IMM Merged Slides

International
Marketing
Management
EPGDIB: 2022-23
Session 1
Dr. Arunima Rana
International Marketing
International Marketing is defined as the firm’s commitment to coordinate its marketing
activities across national boundaries in order to find and satisfy global customer needs better
than the competition. This implies that the firm is able to:
❑ Develop a global marketing strategy, based on similarities and differences between markets
❑ Exploit the knowledge of the headquarters (home organization) through worldwide
diffusion (learning) and adaptations;
❑ Transfer knowledge and ‘best practices’ from any of its markets and use them in other
international markets.
2
Emergence of new economic powerhouses
Emergence of the new customer
Supply is more than demand, intensification of

The Emerging
competition
Global Market
Environment
Emergence of global service economy
Technological Changes
Emergence of global media
3
The Polar Silk Road: China Comes to Greenland

The Emerging
competition
Global Market
Environment
5
The Millennial Effect
BCG’s Personalization Maturity Index
Issues?
⬗ Whether the company is able to adapt to the fierce
competition and changing consumer demands reshaping
the global apparel market.
⬗ The decline was the first in two decades, a period in which
H&M expanded from a lone women’s wear store west of
Stockholm to a gargantuan network of 4,700 stores around
the world.
⬗ Foot traffic in the past year fell as customers
eschewed crowded shop floors in favor of online
shopping, or lower-cost offerings elsewhere, a
challenge hitting a wide array of “fast fashion”
retailers.
8
Issues?
⬗ The operating profit fell 62 percent in the three months
through February, sending its shares to their lowest closing
price since 2005
⬗ Since the early 2000s, business has largely boomed for fast
fashion retailers such as ASOS, H&M and Inditex. They
profited off their ability to generate, at a vast scale, rapid
translations of runway fashions into low-priced clothing
and accessories.
9

The Emerging
competition
Global Market
Environment
10
Routes to Global Brands
⬗ The Asian Tortoise Route

⬗ The Business to Consumer Route
⬗ The Diaspora Route
⬗ The Brand Acquisition Route
⬗ The Cultural Resource Route
⬗ The Natural Resource Route
11
Key Success Factors for the Asian Tortoise
Strategy-Country Level Factors
• A relatively large population to provide the
cheap labor.
• Weak protection for labor to avoid union
militancy and wage escalation.
• No natural resource bounty to distort the
economy and incentives.
• Commitment to an export-oriented
manufacturing sector.
• A protected home market to allow
experimentation by domestic firms.
• Multiple domestic rivals within an industry to
spur competitiveness.
• A long-term oriented culture.
12
Key Success Factors for the Asian Tortoise
Strategy-Corporate level Factors
• The pursuit of world-class manufacturing
processes and innovation.
• Humility to learn from leading foreign firms
and reverse engineer their products.
• Alliances with global leaders to acquire and
absorb technology.
• Prioritization of the developed country
markets.
• A focus on a single brand, usually also the
name of the firm, to leverage marketing
investment.
13
The tortoise Strategy
• Build to Cost
• Build to Volume
• Build to Quality
• Build to Brand
14
Business to Consumer Route
15
Business to Consumer Strategy
⬗ Run a profitable B2B business that throws off enough cash to invest in end-user insights, R&D,
and product development.
⬗ Set up an effective R&D network to develop products for end users, potentially through joint
innovation centres with customers (e.g., HTC) and ultimately a globally located network (e.g.,
Galanz and Huawei).
⬗ Operate a dual model of being both an OEM (private label supplier) to major brands from the
developed world as well as selling its own brand, with the ultimate objective of exiting the former
business (e.g., HTC, Galanz, and Huawei).
⬗ Get co-branding on the OEM and private label sales (e.g., “Intel Inside”) to build low-cost
awareness for the brand with end users.
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Diaspora Route
17
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Reasons for Accounting
for International
Environmental Factors
• Reduction of Risk
• Aid to Decision Making
• Market Risk Assessment
• Choice of Market and
Marketing Mix
• Prioritizing Variables
19
Internal External
Data Data
ABC General Data Macro-economic data
Secondary Secondary
(Firm Context) for country Vietnam
Data Data
• Size • GNP
• Product Lines • Stability of
• Financial Situation Currency Industry-Defence
etc • Inflation • Growth Pattern of the
Sector
• Analysis of Imports
Problem • Characteristics of
▪ Is there a market for the Competition
“radar systems” in
Vietnam?
▪ If yes, how large is it and Competitors
what is the possible Specific
market share Strategies
Strength and Weaknesses
Profile (Benchmarking) Intermediaries
Compared to main competitors End Customers • Purchasing
• Corporate Level • Buying Behaviour
Behaviour • Financial
• Product-line level (SBU
Primary • Threat of using capabilities
Level) Primar
Data substitute • Access to
• Specific Product Level etc distribution
y Data
product
channels etc
Internal External
20 Data Data
Political Environment
• The role of govt. in the economy

• Political Stability & Risk
• International Relations
21

22

23

Naivasha Lake Kenya
Naivasha Lake Kenya
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Egyptian tourist guides and security sit near the pyramids in Giza, Egypt. The
military has closed the pyramids to tourists following unrest in Cairo, the
nation's capital. 2011 NBC News
25

