international marketing strategy2
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MEMBERS
RAMEES MEERAN.T(33)
RAMEES RASHEED(34)RASEENA P.K(35)
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International marketing (IM) orglobal marketing refers to marketing carried outby companies overseas or across nationalborderlines. This strategy uses an extension of the
techniques used in the home country of a firm.According to the American Marketing Association
(AMA)"international marketing is the
multinational process of planning and executingthe conception, pricing, promotion and distributionof ideas, goods, and services to create exchangesthat satisfy individual and organizational
objectives.
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Product decisions
Pricing decisions
Global advertising
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A product can be defined as a collections ofphysical, psychological, service and symbolic attributionsthat collectively yield satisfaction, or benefits to a buyeror user.
Product decisions are based on how much theorganization has to adjust the product on
standardization-adaptation-continuum to differingmarket conditions. This results is the evolution of fivebasic strategic alternatives.
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Companies can grow in three different ways. They are
The traditional methods of market expansion Further penetration of existing markets to
increase market share.
Extension of the product line in to new product
market areas in a single national market.
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Different
Same
Same Product Different
Strategy 2:Product Extension,communications AdaptationEx: Bicycles & Motor cycles
Strategy4:Dual AdaptationEx: Greeting cards
Strategy 1:Dual ExtensionsEx: Applications Software
Strategy 3:Product Adaptation,communicationExtensions
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The five international product strategic alternatives are :
Strategy 1: Product / communicationextension (Dual Extension)
This strategy is very low cost and merely takes thesame product and communication strategy into othermarkets.
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Strategy2:ProductExtension/CommunicationAdaptation
When a product fills a different need, appeals to adifferent segment , or serves a different function under
conditions of use that are same or similar to those in thedomestic market, the only adjustment that may berequired is in marketing communications.
Strategy3: Product Adaptation/Communication
ExtensionThe product is adapted to fit usage conditions but the
communication stays the same. The assumption is that
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product will serve same function in foreign marketsunder different usage conditions.
Strategy-4:Dual AdaptationBoth product and communication strategies need
attention to fit the peculiar need of the market.
Strategy-5:Product Invention
The totally new idea to fit the exclusive conditions ofthe market. The development cost may be high, butadvantages are also very high.
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In any country, three basic factor determine
the boundaries within which market prices should be set.The first is product cost, which establishes a price floor,second is competitive prices for comparable products.Between the lower and upper boundaries for every product
there is an optimum price.
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A number of different pricing strategies are availableto global marketers. Some of them are
Market skimming
Penetration Pricing
Market holding
Cost plus/ Price Escalation
Sourcing
DumpingTransfer Pricing
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The market skimming price strategy is a deliberateattempt to reach a market segment that is willing topay a premium price for the product.
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Penetration pricing uses prices as a competitiveweapon to gain market position. penetration pricingoften means that the product may be sold at a loss forcertain length of time.
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The market holding strategy is frequently used bycompanies that want to maintain their share of themarket. In single- country marketing, this strategyoften involves reacting to price adjustment by
competitors.
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Companies new to exporting frequently use a strategyknown as cost- plus pricing to gain a position in theglobal market place.
Two types of cost- plus pricing method.
Historical accounting cost method
Estimated future cost method
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Dumping is an important global pricing strategy issue.GATTs 1979 Antidumping code defines dumping as thesale of an imported product at a price lower than thatnormally charged in a domestic market or country of
origin.
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Transfer price refers to the pricing of goods and servicesbought and sold by operating units or divisions of asingle company. In other words transfer pricing concernsintra corporate exchanges- transaction between the
buyer and seller that have the same corporate parent.
Three major alternative approaches to transfer pricing.
Cost-Based Transfer Pricing
Market-Based Transfer PricingNegotiated Prices
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Advertising may be defined as any sponsored, paidmessage placed in a mass medium. Global advertisingis the use of the same advertising appeals, messages,art, copy, photographs, in multiple country markets.
Advertising is one of the forms of communicationavailable to marketers.
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Global promotion which includes.
Public relations
Personal selling
Sales promotion
Direct marketing
Trade shows
Sponsorship
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Environmental Influence
Competition in themarket New competition in the
market Competitions in the trade
shows
New channel members inthe show Number of visitors Quality of visitors Life cycle stage
Company Influence
Annual sales Number of customers Customers concentrations Product complexity Trade show budget Geographical emphasis of
the company Width & length of
available product line
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Trade show selection
No. of international shows No. of national shows No. of regional shows Emphasis on show types
Show performance Sales Intelligence Suppliers contacts Psychological objectives
Booth management Width & Length of
exhibited lines Availability of new
products Booth quality
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