GLOBAL MARKETING

GROUP 1 – B72
Abital, Autos, Almarez, Batitis, Daz, Dela Cruz, Estrella
 Analyzing International Market
The process wherein market players analyze a foreign market
that they are planning to penetrate.

Things to Consider in Foreign Market Analysis:

1. Market Size
2. Competition
INTRODUCTION 3. Product or Service
4. Customers
5. Costs
6. Partnerships
7. Regulations
8. Localization
9. Strategy
 Market – The exchange of goods, services and information between 2 or more
parties

TYPES OF MARKETS

PERFECT COMPETITION MONOPOLISTIC COMPETITION

Infinite number of buyers and sellers Numerous competitors

Market and Its No product differentiation Product differentiation

Types e.g. wet market e.g. restaurants, hotels, cafes

NICHE MARKET
OLIGOPOLY MONOPOLY
Few producers and buyers
Few producers One producer
e.g. airplane parts
e.g. oil companies e.g. Meralco
producers, firearms
producers
12-1

MARKET
RESEARCH
VS
MARKET
INTELLIGENCE
SYSTEM
 Focuses on gathering information to gain an understanding
of the market for your product(s) and the target market.

Marketing research data is not readily available. Companies

Market usually use phone, Internet or in-person surveys to garner
marketing research data.
Research
The process of gathering, analyzing and interpreting information
about a market, about a product or service to be offered for sale
in that market, and about the past, present and potential
customers for the product or service; research into the
characteristics, spending habits, location and needs of your
business's target market, the industry as a whole, and the
particular competitors you face.
 Existing information that small-business owners use
to study markets, competition, political implications
and consumer demographic variables.

Is defined by the use of market research and analysis.

Market It includes gathering information on your competitors
Intelligence and setting up processes in-house that allow you to
continually capture new information for analysis.
System
Focuses on the systematic collection and processing of
information from all the relevant sources to ascertain the
changing trends in the marketing environment. In simple
words, the marketer gathers data from all the available
sources and process these into meaningful information that
can be used to make critical business decisions.
 “It includes gathering information on your competitors and
setting up processes in-house that allow you to continually
MARKET capture new information for analysis. Which leads to the next
critical component of market intelligence – analyzing and
RESEARCH interpreting that new information on an on-going bases so that
AND you can make any changes that are needed in your strategies.”

MARKET
TAKE NOTE
INTELLIGENCE
SYSTEM A necessary business activity that will pay off and involves:

WORK 1) continual information gathering;

2) analyzing what you learn;
TOGETHER 3) assessing the implications; and
4) making changes to your strategies.
 USERS MARKET RESEARCH MARKET INTELLIGENCE SYSTEM

a company would need to conduct marketing research to determine her company's market share, which is the
surveys to determine consumer preference differences in percentage of units and dollars her company wields in the

MARKET Markets
the markets it serves marketplace

RESEARCH
AND to learn why customers purchase certain items; need to
survey customers to determine whether what other items
internal data; use internal information such as customer
databases for business decisions.

MARKET Customers
customers may like.

INTELLIGENCE
SYSTEM verify how competitors rank on quality, service and value
through marketing research. One way to accomplish this is
compare her company's strengths and weaknesses with key
competitors to develop various pricing strategies

WORK by conducting phone surveys among customers

TOGETHER Competitors
12-2

MARKET
STANDARDZATION
AND
ADAPTATION
DECISION
 Marketing strategies used in international markets that
are the same as those used in its domestic market.

It has an advantage related to cost because it avoids the

expense of establishing new operations.
Standardization
It can be quickly implemented because companies will
not need to spend time developing new ways to market
their products to foreign markets.
 Marketing strategies used in international markets that are
different from those used in its domestic market. This is a strategy
mostly used by Multi-National Companies(MNCs). This product
adaption refers to the process of modifying the existing products in
order to reach to each market. There are several product adaption
strategies that an entity can use such as product, target market,
package and design, ingredients, language, culture, religion etc.

Adaptation
More costly than standardization

It has the advantage of obtaining higher sales because it

recognizes the needs and wants of customers in
nondomestic markets.
 Marketing strategy that involves pursuing a standardization when
possible and adapting when necessary.

TAKE NOTE: All aspects of the international market strategy are

subject to the standardization and adaptation decision. This
includes the product, promotion, distribution, and pricing.

Glocalization
Example:

KFC, with 39% of fast-food sales in China, has been successful by pursuing a
glocalization strategy. The company has a number of core items that sells
around the world, but offers others tailored to specific markets. In China,
customers can order spicy prawn rice, beef rice, a mushroom-chicken
burger, and sugared egg trats.
12-3

DEVELOPING
THE
INTERNATIONAL
PRODUCT MIX
 Also called as Product Assortment, refers to the complete
range of products that is offered for sale by the company. In
other words, the number of product lines that a company
has for its customers is called as product mix.

