TOPIC FOUR

INTERNATIONAL MARKETING MIX

International marketing mix:

• International marketing mix:

• International Product Decisions
• International Pricing Decisions
• International Distribution Decisions
• International Promotion Decisions
• Integration of the components of the mix
• Applying marketing in an international context

• Marketing strategy in international market

• Marketing mix decision involves preparing marketing mix (strategies)

for international market
• Marketing in different countries may require different marketing mixes because
of different customer needs

• International marketing decisions are same as domestic marketing; only

difference is that all marketing decisions are taken with reference to foreign or
international markets (or customers).
• More clearly, product, price, promotion, and distribution decisions are made for
international buyers.

• Here, all marketing mix decisions are taken with reference to foreign customers
and global marketing environment. 
Product

• International marketing requires a product strategy

1. Product standardization   
• company introduces unchanged product on the foreign market. Such action makes sense when
the product due to its nature, has similar utility for customers on various markets. The use of
this strategy is comfortable and not very expensive. Example of companies using this strategy is
IKEA.

• Standardization in marketing mix decisions:

• Standardization is the strategy of selling identical products in all countries. This strategy is less
costly as there is no need for special market research or product modification. Production and
marketing costs are less. The success of standardization depends upon the product’s suitability
to its different target markets.
2. Product adaptation -Product may be altered to more fully suit other
country
• involves adjustment of the product and its properties to the conditions
prevailing on the particular market. This includes packaging, size, symbols
(depending on the culture prevailing in the country concerned), colour.
Adaptation of the product requires large amount of capital and experience.
• Adaptation involves modifying the product to satisfy local tastes. Though
adaptation is an expensive proposition, it yields profit by tapping the
market opportunities. Adaptation strategy is appropriate when the product
performs the same functions under varying conditions of use.
• For example, the word 'diet' does not do well on products in Europe
as it is viewed as too feminine, so Coca-Cola had to change Diet Coke
to Coca-Cola Light, Mac Donald and local taste
• Sometimes the product itself has to change entirely as well, and this is
called product invention
• or example, Ninja Corporation has to eliminate the American flag on
their bandana in order for it to be accepted in other countries. They
have decided to keep the bandanas the same, and then add each
international country's flag on the bandana.
• You may have an excellent product that sells well in Tanzania, but that doesn’t guarantee success in
other markets. Many exporting plans stumble because a company failed to properly adapt its
products to the target market.

• General marketing concept describes how to sell more of a product with an aim to meet the needs
of our target market. In international markets this includes considering various factors like
customer's cultural backgrounds, religion, buying habits and levels of personal disposable income.
• In some circumstances a firm adapts their product and marketing mix strategy to satisfy the local
requirements and demands that cannot be changed. For example, McDonalds is a global player
anyways, their burgers are accustomed to local needs. In India, where a cow is worshipped and is
believed to be a sacred animal, their burgers include chicken or fish but not beef. In Mexico,
McDonalds burgers is served with chili sauce. In some parts of the world, Coca-Cola tastes sweeter
than in other places.
• Product adaptations may be needed for various reasons, such as
labelling and safety regulations, electrical system differences, cultural
and quality preferences, measurement-unit differences and customer
tastes. You may also have to rename and resize your product to fit
local consumer expectations. Carefully research the target market and
competing products to identify how to adapt.
• Disadvantages- More costs
• Might weaken brand damage / diluted
• However easy travel and advance in technology may mean that
product adaptation may not be necessary. Ads in TVs
•Standardization
•With a global approach to the marketing mix, a firm utilizes a common
marketing plan for all the markets. • This means selling same product in
the same way every where in the world. • Such standardization bring
lower production, management and promotion costs, eliminates
duplication of cost related to research and development, product design
and package design. • Economies of scale.
•Coca Cola, Kellogs corn flakes, ponds cold cream, Gillette razor blades are
few examples who sell same product worldwide.
•Youth all over the world are surprisingly similar. Marketers of jeans, hair
products they can sell same product world over.
Promotion

• Businesses may standardize or adapt their promotion strategy

• Promotional messages in countries should be accustomed due to differences in language,
political climate, cultural attitudes and religious practices in different region. A promotional
strategy used in one country could be offensive when used in another.
• For example, people in China believe red to be a lucky color and this color is also worn by
Indian brides. Similarly, white is worn by mourners in India whereas, brides in China and United
Kingdom wear white. Some companies accustom organization promotion strategies to suit local
markets as cultural backgrounds and activities affect what appeals to consumers.
• Local languages, colors, and religious beliefs all impact how global marketers promote their
products and services in different countries
• An ad in Tv might be effective in one coutry and not effective in othr countries because people
don’t watch Tvs
Pricing

• Pricing on an international level is a very difficult task. It takes into account the
traditional price i.e. the cost of the product in the local market including fixed and
variable rates. It also determines the competition prevailing in the market between a
particular company’s products and similar products of other companies.
• Other consierations include; The cost of transport, Tariffs or import duties, taxation,
Exchange rate fluctuations, Personal disposal incomes of the target market/ wealth, The
currency they want to be paid in and The general economic situation of the country and
how this will influence pricing, customers willingness to pay, etc
• A well establish brand in one market may be new in another, this mat lead to wide price
variation
• The internet has created more difficulties for the sellers as customers can now compare
the prices of the products they are buying with similar products existing in the market.
This has increased the level of competition.
Place

• This component of marketing mix is completely about product or service

distribution to the consumer, at the right place and at the right time
• Many countries do not have the same retail environments or same
distribution structure
• For example, in Japan there are probably five different types of wholesalers
engaged in the distribution chain. Businesses will be required to examine the
distribution chains for each nation they would like to work with. They will
also need to analyze and verify who they would like to sell their products and
services to - businesses, retailers, wholesaler or directly to customers.
• Joint venture is popular in foreign markets- may reduce the cist of
distribution channels
• Placement determines the various channels used to distribute a product
across different countries, taking in factors such as competition and how
similar brands are being offered to the target market.
• For example, not all cultures use or have access to vending machines. In the
United States, beverages are sold by the pallet via warehouse stores.
However, in India, this is not an option.
• Distribution planning in marketing mix decisions:
• International distribution planning involves the selection and use of channel
members and the physical movement of products. Choice of channel
members and physical distribution methods depend on customs, costs and
other factors.
• Prior to designing an international marketing mix a business should
carry out a PEST analysis for every country they would like to operate
in. This will help them determine what elements of the marketing mix
can be standardised and which elements will need adjustments to suit
local needs.
• Is when each element of the marketing mix complements the others,
and contribute to creating a coherent brand image.

• Premium product- high price? Discounted price?

• Elements of the marketing mix must support each other
• Think about different marketing mixes at each stage of the product
life circle(PLC)
• Product at an introduction stage- needs to inform customers , high
costs ( e.g advertising ), sold directly by experts
• Influences of an integrated marketing mix
• Think about the elements of the marketing mix at Boston matrix
• Problem child- informative advertising/ trail price/increase
distribution
• Star- persuasive advertising . Premium price/ unique product
• Cash cow – reminder advertising/ competitive pricing
strategy/extension strategies