The Global Context
LECTURE 8
Marketing Decision Areas
Lecture Objectives
• Introduce the concept of the 12 C’s
framework.
• Demonstrate the importance of
international marketing data.
• Underline the importance of the
decision to standardize or adapt
elements of the international
marketing mix.
Lecture Objectives
• Examine the marketing mix as it
relates to an organization’s form.
• Illustrate the significance of crosscultural interactions in
international marketing.
What is International Marketing ?
• The marketing of goods,
services or ideas across
national boundaries.
What is International Marketing ?
• The marketing operations of an
organization that sells or produces
within a given country when :
 That organization is part of, or associated
with, an enterprise which also operates in
other countries; and
 There is some degree of control, or
influence on, that organization’s marketing
activities from outside the country in which
it sells and/or produces.
The Major International Marketing
Decisions
• The International Marketing Decision
• The Market Selection Decision
• The Market Entry Decision
• The Marketing Mix Decision
• The Organization Decision
The ’12 C’ Framework
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Country
Choices
Concentration
Culture & Consumer Behaviour
Consumption
Currency
The ’12 C’ Framework
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Capacity to Pay
Channels
Commitment
Communications
Contracts
Caveats
Country
• General Country Information
• Basis of SLEPT data
• Impact of environmental
dimensions
Choices
• Analysis of supply
• International and external
competition
• Characteristics of competitors
• Import analysis
• Competitive strengths and
weaknesses.
Concentration
• Structure of the market segments
• Geographical spread
Culture & Consumer Behaviour
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Characteristics of the country
Diversity of cultural groupings
Nature of decision making
Major influences of purchase
behaviour.
Consumption
• Demand and end-use analysis
of economic sectors that use
the product or service
• Market share by demand
sector
• Growth patterns of sectors
• Evaluation of the threat of
substitute products
Currency
• Stability
• Restrictions
• Exchange controls
• Exchange rates
Capacity to Pay
• Pricing
• Extrapolation of pricing to
examine trends
• Culture of pricing
• Conditions of payment
• Insurance terms
Channels
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Purchasing behaviour
Capabilities of intermediaries
Coverage of distribution costs
Physical distribution
infrastructure
• Size and grade of products
purchased
Commitment
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Access to market
Trade incentives and barriers
Custom tariffs
Government regulations
Regulations on market entry
Communication
• Promotion
• Media infrastructure and
availability
• Which marketing approaches are
effective
• Cost of promotion
• Common selling practices
• Media information
Contractual Obligations
• Business practices
• Insurance
• Legal obligations
• Whose laws
Caveats
• All those hidden factors that
an international marketer
needs to beware of !!!
The International Marketing Mix
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Product
Price
Place
Promotion
People
Process
Physical evidence
The International Marketing Mix
• Standardization
• Adaptation
Standardization
• Economies of scale
• International and regional
standards
• Consumer mobility
• Growing homogeneity of
demand
• Purchasing leverage to reduce
costs
Standardization
• Savings in costs of
production and R&D
• Experience curve benefits
• Marketing savings
Adaptation
• Polycentric orientation of the
traditional
multinational/multidomestic
• Growing gap between rich and poor
countries and the need to create
alternatives
• Differing conditions of product use
Adaptation
• Plummeting (falling down)
cost of technology
• Growing fragmentation of
market segments
• Increasing buying power
Adaptation
• Enhanced sales arising from a
good match between product
and market
• Transfer of learning from one
market to another
• Increased knowledge of and
sensitivity to markets
The Product-Service Decision
• Mass customization
• Customize services around
standardized offering
• Create customizable products and
services
• Provide point of delivery customization
• Provide quick responses throughout
the process
• Modularize components to customize
products and services
The Product-Service Decision
• International Market
Segmentation
• Segmentation by market clusters
• Segmentation across national
boundaries
• Segmentation by clusters across
markets
The Product-Service Decision
• Branding
• Global vs local
• Private/own label
• Distribution channels
• Pricing
• Advertising and Promotion
Any Questions ?