAL IMPLEMENTATION

• INTERNATIONAL MANAGEMENT OF THE PRICES

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PRICE PLANNING

• OBJECTIVE OF PRICE SETTING

• METHODS OF PRICE SETTING

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OBJECTIVES OF PRICE SETTING

• PROFIT• SALES VOLUME• MARKET SHARE• IMAGE TRANSFER• IMAGE

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METHODS OF PRICE SETTING

BASED ON INTUITION BASED ON CALCULATION

• OBJECTIVE ORIENTED

• DIFFERENTIATED

• SALES PROMOTION

• COST PLUS

• INTENTION ORIENTED (PEN-SKI)

• PSYCHOLOGICAL

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DIFFERENTIATION OR STANDARDISATION

3 POSSIBILITIES:

• STANDARDISED

• DUAL

• DIFFERENTIATED

TECHNIQUE AND LEVEL

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MANAGEING INTERNATIONAL PRICES

• MEASURE THE EFFICIENCY OF THE PRICES

• COMPARE THE RESULTS WITH THE SET OBJECTIVES

• METHODS:– MULTI VARIATE STATISTICS– MOTIVATION ANALYSIS

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INTERNATIONAL DISTRIBUTION CHANNEL

POLICY

• INTERNATIONAL PLANNING

• INTERNATIONAL IMPLEMENTATION

• INTERNATIONAL MANAGEMENT OFT THE CHANNELS

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INTERNATIONAL PLANNING OF THE D. CH.

• DIRECT OR INDIRECT CHANNELS TO USE?

• INTENSITY OF DISTRIBUTION

• CHANNEL DESIGN

• STANDARDISED OR DIFFERENTIATED MESSAGE

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DIRECT OR INDIRECT?

IT DEPENDS ON:• AVERAGE COSTS

OF DISTRIBUTING I UNIT

• DELIVERY TIME EXPECTATIONS

• PRODUCT/SERVICE• FACILITIES• CONDITIONS

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INTENSITY OF DISTRIBUTION

• EXCLUSIVE

• SELECTIVE

• INTENSIVE

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CHANNEL DESIGN

• MARKET COVERAGE ASPECTS

• PRODUCT CHARACTERISTICS

• CUSTOMER SERVICE ASPECTS

• PROFITABILITY

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MARKET COVERAGE ASPECTS

• CUSTOMER BUYING BEHAVIOUR

• INTENSITY OF DISTRIBUTION

• CHANNEL STRUCTURE

• CONTROL

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PRODUCT CHARACTERISTICS

• VALUE OF THE PRODUCT• TECHNICALITY• MARKET ACCEPTANCE• SUBSTITUTABILITY• BULK, STEWABILITY• PERISHABILITY• MARKET CONCENTRATION• SEASONABILITY• WIDTH AND DEPTH

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CUSTOMER SERVICE ASPECTS

• AVAILABILITY

• ORDER CYCLE

• COMMUNICATION

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PROFITABILITY ASPECTS

• ESTIMATION OF COSTS AND REVENUE

• OPPORTUNITY COSTS

• MARKET SEGMENT MARGIN

• ESTIMATION FOR FUTURE

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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

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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

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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?

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SELECTION CRITERIA FOR FOREIGN ASSIGNMENTS

• COMPETENCE FACTORS– TECHNOLOGICAL KNOWLEDGE– LEADERSHIP ABILITY– EXPERIENCE, PAST PERFORMANCE– AREA EXPERTISE– LANGUAGE

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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

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SELECTION CRITERIA FOR FOREIGN ASSIGNMENTS

• PERSONAL CHARACTERISTICS– AGE – EDUCATION– SEX – HEALTH– ,ARITAL RELATIONS– SOCIAL ACCEPTABILITY

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CULTURAL SHOCK

• INITIAL EUPHORIA

• IRRITATION AND HOSTILITY

• ADJUSTMENT

• REENTRY

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REPATRIATION

• PROFESSIONAL

• PERSONAL

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COMPENSATION

• BASE SALARY AND SALARY RELATED ALLOWANCES(HARDSHIP ALL., COLA, HOUSING ALL.)

• NONSALARY RELATED ALLOWANCES

(MOBILITY ALL., TRAVEL EXP., EDUCATION ALL.)

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GREEN MARKETING

• ENVIRONMENTALISTS

• MEDIA

• == CONSUMERS’ NEW PREFERENCES

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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

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INTERMARKETING SEGMENTS OF PEOPLE

• GREEN LEADERS– TRUE BLUE GREENS– GREEN BACK GREENS

• GREAN FOLLOWERS - SPROUTS

• NONENVIRONMENTALISTS– GROUSERS– BASIC BROWNS

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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

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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

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COUNTRY OF ORIGIN EFFECTS

• AFFECT TRANSFER PROCESS

• COGNITIVE MEDIATION PROCESS

• PURCHASE INTENTION EFFECT

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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!

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GREY MARKETING

• MARKETING?

• DUE TO THE:– INFORMATION– GLOBAL BRANDS

• THREE POSSIBILITIES– REIMPORTATION– PARALLEL IMPORTATION– LATERAL IMPORTATION

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CONSEQUENCES OF GREY MARKETING

• POSITIVE CONSEQUENCES– NEW TARGETS

• NEGATIVE CONSEQUENCES– IMAGE– RELATIONSHIP WITH DISTRIBUTION

CHANNEL MEMBERS– SELF CANNIBALISATION

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INTERNATIONAL MARKETING PLAN

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THE STRUCTURE OF THE INTERNATIONAL MARKETING PLAN

1. BRIEF SUMMARY OF THE MANAGER/OWNER

– READER - EMPLOYEE, PARTNER, AUDITOR, FINANCIAL INSTITUTION

– OBJECTIVE, REASON

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2. THE COMPANY– HISTORY– PARAMETERS

3. MOTIVATORS AND OBSTACLES– MACRO AND MICRO MOTIVATORS– INTERNAL AND EXTERNAL OBSTACLES

4. INTERNATIONAL MARKET RESEARCH– OBJECTIVE– METHODS

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5. REVIEW OF THE MICRO AND MACRO ENVIRONMENT

– MICRO ENVIRONMENT

COMPETITORS,

NEW ENTRANTS,

SUBSTITUTES,

POWER OF THE CLIENTS

POWER OF THE SUPPLIERS

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– MACRO ENVIRONMENT

GEOGRAPHICAL

ECONOMIC

POLITICAL

LEGAL

TECHNOLOGICAL

CULTURAL

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6. INTERNATIONAL MARKET SELECTION

– INTERNATIONAL MARKET SEGMENTATION

– INTERNATIONAL TARGETING

7. MODE OF ENTRY

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8. MARKETING MIX

– PRODUCT / SERVICE– PRICE (COST)– PROMOTION– DISTRIBUTION CHANNEL

9. ORGANISATIONAL FRAMEWORK

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10. SCHEDULING

11. BUDGETING

12. EFFECT STUDY

13. CONCLUSION