International Marketing Planning

Executive Summary Doing business is increasingly global in extent today. There are several reasons for this. One significant reason is technological because of improved transportation and communication opportunities today, trade is now more practical. Increasingly rapid technology lifecycles also increases the competition among countries as to who can produce the newest technological product. Trade between countries is beneficial because these countries differ in their relative economic strengths-some have more advanced technology and some have lower costs.On the basis of these realities, business need to proper international mar eting plan for distribute the product through globally. 1.0 Introduction !lanning is a systemati"ed way of relating to the future. It is an attempt to manage the effects of external, uncontrollable factors on the firm#s strengths, wea nesses, ob$ectives, and goals to attain a desired end. %urther, it is a commitment of resources to a country mar et to achieve specific goals. In other words, planning is the $obs of ma ing things happen that may not otherwise occur. !lanning relates to the formulation of goals and methods of accomplishing them, so it is both a process and a philosophy. &tructurally, planning may be viewed as corporate, strategic, and'or tactical. International corporate planning is essentially long-term, incorporating generali"ed goals for the enterprise as a whole. &trategic planning is conducted at the highest levels of management and deals with products, capital, and research, and long-and short-term goals of the company. Tactical planning, or mar et planning, pertains to specific actions and to the allocation of resources used to implement strategic planning goals in specific mar ets. Tactical plans are made at the local level and address mar eting and advertising (uestions. 2.0 Evolution to global marketing )lobal mar eting is not a revolutionary shift, it is an evolutionary process. *hile the following does not apply to all companies, it does apply to most companies that begin as domestic-only companies. 2.1 Domestic marketing + mar eting restricted to the political boundaries of a country, is called ,Domestic -ar eting.. + company mar eting only within its national boundaries only has to consider domestic competition. /ven if that competition includes companies from foreign mar ets, it still only has to focus on the competition that exists in its home mar et. !roducts and services are developed for customers in the home mar et without thought of

how the product or service could be used in other mar ets. +ll mar eting decisions are made at head(uarters. The biggest obstacle these mar eters face is being blindsided by emerging global mar eters. 0ecause domestic mar eters do not generally focus on the changes in the global mar etplace, they may not be aware of a potential competitor who is a mar et leader on three continents until they simultaneously open 12 stores in the 3ortheastern 4.&. These mar eters can be considered ethnocentric as they are most concerned with how they are perceived in their home country. 2.2 Export marketing )enerally, companies began exporting, reluctantly, to the occasional foreign customer who sought them out. +t the beginning of this stage, filling these orders was considered a burden, not an opportunity. If there was enough interest, some companies became passive or secondary exporters by hiring an export management company to deal with all the customs paperwor and language barriers. Others became direct exporters, creating exporting departments at head(uarters. !roduct development at this stage is still focused on the needs of domestic customers. Thus, these mar eters are also considered ethnocentric. 2. International marketing If the exporting departments are becoming successful but the costs of doing business from head(uarters plus time differences, language barriers, and cultural ignorance are hindering the company#s competitiveness in the foreign mar et, then offices could be built in the foreign countries. &ometimes companies buy firms in the foreign countries to ta e advantage of relationships, storefronts, factories, and personnel already in place. These offices still report to head(uarters in the home mar et but most of the mar eting mix decisions are made in the individual countries since that staff is the most nowledgeable about the target mar ets. 5ocal product development is based on the needs of local customers. These mar eters are considered polycentric because they ac nowledge that each mar et'country has different needs. 2.! Multinational marketing +t the multi-national stage, the company is mar eting its products and services in many countries around the world and wants to benefit from economies of scale. 6onsolidation of research, development, production, and mar eting on a regional level is the next step. +n example of a region is *estern /urope with the 4&. 0ut, at the multinational stage, consolidation, and thus product planning, does not ta e place across regions7 a regioncentric approach. 2." #lobal marketing

*hen a company becomes a global mar eter, it views the world as one mar et and creates products that will only re(uire wee s to fit into any regional mar etplace. -ar eting decisions are made by consulting with mar eters in all the countries that will be affected. The goal is to sell the same thing the same way everywhere. .0 International marketing planning process