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Political Environment Legal Environment Economic Environment
• The role of govt. in the economy • Conflict Resolution • How big is the population and at
• Political Stability & Risk • Dispute Settlement what rate is it growing?
• International Relations • Intellectual Property, Patents, • Where is the population located
Trademarks and Copyright and how dense is it?
• What is the population age and
distribution?
• What is the disposable income
and distribution?
27
India Jordan
28
Italy Israel
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Political Environment Legal Environment Economic Environment
• The role of govt. in the economy • Conflict Resolution • How big is the population and at
• Political Stability & Risk • Dispute Settlement what rate is it growing?
• International Relations • Intellectual Property, Patents, • Where is the population located
Trademarks and Copyright and how dense is it?
• What is the population age and
distribution?
• What is the disposable income
and distribution?
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Globalization
❖ Meant to describe the process of creating networks of connections among
actors at multicontinental distances, mediated through a variety of flows
including people, information and ideas, capital, and goods (Clarke, 2000)
Defining Globalization
❖ Process that erodes national boundaries, integrates national economies,

cultures, technologies and governance, and produces complex relations
of mutual interdependence (Norris, 2000)
❖ Non-economists expect the costs associated with globalization to exceed its benefits. Fears of an erosion of social and environmental
standards, high poverty rates in less developed countries and ever higher frequencies of financial crisis are associated with the perception of
Globalization
❖ Most economists strongly believe the net effect of globalization to be positive. Apart from economic theory, this optimism is supported by
empirical studies as well
❖ Approach for preparation of Globalization Index as described, is due to Dreher (2006)

Three Dimensions of Globalization
• Characterized as long-distance flows of goods, capital
Economic
and services as well as information and perceptions
globalization
that accompany market exchanges
Political
• Characterized by a diffusion of government policies
globalization
Social • Expressed as the spread of ideas, information,

globalization images and people
Measuring Economic Globalization
Economic
Globalization
Measuring actual flows of capital (in %

of GDP) to assess the extent a country Measuring restrictions
employs foreign people and capital in on trade and capital
its production processes
Trade, foreign Income Hidden import barriers, Index of capital controls,

direct payments to mean tariff rates, taxes proxied by revenue from
investment and foreign nationals on international trade trade taxes (a country with
portfolio and capital (as a share of current higher revenues from trade
investment employed revenue) taxes is less globalized)
Measuring Political Globalization
❖ Quantifying measures for the degree of political globalization of a country is difficult to emulate. Political engagement depends on multiple
factors, which might not always provide a reliable measure. Alternately, proxies are selected to assess the effect and degree of political
globalization
❖ The proxies of political engagement used to evaluate degree of political globalization provided below are due to a study by A.T. Kearney
Number of foreign embassies in a country
Political Globalization
(proxied through
degree of political
engagement) Number of international organizations to which the country is a member
Number of UN Peace missions the country has participated

Measuring Social Globalization
❖ Flow of information and ideas is most
• Telephone :
difficult to quantify • Outgoing telephone traffic
Data on • Average costs of ISD calls
❖ However, social globalization is the most personal • Transfers & Remittances (in
pervasive form of globalization, which needs contacts percentage of GDP)
to be included as a part of any globalization • International tourism income
index • Foreign population
❖ The proxies of social engagement to
international influences used to evaluate
degree of social globalization are due to a
• Telephone mainlines
study by A.T. Kearney • Internet
Data on • Internet hosts (per capita)
❖ In many cases, social globalization in the • Internet users (as a share of population)
information
cultural context is interpreted as domination • Public Information Channel
of US cultural products, since US is the flows • Cable television (per 1000 people)
pace setter in global socio-cultural realm • Daily newspapers (per 1000 people)
(Rosendorf, 2000) • Radios (per 1000 people
Data on cultural • Number of McDonald’s restaurants

proximity (per capita)
Methodology Overview
Cross sectional (across countries) and time series data (from 1970) is captured
Each variable (or its proxy) is transformed to an index with a zero to ten scale
(higher values denoting more globalization)
▪ When higher values indicate higher globalization, the transformation ((Vi - Vmin)/(Vmax - Vmin)* 10)
is used
▪ When higher values indicate less globalization, the transformation ((Vmax - Vi)/ (Vmax - Vmin) * 10)
is used
The weights for the sub-indexes are calculated using principal components
analysis
▪ The year 2000 is used as the base year
▪ For this year, the analysis partitions the variance of the variables used. The weights are determined in
a way that maximizes the variation of the resulting principal component
▪ The same procedure was applied to the overall index
If possible, the weights determined for the base year are then used to calculate the indexes
for each single year back to 1970. Where no data are available, the weights are readjusted
Globalization : Index Weights***
Economic Globalization 35% Social Globalization 38%
Actual flows (in % of GDP) 50% Personal contact 24%
Trade 23%
Outgoing telephone traffic 31%
FDI 29%
Transfers (in % of GDP) 9%
Portfolio investment 27%
International tourism 1%
Income payments to foreign nationals 22%
Average ISD cost 33%
Restrictions on Trade & 50%
Capital Foreign population (as % of total) 26%
Hidden import barriers 20% Information flows 39%

Mean tariff tate 30% Telephone mainlines (per 1000) 18%
Taxes on international trade 24%
Internet hosts (per capita) 15%
Capital account restriction 26%
Internet users (as % of population) 18%
Political Globalization 27% Cable TV (per 1000) 16%
No. of foreign embassies 34% Daily newspapers (per 1000) 16%
Membership in International Orgs. 34% Radios (per 1000) 17%
Participation in UN Sec. Council 32%
*** Due to Dreher, 2005, needs update Cultural proximity 37%
Various Data Sources
Organization for Economic Co-operation and Development (OECD)-CRAM Model
Credit Risk Analysis based on the following factors:
I. The payment experience of the participants
II. The financial situation.
III.The Economic Situation
Corruption Perceptions Index (CPI)- Transparency International

