by kirti yadav assistant professor university of delhi · through their decision making and buying...

BYKIRTIYADAVASSISTANTPROFESSORDEPARTMENTOFCOMMERCEUNIVERSITYOFDELHI

DEFINITION

The Interna<onal Marke<ng is the applica<on ofmarke<ng principles to sa<sfy the varied needs andwants of different people residing across the na<onalborders.

Simply, the Interna<onal Marke<ng is to undertakethemarke<ngac<vi<esinmorethanonena<on.ItisoPen called as Global Marke<ng, i.e. designing themarke<ngmix(viz.Product,price,place,promo<on)worldwideandcustomizingitaccordingtothepreferencesofdifferentna<onpeople.

SCOPEOFINTERNATIONALMARKETING

OBJECTIVES..

INTERNATIONALMARKETINGASSESSMENT

• COMPARISONOFMARKETTOTHETOTALWORLDMARKET

• FUNCTIONOFPOPULATIONOFACOUNTRY&PURCHASINGPOWEROFCITIZENS

MARKETSIZE

• DEGREEOFPURCHASINGPOWERINTERMSOFPERCAPITAINCOME.MARKET

INTENSITY• GROWTHBASEDONPURCHASINGPOWERINTERMSOFPERCAPITAINCOMEMARKET

GROWTH

MARKETINGMIX

MARKETING

MIX

PRODUCT

PROMOTION

PLACE

PRICE

AMarke<ngMixisasetofstrategicdecisionsmadewiththehelpofanalysisofthefollowingelements:

MarketSegmentationMarketsegmenta<onistheprocessofdividingamarketofpoten<alcustomersinto groups, or segments, based on different characteris<cs. The segmentscreated are composed of consumers who will respond similarly to marke<ngstrategiesandwhosharetraitssuchassimilarinterests,needs,orloca<ons.

DEMOGRAPHICSEGMENTATIONDemographicsegmenta<ondividesamarketthroughvariablessuchasage,gender,educa<onlevel,familysize,occupa<on,income,andmore.Thisformofsegmenta<onisawidelyusedstrategyduetospecificproductscateringtoobviousindividualneedsrela<ngtoatleastonedemographicelement.Perhapsthemostobviousvariableofthemall,ageisimportantformarketerstounderstandandadver<seaccordinglyduetothefast-pacednatureofpreferencechangeswithinthevariousstagesoflife.Evenmediaconsump<ondiffersgreatlybetweeneachgenera<on,soit’simportanttorecognizewhatyourtargetagerangeisandwhichchannelstheyusetoconsumeinforma<on.

PSYCHOGRAPHICSEGMENTATIONPsychographicsegmenta<onfocusesontheintrinsictraitsyourtargetcustomerpossesses.Psychographictraitscanrangefromvalues,personali<es,interests,a_tudes,consciousandsubconsciousmo<vators,lifestyles,andopinions.Tounderstandyourtargetcustomersonthislevel,methodssuchasfocusgroups,surveys,interviews,andcasestudiescanallprovesuccessfulincompilingthistypeofconclusion.Thinkaboutthelifestyleofsomeonewholivesinasmall,beachtownandsurfsforalivingversussomeonewholivesinabigcityworkingincorporateAmerica.Eachoftheirwantsandneedsonadailybasisareincrediblydifferent,andmarketersmustrecognizethosedifferencestobesuccessful.

BEHAVIORALSEGMENTATIONBehavioralsegmenta<onhassimilarmeasurementstopsychographicsegmenta<onbutfocusesonspecificreac<onsandthewaycustomersgothroughtheirdecisionmakingandbuyingprocesses.A_tudestowardsyourbrand,thewaytheyuseit,andtheirknowledgebaseareallexamplesofbehavioralsegmenta<on.Collec<ngthistypeofdataissimilartothewayyouwouldfindpsychographicdata.Reviewwebsitescanalsobeahelpfultoolwhensearchingforthisinforma<on.Brandloyaltyisanexcellentexampleofbehavioralsegmenta<on.Ibetwhilereadingthisar<cleyoucanthinkofonebrandthatyouconsistentlybuyandtrustenoughtopurchaseitsnewlinewithoutevenreadingthereviews.Thistypeofbrandloyaltyproducesaconsistentbuyingpa`ern,whichiscategorizedasabehavioraltrait.Marketersworkhardtogetconsumerstoloveandstayloyaltotheirbrandforaconsistentpurchasecycle

GEOGRAPHICSEGMENTATIONGeographic segmenta<on targets customers based on a predefinedgeographic border. Differences in interests, values, and preferences varydrama<cally throughout ci<es, states, and countries, so it is important formarketerstorecognizethesedifferencesandadver<seaccordingly.Thinkaboutproducts suchasparkasandbathing suits.Parkaswillbe soldformost of the year in the colder, northern half of the country, whereassouthernareasmayonlybeabletofindparkasinspecialtystoresduringthewinter.Bathingsuits,ontheotherhand,aresoldyear-roundinthewarmerstatesbutonlysoldduringspringandsummerinthecoolerstates.Understandwhere your prospects are u<lizing real-<mebuyer intent datafromreviewplaaorms likeG2.Thisdataprovides insights intothe loca<onofcurrentandpoten<alcustomersresearchingyourproduct.

INTERNATIONALMARKETSEGMENTATION

Interna<onal market segmenta<on refers to the process ofdividing itstotal interna<onalmarket intooneormoreparts(segments or sub-markets) each of which tends to behomogeneous in all significant aspects. In other words,interna<onal market segmenta<on is the process ofiden<fying groups or set of poten<al customers atinterna<onal level who exhibit similar buying behaviour.Through interna<onal market segmenta<on, similari<es anddifferencesamongpoten<albuyersinforeignmarketscanbeiden<fiedandgrouped.

