Slide 11.

Alan M Rugman and Simon Collinson, International Business, 5th Edition, Pearson Education Limited 2009

Slide 11.2

International marketing: the process of identifying the goods and services that customers outside the home country want and then providing them at the right price and place.

Alan M Rugman and Simon Collinson, International Business, 5th Edition, Pearson Education Limited 2009

Slide 11.3

Alan M Rugman and Simon Collinson, International Business, 5th Edition, Pearson Education Limited 2009

Slide 11.4

International market assessment

International market assessment: an evaluation of the goods and services that the multinational can sell in the global marketplace.
Initial screening: basic need and potential Second screening: financial and economic conditions Third screening: political and legal forces Fourth screening: socio-cultural forces Fifth screening: competitive environment Final selection.

Alan M Rugman and Simon Collinson, International Business, 5th Edition, Pearson Education Limited 2009

Slide 11.5

International market assessment (Continued)

Market indicators: Indicators used for measuring the relative market strengths of various geographic areas. Market size: An economic screening consideration used in international marketing; it is the relative size of each market as a percentage of the total world market. Market intensity: The richness of a market or the degree of purchasing power in one country as compared to others. Market growth: The annual increase in sales in a particular market.
Alan M Rugman and Simon Collinson, International Business, 5th Edition, Pearson Education Limited 2009

Slide 11.6

Alan M Rugman and Simon Collinson, International Business, 5th Edition, Pearson Education Limited 2009

Slide 11.7

Product strategies

Little or no modification
For example: industrial goods and technical services.

Moderate to high modification

Factors to consider:
Economics Culture Local laws Product life cycle.

Alan M Rugman and Simon Collinson, International Business, 5th Edition, Pearson Education Limited 2009

Slide 11.8

How to classify these groups?

Figure 11.1

Selected examples of product modification in the international arena

Alan M Rugman and Simon Collinson, International Business, 5th Edition, Pearson Education Limited 2009

Slide 11.9

Alan M Rugman and Simon Collinson, International Business, 5th Edition, Pearson Education Limited 2009

Slide 11.10

Promotion

Promotion: the process of stimulating demand for a companys goods and services. The specific approach will be determined by the nature of the product:
identical product and identical message identical product but different message modified product but same message modified product and modified message.

Advertising: a nonpersonal form of promotion in which a firm attempts to persuade consumers to a particular point of view. Personal selling: a direct form of promotion used to persuade customers to a particular point of view.
Alan M Rugman and Simon Collinson, International Business, 5th Edition, Pearson Education Limited 2009

Slide 11.11

Alan M Rugman and Simon Collinson, International Business, 5th Edition, Pearson Education Limited 2009

Slide 11.12

Pricing

Pricing is influenced by:

Government controls Market diversity
minimum prices, maximum prices and anti-dumping
differences in consumer tastes and demands exchange rate risk

Currency fluctuations

Price escalation forces.

Alan M Rugman and Simon Collinson, International Business, 5th Edition, Pearson Education Limited 2009

Slide 11.13

Table 11.1

The effect of MNE pricing on final consumer costs

Alan M Rugman and Simon Collinson, International Business, 5th Edition, Pearson Education Limited 2009

Slide 11.14

Some multinational enterprises (MNEs) use high pricing with high quality to skim the cream off the top of the market. Others employ a low-price strategy designed to penetrate and capture a larger share of the middle and lower parts of the market.

Alan M Rugman and Simon Collinson, International Business, 5th Edition, Pearson Education Limited 2009

Slide 11.15

Alan M Rugman and Simon Collinson, International Business, 5th Edition, Pearson Education Limited 2009

Slide 11.16

Distribution systems

Distribution: the course that goods take between production and the final consumer. Different distribution systems
It is often difficult to use the distribution system in every country. There are many individual differences to be considered. For example:
traditional distribution systems in each market; consumer preferences about location; availability of consumer finance and credit cards.

Choosing the best distribution system

Get the best possible distributors to carry their products.

Factors: financial strength, inventory capacity, knowledge of government and business and the number and types of product lines.
Alan M Rugman and Simon Collinson, International Business, 5th Edition, Pearson Education Limited 2009