168 countries and territories were classified according to their perceived level of public sector corruption.
Doing Business: Measuring Business Regulations

Methodology Starting a business Protecting Minority Investors
Dealing with Construction
Permits Paying Taxes
Getting Electricity Trading across Borders
Registering Property Enforcing Contracts
Getting Credit Resolving Insolvency
Various Data Sources
The World Economic Forum (WEF): Fairness of Trade
Competitiveness of economies across 12 pillars
Institutions Labour Market Efficiency
Infrastructure Financial Market Development
Macroeconomic Environment Technological Readiness
Health & Primary Education Market Size
Higher Education and Traning Business Sophistication
Goods Market Efficiency Innovation
ITC Trade Map: Market Analysis Tool

UN Comtrade Database
Global Market Complexity Index: Criteria
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K Mean Clustering
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Culture
HOFSTEDE’S CULTURAL
DIMENSIONS
Culture is the sum of the attitude,
values, Beliefs that are learned and
shared by a group of people, then
transmitted from generation to
generation. So culture resides in the
individual’s mind.
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Beliefs Values Attitude
▪ Beliefs are about how ▪ Express attributes of ▪ Response that

we think things really the reality surrounding individual have to
are us, regarding essential others actions and
▪ A belief is an internal qualities like honesty, external situations,
feeling that something integrity, openness ways of conduct that
is true, even though that seeing as main values peoples have learned
belief may be unproven ▪ Values can be having certain beliefs
or irrational. considered also being and values.
▪ Organized pattern of milestones for the right
knowledge that an course of action or
individual holds to be outcome
Cognitive: What we believe
true about the world
Affective: Our feelings
Behaviour
Spiritual Moral Social Global abstract principles:
Intellectual Economic Political Guiding Principles
Freedom, Honesty, equality,
harmony
50
1st Dimension
⬗ Power Distance: This dimension explains
the extent to which members who are less
powerful in a society accept and also expect
that the distribution of power takes place
unequally.
51
2nd Dimension
⬗ Uncertainty Avoidance: It is a dimension
that describes the extent to which people in
society are not at ease with ambiguity and
uncertainty.
52
3rd Dimension
⬗ Individualism vs. Collectivism: The
focus of this dimension is on the question
regarding whether people have a preference
for being left alone to look after themselves
or want to remain in a closely knitted
network.
53
4th Dimension
⬗ Masculinity vs. Femininity: Masculinity
implies a society’s preference for
assertiveness, heroism, achievement and
material reward for attaining success. On
the contrary, femininity represents a
preference for modesty, cooperation,
quality of life and caring for the weak.
54
5th Dimension
⬗ Long-Term vs. Short-Term
Orientation: Long-term orientation
describes the inclination of a society toward
searching for virtue. Short-term orientation
pertains to those societies that are strongly
inclined toward the establishment of the
absolute truth.
55
6th Dimension
⬗ Indulgence vs. Restraint: This revolves
around the degree to which societies can
exercise control over their impulses and
desires.
56
List of Some of the Globalization
Index
⬗ ⬗ ⬗
⬗ ⬗
The Atlas of Economic Complexity Global Entrepreneurship Index
⬗
KOF Index of Globalisation
⬗ ⬗ ⬗
Big Mac Index Global Food Security Index Linguistic Diversity Index
⬗ ⬗ ⬗
Brandt Report Global Gender Gap Report Maastricht Globalization Index
⬗ ⬗ ⬗
Corruption Perceptions Index Global Hunger Index Networked Readiness Index
⬗ ⬗
Democracy Index
⬗
Global Innovation Index OECD Better Life Index
⬗ ⬗
Democracy-Dictatorship Index
⬗
Global Liveability Ranking Press Freedom Index
⬗ ⬗
Ease of doing business index Small Arms Survey
⬗
Global Peace Index
⬗ ⬗
Economic Freedom of the World Social Progress Index
⬗
Global Slavery Index
⬗ ⬗
Economic Vulnerability Index Trade-to-GDP ratio
⬗
Global Terrorism Index
⬗ ⬗
Energy Globalization Index Transnationality Index
⬗
Global Web Index
⬗ ⬗
Environmental Performance Index World Competitiveness Yearbook
⬗
Good Country Index
⬗ ⬗
Environmental Vulnerability Index World Intellectual Property Indicators
⬗
Government competitiveness
⬗ ⬗
Freedom in the World World Giving Index
⬗
Happy Planet Index
⬗ ⬗
Gini coefficient World Governance Index
⬗
Human Development Index
⬗
World Happiness Report
⬗
Global city
⬗
Human Poverty Index
⬗
Where-to-be-born Index
⬗
Global Competitiveness Report
⬗
Index of Economic Freedom
⬗
World Tourism rankings
⬗
Global Connectedness Index
Internationalization Index Worldwide Governance Indicators
⬗
Global Enabling Trade Report
Global Entrepreneurship Index
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This figure offers a perspective on this
question by showing the share of domestic
and foreign value added in overall exports
for selected middle-income economies.
Foreign value added reflects the imports of
intermediate goods and services used in
the production of exported goods.
60
Culture
HOFSTEDE’S CULTURAL
DIMENSIONS
Culture is the sum of the attitude, values, Beliefs that are learned
and shared by a group of people, then transmitted from generation
to generation. So culture resides in the individual’s mind.
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Pocari Sweat is a popular Japanese soft and sports drink, manufactured by Otsuka
Pharmaceutical Co. Ltd.The brand started selling in Japan in 1980 and has secured a good
foothold for international expansion.
The drink is now distributed in other countries in the region including China (Hong Kong),
South Korea, Taiwan, Thailand, Indonesia, and the United Arab Emirates. In addition it can be
obtained in the ‘Chinatown’ areas of many cities around the world.
Pocari Sweat’s slogan runs as follows:
‘Pocari Sweat – A drink with Properties to your Body’s own Fluids’
‘60 per cent of the Human Body is made up of Body Fluids’ is also included in advertising.
Contrary to the odd name and its translucent-grey colour, Pocari Sweat does not taste like
sweat; it is a mild-tasting, relatively light, sweet drink.
Comment on the brand name (Procari Sweat) and its slogan from Indian Perspective…
64
3 Major Type of Information through International Marketing Research
▪ Information needed for international market entry. This includes information concerning macro issues (e.g., the political, legal,
and regulatory environment of each foreign country) and micro issues (e.g., product or service sales potential, market growth rate,
and competitive intensity).
▪ Information needed for local market planning. These issues primarily surround strategies and tactics related to developing the
appropriate marketing mix.
▪ Information related to global rationalization. This involves evaluating and integrating data previously collected in order to
monitor changes in the international environment.
Firm Objective
Market Potential
Competitor Information
Information
Foreign Exchange
Requirement Resource Information
General Condition
SRC Problem Definition
Country Choose Unit of

