1. Marketing Decision Areas
The Global Context
LECTURE 8
Marketing Decision Areas

2. 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.

3. Lecture Objectives
Examine the marketing mix as it relates to an organization’s form.
Illustrate the significance of cross-cultural interactions in international marketing.

4. What is International Marketing ?
The marketing of goods, services or ideas across national boundaries.

5. 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.

6. The Major International Marketing Decisions
The International Marketing Decision
The Market Selection Decision
The Market Entry Decision
The Marketing Mix Decision
The Organization Decision

7. Culture & Consumer Behaviour Consumption Currency
The ’12 C’ Framework
Country
Choices
Concentration
Culture & Consumer Behaviour
Consumption
Currency

8. Capacity to Pay Channels Commitment Communications Contracts Caveats
The ’12 C’ Framework
Capacity to Pay
Channels
Commitment
Communications
Contracts
Caveats

9. General Country Information Basis of SLEPT data
Impact of environmental dimensions

10. Choices
Analysis of supply
International and external competition
Characteristics of competitors
Import analysis
Competitive strengths and weaknesses.

11. Concentration
Structure of the market segments
Geographical spread

12. Culture & Consumer Behaviour
Characteristics of the country
Diversity of cultural groupings
Nature of decision making
Major influences of purchase behaviour.

13. Market share by demand sector Growth patterns of sectors
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

14. Currency
Stability
Restrictions
Exchange controls
Exchange rates

15. Extrapolation of pricing to examine trends Culture of pricing
Capacity to Pay
Pricing
Extrapolation of pricing to examine trends
Culture of pricing
Conditions of payment
Insurance terms

16. Capabilities of intermediaries Coverage of distribution costs
Channels
Purchasing behaviour
Capabilities of intermediaries
Coverage of distribution costs
Physical distribution infrastructure
Size and grade of products purchased

17. Trade incentives and barriers Custom tariffs Government regulations
Commitment
Access to market
Trade incentives and barriers
Custom tariffs
Government regulations
Regulations on market entry

18. Communication
Promotion
Media infrastructure and availability
Which marketing approaches are effective
Cost of promotion
Common selling practices
Media information

19. Contractual Obligations
Business practices
Insurance
Legal obligations
Whose laws

20. Caveats
All those hidden factors that an international marketer needs to beware of !!!

21. The International Marketing Mix
Product
Price
Place
Promotion
People
Process
Physical evidence

22. The International Marketing Mix
Standardization
Adaptation

23. Standardization
Economies of scale
International and regional standards
Consumer mobility
Growing homogeneity of demand
Purchasing leverage to reduce costs

24. Savings in costs of production and R&D Experience curve benefits
Standardization
Savings in costs of production and R&D
Experience curve benefits
Marketing savings

25. 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

26. Plummeting (falling down) cost of technology
Adaptation
Plummeting (falling down) cost of technology
Growing fragmentation of market segments
Increasing buying power

27. Enhanced sales arising from a good match between product and market
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

28. 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

29. The Product-Service Decision
International Market Segmentation
Segmentation by market clusters
Segmentation across national boundaries
Segmentation by clusters across markets

30. The Product-Service Decision
Branding
Global vs local
Private/own label
Distribution channels
Pricing
Advertising and Promotion

31. Any Questions ?