4 DIMENSIONS

Product Mix Breadth of a product mix Depth of a product mix

and Its Shows the different kinds of

product lines that firm carries.
Refers to the variants of each
product in the product line.
Dimensions Simply, it shows the number of
items in the product line. This
dimension of the product mix
Consistency of a product mix
represents the extent to which the
activities of the firm are diversified.
Shows the extent to which the
product lines are closely related to
each other in terms of their end-
Length of a Product mix use, distribution requirements,
Refers to the number of items production requirements, price
in the product mix. ranges, advertising media, etc.
 Product development, also called new product
management, is a series of steps that includes the
conceptualization, design, development and marketing
Developing of newly created or newly rebranded goods or services.
New Products
for The objective of product development is to cultivate,
maintain and increase a company's market share by
International satisfying a consumer demand.
Market
Not every product will appeal to every customer or
client base, so defining the target market for a product
is a critical component that must take place early in the
product development process.
 1. Idea generation 2. Idea screening

The continuous and systematic quest for The process of screening the ideas
new product opportunities, including generated in order to do away with
updating or changing an existing those ideas that are not consistent with
product. The goal is to generate ideas for the company’s objectives and
new products or services or, resources. This is with a view to
8 Stages of improvement to products or services
that address a gap in the market.
eliminate ideas that are not feasible,
viable, and acceptable.
New Product
Development 3. Concept development and testing 4. Business analysis
Is vital. The idea, or product concept at
This stage of the new product
this point, must be tested on a true
customer base. The testers' reactions
development process is geared
can then be leveraged to adjust and toward evaluating the overall cost,
further develop the concept according sales revenue, and profit
to the feedback. potentials of the contemplated
product idea.
 5. Product development 7. Market strategy/business
analysis
It is at this stage that the actual or
physical prototype of the successful Identifies the strategy of how to
idea will be produced. optimally market and sell your
product or service.

8 Stages of
New Product 6. Test marketing: 8. Market
entry/commercialization
Development Here, the company will test the
product (and its packaging) in typical
Is the stage in which the product is
usage situations by conducting focus
group customer interviews, dealer introduced to the target market.
research or test it at trade shows to All the data obtained throughout
determine customer acceptance or the previous seven stages of this
otherwise. The company can use the approach are used to produce,
outcome of the test to make market and distribute the final
adjustments on the planned marketing product to and through the
strategy where necessary. appropriate channels.
 Marketing strategies developed for initial product
introduction almost certainly need to be revised as the
product settles into the market. While
commercialization may be the last step in the new
product development process, it is just the beginning
Managing of managing the product.
Existing
Products Adjusting the product’s marketing
strategy is required for many
TAKE NOTE
reasons including:
To stay on top of all possible
1. Changing customer tastes threats, the marketer must
2. Domestic and foreign monitor all aspects of the
competitors marketing mix and make changes
3. Economic conditions as needed.
4. Technological advances
 Research and Development

Is the creation of new body of knowledge about existing products or

processes, or the creation of an entirely new product. This is systematic
creative work, and the resulting new knowledge is then used to formulate
Location of new materials or entire new products as well as to alter and improve
existing ones.
Research and
Development Research and Development labs should be located in the countries for
Facilities which it wants to develop new products. Another strategy is to locate the
R&D center in a location known to be an innovation hub.

Innovation hubs

Are geographic locations that have universities, research labs, and corporate R&D
centers clustered together. Proximity attracts the best workers and stimulates
innovation through the cross-pollination of ideas. Employees are exposed to new
ideas, and knowledge “spills over” during the everyday interactions of employees,
university professors, and students.
 Counterfeit products range from high-end consumer luxury goods such as
watches, perfumes or leather goods, to business-to-business products
such as machines, chemicals or spare parts, to common consumer
products such as toys, pharmaceuticals, cosmetics and foodstuffs. In fact,
any IP-protected product can be counterfeited.

Some counterfeit products, such as pharmaceuticals, spare parts and

toys, are of low quality, and thus create significant health and safety
Product threats.

Counterfeiting
Counterfeit goods might be phony, but their economic impact is all too
real. In 2012, global counterfeiting grew into a $600 billion-a-year-
industry, according to the International Anti-Counterfeiting Coalition, and
U.S. government agencies believe fake goods account for as much as 10
percent of international trade.

