International Marketing

PESENTED BY:
DEEPAK KHANDELWAL
DEFINITION
 International marketing refers to the process of
identifying the goods and services that customers
outside the home country want and then
providing them at the right price and the right
place
Benefits
 Survival
 Growth of overseas market
 Sales and profit
 Diversification
 Inflation and price moderation
 Standard of living
Reasons for internationalisation
Selecting international markets
International marketing strategy

• Define and select target groups.

• Position the product(s).

• Select marketing mix to suit foreign market.

Triggers of
Internationalization
 Domestic Market Saturation
 Trade Deficit
 Foreign Competition
 New Market Opportunities
 Economies of Scale
 Others
MARKET SEGMENTATION
 The process of identifying groups of
consumers whose purchasing behavior is
unique in important ways
 Is based on demography, geography, social-
cultural factors, psychological factors
 Allows firms to adjust marketing mix to meet the
needs of separate market segments
 Marketing mix variables:
product-price-place (distribution)-
promotion
Market Segmentation Across
National Markets
Standardization: companies may
 Offer same products
 Adjust balance of marketing mix to
market segments with similar needs
across countries
Adaptation: companies may
 Offer different products
 Adjust balance of marketing mix to
market segments with differing needs
across countries
Standardisation or adaption
MAJOR ACTIVITIES IN
INTERNATIONAL MARKETING

PRODUCT

MARKET
PLACE
ASSESSMENT

PRICE PROMOTION
INTERNATIONAL MARKET
ASSESSMENT
 Assess alternative foreign markets
 Evaluate the respective costs, benefits and risks
of entering each market
 Select those that hold the most potential for entry
or expansion
FACTORS INFLUENCING MARKET
ENTRY METHOD
Market entry methods
International Marketing
Mix: Product
 Product: a bundle of attributes
 Hamburger: meat
type, taste, texture, size
 Automobile:
power, design, quality, performance, co
mfort, size/capacity
 Attributes need to be adapted to a greater or
lesser extent to satisfy
 Consumer preferences/tastes due to
culture
 Economic development levels affect
consumer behavior
 National product/technical standards
state mandated
International Marketing
Mix: Place
 Optimal channel a company
chooses to deliver the product
 The most locally responsive
element of marketing mix
because distribution channels
vary dramatically across
countries
 Retail system: concentrated-
fragmented
 Channel length: long, short
 Channel exclusivity
International Marketing Mix:
Promotion
 How firm communicates the product
attributes / benefits to customers
 Barriers to international communication
 Cultural barriers
 Source effects (country of origin effects)
 Noise levels
 Standardized advertising strategy possible;
standardized advertising strategy execution
more difficult (culture, laws)
International Marketing Mix:
Promotion
 Push vs pull strategies

 Push strategy: personal selling emphasis

 Industrial products; complex new products
 Short distribution channels
 Few print or electronic media
 Pull strategy: mass media advertising
emphasis
 Consumer goods
 Long distribution channels
 Marketing message may be carried via print / electronic
media
 Promotion issue and policies
• Cultural differences.
• Language.
• Social structures and customs.
• Values and attitudes.
• Technological factors.
• Economic and competitive factors.
• Political and legal factors.
International Marketing
Mix: Price
Price discrimination: demand elasticity
Strategic pricing
 Predatory (quick share-of-market focus):
 lower prices to drive competitors out, then raise
prices
 Multipoint pricing:
 pricing in one market may have an impact in
another market; subsidize low pricing in one
market from profits in another
 Experience curve:
 use aggressive pricing to build volume and move
firm down experience curve (lower marginal costs)
 Regulatory issues:
 antidumping, monopoly restriction
 Dumping
 WTO: Sale of an imported product at ‘less than fair
value’ and causes ‘material injury to a domestic
industry’.

 US: An unfair trade practice that results in

injury, destruction, or the prevention of the
establishment of an American industry.

 US considers dumping when price is >5% below home

market price or,

 Price is below cost of production

TYPES OF DUMPING

Sporadic

Predatory

Persistent

Reverse
THANK
YOU