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					International Marketing
International Marketing Strategies
Global Marketing
International Marketing Mix
        International Marketing
 Definition:
     Marketing is the sale and distribution of
      products and services to a particular market.
     Marketing consists of 4 P’s and 2 C’s
     Product, Price, Promotion, Place, Consumer
      and Competition
 Going  international creates new
  challenges for the marketing mix
  Centralized Marketing Strategies
Centralized Marketing Strategy
 Production and sales of goods from one central
  location
 Think local, act global
 Best for small businesses
 Example: Cowichan Sweaters p.256
 Companies will have
     Marketing division for each homogeneous region of
      the world
     Common marketing themes/campaigns
        Advantages of Centralized
          Marketing Strategies
Brand Building or Global Brands
     http://www.interbrand.com/best_brands_2007.asp
 Brand     Equity
     making a brand recognizable throughout the
      world
     giving it a positive image
     consistent package, promotion & product
     http://www.cramersweeney.com/smartmarketing.html
       Advantages of Centralized
           Marketing con’t
 Synergy    (1+1=3)
     Centralized marketing has greater resources
      than smaller localized campaigns
 Economies     of Scale
     Centralized marketing prevents costly
      duplication. This savings can be passed
      along to consumers or increase profits
Decentralized Marketing Strategies
 Think Global, Act Local philosophy
 Use of business functions in each local
  market
 Often called “glocal companies”
      Advantages of Decentralized
              Marketing
 Proximity     to Markets
     Targeting & better access to smaller markets,
      transportation savings
 Flexibility
     Spot trends quickly, respond to local events &
      competitors
 Cultural   Sensitivity
     understanding of local customs
     Centralized & Decentralized
         Marketing Strategy
 Some  MNC’s are so large that a combined
 strategy works best
    For example Coca-Cola p.339
    Uses centralized and decentralized strategies
   Marketing Strategies cont’d
Push Strategy             Pull Strategy
 Marketers sell           Marketer targets the
  products through          consumer directly
  channels of              Convinces consumer
  distribution, not the     they need product
  end user.                Global Branding is
 Consumer will see         very important
  product in-stores and
  want it
        Marketing Strategies cont’d
   Brand Acquisition Strategy
       Int’l company purchases an existing company
         • Expensive, controls competition, inherit workforce,
           management & goodwill
       Obtain rights to distribute locally
         • Manufacturing and distribution rights: Pepsi purchase license to make
           Brisk Ice Tea in USA from parent company Unilever
         • Exclusive distribution rights: Dealers attend trade shows looking for
           products to exclusively sell in their markets.

   Brand Development Strategy
       Set up a foreign subsidiary to develop a product to
        compete in the local market
         • Very expensive, complex, only large scale businesses can
           afford this option
            Global Marketing
 Successful   companies deliver products to
  consumers in different countries that they
  will want to buy
 To be successful the global marketer
  considers
     Economic Marketing Factors,
     Consumer Profiles and
     Int’l Marketing Research
     Franchising
           Global Marketing
             Economic Marketing Factors
   The country/market must have an economy
    that provides an income to its people
   Marketers consider wages and prices
   Market Research helps decide whether they
     Should sell only basic, essential good
     Should consider a new market
     Can create a marketing campaign that encourages
      consumer spend their discretionary income
                Global Marketing
                              Consumer Profiles
        A method of understanding the consumer
   Demographic – measurable characteristics
           Age
           Gender
           Family Lifestyle
   Purchasing Profile- who purchase, when where & how
   Motivational Profile - explain consumer behaviour
           Thorndyke’s Pleasure/Plain Theory (behaviour controlled by achieving pleasure or avoiding pain)
           Maslow’s Hierarchy of Needs
           Rational/Emotional Theory
             Global Marketing
            International Marketing Research
Before the marketer begins to organize the marketing
  mix, they should ensure the data is valid
 Marketing Research is the collection, analyzing, and

  interpreting of data to make marketing decisions.
 Secondary Data – collected by others

     • Internet Sources, Periodicals and Publications, Credible
       Organizations found in the country
   Primary Data – collected directly from the marketplace
     • Surveys, tests marketing, interviews, data mining & focus
       groups, local marketing research firms
           Global Marketing
Franchising is a strategy that a company can use
to gain a global presence

  Franchisee pays fee & % of revenue to
  franchisor
  Franchisor provides marketing expertise & a
  well known brand
  Franchisee understand local market and can
  help the franchisor with marketing
   International Marketing Mix
 The introduction of a new product to
 market is called a product launch where
 all marketing mix factors are coordinated
 for the marketing campaign
        International Marketing Mix
   Product
       Meets needs/wants of consumers
       Few competitors
       Product features
         • Differentiation-what sets product apart
         • Marketing Opportunity Analysis – gaps in the
           international marketplace
         • Branding – brand recognition and brand equity
         • Packaging and Labelling – protection, silent
           salesperson, meet country rules and regulations
        International Marketing Mix
Place (Distribution)
   Industrial Sales Representatives
       Personal, very knowledgeable, power to make decisions
       Trade missions help develop contacts
   Retail Marketing
       Department Stores to open air markets
   Specialty Channels
       E-Commerce
       Vending Machines
       Catalogues
       TV Sales
       Telemarketing
      International Marketing Mix
 Price
     Competitive for the market
     Encourage sales, cover costs and make a
      profit
     Economies of scale – more made and sold
      the less expensive products become
      International Marketing Mix
 Promotion
     Creating an effective sales message
     Selecting an advertising medium that will
      target the audience
     Foreign advertising requires foreign expertise
     Ensure that promotional activities are
      managed correctly
   International Marketing Plan
Before marketers attempt to market their
products outside their own country it is essential
to develop a solid international marketing plan.

Entering new countries changes the marketing
mix and a new international marketing plan is
needed.

Complete International Company Profile p.356
“Cinnaroll Bakeries” answer Q’s 1-2

				
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