Transcript Marketing

Chapter 14
Marketing
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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 Company’s
Product
Identifying Segments in
Target Market
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Preliminary Screening
This process must rely
chiefly on secondary
data for countryspecific factors as well
as product and
industry specific
factors.
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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.
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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 Firm’s 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
Communication
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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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