Counterfeit goods are more commonly found in developing countries,

multinational companies could also consider adapting, rather than
standardizing, their products for these markets.
12-4

DEVELOPING
INTERNATIONAL
PROMOTION
MIX
 International Promotion

Promoting the business internationally

Reasons for Promoting

International To capture the interest and attention of possible and existing consumers
Promotion
To raise awareness about the company’s products
and Reason
To influence possible consumers to buy the company’s product
for Promoting
To increase sales

Position a product
 TAKE NOTE

The culture and behavior of the market should be considered

1. Determine your target market 2. Determine your objectives

Determine the segment or group of Determine what type of response

Establishing people that would need and benefit the company would want from the
from your product. target market
Promotion
Mix 3. Design your message 4. Select your promotional
channels
Content – Words and images that would
be used to promote the product (e.g.
The medium wherein the company’s
taglines)
message would be shown
Format – The way how the content would
be shown 5. Determine your budget

6. Determine your promotional

mix
 1. Advertising
2. Publicity
3. Sales Promotion
4. Direct Marketing
5 Primary 5. Personal Selling
Elements of
Promotion
Direct Marketing
Mix
Communicating directly to customers via phone calls, email, text
messages

Personal Selling

Marketing the company’s products in person. Either the sales person

comes directly to customers or the customer themselves look for the sales
person.
 Paid form of non-personal communication of the company to
customers in order to sell its products.

Involves mass media like radio, television, internet, magazines,

billboards, etc.

#1
ADVANTAGES DISADVANTAGES
Advertising
Credibility – enhance perception of viewers Cost
about the company and its products
Follow-through – could possibly be
Timing – repetition of advertisement in repetitive that audience would lose
intervals that target audience would most interest
likely see
Lack of feedback
Branding – helps establish a distinct
trademark and association among
audience Consumer indifference
 “There’s no such thing as bad publicity”

“Bad press is better than no press”

Publicity stunt – Something done in an unusual way in order to gain the

#2 attention of the target

Public TAKE NOTE: It is always important to maintain a good public image

Relations in the community.

(Publicity) ADVANTAGES DISADVANTAGES

Believability – is considered to be more Cost

credible than advertisement because
candidness plays an important role Lack of Control – the publicity may be
interpreted differently
Rouse curiosity – when there is drama or
happenings, people tend to be more in tune

Creates noise
 Marketing activities that provide added-value or incentives to the
company’s sales force, distributors and consumers

Consumer-oriented Sales Promotion – engages and motivates potential

buyers (e.g. free samples, coupons, freebies, attractive interior, display
windows and design)

#3 Trade- oriented Sales Promotion – intended for intermediaries such as

Sales wholesalers, retailers and distributors; used to persuade intermediaries to
stock and promote the company’s products (e.g. price deals, discounts)
Promotion
ADVANTAGES DISADVANTAGES

Build relationships Risk of misfire

Gauge the market’s price sensitivity Risk of dependency – the company

might only rely on short-term
marketing instead of long-term making
operations of the company unstable.
 1. Being able to deliver a clear and
compelling message
Gauging the
2. Being able to choose the most
Success of appropriate promotion method
Promotions
3. Sales figures
12-5

DEVELOPING
THE
INTERNATIONAL
DISTRIBUTION
MIX
 A distribution channel is the path or route decided by the company
to deliver its good or service to the customers.

Indirect strategy Direct strategy

The use of distribution channels Using marketing and sales offices that
located in foreign market they establish and maintain in the
Channels of ● Introduce products into
foreign markets served

Distribution international market more quickly ● Requires recruiting and training

sales force for marketing or sales office
● less attention on marketer’s
product. ● Maintain control over the
marketing effort
● durable, standardized and
somewhat inexpensive goods ● perishable and expensive goods

● target audience isn’t limited to a ● target audience is geographically

confined area and the demand of the concentrated
product is very high
 AGENT

An intermediary who acts on behalf of a company in a

foreign market.

2 Major Kinds Agents are paid a commission on the sales they make,
usually on a percentage basis.
of Channel
Distribution DISTRIBUTOR