Region Analysis
Global Can Secondary data be used?
Subgroup Advantage and disadvantages of
Examine Data secondary research
Availability Sources of secondary data
Types of problems that can
solved using SD
Cost-Benefit Assess Value of
Analysis Research
Instrument design
Research Design Scale Development
Data Analysis
Interpretation and
Presentation
Firm Objective Its goal was to increase international sales from £800 million to £1.0 billion by 2013/14. By
2020, M&S wanted to be an international, multi-channel retailer
Information To sell high quality, great value clothing and

Requirement home products and outstanding quality food
Problem Definition
Choose Unit of
Analysis
Examine Data
Availability
Assess Value of
Research
Research Design
Data Analysis
Interpretation and
Presentation
Firm Objective
• Already operates in Europe, UK, Middle East and some part of Asia
Information • Employed 81000 employees worldwide
• Clothing and house wears accounted for 49% of M&S business and 51% of food
Requirement products
• Domestic and international competition had intensified both from other retailers such as
Problem Definition Zara, H&M and mega-merchandisers such as Wal –mart
• In 1973 is failed to be successful in Canada, in 1975 it failed in France
Choose Unit of
Analysis
Examine Data
Availability
Assess Value of
Research
Research Design
Data Analysis
Interpretation and
Presentation
Firm Objective
Information
Requirement
Very much dependent on single market and need to develop supply chain capabilities,
Problem Definition marketing and consumer insights in countries having strong GDP growth.
Choose Unit of
Analysis
Examine Data
Availability
Assess Value of
Research
Research Design
Data Analysis
Interpretation and
Presentation
Firm Objective Decrease dependency on single market and develop supply chain capabilities, marketing
and consumer insights in countries with strong growth.
Information
Requirement Countries
Supply Marketing Consumer
with strong
chain activities Insights
growth
Problem Definition
Choose Unit of Product, Place,

Countries Supply Chain
Analysis Strong GDP Stakeholders
Price, Consumers
Promotion
Examine Data
Availability
Assess Value of
Research
Research Design
Data Analysis
Interpretation and
Presentation
Start Product Specific Analysis
Product Information Gathering Environment Analysis
No Experience Environment Specific Factors
Market No Product Initiate both product
Reports
known? known? & market analysis Gather relevant environment
Trade information websites
factors based on finalized
Ye product/ market specific
Ye Initiate market
s information
s analysis only Initial Product Choices
No
Product
known? Initiate product
analysis only Product Level Deep Dive Initiate Marketing Planning
Sectoral Composition
Initiate Environment
Revealed Comparative
Ye Advantage
Analysis
s Growth Rate (Value &
Volume) Marketing Programme
Predict product lifecycle
timelines
Finalize Product
Initiate marketing planning

Market Specific Analysis Segmentation & Targeting
decisions
Trade Related Factors
Brand & Positioning decisions
Communication decisions
Pricing decisions
General Trade Factors Tariff & Non – Tariff Measures Trade Potential Market entry decisions
Export/ Import – Self Sufficiency Index
Trade Balance Tariff Rates Trade
Existing trade partners SPS & TBT Measures Complementarity Index
& their market share Openness to trade
Trade Intensity Index Stop
Detailed market knowledge

