Chapter 4: International

Marketing Planning
Contents

International Marketing management

International Marketing process
Market entry strategy
International Marketing Management

Standardization or adaption
Globalization or localization
International Marketing Planning
Definition
 Manage the effects of external, uncontrollable factors on
the firm’s strengths, weaknesses, objectives and goals to
attain a desired end.
 Formulation of goals and methods of accomplishing
them
 Strategic planning: highest levels of managements deal
with products, capital, research, long-short goals
 Market planning: resource allocation to implement
strategic planning goals
International Planning Process
Phase 1
Environmental factors, company character

 Company character
Philosophy
Objectives
Resources
Management style
Organization
Financial limitations
Management and Marketing skills
Phase 1 (cont)

 Home- country constraints

PESTEL
 Host-country constraints
Industry characteristics
Economic
Political/Legal
Competitive
Level of Technology
Culture
Structures of distribution
Geography
Competition
Phase 2
Matching mix requirements defining and
selecting market segments
 Product Price Promotion Place
Adaptation Discount Adverting Logistics
Brand name Credits Personal selling Chennels
Features Media
Packaging Message
Services Sale promotion
Warranty
Style
Standard
Questions in mind

How to adjust marketing mix according to the

cultural constraints?
Will adaption costs allow profitable market
entry?
To what extend marketer can apply marketing
tactics across national markets (search for similar
segments across countries FOR economy of
scale)?
Phase 3
Marketing plan development
 Situation analysis
 Objectives and goals
 Strategy and tactics
 Selecting mode of entry
 Budgets
 Action plan
Phase 4
Implementation, evaluation, and control

Objectives
Assign responsibility
Measure performance
Review and correct
Market Entry Strategies
Exporting

 Direct export
 Indirect export
 International Internet Marketing
Amazon.com
Ebay
Alibaba
 Direct sale (office with local manager for selling
products)
Contractual Agreement
 Enter into foreign market without large capital investment
 Foreign licensing: Patent rights, trademark rights, rights to use
technological process
 Franchising: growing form of licensing
- Franchiser: standard package of products, systems, and
management services
- Franchisee: market knowledge, capital, personal involvement in
management
- Combination of skills: flexibility in dealing with local market
conditions, reasonable degree of control (parent firm)
Franchising (cont)

Effective blending of skill centralization and

operational decentralization
Important form of international marketing
Fastest growing market-entry strategy
Franchises cover different variety of business:
soft drinks, motels, retailing, fast foods, car
rentals, automotive services,
Strategic International Alliances

 Business relationship establish by two or more companies

to cooperate out of mutual need and to share risk in
achieving a common objective
 Complementarity is a key
 Reasons: rapid expansion into new markets, access to
new technology, more efficient production and
innovation, reduced marketing costs, strategic
competitive moves, access to additional sources of
products and capital
 Airline industry (SkyTeam)
International Joint Ventures
 Two or more participating companies create a separate
legal entity in foreign country
 Four characteristics:
- Established, separate, legal entities
- Acknowledge intent by the partners to share in the
management of the JVs
- Partnerships between legally incorporated entities, such
as companies not between individuals
- Equity positions are hold by each of the partners
Problems

Hard to manage
Success factors: Quality of
relationships between the executives,
how control is shared, the extend to
which knowledge is shared between
the partners,
Direct Foreign Investment

Investment within a foreign country

Purposes: low cost labour, avoid high
import taxes, reduce high cost of
transportation, access to raw material and
technology
Mean: buy local companies, establish
new operations facilities
Issues

 Timing: first movers have more advantages but are more

risky
 The growing complexity and contingencies of contracts
 Technology and knowledge transfer
 Degree of product differentiation
 Previous experiences and cultural diversity of acquired
company
 Advertising and reputation barriers