Slide 9.

Chapter 11

Marketing strategy

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

Slide 9.2

Introduction
International marketing is the process of identifying
the goods and services that customers outside the
home country want and then providing them at the
right price.
Process is similar to that carried out at home but with
some modifications to adapt marketing efforts to the
needs of the specific country or region.

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

Slide 9.3

These changes fall into five major areas

Market assessment
Product decisions
Promotion strategies
Pricing decisions
Place/Distribution strategies

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

Slide 9.4

International Market Assessment

An evaluation of the goods and services that the
firm can sell in the global marketplace
Involves five steps
Initial screening: Determining the basic need and
potential of the MNEs goods and services in foreign
markets.
Examine current import policies of other countries
Determining local production
Examining demographic changes in the country

Second screening: Financial and economic

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

Slide 9.5

Third screening: Political and legal forces

Entry barriers
Stability of Govt.
Protection offered for patents, copyrights and
trademarks

Fourth screening: Sociocultural forces

Fifth screening: Competitive environment
Final selection
On-site visit

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

Slide 9.6

Product Strategies
Little or no modification
Moderate to high modification: Depends on a number of
factors
Economics
Culture
Local laws
Product life cycle

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

Slide 9.7

Promotion
The process of stimulating demand for a companys goods
and services. Specific approach used depends on the
nature of the product.
Four variations used in this regard

Identical product and identical message

Identical product but different message
Modified product but same message
Modified product and modified message

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

Slide 9.8

Advertising
A non personal form of promotion in which a firm
attempts to persuade consumers of a particular point of
view.
Personal selling
A direct form of promotion used to persuade customers
of a particular product

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

Slide 9.9

Pricing
Influenced by a number of factors
Government controls
Minimum and maximum price
Dumping
Market diversity
Varying consumer tastes and demands
Perceived quality of product
Currency fluctuations
Price escalation forces

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

Slide 9.10

Place
Distribution is the course that goods take between
production and the final consumer.
Different distribution systems
Choosing the best distribution system
Financial strength of the distributor
Is the distributor well connected?
Number of product lines the distributor carries

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