The Global Context

LECTURE 8

Marketing Decision Areas

Lecture Objectives

• Introduce the concept of the 12 C’s framework.

• Demonstrate the importance of international marketing data.

• Underline the importance of the decision to standardize or adapt elements of the international marketing mix.

Lecture Objectives

• Examine the marketing mix as it relates to an organization’s form.

• Illustrate the significance of cross-cultural interactions in international marketing.

What is International Marketing ?

• The marketing of goods, services or ideas across national boundaries.

What is International Marketing ?• The marketing operations of an

organization that sells or produces within a given country when : That organization is part of, or associated

with, an enterprise which also operates in other countries; and

There is some degree of control, or influence on, that organization’s marketing activities from outside the country in which it sells and/or produces.

The Major International Marketing Decisions

• The International Marketing Decision

• The Market Selection Decision

• The Market Entry Decision

• The Marketing Mix Decision

• The Organization Decision

The ’12 C’ Framework

• Country

• Choices

• Concentration

• Culture & Consumer Behaviour

• Consumption

• Currency

The ’12 C’ Framework

• Capacity to Pay

• Channels

• Commitment

• Communications

• Contracts

• Caveats

Country

• General Country Information

• Basis of SLEPT data

• Impact of environmental dimensions

Choices

• Analysis of supply

• International and external competition

• Characteristics of competitors

• Import analysis

• Competitive strengths and weaknesses.

Concentration

• Structure of the market segments

• Geographical spread

Culture & Consumer Behaviour

• Characteristics of the country

• Diversity of cultural groupings

• Nature of decision making

• Major influences of purchase behaviour.

Consumption

• Demand and end-use analysis of economic sectors that use the product or service• Market share by demand sector• Growth patterns of sectors• Evaluation of the threat of

substitute products

Currency

• Stability

• Restrictions

• Exchange controls

• Exchange rates

Capacity to Pay

• Pricing

• Extrapolation of pricing to examine trends

• Culture of pricing

• Conditions of payment

• Insurance terms

Channels

• Purchasing behaviour

• Capabilities of intermediaries

• Coverage of distribution costs

• Physical distribution infrastructure

• Size and grade of products purchased

Commitment

• Access to market

• Trade incentives and barriers

• Custom tariffs

• Government regulations

• Regulations on market entry

Communication

• Promotion• Media infrastructure and

availability• Which marketing approaches are

effective• Cost of promotion• Common selling practices• Media information

Contractual Obligations

• Business practices

• Insurance

• Legal obligations

• Whose laws

Caveats

• All those hidden factors that an international marketer needs to beware of !!!

The International Marketing Mix

• Product

• Price

• Place

• Promotion

• People

• Process

• Physical evidence

The International Marketing Mix

• Standardization

• Adaptation

Standardization

• Economies of scale• International and regional

standards• Consumer mobility• Growing homogeneity of

demand• Purchasing leverage to reduce

costs

Standardization

• Savings in costs of production and R&D

• Experience curve benefits

• Marketing savings

Adaptation

• Polycentric orientation of the traditional multinational/multidomestic

• Growing gap between rich and poor countries and the need to create alternatives

• Differing conditions of product use

Adaptation

• Plummeting (falling down) cost of technology

• Growing fragmentation of market segments

• Increasing buying power

Adaptation

• Enhanced sales arising from a good match between product and market

• Transfer of learning from one market to another

• Increased knowledge of and sensitivity to markets

The Product-Service Decision• Mass customization• Customize services around

standardized offering• Create customizable products and

services• Provide point of delivery customization• Provide quick responses throughout

the process• Modularize components to customize

products and services

The Product-Service Decision

• International Market Segmentation• Segmentation by market clusters

• Segmentation across national boundaries

• Segmentation by clusters across markets

The Product-Service Decision

• Branding•Global vs local

• Private/own label

• Distribution channels

• Pricing

• Advertising and Promotion

Any Questions ?