.1 Preliminary analysis and screening +t this stage one ta es a more serious loo at those countries remaining after undergoing preliminary screening. 3ow you begin to score, weight and ran nations based upon macro-economic factors such as currency stability, exchange rates, level of domestic consumption and so on. 3ow you have the basis to start calculating the nature of mar et entry costs. &ome countries such as 6hina re(uire that some fraction of the company entering the mar et is owned domestically this would need to be ta en into account. There are some nations that are experiencing political instability and any company entering such a mar et would need to be rewarded for the ris that they would ta e. +t this point the mar eting manager could decide upon a shorter list of countries that he or she would wish to enter. 3ow in-depth screening can begin. .1.1 $ompany c%aracter The next step is to identify the company#s character. These criteria are ascertained by an analysis of company ob$ectives, resources, and other corporate capabilities and limitations. + company#s commitment to international business and its ob$ective for going international are important is establishing evaluation criteria. -inimum mar et potential, minimum profit, return on investment, acceptable competitive levels, standards of political stability. .1.2 &ome'$ountry constraints

In this step the mar eting plan need to classify the home country restraints. They are li e, political and legal forces, economic climate, completive structure. These include homecountry restraints can have a direct effect on the success of a international business. .1. &ost'country(s) constraints In this step the mar eting plan re(uire to classify the host-country8s9 limitations as li e the home countries. :ost-country8s9 constraints are more that the home country#s. They are; !olitical'legal forces, cultural forces, geography and infrastructure, structure of distribution, level of technology, competitive forces, economic forces. . Developing t%e marketing plan +t this stage of the planning process, a mar eting plan is developed for the target mar et whether it is a single country or a global mar et set. . .1 Situation analysis The mar eting plan begins with a situation analysis. + situation analysis is the foundation of the strategic planning process for international mar eting plan. It includes an examination of both the internal factors 8to identify strengths and wea nesses9 and external factors 8to identify opportunities and threats9. . .2 *b+ective and goals +t this section the mar eting plan need to select their ob$ective, li e what is to be done, by whom, how it is to be done, and when. . + company#s commitment to international business and its ob$ective for going international are important is establishing evaluation criteria. -inimum mar et potential, minimum profit, return on investment, acceptable competitive levels, standards of political stability. )oal-setting ideally involves establishing specific, measurable and time-targeted ob$ectives. *or on the theory of goal-setting suggests that it can serve as an effective tool for ma ing progress by ensuring that participants have a clear awareness of what they must do to achieve or help achieve an ob$ective. On a personal level, the process of setting goals allows people to specify and then wor towards their own ob$ectives < most commonly financial or career-based goals. )oal-setting comprises a ma$or component of !ersonal development. . . Strategy and tactics The mar eter needs to determine possibilities for applying mar eting tactics across national mar ets. The search for similar segments across countries can often lead to opportunities for economies of in mar eting programs. . .! Selecting mode o, entry

&electing the mode of entry with rare exceptions, products $ust don#t emerge in foreign mar ets overnight<a firm has to build up a mar et over time. &everal strategies, which differ in aggressiveness, ris , and the amount of control that the firm is able to maintain. . ." -udgets 0udgeting is the main formal control methods. The budget spells out the ob$ectives and necessary expenditures to achieve these ob$ectives. Included are budgets and sales and profit expectations. 6ontrol consists of measuring actual sales against expenditures. If there is tolerable variance then no action is usually ta en. . .. /ction programs +fter the completing the phase =, a decision not to enter a specific mar et may be made if it is determined that company mar eting ob$ectives and goals cannot be met. !erformance is evaluated by measuring actual against planned performance. The problem is setting a performance standard. %inally when mar eters are see the plan would be success then they apply the plan for international business. Otherwise they stop the plan at this phase =. !.! Implementation and control +t this stage when !hase = decision will be ,go. then !hase = actives implementation of specific plans and anticipation of successful mar eting. :owever, the planning process does not end at this point. +ll mar eting plans need coordination and control during the period of implementation. -any businesses don#t control mar eting plans as thoroughly as they could even though continuous monitoring and control could increase their success. !.!.1 *b+ectives The evaluation and control system re(uires performance ob$ective action, that is, bringing the plan bac on trac should standards of performance fall short. !.!.2 Standards In the global orientation the mar eter need to maintain the internationally standard to stable in the international mar et. !.!. /ssign responsibility +s a company expands in to more foreign mar ets with several products, it becomes more difficult to efficiently manage all products across all mar ets. Therefore they need to allocate liability for their international business. !.!.! Measure per,ormance

!.!." $orrect ,or error 6onsumers and businesses now have access to the very best products from many different countries. Increasingly rapid technology lifecycles also increases the competition among countries as to who can produce the newest in technology. In part to accommodate these realities, countries in the last several decades have ta en increasing steps to promote global trade through agreements such as the )eneral Treaty on Trade and Tariffs, and trade organi"ations such as the *orld Trade Organi"ation 8*TO9, 3orth +merican %ree Trade +greement 83+%T+9, and the /uropean 4nion 8/49. !.2 /dapting t%e marketing mix to target markets The ,%our !#s. of mar eting; product, price, placement, and promotion are all affected as a company moves through the five evolutionary phases to become a global company. 4ltimately, at the global mar eting level, a company trying to spea with one voice is faced with many challenges when creating a worldwide mar eting plan. 4nless a company holds the same position against its competition in all mar ets 8mar et leader, low cost, etc.9 it is impossible to launch identical mar eting plans worldwide.