72
COIR PITH
COIR FIBRE
TUFTED MATS
HANDLOOM MATS
GEO- TEXTILES
COIR YARN
CURLED COIR
HANDLOOM MATTING
RUBBERISED COIR
COIR OTHER SORTS
COIR ROPE
COIR RUGS & CARPETS
POWERLOOM MATS
POWERLOOM MATTING
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Export of Coir and Coir Products (Last Five years)
Q= Quantity in MT V= Value in Rs. Lakhs
2014-2015 2015-16 2016-17 2017-18 2018-19
PRODUCT NAME Q V Q V Q V Q V Q V
COIR PITH 316425 43295.24 408897 68808.56 490552 90539.11 548479 101846.82 566661.44 123208.48
COIR FIBRE 219103 41923.34 255293 41767.11 370357 53913.63 374320 70177.88 299278.63 60164.11
TUFTED MATS 41284 39725.96 45770 44316.03 51718 48442.83 54279 49591.41 54131.38 52225.03
HANDLOOM MATS 25354 23946.91 20386 22279.96 20144 21316.31 18277 18613.96 19367.15 21911.04
GEO- TEXTILES 4236 3270.28 4520 3531.72 6219 4481.04 5845 3996.59 7673.58 5972.56
COIR YARN 4070 3000.89 4134 2820.82 4426 2948.32 3328 2457.66 3408.18 2642.23
CURLED COIR 12621 3732.00 9470 2510.07 10356 2419.30 8800 2316.26 10768.43 3137.02
HANDLOOM MATTING 1667 1835.28 1706 1968.78 1273 1535.25 1117 1394.79 1070.75 1436.08
RUBBERISED COIR 897 1410.88 678 971.74 888 1295.64 900 1388.64 807.01 1029.58
COIR OTHER SORTS 71 85.79 46 94.79 256 416.59 306 498.29 183.15 361.58
COIR ROPE 614 391.92 517 396.61 484 388.50 491 401.72 486.31 439.79
COIR RUGS & CARPETS 135 146.10 307 282.50 205 271.92 254 269.58 195.12 243.96
POWERLOOM MATS 161 225.25 280 367.35 166 196.38 37 57.75 8.41 15.89
POWERLOOM MATTING 28 43.93 16 26.48 0 0.00 131 216.49 6.89 17.22
TOTAL 626666 163033.77 752020 190142.52 957045 228164.82 1016564 253227.84 964046.4 272804.57
75
30%
India’s Coir Export in terms of Quantity and
Value (2015-2019)
25%
20%
15%
10%
5%
0%
2015-16 2016-17 2017-18 2018-19
-5%
-10%
% Growth in Value % Growth in Quantity
% Growth in Value (Rs. % Growth in

Year Quantity (MT)
Quantity Lakhs) Value
2014-15 626666 163033.77
2015-16 752020 20% 190142.52 17%
2016-17 957045 27% 228164.82 20%
2017-18 1016564 6% 253227.84 11%
2018-19 964046.43 -5% 272804.57 8%
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7,800,000 World’s Coir Export in terms of Value 2012-2019
7,600,000
7,400,000
7,200,000
7,000,000
6,800,000
6,600,000
6,400,000
6,200,000
6,000,000
Exported Exported Exported Exported Exported Exported Exported Exported
value in value in value in value in value in value in value in value in
2012 2013 2014 2015 2016 2017 2018 2019
Value (US Dollar % Growth in

Year
Thousand) Value
2014-15 70,88,269
2015-16 66,39,554 -6%
2016-17 68,69,114 3%
2017-18 72,23,757 5%
2018-19 70,82,862 -2%
77
China’s Quarterly Coir and Coir Product Export Trend
600000
500000
400000
300000
200000
100000
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37
78
India’s Quarterly Coir and Coir Product Export
Trend
300000
250000
200000
150000
100000
50000
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37
79
Poland’s Quarterly Coir and Coir Product Export Trend
140000
120000
100000
80000
60000
40000
20000
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
80
Import Trend of Coir and coir products by top 5 Countries
450000
United States of America Germany
400000
350000
300000
250000
200000
150000
100000
50000
0
1 2 3 4 5 6 7 8 9 1 01 11 21 31 41 51 61 71 81 92 02 12 22 32 42 52 62 72 82 93 03 13 23 33 43 53 63 7
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Hirschman Herfindahl Index
It is the sum of squared shares of each product in total export. A country with a perfectly diversified export portfolio will have an index
close to zero, whereas a country which exports only one export will have a value of 1 (least diversified).
Revealed Comparative Advantage Index

Measures of revealed comparative advantage (RCA) have been used to help assess a country’s export potential. The RCA indicates
whether a country is in the process of extending the products in which it has a trade potential, as opposed to situations in which the
number of products that can be competitively exported is static. It can also provide useful information about potential trade prospects
with new partners
Trade Intensity Index

