J.DADO-EF UMB B.Bystrica International Marketing & Management Marketing mix.

J.DADO-EF UMB B.Bystrica

International Marketing & Management

International Marketing & Management

Marketing mixMarketing mix


Adaptation/standardisation

Price compe-tition

Standar-disation

Home product

Adaptation is

necessary

Low HighNATIONAL/LOCAL SENSIBILITY

GL

OB

AL

ISA

TIO

NL

ow

H

igh


• Environmental factors:Environmental factors:• Level of technical skills

• Culture• Price of labor force

• Literacy rate• Income level

• Level of benefits/utilityLevel of benefits/utility• Climate

• Isolation• Technical norms

• Used materials• Space

• Law• language

• Influence for change:Influence for change:• Simplification of product• Colors, smelt, taste…• Automatisation/manual.• Simplification/pictograms• Change of price & Q• Change of price & QChange of price & Q• Adaptation of product• Simplification• Recalibration (110 V)• Change of product structure• Change of size• Service• Name of product

What influence adaptation of M mix?


Factors determining product policy in Int.M

EnvironmentEnvironment Product Product Company Company

Law

Target groups

Customer expectations

Purchase habits

Consumption habits

Purchase power

Competition situation

Climate

Usage of product, purpose

Function & technical parameters

Composition

Quality

Durability

Brand, label, cover, package

Design, Service

Country of origin

Relation to culture

Costs

Technology

Effectivness

Company philosophy

Company strategy

Organization

Resources (material, finance, human...)


PRODUCTPRODUCT

Quality – certification (EQTC, ISO, VDA6)Guarantee and servicesPhytology inspection, quarantine...Tests of product (forms of tests)Cover and identification of product - requirementsCover and identification of product - requirementsIdentification for EU – name, ingredients, composition, netto, tarra, expiration, storage, producer, distributor, packaging, seller, instruction – manual, EAN code, warning, helping, %, liquidation ...Adaptation of brand (Colgate, Coldent, Chident,Adaptation of brand (Colgate, Coldent, Chident, Gildent...), power, technical parameters...Gildent...), power, technical parameters...Country of originGlobal or local brand?Colors, symbols (red & red – blood, death, life...)


PRODUKT

Expansion, adaptation (obligatory - voluntary?), innovation

Adaptation of product is determined:-Character & function of product-Satisfied need and condition for application Satisfied need and condition for application of productof product-Legislative of country-Size of company and economic condition fo company -Foreign market, size, purchase powerForeign market, size, purchase power-Costs for adaptation


PRODUKT

PRODUCT STRATEGIES

Product Condition Purchase Recommended Recommended Relativ.functions for usage power prod.strateg. communic.strat. costs

same same Yes expansion expansion 1

different same Yes expansion adaptation 2

same different Yes adaptation expansition 3

different different Yes adaptation adaptation 4

same xxx No innovation new communication 5


PLC in Int.M

PLC in foreign market

PLC in home market

Sale of Sale of licencelicence

Export of Export of productproduct

t

Q


-Extension of preference and brand loyalty -Brand is helping for other products-Building of image by the brand-Respect of brand request for adaptationRespect of brand request for adaptation -Brand make easier entry to foreign market -Brand – guarantee of quality -Risks of pirates on well known brands – T-shirts, watch, glasses, jeans....

PRODUCT & Brand Int. M


Product

Company level

Level of territory

Brand

National

Product

Architecture of brand building in Int. M

Regional

Global

Product line/brand

Product line

Company

Industry


small largeAdvantages of local adaptation

Ad

van

tag

es o

f g

lob

alis

atio

nsm

all

l

arg

e

Boeing RolexPepsi

PampersNissan

ChanelSony

Marlboro

AdidasMcDonalds

3SAT

Siemens

VW

R+R

IKEA

PilsnerTuborg

City Bank

Maggy

Nescafé

A

DB

C

Braun


Adaptation? (NNescafé, CCoca Cola)

M-mixADAPTATIONfull partial

STANDARDISATIONffull partial

Product designBrand

PositioningPackage

Advertising topicPrice

Printed ad.Distribution

Sales promotionServices

Cover

NN

NNNN

CCC C CCCC

NNNNNNNN

NNNN

C/NC/N

CC

CCCCCC

CC

CC

Adaptation of services is more dependent on culture


DISTRIBUTION

Factors influencing distrib. policy in Int. M:Factors influencing distrib. policy in Int. M:-Purchase and consumption habits of customers-Influence of culture-Product features (Caterpillar, fruits...)-Character of competition and its distribution-Influence of competitors to distrib. channels-Size and character of territory-Character of retail and wholesale -Size and resources of company-Costs (for sale, storage, advertising...)-Special request (service)-Influence and monitoring (to advert., sale...)-Law limitations -Infrastructure of country-Market potential, market capacity-Costs for sale, margin


International distribution

HOME MARKETHOME MARKETExport:

managementcompany

export agentdirect export

Participants

FOREIGN MARKETFOREIGN MARKETImport:

intermediatorlocal retail/wholesaler

INTERNAT. DISTRIB. INTERNAT. DISTRIB. STRATEGIESSTRATEGIES

What influence selection of DCH, members of DCH,

management of DCH,entry to DCH, logistic...

Processes


Distrib. Channels in Int. Marketing

ExportExport companycompany

Export Export agentagent

Direct Direct exportexport

MembersMembersOf home Of home DCHDCH

MembersMembersOf host countryOf host countryDCHDCHRegional Regional

agent/W-sel.agent/W-sel.