4.2.1 Product
+ global company is one that can create a single product and only have to twea elements for different mar ets. %or example, 6oca-6ola uses two formulas 8one with sugar, one with corn syrup9 for all mar ets. The product pac aging in every country incorporates the contour bottle design and the dynamic ribbons in some way, shape, or form. :owever, the bottle or can also includes the country#s native language and is the same si"e as other beverage bottles or cans in that country.

4.2.2 Price
!rice will always vary from mar et to mar et. !rice is affected by many variables; cost of product development 8produced locally or imported9, cost of ingredients, cost of delivery 8transportation, tariffs, etc.9, and much more. +dditionally, the product#s position in relation to the competition influences the ultimate profit margin. *hether this product is considered the high-end, expensive choice, the economical, low-cost choice, or something in-between helps determine the price point.

4.2.3 Promotion
+fter product research, development and creation, promotion 8specifically advertising9 is generally the largest line item in a global company#s mar eting budget. +t this stage of a company#s development, integrated mar eting is the goal. The global corporation see s to reduce costs, minimi"e redundancies in personnel and wor , maximi"e speed of implementation, and to spea with one voice. If the goal of a global company is to send the same message worldwide, then delivering that message in a relevant, engaging, and cost-effective way is the challenge. /ffective global advertising techni(ues do exist. The ey is testing advertising ideas using a mar eting research system proven to provide results that can be compared across countries. The ability to identify which elements or moments of an ad are contributing to that success is how economies of scale are maximi"ed. -ar et research measures such as %low of +ttention, %low of /motion and branding moments provide insights into what is

wor ing in an ad in any country because the measures are based on visual, not verbal, elements of the ad.

4.2.4 Distribution
:ow the product is distributed is also a country-by-country decision influenced by how the competition is being offered to the target mar et. 4sing 6oca-6ola as an example again, not all cultures use vending machines. In the 4nited &tates, beverages are sold by the pallet via warehouse stores. In India, this is not an option. !lacement decisions must also consider the product#s position in the mar et place. %or example, a high-end product would not want to be distributed via a ,dollar store. in the 4nited &tates. 6onversely, a product promoted as the low-cost option in %rance would find limited success in a pricey bouti(ue. International Distribution Promotional tools. 3umerous tools can be used to influence consumer purchases;

Advertising<in or on newspapers, radio, television, billboards, busses, taxis, or the Internet. Price promotions<products are being made available temporarily as at a lower price, or some premium 8e.g., toothbrush with a pac age of toothpaste9 is being offered for free. Sponsorships Point-of-purchasethe manufacturer pays for extra display space in the store or puts a coupon right by the product Other method of getting the consumers attention <all the )ap stores in %rance may benefit from the prominence of the new store located on the 6hamps/lysees.

Promotional ob+ectives. !romotional ob$ectives involve the (uestion of what the firm hopes to achieve with a campaign<,increasing profits. is too vague an ob$ective, since this has to be achieved through some intermediate outcome 8such as increasing mar et share, which in turn is achieved by some change in consumers which cause them to buy more9. &ome common ob$ectives that firms may hold;

Awareness. -any %rench consumers do not now that the )ap even exists, so they cannot decide to go shopping there. This ob$ective is often achieved through advertising, but could also be achieved through favorable point-of-purchase displays. 3ote that since advertising and promotional stimuli are often afforded very little attention by consumers, potential buyers may have to be exposed to the promotional stimulus numerous times before it ,registers.. Trial. /ven when consumers now that a product exists and could possibly satisfy some of their desires, it may ta e a while before they get around to trying the product<especially when there are so many other products that compete for their attention and wallets. Thus, the next step is often to try get consumer to try