The trade intensity index (T) is used to determine whether the value of trade between two countries is greater or smaller than would be
expected on the basis of their importance in world trade. It is defined as the share of one country’s exports going to a partner divided
by the share of world exports going to the partner.
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International
Marketing
Management
EPGDIB 22-23
Session 5
Dr. Arunima Rana
Competitor’s and Target Firm Analysis Frameworks
1. Industry Analysis
2. Business Model Analysis
3. SERVO Analysis
4. SCM Analysis
5. Benchmarking Analysis
6. McKinsey 7S Analysis
7. Competitor’s Cash Flow Analysis
8. Product Line Analysis
9. Win/Loss Analysis
10. Competitive Positioning
11. Strategic Relationship Analysis
12. Corporate Reputation Analysis
13. Critical Success Factor Analysis
14. Technology Forecasting
15. Driving Forces Analysis
16. Event and Time Analysis
17. Indications and Warning Analysis
18. Historiographical Analysis
19. Linchpin Analysis
An Evaluation Scheme for Assessing the Adequacy if Tools and Techniques
Future-Oriented
Accurate
Resource Efficient
FAROUT
Objective
Useful
Timely
Intelligence Analysis
Evaluating the inputs to Analysis
Reliability Accuracy Availability
Can the source of the information be Have the data inputs been captured Unavailable data is not going to help
"first hand," or have they been
trusted to deliver reliable information filtered? Is there any reason to think the analyst do his or her work. It is
to the analyst? Does the source have a that there might be any deception critical that the analyst does not
"track record" for delivering credible involved? Is the source able to rely solely on one source. Are there
inputs? communicate the data precisely? Is credible substitutes that can be
the source truly competent and
knowledgeable about the used? Can sources be accessed
information they provide?Can the quickly?
source of the information be trusted
The U.S. military uses the following to deliver reliable information to the
information analyst? Does the source have a
evaluation scale to assess reliability: "track record" for delivering credible
◦ "A" Completely reliable inputs? Ease of Access
◦ "B" Usually reliable
◦ "C" Fairly reliable What is the financial opportunity and
◦ "D" Not usually reliable time cost to access the source? Is
◦ "E" Unreliable this the best use of limited
◦ "F" Reliability unknown resources, or can equivalent data be
gained with lesser expenditure?
Does the source speak the right
language, or will translation be
needed? If so, what are the dangers
of misunderstanding and/or
incorrect reporting?
FAROUT Elements and Assessment Scheme
FAROUT Summary of Methods
Business Model Analysis
Value Proposition : The value of the product or service from the customer's perspective and how the product
addresses customer's needs.
Market Segment :With the recognition that consumers in different segments have diverse needs and will value the
product or service in distinct ways, the value may only be unlocked if the right segment is targeted.
Value Chain and cost Model :This is the structure required to create and distribute the product or service and
the resulting cost models from performing activities and utilizing resources to deliver its value proposition to its target
market.
Revenue Model :The revenue model and resulting profit potential
Value Network: This is the firm's position in the chain linking upstream and downstream activities to the final
consumer of the product. It should include suppliers, competitors, complementors, and other downstream activities.
Competitive Strategy: How the firm seeks to gain a sustainable competitive advantage.
Process for Applying the Technique
Step 1: Articulate the Value Proposition
The firm, through its value proposition, may choose to position its products or services as low cost,
differentiated, or niche-focused
Step 2: Specify the Target Segment
Specify the changing propositions for each segment it chooses to serve and from whom it will derive economic
rents.
Step 3: Determine Competitors
After determining who the competitors are, will need to articulate the value propositions of those competitors
and the target markets served by those firms.
Step 4: Evaluate the Value Chain and the Cost Model
To deliver the right value to the appropriate market segments, price it correctly, and position itself properly, a
firm must undertake a specific set of activities. These activities can be analyzed to identify which step or steps
provide economic advantage.
Step 5: Evaluate the Value Network
It is important to consider the value the firm is capable of capturing in its extended value chain or its relative
position to its customers, suppliers, and rivals.
Step 6: Determine the Revenue Model for the firm
It is important to ensure that revenues are greater than costs. Analysis of the firm's and competitors’ financial
statements over time will reveal if the target firm enjoys an advantage over its competitors.
Step 7: Determine the Critical Success Factors for the Industry
Critical success factors that relate to position, activities, resources, and costs will be used to determine the
strength of the business model.
Step 8: Complete an Analysis Grid Detailing Each Element of the Business Model
The objective of this analysis is to detail where in its business model a firm is capable of producing a superior
result. To complete the analysis, each element of the business model is placed in a grid and each element is
ranked from 1 to 5 (superior) for the target firm and its competitors on an analysis grid.
Business Model Analysis Grid
XYZ Competitor 1 Competitor 2 Competitor 3
Value Proposition 5 3 4 4
Target Markets 4 5 1 3
Value Chain Analysis 5 3 4 4
and Cost Model
Value Network 4 5 1 3
Revenue Model and 4 5 3 2
Profit Potential
Future orientation-Medium
Accuracy-Medium
Resource Efficiency-Medium to high
Objectivity-Medium
Usefulness-Medium to High
Timeliness-Medium
Jaipur Rugs: Business Model Analysis
XYZ
Value Proposition Beautiful and highest quality hand made design rugs
Target Markets By geography: India, US, Australia, South America,

Africa
Value Chain Analysis Connecting artisans directly to the domestic and
and Cost Model international market
Value Network Well known and established social enterprise with
govt support.
Revenue Model and Selling to customers through retail stores and e-
Profit Potential commerce In India. However, 95% of the revenue is
generated through exports. They offer services as
well
A typical 8x10 feet hand knotted rug (with more than 8 million knots) may take 6-8 months to get completed. And the customers are not ready to wait. Jaipur Rugs launched its stock program
where they identified the best-selling designs and have started keeping a stock. This way a customer doesn't have to wait and the rug can be delivered immediately within a week
Product Line Analysis
▪ Product line analysis is the process of examining a company's product line to determine if the line is maximizing the
company’s use of resources and is able to meet its strategic goals.
▪ Product line analysis is a beneficial tool used in both business and competitive analysis.
▪ In a competitive sense, knowing where a competitor's products are vulnerable can be a key facet of understanding
what tactics might be employed by your company in exploiting these vulnerabilities. Turned on its head, knowing
where your own company’s products are vulnerable to competitive attacks allows you the opportunity to shore up
the product's defenses or to employ cross-product or cross-line tactics and methods to maximize the return of the
entire line of products in any given market space.
Step 1: Initial Product Audit
If a company is looking to exploit a low cost strategy, they may choose to try and drive out costs by eliminating
products that in any way duplicate or cannibalize sales of other products in the line. Alternatively, if a company
is pursuing a differentiation strategy, they may seek to have more products in the line, which are tailored for
and customized to different market segments
Customer information systems, like CRM software, can be used to track how many mature-product sales are being lost to
new products
Step 2: Assess the Product Relative to its Position in the Product Life Cycle
Cost and revenue projections should be developed for the product at each stage of the product life cycle,
particularly those in the future. Product success using this conceptual lens can be evaluated not based on
comparisons between products, but how each product performs or has performed at the various stages.
This exercise would generate Product-versus-Customer-Related Perspective on Segmentation
Accuracy-Medium
Resource Efficiency-Medium
Objectivity-Medium to High
Usefulness-Medium
Timeliness-Low to Medium
Accuracy-Medium
Resource Efficiency-Medium
Objectivity-Medium to High
Usefulness-Medium
McKinsey 7 S Analysis
The McKinsey 7S framework model is a diagnostic management tool used to test the strength of the strategic degree of fit
between a firm's current and proposed strategies.
The McKinsey 7S model specially addresses the need to build a tight strategic fit between strategy, organizational
structure, and five additional components of organizational effectiveness.
Structure Strategy Systems
The familiar organizational chart is a Strategy is the set of competitive responses Systems encompass the flow of both primary and
suitable proxy description of structure. manifested through decisions and actions in secondary activities that are important to the
Structure involves the reporting of response to the firm's environment. Strategy firm's daily functioning. These include core
relationships within a firm as well as the aims to best position the firm's current processes (for example, product development and
division and integration of tasks. capabilities and resources in a competitive operations management), as well as support
marketplace to secure competitive advantage activities (for example, information systems,
over time. accounting, and human resources)
Style Staff Skills