RetailRetail

CustomerCustomer

ImportImportintermediatorintermediator

Industrial Industrial useruser

PRODUCERPRODUCER


Selection of commercial partners

1. Decision about distribution strategy2. Criterions for selection of partners in DCH3. Localization of potential distrib. partners 4. Identification of interest of commerc. partners5. Evaluation system and selection of commerc.

partners

PROFIL of commercial partnerPROFIL of commercial partner


Process of selection of agents

Offering

Data collection

Visit - meeting

Test delivery

Signing of agreement

Delivering and evaluation

contence

timetimecapacitycapacity

cooperationcooperationpriceprice

delivery terms delivery terms storagestorage

transporttransport


They know to prepareThey know to preparecertification and certification and

technic.technic. normalizationnormalization

They are in contact They are in contact with dep.with dep. stores, they stores, they

have information about have information about market needsmarket needs

Position of agent

He must find good He must find good commercial partner, commercial partner,

he must agree provision he must agree provision from paid deliveryfrom paid delivery


• To find customers a care about them

• To communicate with market

• To collect information about market

• To make promotion• To make service• To observe competitors

• To sell products• To build network• To training sale

personal• To help with paying• To eliminate risks• To identify threats• …

Roles of agent


Elimination of risks

Good agreementPrice agreed in EUROSystem of election of agentsIn new market prepaying Agreement for 1 year – the 1st yearMotivation of agents


DISTRIBUTION

Trends in international distributionTrends in international distribution:-Concentration -Internationalization-Increasing of direct marketing-Incensing of discounts-E-commerce-Selling with distributor brand-New forms of cooperation: = vertical form (production and retails) = horizontal form – COOP Polus – shopping centers...


PRICEPRICE

Price in Int. M is determinedPrice in Int. M is determined: -Direct influence by government and gov. institutions -Taxes and duties, duties barriers-Different level of local costs - LCCDifferent level of local costs - LCC-Transfer prices – mother - daughter-Different level of consumer demand (basket)-New expanses in foreign trade-Price on variable cost level or total Price on variable cost level or total costs/dumpingcosts/dumping-International competition agreement and structure (cartel)-Other conditions (form of transport, currency, exchange rate, barter-Negotiation about price


Price strategies in Int. MPrice strategies in Int. M:-Ethnocentric – standardized priceEthnocentric – standardized price – everywhere the same-Plycentristic – differentiated – dual pricePlycentristic – differentiated – dual price – different price in different markets (pricing is delegated, problem price/Q, perception of brand, image) -Geocentristic pricing – price corridor –Geocentristic pricing – price corridor – compromise E & P, unique starting point + different index for market. Company can to control & inspect price & change price.

PRICEPRICE


Export – Export – payment conditionpayment condition (1) (1)

• Advance Payment

– Importer pay before delivery

– Full safety

• Down Payment

– Importer pay part of price. Rest will pay after delivery. Rest will pay according agreement.

– Safety is limited according level of dawn payment

• Cash on Delivery = COD

– Simultaneously exchange goods and money – without risk (risk of take off)

– Usually when customer is unknown or bonita is uncertain


Export –Export –payment conditionpayment condition (2) (2)

• Acceptation of Bill, Draft

– Paying by bill, no in cash or by bank

– Certainty according bill law

– Only for good partners

• Clean Payment

– Risk for exporter

– Without guarantee of paying

– Only for good partners


Cash Cash AAgainst Documentsgainst Documents

ExportExportéérr

BankaBankazákazníkazákazníka

ZákazníkZákazník

ŠpeditéŠpeditérr

1Obchodná zmluva

2

Info

rmác

ie

Do

kum

enty

6

Tovar

Dokumenty

3

Dokumentyšpedície

Dokumentyšpedície

4

5

78

Príkaz na úhradu

6a

Tovar


Letter of creditLetter of credit

Otv

ori

ťak

red

itív

pen

iaze

?

2a

BankBankaaexportexportéérraa

ExportExportéérr

BankaBankazákazníkazákazníka

ZákazníkZákazník

ŠpeditéŠpeditérr

Do

kum

enty

9

tovar

Do

kum

enty

Dokumenty

Info

:otv

ore

ný

akre

dit

ív

4

5

Dokumentyšpedícia

Dokumentyšpedícia

6

7

8

1011

Príkaz na úhradu

Prí

kaz

na

úh

rad

u

9a

9b

Info:otvorený akreditív

1

3

2

Obchodná zmluva

tovar


PricePrice

Goods Place and form Quantity Date of quotating quotation date day week last year

Cu elektrodes London/agreement GBP/t 1235,- 1235,- 1236,5 1251,-

Cu catodes NY/spot cent/pound 107,- 107,- 106,- 104,-

Kafé (Brasil,

Arabic) NY/spot cent/pound 51,- 51,25 53,- 50,-

Ag 99,99 NY/spot cent/troy weight 407,- 408,- 408,- 403,-

Corn Chicago/spot cent/bushl 367,- 365,- 351,- 474,-

Kofé (Columbia,

Mid.Arabic) NY/spot cent/pound 65,5 64,5 67,- 64,5

pound = 0,4536 kg, troy weight = 31 g, bushel = 27,7 kg


• Fin. resources of company

• Intensity of competition (import – mode ad.)

• Product and its features price

• Form of selling• Development of market• Price of ad. & medias• Culture of home market

(different appeals)

• System of distribution• Seasonality• Market share• Demography• Ad infrastructure• Law & other barriers • Ad. agencies• Market profitability

Influence to market.communication in Int. M:


Communication

- Cooperation with ad. agencies: home abroad

- Fairs & exhibitions - Other forms of promotion – limits &

barriers

J.DADO-EF UMB B.Bystrica International Marketing & Management Marketing mix.

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Transcript of J.DADO-EF UMB B.Bystrica International Marketing & Management Marketing mix.