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Lecture Objectives
• Introduce the concept of the 12 C’s framework.
• Demonstrate the importance of international marketing data.
• Underline the importance of the decision to standardize or adapt elements of the international marketing mix.
Lecture Objectives
• Examine the marketing mix as it relates to an organization’s form.
• Illustrate the significance of cross-cultural interactions in international marketing.
What is International Marketing ?
• The marketing of goods, services or ideas across national boundaries.
What is International Marketing ?• The marketing operations of an
organization that sells or produces within a given country when : That organization is part of, or associated
with, an enterprise which also operates in other countries; and
There is some degree of control, or influence on, that organization’s marketing activities from outside the country in which it sells and/or produces.
The Major International Marketing Decisions
• The International Marketing Decision
• The Market Selection Decision
• The Market Entry Decision
• The Marketing Mix Decision
• The Organization Decision
The ’12 C’ Framework
• Country
• Choices
• Concentration
• Culture & Consumer Behaviour
• Consumption
• Currency
The ’12 C’ Framework
• Capacity to Pay
• Channels
• Commitment
• Communications
• Contracts
• Caveats
Choices
• Analysis of supply
• International and external competition
• Characteristics of competitors
• Import analysis
• Competitive strengths and weaknesses.
Culture & Consumer Behaviour
• Characteristics of the country
• Diversity of cultural groupings
• Nature of decision making
• Major influences of purchase behaviour.
Consumption
• Demand and end-use analysis of economic sectors that use the product or service• Market share by demand sector• Growth patterns of sectors• Evaluation of the threat of
substitute products
Capacity to Pay
• Pricing
• Extrapolation of pricing to examine trends
• Culture of pricing
• Conditions of payment
• Insurance terms
Channels
• Purchasing behaviour
• Capabilities of intermediaries
• Coverage of distribution costs
• Physical distribution infrastructure
• Size and grade of products purchased
Commitment
• Access to market
• Trade incentives and barriers
• Custom tariffs
• Government regulations
• Regulations on market entry
Communication
• Promotion• Media infrastructure and
availability• Which marketing approaches are
effective• Cost of promotion• Common selling practices• Media information
The International Marketing Mix
• Product
• Price
• Place
• Promotion
• People
• Process
• Physical evidence
Standardization
• Economies of scale• International and regional
standards• Consumer mobility• Growing homogeneity of
demand• Purchasing leverage to reduce
costs
Standardization
• Savings in costs of production and R&D
• Experience curve benefits
• Marketing savings
Adaptation
• Polycentric orientation of the traditional multinational/multidomestic
• Growing gap between rich and poor countries and the need to create alternatives
• Differing conditions of product use
Adaptation
• Plummeting (falling down) cost of technology
• Growing fragmentation of market segments
• Increasing buying power
Adaptation
• Enhanced sales arising from a good match between product and market
• Transfer of learning from one market to another
• Increased knowledge of and sensitivity to markets
The Product-Service Decision• Mass customization• Customize services around
standardized offering• Create customizable products and
services• Provide point of delivery customization• Provide quick responses throughout
the process• Modularize components to customize
products and services
The Product-Service Decision
• International Market Segmentation• Segmentation by market clusters
• Segmentation across national boundaries
• Segmentation by clusters across markets
The Product-Service Decision
• Branding•Global vs local
• Private/own label
• Distribution channels
• Pricing
• Advertising and Promotion