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



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



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



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



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



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



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



ch10_5

FAILURE IN INTERNATIONAL MARKETING COMMUNICATIONS #2

The Effects of External Factors: Counterfeiting Parallel importing Competitors, governments or pressure

groups



PUSH AND PULL STRATEGIES

ch10_8



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



ch10_13

MARKETING COMMUNICATION TOOLS #2

Sales promotions Direct Marketing Cyberspace advertising

Communicating with a wider range of stakeholders Corporate identity Sponsorship Public Relations



DISTRIBUTION CHANNELS FOR BUSINESS GOODS

ch11_2



DISTRIBUTION CHANNELS FOR CONSUMER GOODS

ch11_3



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



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



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



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



Export sales quotation

Product description Price/unit,total price,currency Freight costs Packing details Delivery (incoterms 2000) + payment

terms Validity Special conditions



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



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



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



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)



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



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



FINANCAL POLICY

- organisation with whom do we want to do business? management insurances ( NCM) factoring



PAYMENT TERMS

Consignment Open account Against documents (cash or acceptance ) Letter of credit ( LC)

(un)confirmed (ir)revocable

Cash in advance



CRITERIA

liquidity knowledge, experience of exporter Competition Relative strength of buyer and seller Country specific Level of risk

use with international marketing strategy- third edition isbn 1-86152-772-1 published by thomson...

Documents

robin lowe

thomson learning isobel

edition isbn

product range

marketing mix

product decisions

service ch9

international development