INTERNATIONAL MARKETING

Ana Karen Paz García

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INTERNATIONAL MARKETING by Mind Map: INTERNATIONAL MARKETING

1. International Pricing Strategies

1.1. Pricing will always vary from market to market. Price is affected by many variables: cost of product development (produced locally or imported), cost of raw materials, cost of delivery (transportation, tariffs, etc.), and much more

2. International Cost-Based Pricing

2.1. In most instances businesses use cost-based pricing to achieve desired margins for their products. Using cost-based pricing, each channel participant marks up their cost to a price that provides a desired profit margin.

2.1.1. •At what price is your product affordable and will sell in this international market? •Is this price an attractive value given the product-performance of competing products? •Is the market demand in this international market elastic or inelastic?

3. International Market Based Pricing

3.1. Market-based pricing starts with knowing the consumer and how much they are willing to pay for this pair of running shoes. Consumers in a foreign market may be willing to pay more for the company’s running shoes because of their performance, quality, style (fashion), and brand But in all cases the price that a consumer would pay for the company’s product has nothing to do with their cost, desired margins or the margins, fees and taxes applied.

3.1.1. Transfer Pricing: Pricing products for sale in foreign markets takes on another twist when a manufacturer has operations in the foreign market.

4. International Channel Strategies

4.1. Product distribution methods are also a country-by-country decision influenced by how the competition is offering their product to the target market. Place decisions must also consider the product’s position in the marketplace.

4.1.1. Indirect International Marketing Channels: products created in international markets need to be exported, transported, distributed and sold in the various international markets served.

4.1.1.1. Export/Import Agents: Export and import agents assist companies in transporting and sometimes selling products in a foreign country.

4.1.1.1.1. International Wholesaler: Once a product lands in a foreign market it needs to be moved, stored, and sorted into order quantities desired by buyers.

4.1.2. Direct International Marketing Channels: Because of the high cost of international marketing channels, many multi-national companies pursue a direct marketing strategy by setting up operations in the countries they serve.

4.1.2.1. Company Owned: A company-owned location requires more investment but provides more control over operations.

4.1.2.1.1. International franchising: This is a strategic way to reduce dependence on domestic demand

5. International Marketing Communications

5.1. Global marketing communications strive to reduce costs, minimize redundancies, maximize implementation, and to speak with one voice. If the goal of a global company is to be able to communicate the same message worldwide, then that message can be delivered in a meaningful and cost-effective way.

5.1.1. Traditional Marketing Communications: The traditional means of marketing communications differs by international market but generally includes print, electronic, outdoor , and direct marketing.

5.1.1.1. Digital Marketing Communications: Digital marketing communications can reach consumers 24 hours a day. Digital marketing communications are dynamic, interactive communications that are less expensive, have increasing reach, and are relatively easy to track in terms of performance

5.1.1.1.1. Interactive Marketing Communications: Digital marketing communications are customer-centric marketing communications designed to encourage deep customer engagement.

6. International Marketing Mix

6.1. The marketing mix (the 4 P’s of marketing: product, price, placement, and promotion) is affected as a company transitions from a domestic to an international and finally to a global company.

6.1.1. Product Adaptation & Positioning: Most products need some minimal level of adaption based on language, size, packaging, and/or infrastructure

6.1.2. Product Customization & Positioning: Global success of the "Banner Sun" potato chip brands have been driven by product customization around taste, brand name and packaging and the following international marketing practices