Style refers to the actions and behavior of The human resources of a firm are its most The raw material of sustainable competitive
senior executives, rather than what they valuable strategic asset. The staff element advantage often lies in the intangible core
say. As such, the conduct of top includes both remuneration (compensation, competencies or skills of its people. The McKinsey
management is an extremely valuable incentives, 7S model focuses on skills because environmental
management tool that conveys and and reward) and softer, more qualitative, change infers not only a change in strategy, but
reinforces strong messages to motivational considerations also an accompanying change in the skill set of a
stakeholders, and particularly employees, firm's human resources.
throughout the organization.
Shared Values
McKinsey 7 S Framework
Major Insights:
First, it identifies the five other elements comprising
organizational effectiveness in addition to the traditional
strategy and structure dualism; namely, systems, style, staff,
skills, and shared values.
Second, the lines connecting each element identify the mutual

dependency between each element of organizational
effectiveness
The third insight is the assertion that strategic failure may well
be attributable to inattention to any one, or a combination of,
the seven elements of strategic fit.
The fourth insight comes from the shape of the diagram—the

circular consistency of the model focuses the analyst's
attention on the absence of hierarchical dominance. It
encourages the analyst to conclude that no one
Future orientation-Medium to High element is more important than the others each element is a
Accuracy- Low to Medium necessary but insufficient condition for organizational
Resource Efficiency-Medium effectiveness.
Objectivity-Low
Usefulness-Medium
Major Motives to Export
102
EPRG Framework
⬗ Ethnocentric Orientation
⬗ Polycentric Orientation
⬗ Regio-centric Orientation
⬗ Geocentric Orientation
E P R G
Decision making Main Lower role of Main decision Collaboration
headquarters main at the regional with local
headquarters headquarters headquarters
Standards Home Local Regional Universal

standards in all standards standards standards
markets
Focus on Focus on local Focus on Focus on

Focus Domestic objectives Regional global
objectives Objectives objectives
Should the company ‘stay at home’ or ‘go
abroad’?
Industry Globalization
Local Potentially Global

Global
Enter New Prepare for Strengthen your
Internationalization
Mature
Preparedness of
Business globalization global position
Consolidate Consider Seek Global

your export expansion in Alliance
Adolescent markets international
markets
Stay at home Seek niches in Prepare for

Immature international buyout
market
Nine Strategic Window Model by Solberg
104
Internationalization Theories
⬗ The Uppsala Internationalization
model
⬗ Dunning’s eclectic approach
⬗ The network approach
105
The Uppsala Internationalization model
Uppsala Model is based on four core concepts:
▪ Market Commitment
State Aspects
▪ Network Position
▪ Market Knowledge
▪
▪
Knowledge & Opportunities
Learning, Creating & Trust Building
▪ Current Activities
Change Aspects
▪ Relationship Commitment Decisions
▪ Commitment Decisions
Market Commitment Market Knowledge Current Activities Commitment Decision
Amount of Resources General Knowledge Main Source of Market Risk

Degree of Commitment Market Specific Experience And Uncertainty
Knowledge Experience leads to Incremental Commitment
Market Commitment
Objective Knowledge Hire Personnel with
Experiential Knowledge experience
Advice from outside
Take over another firm
Long learning Process
No Regular Export Activities
Stage 1
(Sporadic Export)
Export Via independent

Stage 2 representatives (Export Modes)
Establishment of Foreign Sales

Stage 3
Subsidiary
Stage 4 Foreign
Production/Manufacturing
Sales Operation Organization

