Global Marketing Management Elena Horska International Planning Process

Global Marketing Management Elena Horska

International Planning Process and Marketing Strategies • Phase I: Preliminary analysis and screening: Matching company/country needs (marketing research) • Phase II: Adapting the marketing mix to target markets • Phase III: Developing the marketing plan • Phase IV: Implementation and control

International planning process and marketing strategies Phase I: Preliminary analysis and screening: Matching company/country needs (marketing research)

Case I: USA basic facts • Population of 285 million. • 50 separate states, each with its own laws and tax regimes. • Manufacturing employs the most people at 17 million. • Health care and social assistance sector employs 13. 6 million. • Administrative and support sector generates 7. 2 million jobs.

Case II: Marketing in China • • Advertising agencies etc are rare. Distribution systems are poor. Demand is likely to exceed supply. Prices need to be low. No uniform technical standards. No reliable business statistics. Commercial law is imprecise.

Case II: Main problems in marketing to Japan • • Demanding consumers. Saturated markets at the bottom end. Business etiquette is formal. Government discriminates in favour of local producers. • Local technical standards differ from world standards.

International planning process and marketing strategies Phase II: Adapting the marketing mix to target markets

Focused on Product and Services • The opportunities for international marketers of consumer goods and services today have never been greater • New consumers are springing up in many emerging markets, which promise to be huge markets in the future • In the more mature markets consumers´ tastes become more sophisticated and complex due to increase in purchasing power • The difference between tangible products and services • The difference between business-to-consurmer and business-tobusiness markets

Analyzing Product Components • • A product is multidimensional, and the sum of all its features determines the bundle of satisfaction (utilities) received by the customer The many dimensions of products can be divided into three distinct components: – Core components – Packaging components – Support services components • These components include all a product´s tanglible and intangible elements and provide the bundle of utilities the market receives from use of the product.

Which products for international markets? • • The same as for home market Adapted products Standardized products New products Define the reasons for each option!

Branding for international markets • Branding dimensions: – Global brands – Regional brands – Local brands – Producer´s brand – Private brands – Brand partnership – Brand portfolio

What do we need to consider when matching products and services with customers? • Things to consider: – Quality – Green Marketing – Culture – Adaptation – Branding

Focused on international pricing • How do we go about setting a price? • Start with: What is a price? • What someone is willing to pay for something of value? • What is a value for customers: perceived benefits

Focused on international pricing • Considering pricing strategies. . . • Considering the price level. . . • Considering the internal and external factors. . . • Considering marketing goals. .

Focused on price escalation • Price escalation refers to the added costs incurred as a result of exporting products from one country to another. There are several factors that lead to higher prices: • • Costs of exporting Taxes, tariffs and administrative costs Middleman and transportation costs Exchange rate fluctuation and varying currency values