Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1 Published by Thomson...
-
date post
19-Dec-2015 -
Category
Documents
-
view
215 -
download
0
Transcript of Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1 Published by Thomson...
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
Product decisions
Product range Positioning Branding Packaging Quality Labelling
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
THE 3 ELEMENTS OF THE PRODUCT OR SERVICE
ch9_2
The core product benefit or service
BENEFITSImage PerceivedValue
Performance
Quality
ATTRIBUTESBrand name Features
Size & colour variants
After-sales service
MARKETINGSUPPORTSERVICES
Guarantees Installation
Delivery
Design Packaging
StandardisationAdaptation
Adaptation
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
EVALUATING THE PRODUCT
For what purpose has the product been developed and how would it be used in that country?
What distinctive properties does it have? What benefits is the consumer expected to gain? How is it positioned and what image do consumers
perceive it to have? Which consumer segments are expected to buy it, on
what occasions and for what purpose? How does it fit into the total market?
ch9_3
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
Determining the Product Range Overall growth/profit objectives Experience, philosophies and attitude of the company to
international development Characteristics of the market Requirements, expectations and attitudes of the
consumers in the market The products and services themselves Ease of distribution Support required from other elements of the marketing mix Environmental constraints Level of risk that the company is prepared to take
ch9_5
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
THE PORTFOLIO APPROACH TO STRATEGIC ANALYSIS
ch9_7
Stars
Cash Cows Dogs
Question Marks
US
FrI
SpS
G Ne J
High
High
Low
Low
MarketGrowth
Relative Market ShareKey: Ne - Netherlands G - Germany S - Sweden US - United States F - France I - Italy Sp - Spain J - Japan
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
ch10_3
THE DIMENSIONS OF EXTERNAL MARKETING COMMUNICATIONS
EXTERNALSTAKEHOLDERS
UsingCommunications
To BuildRelationships
CommunicatingThe Product,
ServiceDifferentiation
CommunicatingThe
CorporateIdentity
Communication withexisting and potentialcustomers regularly &systematically to buildclose relationships,supported by databasemanagement & IT
Communication of adistinctive brand image,the unique positioningof the product and thereasons to buy, supportedby advertising, personalselling and sales promotion
Communication to allstakeholders of a clearand distinctive corporateidentity for the firmsupported by sponsorship& public relations
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
ch10_4
FAILURE IN INTERNATIONAL MARKETING COMMUNICATIONS #1
Internal Factors: Inconsistency of messages conveyed to
customers Different styles of presentation of
corporate identity, brand and product image
Lack of co-ordination of messages eg press releases, advertising campaigns
Differences in fields of perception of sender and receiver
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
ch10_5
FAILURE IN INTERNATIONAL MARKETING COMMUNICATIONS #2
The Effects of External Factors: Counterfeiting Parallel importing Competitors, governments or pressure
groups
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
PUSH AND PULL STRATEGIES
ch10_8
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
ch10_11
MARKETING COMMUNICATION TOOLS #1
Personal selling and word of mouth Exhibitions and trade fairs Trade missions Advertising
TV advertising Press advertising
Use of agencies and consultancies Financial Specialist knowledge Creative input External perspective
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
ch10_13
MARKETING COMMUNICATION TOOLS #2
Sales promotions Direct Marketing Cyberspace advertising
Communicating with a wider range of stakeholders Corporate identity Sponsorship Public Relations
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
DISTRIBUTION CHANNELS FOR BUSINESS GOODS
ch11_2
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
DISTRIBUTION CHANNELS FOR CONSUMER GOODS
ch11_3
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
ch11_4
11 C MODEL:Selecting Appropriate Channel Intermediaries
Customer characteristics
Culture
Competition
Company objectives
Character of the market
Cost
Source: Czinkota, ME & Ronkainen, IA (1990)
Capital required
Coverage needed
Control issues
Continuity provided
Communication effectiveness
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
ch11_13
LOGISTICS APPROACH TO PHYSICAL DISTRIBUTION #1
• Order to delivery time• Consistency and reliability of
delivery• Inventory availability• Order, size constraints• Ordering convenience• Delivery time and flexibility
