International Marketing

Asia eUniversity Executive Bachelor in Business Management Instructor: Dr Vijay Name: Yong Wai Choy Student ID: EB/KUPJ/T1/11/004

12 May 2011

Word Count: 2600

INTERNATIONAL MARKETIN 1. and differentiated global marketing. In contrast to standardized and concentrated marketing strategy. differentiated marketing is targeting multiple segments of the global market with different marketing mix offerings. Compare and contrast standardized. It uses the same marketing strategy for all potential buyers in a broad international market. That strategy works best if there are significant major differences across markets and when few segments are present in market after market. concentrated marketing and differentiated marketing. [10 marks] An effective and right global marketing strategy is critical for taking the business or organization towards the international market. This strategy allows a company to achieve wider market coverage. Concentrated marketing on the other hand. This strategy is often used to strive for greater sales volume with lower production cost and ultimately greater profitability. 2 . Standardized marketing strategy is an undifferentiated marketing strategy to mass market in a single country. product adaptation is minimized with lower production cost. By using this strategy. There are 3 common categories of marketing strategies namely standardized marketing. concentrated. These companies define the markets narrowly and targeting for global depth rather than national breadth. this strategy performs a niche marketing strategy to reach a specific segment of the global market. This is the strategy employed by the companies that most people have never heard of and have that have adopted strategies of concentrated marketing on a global scale.

INTERNATIONAL MARKETIN 2. or neighbourhood. a complete shade range. Give an example of a company that has used each one. maximizing the product potential. who introduced ³Shades Of You´. Tastes or Predispositions segmentation. race. marital status. cities. Lifestyle segmentation. An example of company who has successfully market their product base on demographic segmentation is Maybelline. The five basic segment strategies commonly used by organisations are: Demographic segmentation. improving distribution network and ultimately to gain new clients. [20 marks] Market segmentation is a process to identify the market and deciding a best marketing mix to reach the target audience. Market segmentation is carried out to gain an understanding of the target customers. Identify the five basic segmentation strategies. with a colour palette developed specially for black women. regions. or occupation. It is the most common approach for segmenting customer groups as their needs are often closely interrelated with demographic variable. demographic factor of the target market must be known in order to reach the maximum effectiveness of a marketing campaign. uses geographical unit for its market segmentation such as countries. and lastly Attitudes. Geographic segmentation allows organizations to develop marketing mix based on the needs of 3 . A successful market segmentation study can increase company revenue and raise the return of investment. Geographic segmentation on the other hand. Even when an organisation uses other segmentation strategy such as Geographic segmentation. Behavioural segmentation. Demographic segmentation divides the target market into smaller segments with similarity on such variables as age group. Geographic segmentation. gender. states.

Geographical segmentation of the market. The usage of lifestyle segmentation data can be helpful identifying the business core customers or composition of their business area.INTERNATIONAL MARKETIN customers in the particular geographical area. well educated. GAP who runs international clothing business. regular customer or non customer. The variables in Geographic segmentation include regional climate. For example. enable GAP to sell winter clothes in a counter with cold weather. may divide the market according to the climate of the area. Lifestyle segmentation provides an alternative ways to understand the characteristic of a target market. the people are willing to pay 18 rupees for a bottle of clean water due to the widespread pollution of water. population or economic block. Behavioural segmentation may segregate it market to: Frequent customer. new customer. Nestle is marketing its bottle water to Pakistan. In oppose to mass marketing. An example of company who uses behavioural segmentation successfully is Nestle. For example. For example. Typically. living in city or others lifestyle characteristic. Behavioural segmentation involves understanding the target market and categorizes them into groups according to their preferences and profiles. Despite of the low income level in Pakistan. It may also be segmented into: ex-customer. lifestyle segmentation consists of variables of demographics to define a unique group of customers. By using lifestyle 4 . Average customer. lifestyle segmentation may classify customers as young. where bottled water may considered as a luxury products in some market. promoting other categories of clothing in other countries. as well as how often they are using it. odd customer and non customer. but at the same time. behavioural segmentation aims to understand why customer buy and use a product or services.

