International Strategy Development
Developing a Marketing Strategy

Situation Analysis
– Country Analysis
Economic
 Political
 Cultural
 Legal
 Technological

– Market Analysis
Competitive Analysis
 Consumer Behavior towards Product

Segmentation and Targeting
 Marketing Objectives
 Marketing Mix
 Budget

The International Marketing Task
Foreign environment
(uncontrollable)
1
Political/legal
forces
7
Cultural
forces
Domestic environment
(uncontrollable)
Political/
legal
forces
(controllable)
Price
Promotion
6
Geography
and
Infrastructure
Economic
forces
2
Competitive
structure Competitive
Forces
Product
Channels of
distribution
7
Environmental
uncontrollables
country
market B
Level of
Technology
Economic climate
5
4
Structure of
distribution
3
Environmental
uncontrollables
country market A
Environmental
uncontrollables
country
market C
Self-Reference Criterion (SRC)
 An
unconscious reference to one’s own
cultural values, experiences, and
knowledge as a basis for decisions
Creating Marketing Strategies for
International Markets
Standardization/
Globalization
VS.
Adaptation/
Localization
Advantages of Standardization
Economies of scale in production and distribution
 Lower marketing and advertising costs
 Ability to exploit good ideas on a worldwide
basis
 Consistent brand and/or company image in all
markets
 Simplification of coordination and control of
marketing and promotional programs

Problems with Standardization

Differences in market and economic
development, consumer needs, media
availability and legal restrictions

Usage patterns and perceptions of a product
may vary from one country to another

Cultural differences make advertising
standardization difficult
Slide 20-3
International Marketing Concepts
Concept
EPRG Schema
Domestic Market
Extension
(Ethnocentric)
Multi-Domestic Market
(Polycentric)
Global Marketing
(Regio/Geocentric)
Coca-Cola
Global Marketing Strategy
Think Globally
Act Locally
Examples of Global Marketing
Product Design
Canon photocopier/McDonalds/Toyota/Ford
Brand Name
Marlboro/Coke/Pepsi/Mercedes/Caterpillar
Product Positioning
Colgate toothpaste/Unilever fabric softener
Packaging
Gillette razors
Advertising Strategy
Coca-Cola/British Airways/Benetton
Sales Promotion
IBM
Distribution
Benetton/United Distillers
Customer Service
American Express/Hertz