the product at least once, with the hope that they will ma e repeat purchases. 6oupons are often an effective way of achieving trial, but these are illegal in some countries and in some others, the infrastructure to readily accept coupons 8e.g., clearing houses9 does not exist. 6ontinued advertising and point-of-purchase displays may be effective. +lthough 6oca 6ola is widely nown in 6hina, a large part of the population has not yet tried the product. Attitude toward the product. + high percentage of people in the 4.&. and /urope has tried 6oca 6ola, so a more reasonable ob$ective is to get people to believe positive things about the product<e.g., that it has a superior taste and is better than generics or store brands. This is often achieved through advertising. Temporary sales increases. %or mature products and categories, attitudes may be fairly well established and not sub$ect to cost-effective change. Thus, it may be more useful to wor on getting temporary increases in sales 8which are li ely to go away the incentives are removed9. In the 4.&. and >apan, for example, fast food restaurants may run temporary price promotions to get people to eat out more or switch from competitors, but when these promotions end, sales are li ely to move bac down again 8in developing countries, in contrast, trial may be a more appropriate ob$ective in this category9.

3ote that in new or emerging mar ets, the first ob$ectives are more li ely to be useful while, for established products, the latter ob$ectives may be more useful in mature mar ets such as >apan, the 4.&., and *estern /urope. Entry Strategies Met%ods o, entry. *ith rare exceptions, products $ust don#t emerge in foreign mar ets overnight<a firm has to build up a mar et over time. &everal strategies, which differ in aggressiveness, ris , and the amount of control that the firm is able to maintain, are available;

/xporting is a relatively low ris strategy in which few investments are made in the new country. + drawbac is that, because the firm ma es few if any mar eting investments in the new country, mar et share may be below potential. %urther, the firm, by not operating in the country, learns less about the mar et 8*hat do consumers really want? *hich inds of advertising campaigns are most successful? *hat are the most effective methods of distribution?9 If an importer is willing to do a good $ob of mar eting, this arrangement may represent a ,winwin. situation, but it may be more difficult for the firm to enter on its own later if it decides that larger profits can be made within the country. 5icensing and franchising are also low exposure methods of entry<you allow someone else to use your trademar s and accumulated expertise. @our partner puts up the money and assumes the ris . !roblems here involve the fact that you are training a potential competitor and that you have little control over how the business is operated. %or example, +merican fast food restaurants have found that foreign franchisers often fail to maintain +merican standards of cleanliness.

&imilarly, a foreign manufacturer may use lower (uality ingredients in manufacturing a brand based on premium contents in the home country. Turn ey !ro$ects. + firm uses nowledge and expertise it has gained in one or more mar ets to provide a wor ing pro$ect<e.g., a factory, building, bridge, or other structure<to a buyer in a new country. The firm can ta e advantage of investments already made in technology and'or development and may be able to receive greater profits since these investments do not have to be started from scratch again. :owever, getting the technology to wor in a new country may be challenging for a firm that does not have experience with the infrastructure, culture, and legal environment. -anagement 6ontracts. + firm agrees to manage a facility<e.g., a factory, port, or airport<in a foreign country, using nowledge gained in other mar ets. +gain, one thing is to be able to transfer technology<another is to be able to wor in a new country with a different infrastructure, culture, and political'legal environment. 6ontract manufacturing involves having someone else manufacture products while you ta e on some of the mar eting efforts yourself. This saves investment, but again you may be training a competitor. Direct entry strategies, where the firm either ac(uires a firm or builds operations ,from scratch. involve the highest exposure, but also the greatest opportunities for profits. The firm gains more nowledge about the local mar et and maintains greater control, but now has a huge investment. In some countries, the government may expropriate assets without compensation, so direct investment entails an additional ris . + variation involves a $oint venture, where a local firm puts up some of the money and nowledge about the local mar et.

".0 $onclusion 4tili"ing the planning process encourages the decision ma er to consider all variables that affect the success of a company#s plan. %urthermore, it provides the basis for vewing all country mar ets and their interrelationships and as an integrated global unit. !lanning permits for rapid growth of the international function, changing mar ets, increasing competition, and the ever-varying challenges of different national mar ets. The plan must blend the changing parameters of external country environments with corporate ob$ectives and capabilities to develop a sound, wor able mar eting program. + strategic plan commits corporate resources to products and mar ets to increase competitiveness and profits. ..0 0e,erences 6ateora, and )raham, ,International -ar eting., AAth /d, -c )raw :ill, 3ew @or . http;''www.oppapers.com'essays'International--ar eting-!lanning-!rocess'ABAA1C http;''en.wi ipedia.org'wi i')lobalDmar eting

http;''en.wi ipedia.org'wi i'-ar etingDplan http;''ba"oo abi".com'strategic-mar eting'=2