• Invoicing procedures, documentation and accuracy
• Claims procedure• Condition of goods• Salesperson’s visits• Order status information• After-sales support
Customer Service
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
EFFECTIVE SYSTEM OF PHYSICAL DISTRIBUTION
Requirements clearly define areas of
responsibility highly developed
planning system comprehensive
information support system
expertise in distribution management
centralising planning body
Considerations what modes of transportation
should be used how can the firm make use of
effective export processing zones what documentation is required how can intermediaries enhance
our service what are the packaging
requirements for transit & the market
how should the export sales contract be organised
ch11_15
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
ch11_17
THE EXPORT ORDER & PHYSICAL DISTRIBUTION
ImporterImporter
Importer’s BankImporter’s Bank
Bank in Exporter’sBank in Exporter’sCountryCountry
Import WarehouseImport Warehouse
Secure TransportationSecure Transportation& Documentation& Documentation ShipShip CustomsCustoms
ExporterExporter
ManufacturingManufacturing
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
Export sales quotation
Product description Price/unit,total price,currency Freight costs Packing details Delivery (incoterms 2000) + payment
terms Validity Special conditions
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
Incoterms 2000
International delivery terms Four categories ( E,F,C,D)
EXW,FCA,FAS,FOB,CFR,CIF,DDP,DDU
Critical points Costs, risk
Division of tasks
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
DEVELOPMENT AND IMPLEMENTATION OF PRICING STRATEGY
ch12_2
Analysis
Factors affecting pricing:Company and productMarketEnvironmental
Corporate objective
Confirm impact of corporate strategies on pricing policy
Options evaluation
Selection of most appropriate pricing option
Implementation
Use of tactics and procedures to set SBU prices
Price management
Dealing with international pricing problems
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
ch12_8
SPECIFIC EXPORT COSTS
Escalation of Costs Through ExportingExport price (£)
Domestic price (£)
Manufacturer’s FOB priceSea freight and insuranceLanded cost (CIF)Import tariff: 8 per cent on CIF valueCIF plus tariff17.5 per cent VATDistributor purchase priceDistributor mark-up (15 per cent)Retailer purchase priceRetail margin 40 per centConsumer purchase price
10.00 1.20
11.20 0.90
12.10 2.1214.32 2.15
16.4710.9827.45
10.00
1.7511.75 1.75
13.50 9.00
22.50
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
SETTING A PRICE
Are you taking a: cost oriented market oriented competition oriented approach?
Export pricing process Determine export market potential Estimate the price range and target price Calculate sales potential at the target price Evaluate tariff and non-tariff barriers Select suitable pricing strategy in line with company objectives Consider likely response Select pricing tactics, set distributor and end-user prices Monitor performance and take necessary corrective action
ch12_12
Source: Adapted from Cavusgil (1988)
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
PRICING PROBLEMS
ch12_13
Multinational pricing
Co-ordination across marketsUniform pricing positioningTransfer pricingUnauthorised importing
Foreign currency
Obtaining payment from
LDCs
Risk of non paymentShortage of hard currency
Administrative problems
Problems of bureaucracy, red tape and delaysPhysical transfer
In what currency should products be priced?Dealing with fluctuating exchange ratesDealing with high inflation rates
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
THE EXPORT ORDER PROCESS
Initial EnquiryInitial Enquiry
Pro-Forma InvoicePro-Forma Invoice
Confirmed OrderConfirmed Order
Letter of CreditLetter of Credit
Shipping GoodsShipping Goods
Shipment of DocumentsShipment of Documents
Commercial Invoice &Commercial Invoice &Documents in Letter of CreditDocuments in Letter of Credit
PaymentPayment
CCOOMMPPAANNYY
CCUUSSTTOOMMEERR
CONFIRMING
BANK
ISSUING
BANK
1
2
3
45
6
7
8
9 10
ch12_26
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
FINANCAL POLICY
- organisation with whom do we want to do business? management insurances ( NCM) factoring
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
PAYMENT TERMS
Consignment Open account Against documents (cash or acceptance ) Letter of credit ( LC)
(un)confirmed (ir)revocable
Cash in advance
Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1-86152-772-1
Published by Thomson Learning © Isobel Doole and Robin Lowewww.thomsonlearning.co.uk
CRITERIA
liquidity knowledge, experience of exporter Competition Relative strength of buyer and seller Country specific Level of risk