International marketing strategy

                                           segmentation

                                      Factors influencing IMS

                                         Generic strategy

Ø  Differentiation

§   product is different to the competition

§   more value

§    different value

§   better quality

§   better peformance(features)

§   better price- value for money



      POSITIONING AND

           BRANDING

Ø  Focus

§   on particular market segment

§   or part of product line

    (lack of  resources, provide better match between offer and customer needs/wants





          POSITIONING AND

               BRANDING

                                    Matrix for comp. strategies

Ø Cost leadership?

                                       source of comp. advantage

                               low cost              differentiation

competitive    industry

scope                 wide





                       single

                       segment

                                  STRATEGIC PLANNING FOR INT. MKT

Ø   Systematised way of relating to the future – managing the effects of external, uncontrollable
factors on the firs´s strength, weaknesses, objectives and goals to attain a desired end.

Ø   Same principles of  planning

Ø   Different – the intricacies of the operating environments, organisational structure, task of
controlling …



    PREPOSITIONS:

Ø   Readiness – resources, commitment, objectives – reasons

Ø   External opportunitites (and threats)



PLANNING PROCESS:

What product/s to offer/develop

Which market/s

What level of resource commitment

Allocation of effort and resources



                                    Phases of planning process

Ø   1. preliminary analysis and screening (12C)

Company character (philosophy, objectives, resources, management style, organisation, financial
limitation, management and marketing skills, products, other)

Home country constraints (SLEPT)

Host cuntry constraints (SLEPT  culture, + competition, structure of distribution, geography +
CUSTOMER…)

Ø   2. adapting the marketing mix to target market

          4, 5, 6, 7 „P“

Ø   3. developing the marketing plan

Situation analysis, objectives and goals, strategy and tactics, budgets, action programmes

Ø   4. implementation and control

Objectives, standards, assign responsibility, measure performance, correct errors

                                    Some outputs of the phases

1. phase:

Ø   evaluation of the potential of a proposed country market (ATTRACTIVENESS) market size and
growth vs (COMPETITIVE STRENGTH) market share, MKT ability and capacity, product and positioning
fit and quality of distribution services

Ø   Identification of problems

Ø   Identification of env. elements that need  further analysis

Ø   Determination of part/s of the MKT mix which must be adapted or can be standardised



2. phase:

Ø   adaptation/standardisation of particular features of every P

                                International /global segmentation

Ø   2-stage – macro (gouping of countries using more general criteria to identify clusters of
countries that are similar in some characteristics)  competitive and profitability analysis

                - micro – collection of data about individual countries – using segmentation
variables

                                     TARGETING

Ø   Segments – Identifiable: the differentiating attributes of the segments must be measurable so
that they can be identified.

Ø   Accessible: the segments must be reachable through communication and distribution channels.

Ø   Substantial: the segments should be sufficiently large to justify the resources required to
target them.

Ø   Unique needs: to justify separate offerings, the segments must respond differently to the
different marketing mixes.

Ø   Durable: the segments should be relatively stable to minimize the cost of frequent changes.

Ø   internally homogenous and externally heterogeneous; that is, as similar as possible within the
segment, and as different as possible between segments.



                                           SEGMENTATION

Ø  Geographical criteria (by country/ies), (within country/ies)

Ø  Demographic – sex, age, income level, social class, educational achievement..

Ø  Psychographic – lifestyle factors – interests, opinions,perception of „way of living“   work and
leisure habits – activities and approach

Ø  Behavioural – buying motivation, benefit sought patterns of consumption, loyalty in respect of
product category or brand, context of usage

Ø  POLITICAL, ECONOMICAL, CULTURAL VARIABLES

Ø  PRODUCT-RELATED, PROMOTION-RELATED, PRICE-RELATED AND PLACEMENT-RELATED VARIABLES

                                            positioning

                                       Market entry methods

Ø   Wholly owned subsidiary

Ø   Company acquisition

Ø   Assembly operations

Ø   Joint venture

Ø   Strategic allinaces

Ø   Licenssing

Ø   Contract manufacturing

Ø   Direct marketing

Ø   Franchising

Ø   Distributors and agents

Ø   Sales force

Ø   Trading companies

Ø   Export management companies

Ø   Piggybackong operations

Ø   Domestic purchasing (subcontractors)

      Levels of involvement