An example of organization who utilizing the approach is Porches. These data can be obtained through primary research or secondary research indicating the extent they agree or disagree with a statement. Attitude. the organization needs to develop different marketing mix tailor made for every customer of different categories. Attitudes. Tastes or Predispositions segmentation are the most complex segmentation an organization could adopt. a well-known car manufacturer. a car buyer may buy a luxury car and expected to be noticed while others may not share the same view. Tastes or Predispositions segmentation involves grouping people according to their attitude towards a product or services. and Coca-Cola Zero targeting teens that looking for less calories carbonate drinks. Hence. who has tailor made different marketing campaign for its customers improving the revenue. Coca-cola has introduced Coca-Cola diet targeting adults age 3050. a business could recognise its target customer preferences and buying habits. who are health conscious. For example. 5 . For example.INTERNATIONAL MARKETIN segmentation.

The more developed the economy. there are highly and impede network in retail system in developed countries. Whereas consumers in less developed countries tend not to demand this extra performance attributes. Therefore. and relatively lower-cost entry to targeted market. Channels of distribution tend to vary according to the level of economic development of a market. Consumer behaviour is influenced by economic development. Thus. Product reliability is main concerning to their people. Channels of distribution tend to vary according to the level of economic development of a market. contribution of intermediaries can therefore be used to gained quick. Firm can deal directly with retailers to achieve cost saving via joint venture with the local brand.INTERNATIONAL MARKETIN 3. Apple technology like iphone absorbed world-wide by using a strong and valid network distribution channel. For instant. For 6 . Contrary to Levitt. In the sense of it's because people in the developed countries have more net-worth Purchasing Power Parity (PPP) rather than people in developing countries. consumers in the most developed countries are often unwilling to sacrifice preferred attributes for lower prices. The quality and services of products are more important due to their outstanding living cultural and income distribution. feasible. Why? [20 marks] Economic development is essential for a firm to tailor their distribution channel . By channel to those developed countries. the shorter the channels tend to be. the shorter the channels tend to be. product distributions in developed countries are well done by their technologies and systematic networks. Basically. purchasing-power is greater and government tend to increase the commodity prices in order to limit it consumer spending. The more developed the economy. Consumers in highly developed countries tend to have extra performance attributes in their products.

Marketer found easier on the lookout for product representative that can be profitable and status enhancing. wide ranges in sources of finding intermediaries are available in developing country. power steering.INTERNATIONAL MARKETIN example. The advantages can be grab by exporter were they does not have to do all of this independently. In addition. Besides. The exporter can more approach to understand of market conditions in order to define what is expected of an intermediary and what the exporter can offer in the relationship. developing country tend to have more constraint in their distribution channel due to government intervention. High network and integrated domestic systems can lower the cost of distribution due to its competitive environment. advance communication in developed country generally higher than those developing countries. In business to business marketing. the more conservative strategy in developing country make it hard for firm to penetrate market into it. and cost for distribution. It normally imposes higher taxes. communication level is an important consideration in channel design. labours supplier. a car with no extra accessories. both governmental and private sector agencies can assist the marketer in locating intermediary candidates due to the ease of restriction in foreign investment conducted in developed countries policy. air-conditioning. New market can be accessed by expanding network and customer based easy by its advance technology advertisements. 7 . the adoptions on e-commerce in those developed countries provide new opportunities for international marketer. radio and DVD players can be reached to their satisfactory levels. It can properly utilise to assist the international marketer in conveying the firm¶s goal to the distributors. Furthermore.

It automates the financial transactions thereby lowering operational cost. On top of that. This has allow the exporters to centralise all trading or exporting payments collection activities for either domestic or international markets. forward and swap deals. What are the benefits for the exporter using this service? [25 marks] SWIFT stands for Society for Worldwide Interbank Financial Telecommunication which provides a communication platform allowing traders to connect and exchange financial information safely and secure. By using the services. while leveraging global financial industry standards. minimizing operational risk and eliminating inefficiency in operational areas. 8 . foreign exchange options. money market. the exporters could have a better cash and liquidity management of their company. enables the exporters handle the trading exceptions in real time to further reduce their operational risk. forward rate agreements and currency interest rate swaps to the exporter to better manage their financial risk. As only one platform is utilized. it has resulted in a straight through processing and streamlines banks into the trading communication. The centralised services. Banks have come up with ways of using the Internet for functions beyond the initiation of a transaction. The transaction information and cash position of a company can be shared between the importer.INTERNATIONAL MARKETIN 4. Imperial Bank has introduced a new program called SWIFTrade that allows for on-line issuance and status reporting on letters of credit. exporter as well as the banks over a single platform. By using the highly secure services. SWIFTrade also providing services such as confirmations of foreign exchange spot. the exporter could facilitate centralised processing and transmission of the trading payment or transactions.

