Selected issues on international marketing programme
1 / 35

Selected issues on international marketing programme - PowerPoint PPT Presentation

  • Uploaded on

Selected issues on international marketing programme. Designing the marketing programme. Once the firm has decided how it will enter the international market, the next issue is how to desigh the international/global marketing mix.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'Selected issues on international marketing programme' - makelina

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Designing the marketing programme
Designing the marketing programme

  • Once the firm has decided how it will enter the international market, the next issue is how to desigh the international/global marketing mix.

  • There are different forces in the international environment that may favour either increasing globalization or increasing adaptation of the firm.

  • Supporters of adaptation state that there are substantial differences between countries and even between regions in the same countries.

Designing the marketing programme1
Designing the marketing programme

It is relevant to discuss

degree of standardization

or so called

„standardization potential profile“

Main decisions in product policy
Main decisions in product policy

  • What kind of product?

  • Product life cycle

  • New product development and innovations

    As a product we can consider anything what can be offered to our customer.

Which products for international markets
Which products for international markets?

  • The same as for home market

  • Adapted products

  • Standardized products

  • New products

Define the reasons for each option!

Factors of adaptation
Factors of adaptation

  • Consumer goods for daily use

  • Local competition

Factors of adaptation1
Factors of adaptation

  • Different conditions of use

  • Intercultural differencies in consumer behaviour and purchasing behaviour

  • Differences in purchasing power

  • Different conditions in supplying with production inputs

  • Different legislation

Factors of standardization
Factors of standardization

  • Economics of scale

  • High costs of adaptation process

  • Industrial and high tech products

  • Entering the similar markets

  • Export

  • Global competition

  • Strong image of the country/producer/brand

Branding decisions
Branding decisions

Source: Source: adapted from Onkvisit and Shaw, 1993, p. 534.


Different degrees of product newness
Different degrees of product newness

New to











New to



New to

regional market




New to







Low Newness to Company High


Benefits of strong brand in local regional market visegrad opportunities
Benefits of strong brand in local/regional market: Visegrad opportunities?

  • New product in brand portfolio

  • Repositioning the traditional product

  • Seasonal product for larger market

  • Brand partnership

The functions of branding
The functions of branding opportunities?

To distinguish a company’s offering and differentiate one particular product from its competitors

To create identification and brand awareness

To guarantee a certain level of quality and satisfaction

To help with promotion of the product


For discussion 3
For discussion (3) opportunities?

What are the requirements that must be met so that a commodity can effectively be transformed into a branded product?

Discuss the factors that need to be taken into account when making packaging decisions for international product lines.

When is it appropriate to use multiple brands in (a) a single market and (b) several markets?


Four degrees of adaptation combinations product and promotion
Four degrees of adaptation: opportunities?combinations: product and promotion




the message


the portfolio


product design

Fully leverage

global product

and marketing



message and


Customize mix

of product and


based on

local needs

Create market

specific products

and services

Branding for international markets
Branding for international markets opportunities?

  • Branding dimensions:

    • Global brands

    • Regional brands

    • Local brands

    • Producer´s brand

    • Private brands

    • Brand partnership

    • Brand portfolio

Designing the marketing programme

International opportunities?


life cycle

The international product life cycle
The international product life cycle opportunities?

  • Macroeconomic approach:

    • Typically, demand first grows in the innovating country. Production, consequently, takes place first in the innovating country. As the product matures and technology is diffused production occurs in other industrialised countries and then is less developed countries.

  • Microeconomic approach:

    • Due to different economic levels in different countries, a specific product can be in different PLC stages in different countries.

International pricing decisions and terms of doing business
International pricing decisions opportunities?and terms of doing business

  • Factors influencing international pricing decisions

  • International pricing strategies

  • Price escalation

  • European pricing strategies

  • Terms of sale and delivery

    Pricing policy is an important strategic and tactical competitive weapon that, in contrast to the other elements of the global marketing mix, is highly contrallable and inexpensive to change and implement.

International p ricing strategies
International p opportunities?ricing strategies

  • Skimming

  • Market pricing

  • Penetration pricing

  • Price change

  • Experience curve pricing

  • Demand-based pricing

  • Pricing across products (product line pricing)

  • Pricing across countries

  • Total package price

  • Psychological pricing

    In comparison to domestic pricing strategies, the decisions are much more complex, because they are affected by a number of additional external factors, such as fluctuations in exchange rates, accelerating inflation in certain countries and the use of alternative payment methods such as leasing and barter for instance.

What to add to general pricing strategies
What to add to general pricing strategies? opportunities?

  • Pricing across countries:

    • Standardization: internationalization of competition, homogenization of competitive structures, international activities of large retailers

    • Differentiation: differences in price segments,

      strengths of local competitors, retailer power, consumer preferences

International pricing taxanomy
International pricing taxanomy opportunities?

  • Global price leader: global market leader, market and cost-oriented global prices, global competition but local differences

  • Global price follower .....

  • Multilocal price setter

  • Local price follower

European pricing strategies
European pricing strategies opportunities?

Lowest price


20 %

in price differences


European price corridor

Highest price

Reasons for lowering prices in foreign markets
Reasons for lowering prices in foreign opportunities?markets

  • Lower consumer incomes.

  • Intense local competition.

  • R&D costs have already been covered.

  • Weak demand for the product.

  • Reasons for increasing prices in

    foreign markets ????

Price escalation
Price escalation opportunities?

  • Price escalation affects all firms involved in cross-border transportation. All cost factors in the distribution channel add up and lead to price escalation. The longer the distribution channel, the higher the final price in the foreign market.

  • Due to additional shipping or other kinds of transportation, insurance, tarrifs and distribution charges, the exported product costs more in the export market than at home.

Distribution policy
Distribution policy opportunities?

  • Entry mode

  • Physical distribution


  • Distribution channels

Distribution decision
Distribution decision opportunities?

Channel decisions – external factors

  • Customer characteristics

  • Nature of product

  • Nature of demand (location)

  • Competition

  • Legal regulations/local business practice

    Channel decisions – internal factors

  • Decisions concerning structure of the channel

  • Managing and controlling distribution channels

  • Managing logistics

Considerations in transport and distribution policy
Considerations in transport opportunities? and distribution policy

  • Cost vs. speed.

  • Nature of the product (weight, perishability, dimensions).

  • Customer preferences.

  • Value of the goods.

  • Intermediate handling and storage charges.

  • Working capital tied up in goods in transit.

International distribution channel
International opportunities?distribution channel

The banana split model
The Banana split model opportunities?

  • How much (in percentage of the retail value in the UK) stays with each chain actor to cover costs and margin:

    • Plantation workers 2 %

    • Plantation owners 10 %

    • Transnational companiers 31%(including 5 % EU tariffs)

    • Distributors 17 %

    • Retailers 40 %

International communication objectives of international advertising
International communication: opportunities?Objectives of international advertising

  • Increasing sales.

  • Attracting new customers.

  • Altering customer behaviour.

  • Communicating brand values.

The case for standardization
The case for standardization opportunities?

  • Consumer characteristics are becoming homogeneous across borders.

  • Urbanization is increasing.

  • Internationalization of media has led to converging lifestyle choices.

The case for customization
The case for customization opportunities?

  • Cultural differences between markets.

  • Language differences.

  • Differences in educational backgrounds.

  • Non-availability of some media.

  • Different attitudes towards advertising.

  • Legal requirements in different markets.

Advantages of using a local agency
Advantages of using a local agency opportunities?

  • Gives the foreign firm a local image.

  • Closer links between agency and media.

  • More commitment to the market.

  • Local flair and creativity.