PRODUCTAproductcanbeeitheratangiblegoodoranintangibleservicethatfulfillsaneedorwantofconsumers.Whetheryousellcustompalletsandwoodproductsorprovideluxuryaccommoda<ons,it’simpera<vethatyouhaveacleargraspofexactlywhatyourproductisandwhatmakesituniquebeforeyoucansuccessfullymarketit.

Itisimportanttonotethataproductismorethanjustphysicalitems,andincludesahostofothera`ributesthatmakeuptheTOTALPRODUCT.ForExample-CocaColaisaglobaltotalproduct,butthephysicalproductismul<-domes<c,itssweetnessvariesaccordingtolocaltastesAnotherexampleisMcDonalds,whichusesBeefinothercountriesandinIndiawehaveawidevarietyofvegburgers.IfwetalkaboutGermanautomobiles,thedrivingseatsareonthelePbutthecarsaremodifiedtorightsidedrivingseatsforIndianmarket.

TheProductIsFurtherDividedIntoTwoCategories:

• Producer/IndustrialGood• ConsumerGood

PRODUCERGOOD•  Canbemarketedwithoutanymajorchange.•  Goodslikelaptopsmayneedsomemodifica<onsinelectronicequipmentaccordingtodifferentvolts.

•  AnotherexampleisApplemobiles,whichhasthesameinterfaceglobally.

•  Thereforeindustrialgoodsneedveryli`lechangesforadapta<onindifferentworldmarkets

Consumergoods•  Consumerswithsameeconomicstatus,tastesandpreferences,buyingbehaviorscanusesameproductwithoutanymodifica<ons.Forexample-EuropeanCountrieshavealmostsamepreferences.

•  ThepeoplewhooPentravelabroadadapttheluxuriesofthecountriesforexampleexpensivecars,perfumes,brandedclothes.

•  Thepackagingofsuchproductsissimilarindifferentcountries.

•  Butsomeproductsneedmodifica<on,suchasMcDonald’s,CocaCola,etcasdiscussedabove

DeterminantsofProductAdaptation

INCOME

EDUCATION

TASTESANDPREFERENCES

PRODUCTLIFECYCLE

BRANDMANAGEMENT

Brandmanagement is a func<onofmarke<ng thatuses techniques toincrease the perceived value of a product line or brand over <me.Effec<vebrandmanagementenablesthepriceofproductstogoupandbuilds loyal customers throughposi<vebrandassocia<onsand imagesorastrongawarenessofthebrand.

GLOBALBRANDS

In business and engineering, new productdevelopment(NPD)isthetermusedtodescribethecomplete process of bringing a new product orservice to market. There are two parallel pathsinvolved in theNPDprocess :one involves the ideagenera<on,productdesign,anddetailengineering ;the other involves market research and marke<nganalysis. Companies typically see new productdevelopment as the first stage in genera<ng andcommercializing new products within the overallstrategic process of product life cyclemanagementusedtomaintainorgrowtheirmarketshare

•  NPDneedscross-func<onalintegra<onamongR&D,produc<onandmarke<ngtoensurethatnewproductsaredrivenbycustomerneedsandareeasytomanufacture.

•  Forexample,McDonaldsdevelopedMcCafeanAustraliancoffeein1993,whichwassuccessfulinthemarketsofNewZealand,CyprusandAustria,butfailedinUSmarkets

•  Technologyisthemostimportantcontribu<onindevelopmentofaproduct.

•  ForinstanceAPPLEisknownforIpodsthenIphonethenlastlyIpadsandMacbooks.

•  SimilarlySonywasknownforWalkmans,compacdiscandthenplaysta<ons.

•  Hewle`-Packered(HP)famousforitslaptopsandprinterseries.

PROMOTION

Promo<onistheprocessofmo<va<ngdemandforafirm’sgoodsandservicestowardsasale.

PROMOTIONSTRATEGY

Promo<onalstrategymaybroadlybeclassifiedaspushandpullstrategy

FACTORSAFFECTINGPROMOTIONSTRATEGY

NATUREOF

PRODUCTADVERTIS

ING

MEDIAAVAILABI

LITY

CUSTOMER

SOPHISTICATION

CHANNELLENGTH

PERSONALSELLING

SALESPROMOTION

PRICINGSTRATEGY

Priceisthevaluethatisputtoaproductorserviceandistheresultofacomplexsetofcalcula<ons,researchandunderstandingandrisktakingability.Apricingstrategytakesinto account segments, ability to pay, market condi<ons, compe<tor ac<ons, trademarginsand inputcosts,amongstothers. It is targetedat thedefinedcustomersandagainstcompe<tors.

PRICINGTECHNIQUESPREDATORYPRICING

MULTIPOINTPRICING

EXPERIENCECURVE

apricingstrategyinwhichgoodsorservicesarepricedataverylowpricepointwiththeinten<onofdrivingoutcompe<<onandcrea<ngbarrierstoentry.

occurswhentwoormorefirmscompeteintwoormorena<onalmarketsandthepricingstrategyinonemarketmayhaveanimpactontherivalpricingstrategyinanotherna<onalmarket.

Thisisanaggressivepricingdesignedtoincreasevolumeandhelpthefirmrealizeexpensivecurveeconomies.

DISTRIBUTION

Adistribu<onchannelisachainofbusinessesorintermediariesthroughwhichagoodorservicepassesun<litreachesthefinalbuyerortheendconsumer.Distribu<onchannelscanincludewholesalers,retailers,distributors,andeventheInternet.