the change will be transparent to users and can be achieved in a matter of minutes 9 . the eporter could exchange the trade data such as letter of credit between the bank and the importer in electronic format. An example of the exceptional case would be where payment is not received even the goods are exported. In the event of a switchover from a prime to a backup site. By using the SWIFTrade environment. There is no dependence on another party¶s setup. With the standardized trade finance communication. It is designed for the needs of trading environment where faster payment reconciliation and more secure payables and receivable are critical. the services provided by SWIFTrade also enable the exporters to monitor the exceptions in the transactions and perform investigation when necessary.INTERNATIONAL MARKETIN On top of that. It is meant to create a single channel communication when different banks are often involved in facilitating payments in goods exporting. SWIFTrade service has been automated to track the progress of an investigation of a payment to reduce the resolution time. exporter do not need to be aware of his buyer physical location or technical configuration.

more and more companies began to venture into the international market. it has dramatically changed the way on how international marketing is conducted with unlimited potential. It is critical to determine which market to enter. 10 . It is important to consider how international marketing research has evolved to collect information and identify the market opportunities in other countries. even a primary data could be collected via the internet. With the advancement of information technology. How has the information technology revolution affected international marketing research? [25 marks] In the past decade. For example. Instead of conducting a traditional research in the library physically.INTERNATIONAL MARKETIN 5. as well as the responsiveness of customers toward a promotional offer. journals or articles which are available online. company positioning and what are the combination of marketing mix which suit the needs to the international market condition. There are also sources of information which are only available on the internet. It has made easy for researcher to access to secondary data. one organization could track the receptiveness of their online marketing campaign by tracking visitor behaviour in the website. Marketing companies has utilised the behavioural tracking in the website to identify the interest and preference relating to a product or service. the organisation could opt to obtain the virtual access to the data needed from libraries. data sample of the international market could be obtain easily without incurring high cost with the traditional research approaches. As the information technology evolves. or conducting a electronic survey over the internet. and also providing new approach of collecting primary data for international market. As the web content can be access by international users.

With the correct target sampling group. there are limitations of internet survey that all of us should be taken note of. However.INTERNATIONAL MARKETIN On top of that. the software used to conduct the internet survey may not be 11 . may be varies from the targeted sampling frames that the marketing organization is interested in. has allow the international market researchers to conduct survey over a wide scope of target markets. On top of that. surveys over the internet has become more common and suitable to the current population lifestyle. This trend will progress more rapidly in the developed nations and slower in nations with the limited infrastructure. is that product details. picture of the products and virtual shopping environment could be simulated with graphics and sound integration if needed. the internet has also enabled the researchers to collect data in a more systematic approach. the responses could be returned via email as well. vice versa. Instead of a face to face or phone survey. The respondent population over a website survey. new software. With more and more population of international market becoming technology literate due to the rapid growth and invention of products such as computers. the organization could send the questionnaires to the respondent via email. survey over the web or email has begun to replace the traditional international research approach. The results of the surveys are often available for analysis or checking in real time as the information received by the organisation. The other benefits of conducting survey over the internet. surveys can be conducted directly over the internet. For example. due to the difference in the level of information technology development in different country or even district. The automated process of conducting surveys over the internet.

The technical issue may leads to a bias answer by the respondents. it has lowered the cost of international marketing research greatly. Hence. Due to the rapid nature of internet survey. With the advancement of information technology. the responsive rate and non responsive items will continue to be the important factors to look at which utilizing the new technology while conducting international research.INTERNATIONAL MARKETIN compatible to all. 12 . The researchers now could send out a large number of surveys to obtain enough sample data for their analysis. additional sampling could be obtained easily with enhanced survey research incentive.

4hb. Ronkainen (2007) International Marketing. Southern Connecticut State University. BNET[Online].swift. Swift[Online].com/ [8 May 2011] 3. USA. available http://www. Green (1997) Principle of Global Marketing. New Haven. Keegan. Richard Alan Kustin (2004) Marketing mix standardization: a cross cultural study of four countries. International Marketing Research on the Web[Online]. CT 06515. Article 1. Thomson Learning Inc. Ilkka A. Michael R. Mark C. Web 1. available http://www.html [8 May 2011] 13 .com/p/articles/mi_m3374/is_n17_v13/ai_11330456/ [8 May 2011] 2. Prentice Hall. Czinkota. David Gikandi.INTERNATIONAL MARKETIN References Books 1. Warren J. available http://findarticles.

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.