1. Marketing Mix (4 Ps)  Product  Exporter/licensor/JV/Strategic Alliance principal usually has success in home or other international markets  Product modification required? Localization, approvals and certificates, packaging & labeling, measures, etc

2. Marketing Mix (4 Ps)  Promotion  Pricing  Place (Distribution)  These elements of the marketing mix usually require local knowledge

3. Mattel’s 1990s Internationalization of Barbie Strategic Analysis  Cost Control  Global Product Focus Country Analysis  Japanese market opportunities getting easier

4. Mattel’s 1990s Barbie Internationalization Market Analysis  Large market  Few strong competitors  Distribution difficult  High prices  Heavy advertising needed Entry Mode  Wholly owned subsidiary  Import Barbie  Distribute and advertise Barbie

5. Mattel’s 1990s Internationalization of Barbie Mattel’s 1990s Internationalization of Barbie Business Plan  Open up sales to specialty discounters  Price aggressively  Listen to customer

6. Market Size and Potential (STP) Market Segment = Girls Target Market Segment = Dolls for Girls Product Positioning = Barbie

7. Barbie Doll Advertising Strategies   Encourage purchase of toys: stimulates primary demand for toys, toys for girls and thus sales of Barbie

8. Active Market Entry  Country Analysis Report  Market Analysis

9. Market Information Sources  NTDB Market Research Reports Chambers of Commerce abroad (check WWW home page American Chamber of Commerce in Japan) World’s Greatest Brands (Wiley): tracks brand sales International Trade in Services (Eurostat) World Franchise Directory (Gale)

10. Market Information Sources Euromonitor publications -- leading international source of marketing information. Includes International Marketing Data and Statistics and European Marketing Data and Statistics. Washington Researchers -- guides to company and industry information abroad. Predicasts -- market forecasts. See Worldcast Product and Worldcasts Regional

11. Marketing - Entry Mode Analysis Strategy: market expansion Foreign importers usually seek out products with home market success Brand image: Stronger the brand recognition the more attractive to importer Product localization: Often necessary. Who is best able to make modifications?

12. Marketing - Entry Mode Analysis Promotional Mix:Foreign importer familiar with practices, language and regulations DISTRIBUTION:THIS IS THE KEY! All of the above issues depend upon channel(s) needed in the market

13. Source Channel of Message Communication Encode Receiver Decode Noise Feedback loop Noise Fields of experience The communication process

14. Export Pricing Policy Issues  Channel length: longer channels than domestic markets, drives up end user prices  Price influence: less influence over decisions by channel members  Price-setting authority:How much pricing authority should be given to agents or to subsidiary?

15. Foreign Sales Pricing Strategies - uniform global price to reduce gray/parallel market activity vs. pricing to market. - pricing to attract and hold intermediaries - pricing to establish a product position (e.g. high priced “foreign luxury item”) -test pricing to learn market