Product decisions Product range l Positioning l Branding

Product decisions Product range l Positioning l Branding l Packaging l Quality l Labelling l Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

THE 3 ELEMENTS OF THE PRODUCT OR SERVICE Standardisation ch 9_2 Adaptation The core product benefit or service Image BENEFITSPerceived Value Performance Adaptation Quality Features Brand name ATTRIBUTES Packaging Design Size & colour variants After-sales service MARKETING Guarantees SUPPORT Installation SERVICES Delivery Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 9_3 EVALUATING THE PRODUCT l l l 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? Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 9_5 Determining the Product Range l l l l l 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 Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 9_7 THE PORTFOLIO APPROACH TO STRATEGIC ANALYSIS High G Ne J Sp S Market Growth Stars Question Marks US I Fr Low Cash Cows High Dogs Relative Market Share Low Key: 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 Lowe www. thomsonlearning. co. uk

ch 10_3 THE DIMENSIONS OF EXTERNAL MARKETING COMMUNICATIONS EXTERNAL STAKEHOLDERS Using Communicating Communications The Product, The To Build Service Corporate Relationships Differentiation Identity Communication of a Communication to all with distinctive brand image, stakeholders of a clear existing and the unique positioning and distinctive corpora potential of the product and the identity for the firm customers reasons to buy, supported by sponsors regularly & by advertising, personal & public relations systematically to selling and sales promotion build Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 www. thomsonlearning. co. uk close relationships, Published by Thomson Learning © Isobel Doole and Robin Lowe

ch 10_4 FAILURE IN INTERNATIONAL MARKETING COMMUNICATIONS #1 l Internal Factors: n Inconsistency of messages conveyed to customers n Different styles of presentation of corporate identity, brand product image n Lack of co-ordination of messages eg press releases, advertising campaigns n 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 Lowe www. thomsonlearning. co. uk

ch 10_5 FAILURE IN INTERNATIONAL MARKETING COMMUNICATIONS #2 l The Effects of External Factors: n Counterfeiting n Parallel importing n 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 Lowe www. thomsonlearning. co. uk

ch 10_8 PUSH AND PULL STRATEGIES Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 10_11 MARKETING COMMUNICATION TOOLS #1 l l Personal selling and word of mouth Exhibitions and trade fairs Trade missions Advertising TV advertising n Press advertising n l Use of agencies and consultancies Financial n Specialist knowledge n Creative input n External perspective n Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 10_13 MARKETING COMMUNICATION TOOLS #2 l l Sales promotions Direct Marketing Cyberspace advertising Communicating with a wider range of stakeholders Corporate identity n Sponsorship n Public Relations n Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 11_2 DISTRIBUTION CHANNELS FOR BUSINESS GOODS Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 11_3 DISTRIBUTION CHANNELS FOR CONSUMER GOODS Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 11_4 11 C MODEL: Selecting Appropriate Channel Intermediaries Customer characteristics Culture Competition Company objectives Character of the market Cost Capital required Coverage needed Control issues Continuity provided Communication effectiveness Source: Czinkota, ME & Ronkainen, IA (1990) Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 11_13 LOGISTICS APPROACH TO PHYSICAL DISTRIBUTION #1 Customer Service • 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 Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 11_15 EFFECTIVE SYSTEM OF PHYSICAL DISTRIBUTION l Requirements n n n clearly define areas of responsibility highly developed planning system comprehensive information support system expertise in distribution management centralising planning body l Considerations n n n 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 Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 11_17 THE EXPORT ORDER & PHYSICAL DISTRIBUTION Importer’s Bank Exporter Manufacturing Secure Transportation & Documentation Bank in Exporter’s Country Import Warehouse Ship Customs Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

Export sales quotation l l l l 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 Lowe www. thomsonlearning. co. uk

Incoterms 2000 International delivery terms l Four categories ( E, F, C, D) l n EXW, FCA, FAS, FOB, CFR, CIF, DDP, DDU l Critical points n Costs, l risk Division of tasks Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

DEVELOPMENT AND IMPLEMENTATION OF PRICING STRATEGY Factors affecting pricing: Company and product Market Environmental Analysis Confirm impact of corporate strategies on pricing policy Corporate objective Selection of most appropriate pricing option Options evaluation Use of tactics and procedures to set SBU prices Implementation Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe ch 12_2 Dealing with internation al pricing problems Price management www. thomsonlearning. co. uk

ch 12_8 SPECIFIC EXPORT COSTS Escalation of Costs Through Exporting Manufacturer’s FOB price Sea freight and insurance Landed cost (CIF) Import tariff: 8 per cent on CIF value CIF plus tariff 17. 5 per cent VAT Distributor purchase price Distributor mark-up (15 per cent) Retailer purchase price Retail margin 40 per cent Consumer purchase price Export Domestic price (£) 10. 00 1. 20 11. 20 0. 90 12. 10 2. 12 14. 32 2. 15 16. 47 10. 98 27. 45 Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe 10. 00 1. 75 13. 50 9. 00 22. 50 www. thomsonlearning. co. uk

ch 12_12 SETTING A PRICE l Are you taking a: n n n l cost oriented market oriented competition oriented approach? Export pricing process n n n n 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 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 Lowe www. thomsonlearning. co. uk

ch 12_13 PRICING PROBLEMS Multinational pricing Foreign currency Co-ordination across markets Uniform pricing positioning Transfer pricing Unauthorised importing In what currency should products be priced? Dealing with fluctuating exchange rates Dealing with high inflation rates Obtaining payment from LDCs Risk of non payment Shortage of hard currency Administrative problems Problems of bureaucracy, red tape and delays Physical transfer Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 12_26 THE EXPORT ORDER PROCESS Initial Enquiry Pro-Forma Invoice 2 C O M P A N Y 6 7 8 9 C O N F I R M I N G B A N K 1 5 Confirmed Order 3 Letter of Credit 4 Shipping Goods Shipment of Documents Commercial Invoice & Documents in Letter of Credit Payment I S S U I N G B A N K Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe C U S T O M E R 10 www. thomsonlearning. co. uk

FINANCAL POLICY - organisation n with whom do we want to do business? n management n insurances ( NCM) n factoring Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

PAYMENT TERMS l l Consignment Open account Against documents (cash or acceptance ) Letter of credit ( LC) (un)confirmed n (ir)revocable n l Cash in advance Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

CRITERIA liquidity l knowledge, experience of exporter l Competition l Relative strength of buyer and seller l Country specific l Level of risk l Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk