Slide 11.1

Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009

International marketing: the process of identifying the goods and services that customers outside the home country want and then providing them at the right price and place.

Slide 11.3

Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009

International market assessment: an evaluation of the goods and services that the multinational can sell in the global marketplace.◦ Initial screening: basic need and potential ◦ Second screening: financial and economic

conditions◦ Third screening: political and legal forces◦ Fourth screening: socio-cultural forces◦ Fifth screening: competitive environment◦ Final selection.

International market assessment

Slide 11.5

Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009

Market indicators: Indicators used for measuring the relative market strengths of various geographic areas.

Market size: An economic screening consideration used in international marketing; it is the relative size of each market as a percentage of the total world market.

Market intensity: The richness of a market or the degree of purchasing power in one country as compared to others.

Market growth: The annual increase in sales in a particular market.

International market assessment (Continued)

Slide 11.6

Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009

Little or no modification◦ For example: industrial goods and technical

services. Moderate to high modification

◦ Factors to consider: Economics Culture Local laws Product life cycle.

Product strategies

Slide 11.8

Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009

Figure 11.1 Selected examples of product modification in the international arena

How to classify these groups?

Slide 11.9

Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009

Promotion: the process of stimulating demand for a company’s goods and services.

The specific approach will be determined by the nature of the product:

◦ identical product and identical message◦ identical product but different message ◦ modified product but same message ◦ modified product and modified message.

Advertising: a nonpersonal form of promotion in which a firm attempts to persuade consumers to a particular point of view.

Personal selling: a direct form of promotion used to persuade customers to a particular point of view.

Promotion

Slide 11.11

Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009

Pricing is influenced by:◦ Government controls

minimum prices, maximum prices and anti-dumping

◦ Market diversity differences in consumer tastes and demands

◦ Currency fluctuations exchange rate risk

◦ Price escalation forces.

Pricing

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Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009

Table 11.1 The effect of MNE pricing on final consumer costs

Slide 11.14

Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009

Some multinational enterprises (MNEs) use high pricing with high quality to skim the cream off the top of the market.

Others employ a low-price strategy designed to penetrate and capture a larger share of the middle and lower parts of the market.

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Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009

Distribution: the course that goods take between production and the final consumer.

Different distribution systems ◦ It is often difficult to use the distribution system in

every country.◦ There are many individual differences to be

considered. For example: traditional distribution systems in each market; consumer preferences about location; availability of consumer finance and credit cards.

Choosing the best distribution system◦ Get the best possible distributors to carry their

products. Factors: financial strength, inventory capacity,

knowledge of government and business and the number and types of product lines.

Distribution systems