International Marketing 118. 330 Slides

International Product Analysis

Support Service
Components
Repair &
Maintenance
Installation
Instructions
Other Related
Services
Deliveries
Warranty
Spare Parts
Packaging
Component
Trademark
Brand Name
Price
Quality
Packaging
Styling
Country-of-Origin
Core
Component
Physical
Product

International Product Analysis

• Degree of Standardization
• What is the aspect of the product to be made adaptable?
• What aspect of the product can be standardized?
• Which aspects of the product are critical for competitive advantage?
• Begs the question of identification and ranking of attributes and

consumer preferences. How should it be done? Who should do it?

• Preference dimensions
• status taste achievement aspiration material value

International Product Analysis

• Innovation, Adaptation, and Diffusion
• Degree of Newness
• Newness and Product Life Cycle
• Degree of Perceived Newness

Congruent
Innovation
Continuous
Innovation
Dynamically
Continuous
Innovation
Discontinuous
Innovation

International Product Analysis

• Perceived Attributes of the Product
• Relative Advantage
• Compatability Relative to core and
• Complexity non-core attributes
• Trialability
• Observability

Relative to Core
and Non-Core attributes

Marketing Industrial Products

• Who are Industrial Customers?
• Commercial Enterprises
• Original Equipment Manufacturers
• User Customers
• Industrial Distributors
• Government Organizations
• Local
• Provincial
• Federal
• Institutional Customers
• Schools
• Hospitals
• Churches

Why Enter International Markets?

• Domestic Market Saturation
• Life Cycle Stages
• Inherent Perceived Quality Differences
• Protect Existing Market Share

Why Not to Enter International Markets

• Home Country Sufficient
• Lack of Sound Marketing Information re Foreign Opportunities
• High Costs
• Organizational Inertia

Information on International Markets

• Dunn & Bradstreet’s Principal International Businesses
• Predicast’s F & S Index
• Europe’s 1500 Largest Companies
• Major Firms in Europe and Far East

Industrial Market Considerations

• Product Strategy
• Specifications R&D Support Services New Competition
• Licensing FDI Mgmt Contract Turn-Key Counter-trade
• Channel Strategy
• Resident Buyers Mfg’s Reps Distributors Trading Companies
• Promotion Strategy
• Use of Trade Fairs and Exhibits
• Expert Testimonials and Reputation
• Pricing Strategy
• Price/Quality Relationship Most Important
• Bid System
• Role of Physical Distribution and Demand Management Important
• Prices Often Difficult to Determine at Time of Sale

International Distribution

• Components of Distribution
• Physical Handling
• Transportation
• Transfer of Ownership
• Buying and Selling Negotiations
• Customer Satisfaction--GOAL!!
• Alternative Distribution Channels
• Direct and Indirect Exporting
• Merchants and Agents