MAJOR DECISIONS

IN IB
 MARKET SELECTION DECISON
• Market selection decision process consists of a planned and systematic search for relevant
information in order to identify potential markets and measure market opportunities.
• Information gap is one of the critical factors that restricts businesses from entering into a
particular market, specially in the context of rapidly changing character of foreign markets
and marketing conditions.
• No one can possibly sell all products in all markets and also all markets doesn’t offer
equal opportunities for all products.
• For economic, legal, geographic or technological reasons certain foreign markets, even
through potential, may be closed to export from a country. In some markets potential may
be low. Distance and lack of shipping facilities may exclude entry in certain markets.
 CNTD…..
• Through the process of preliminary screening on the basis of available
published data or better source of information, the firms can select a
group of countries which appear as potential markets for the company’s
products.
• So selection of market is a major problem that a company going
international may face.
ENTRY AND OPERATING DECISON
• Once the market selection is done the next step is to determine the mode
of entry. For this the company must develop an excellent market entry
strategy.
• Market entry strategy is the base of how your business wants to engage
with new clients, achieve business aims, and set up powerful relations on
the new market. The strategy outlines what to say, how to say, and whom
to say it to make more sales.
 CNTD….
• Operating decisions are determinations made in regard to the routine,
ongoing activities of an organization. The company has to decide its mode
of operations in the international market.
• Examples of operating decisions are, selection of suppliers, scheduling
production equipment for use, deciding the nature of a marketing
campaign, deciding where to invest excess funds, and determining how
much inventory to keep on hand.
 MARKETING MIX DECISON
• When you are in the process of selecting the target markets, the marketing mix
decisions must be evaluated. Basically, the elements for market mix decisions are the
same for domestic marketing and international marketing. But the scope of decisions
under these elements are different. The Marketing mix decision elements include:
 Product planning
 Price planning
 Distribution planning; and
 Promotion planning.
 Product planning in marketing mix
decision
• The international marketer should decide whether to sell the same product
abroad as at home, or modify it for the new market or develop an entirely
different product.
• Marketing the same product around the world is practical when culture
has no influence over the way the product is used. However, a product has
to be redesigned entirely to meet the needs of the population.
 Price planning in marketing mix
decisions:
• Price planning is the basic consideration in international marketing. Price
planning involves decisions as to whether prices should be standardized, the
levels at which they are set, the currency in which prices are quoted etc..
• When international marketers operate within an economic community,
standardization of prices is comparatively easy.
• Local economic conditions such as per capita income and GNP are the basic
considerations in setting the price level. Some firms charge lower prices to
capture the market.
 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.
• Firms make a number of arrangements to place their products in foreign
markets. International marketers consider degree of control needed and the
volume of exports while making channel decisions.
• Firms marketing many products set up their own sales force abroad or buy out
overseas distributors to have special control over servicing in foreign markets.
 CNTD……
• Special planning is required for physical distribution in international
markets. Poor physical distribution facilities create problems. The
problems of transportation exist in less developed countries. Warehousing
is also a problem even in industrialized countries. Inadequacy of storage
facilities, and absence of modern facilities increases the costs of
marketing.
 Promotion planning in marketing:
• The purpose of promotion is the communication of goods and services
marketed abroad. Communication takes place in the context of cultures.
As cultures vary with countries, different approaches to promotion are
adopted. Language, differing values and attitudes strongly influence the
advertisement messages. The media used to carry the message may also
have to be tailored locally.