international marketing strategy2

8/3/2019 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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international marketing strategy2

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