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 Marketing A look at: Target Market Selection Marketing Management Identification and Screening Preliminary Screening Estimating Market Potentials by Product Type Estimating Sales Potential for Company’s Product Identifying Segments in Target Market 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 Estimating Sales Potential Collect product and market specific data Competition Market Consumers Product Channel structure 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 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 10 Product Policy The Core of the Firm’s Operations Goods Services 11 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 12 Product Characteristics Product characteristics are the inherent features of the product offering 13 Company Considerations Is It Worth It? Resources Cost of adapting Organization Market Opportunity Profitability 14 Pricing Policy The only element in the marketing mix that is revenue generating Export Pricing Foreign Market Pricing Price Coordination Intracompany Pricing 15 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 16 Foreign Market Pricing Determined By Corporate Objectives Costs Consumer Behavior and Market Conditions Market Structure Environmental Constraints 17 Price Coordination Standard worldwide pricing may be mostly theoretical Significant price gaps lead to the emergence of gray markets 18 Intracompany Pricing The pricing of sales to members of the corporate family 19 Distribution Policy Channels of distribution provide the essential links that connect producers and customers 20 Channel Design Determined by the 11 C-Factors Customers Culture Competition Company Character Capital Cost Coverage Control Continuity Communicatio n 21 E-Commerce Is forecast to grow at a compound annual rate of 50+ percent within years Western Europe has most growth Governments work to come to terms with security, privacy, and access to the Internet 22 Promotional Policy Advertising Personal Selling Sales Promotion Publicity 23 ...Learning Objectives Suggest how markets for international expansion can be selected, their demand assessed, and appropriate strategies for their... their development devised Describe how environmental differences generate new challenges for the international marketing manager Compare and contrast the merits of standardization versus localization... marketing functions: product, price, distribution, and promotion within both the traditional and e -business dimensions Marketing A look at: Target Market Selection Marketing Management Identification