An independent contractor who purchases product from

company doing business in international markets, and
resells the product to other buyers
 As a general rule, industrialized countries tend to have
a lower distribution outlet density than the emerging
markets. Part of the reason for this difference stems
Retailing from the need in emerging markets to purchase in very
Differences small lots and more frequently because of low income
Across the and the lack of facilities in homes to keep and preserve
purchased items. At the same time, the advanced
World facilities available in the developed world allow a much
higher square footage of retail space per resident, due
to the large size of the retail outlets.
 In Japan, until early 1990s, the Large-Scale Retail Store Law gave small retailers and
wholesalers disproportionate influence over the Japanese market by requiring firms
planning to open a large store to submit their business plan to the local business
Foreign regulation council, the local chamber of commerce and the Ministry of Economy,
Trade and Industry (METI). As a result, the process would take between 1 year and 18
Retailers and months, and was seen by foreign retailers as an almost insurmountable entry
barrier. Under U.S. government pressure, the Large-Scale Retail Store Law was
Direct relaxed in 1992 and in 1994. The task of examining applications for new stores was
transferred from the local business regulation council. Consequently, the maximum
Marketers time required for various applications and approvals is now set at 12 months. These
two revisions of the Large-Scale Retail Store Law have contributed to the increase in
Entering into the number of applications requesting approval to establish a large retail store.
Japan En According to the Japan Council of Shopping Centers estimate, shopping centers
Masse have opened at the rate of more than 100 per year since 1992. Toys ’R’ Us exploited
this opportunity and was ultimately successful in cracking the Japanese market. It
boasted a total of 37 stores in 1996, and planned to open an average of 10 more per
year across the country. Following the success of Toys ’R’ Us, other foreign-based
retailers have begun to crack the Japanese market. Nearly a dozen other such
foreign retailers have opened their stores in Japan in the last decade.
 Physical distribution is the set of activities concerned with efficient movement
of finished goods from the end of the production operation to the consumer. It
involves the company’s storage and transportation operations that are used in
moving products to a foreign market.

MODES OF TRANSPORTATION

Physical Trucks – Flexible and Growing Railroads—Long Distance Shipping

Distribution Primarily manufactured products Bulky commodities (coal, chemicals,

non-metallic minerals, and lumber
and Modes of Useful for short-distance and wood products)

Transportation shipments
Long distances shipments

Air Freight—Fast but Expensive

Water Carriers—Slow but
For movement of valuable Inexpensive
products (personal computers and
machine parts) or highly- For the transport of heavy, bulky, or
nonperishable products, including
perishable products (flowers, dairy
crude oil, steel, and automobiles.
products, meat).
12-6

DEVELOPING
THE
INTERNATIONAL
PRICING MIX
 1. Develop pricing objectives for
international markets;
Key Aspects of 2. Set prices in international
International markets;
Pricing 3. Address issue of dumping; and
Strategies 4. Set transfer prices.
 1. Performance objectives
2.Prevention objectives
3. Maintenance objectives
Major Pricing 4.Survival objectives
Objectives
 Factors that must be considered:

1. Costs
2. Attractiveness of competitive products and their prices;
3. How competitive the product is;
4. How much marketing support the product will get; and
5. What the demand would likely be.
Setting Prices
in Gray Marketing – Unauthorized importers reselling a manufacturer’s
International product in the manufacturer’s domestic market at a price less than what
the manufacturer charges in that domestic market
Markets
Dumping – Price in a foreign market that undercuts the prices of
companies competing there.

Transfer price – A price a company charges its overseas subsidiaries

Arms-length Price – A price that an overseas market is willing to pay

12-7

DEVELOPING
THE
INTERNATIONAL
CUSTOMER
SERVICE MIX
 Customer Service – Is the service that is performed/demonstrated by
the company when/after its buyers make its purchases. It is one of the
most essential components of the company for it ensures buyer
satisfaction and encourages repeat business.

Kinds of Customer Service That are Important to Overseas Buyers

Customer
• On time and accurate deliveries
Service and Its • Installation of equipment and machinery
• Problem solving
Kinds • Explaining and honoring warranties
• Repairs
• Accepting returns
• Providing emergency shipments
• Shipping products that are already assembled
• Handling documentations for exports and imports
• Consistency of the order-cycle length
 IMPORTANCE OF CUSTOMER SERVICE

It is more impactful for customers to switch companies than product and

price issues
Importance Increase in share of wallet
and
Considerations Customer service is considered reliable if:
of Reliability of 1. Receiving shipments on time
Customer 2. Order accuracy
3. Completeness and condition
Service 4. Getting repairs done on time
5. Consistency of product quality

TAKE NOTE: Companies must make sure they are managing their
resources well
 Properly handled Poorly handled
complaints results to: complaints results to:

Result of Prevention of customer Lower level of satisfaction

defection which increases the
Properly and probability that customer
Poorly Increase loyalty will switch to another
company
Handled Improve sales
Customer Results in customers
Results in customers
spreading unfavorable
Complaints spreading favorable word- word-of-mouth comments.
of-mouth comments

Employees should be granted empowerment.

GLOBAL
MARKETING
THANK YOU FOR LISTENING :D
Group 1 – B72
(Abital, Autos, Almarez,
Batitis, Daz, Dela Cruz,
Estrella)
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