Markets Finance Personnel
Objects Methods Structure
CATERPILLAR EXPANSION
First Customer
In 1914, S.H. Gorowala purchased the first Holt Caterpillar track-type tractor for agricultural
applications in Punjab, India. The Caterpillar tractor replaced ox power on the farm for tasks such as plowing, seeding,
and harvesting. The tractor was manufactured in Peoria, Illinois, and was probably a 60 horsepower machine (30 of 48
Caterpillar machines manufactured in Peoria that year were Holt 60's). Since that first sale in 1914, Caterpillar has
seen tremendous growth and development in India.
Beginning of a Dealer Network
In March of 1926, Fitton Smith & Co., Ltd., of London, became the first Caterpillar dealer to export to India. By
the early 1930s, equipment was first sold in country by Caterpillar export dealer William Jacks & Co., in
Mumbai. Today, Gmmco Cat® is the dealer that covers South, West and Central India while Gainwell Cat operates in
North, East and Northeastern India.
Bhakra Dam: First Project
In 1948, construction started on the Bhakra Dam – at that time the largest concrete gravity dam in the world. Located on the Sutlej
River in Bilaspur, Himachal Pradesh in northern India, the dam forms the Gobind Sagar reservoir. From the early days of its
construction, Cat® equipment was there.
Cat dozers were first purchased for the job in 1948. By 1953, eleven Cat D8800 electric sets became part of the jobsite. They powered pull
bucket cars loaded with concrete up a mountain side and over two tresses 300 feet high. More than five million cubic yards of concrete
was hauled and dumped into the forms.
In 1959 alone, the Punjab Government Irrigation Branch of India purchased vast numbers of Cat No. 12 Motor Graders. The reason
given for its purchase was that the graders maintained haul roads 24 hours a day on the Bhakra Dam project. Quality of manufacture
allowed this machine to work around the clock.
In the end Caterpillar supplied over 100 pieces of equipment, which comprised about a third of the equipment used on project. Competed
in 1963, the dam benefited over 10 million people by feeding water into 200 miles of irrigation canals.
Early Industrial Might
Caterpillar’s first direct investment in India came in 1963. Caterpillar and Larsen &
Toubro, formed a joint venture in India called Tractor Engineers Limited in order to
make parts for Cat dozers.
https://www.caterpillar.com/en/company/global-footprint/apd/india/key-facilities.html
Tata Motor Expansion
1961
1971
1992
2009
KFC in China
On November 12, 1987, KFC made its debut in China near Qianmen in Beijing. The restaurant was a hit from day one, with KFC
selling over 2,200 buckets of chicken and raking up USD83,000 in just 24 hours. Customers continued to line up outside the
restaurant for months after the grand opening, with 100 meter-long lines stretching into Tiananmen Square.
KFC in China
On November 12, 1987, KFC made its debut in China near Qianmen in Beijing. The restaurant was a hit from day one, with KFC selling
over 2,200 buckets of chicken and raking up USD83,000 in just 24 hours. Customers continued to line up outside the restaurant for
months after the grand opening, with 100 meter-long lines stretching into Tiananmen Square.
KFC in China
On November 12, 1987, KFC made its debut in China near Qianmen in Beijing. The restaurant was a hit from day one, with KFC
selling over 2,200 buckets of chicken and raking up USD83,000 in just 24 hours. Customers continued to line up outside the
restaurant for months after the grand opening, with 100 meter-long lines stretching into Tiananmen Square.
The Network Model
▪ Business networks are a mode of handling activity interdependences between several business
actors.
▪ Business network is organized by each actor’s willingness to engage in exchange relationships with
some of the other actors in the network
▪ Any actor in the network can engage in new relationships or break off old ones, thereby
modifying its structure. Thus business networks can be expected to be more flexible in response to
changing conditions in turbulent business fields, such as those where technical change is very
rapid.
▪ Basic assumption in the network model is that the individual firm is dependent on resources
controlled by other firms. The companies get access to these external resources through their
network positions
Sophos Banking Solution
Opportunity within home country (Colombia)
Opportunity in a country close to home country (e.g. Mexico, Panama)
Opportunity in a country which is culturally close but physically more distant from home country (e.g. Spain)
Opportunity in a country which is both culturally and physically more distant from home country (e.g. Ukraine)
The company was an ‘Insider’ within an international relationship network, which they used as catalyst
for creating and discovering more business.
Saturated home markets

Leveraging home advantage/knowledge to move international
Foxconn claiming that India and Vietnam will become regional "manufacturing hubs
Hon Hai has revealed that the company is now diversifying away from its main Chinese production base to mitigate the
impact of disruptions. It’s spending more than NT$17 billion building factories in India and Vietnam, responding to
customers’ needs, Chief Financial Officer David Huang said at an earnings conference last year. Those two countries will
become regional manufacturing hubs, he added.
Various Stages of A-Team Formation
Early Stage Conflict Stage Co-ordination Stage
Domain and Boundary of sharing “I now share the view that opening my
Merida and Giant Opened their plant to competitors is not
plants to share production know how was not clear among members threatening. I tell my employees that
for part suppliers If we loose our edge only because
Encouraged Suppliers to share know some competitors have visited our
plant, then really we do not enjoy any
how with among each other competitive advantage. I addition, I
Chairman and Executives visited gradually understand what my core
supplier to solidify personal competencies are and how to protect
relationships them”.
https://www.youtube.com/watch?v=YPx-pvngMAo
Elon Musk
Set Up His
Shanghai
Gigafactory
in Record
Time
It took Tesla
just 168
working days
to go from
permits to a
finished plant.
Major Motives to Export
124
125
Internationalization Theories
⬗ The Uppsala Internationalization
model
⬗ Dunning’s eclectic approach
⬗ The network approach
126
Uppsala Model is based on four core concepts:
▪ Market Commitment
State Aspects
▪ Network Position
▪ Market Knowledge
▪
▪
Knowledge & Opportunities
Learning, Creating & Trust Building
▪ Current Activities
Change Aspects
▪ Relationship Commitment Decisions
▪ Commitment Decisions
Market Commitment Market Knowledge Current Activities Commitment Decision
Amount of Resources General Knowledge Main Source of Market Risk

Degree of Commitment Market Specific Experience And Uncertainty
Knowledge Experience leads to Incremental Commitment
Market Commitment
Objective Knowledge Hire Personnel with
Experiential Knowledge experience
Advice from outside
Take over another firm
Long learning Process
No Regular Export Activities
Stage 1
(Sporadic Export)
Export Via independent

Stage 2 representatives (Export Modes)
Establishment of Foreign Sales

Stage 3
Subsidiary
Stage 4 Foreign
Production/Manufacturing
Sales Operation Organization

Markets Finance Personnel
Objects Methods Structure
Who are Born Global?
Areas of difference Uppsala models Born global

Internationalization Incremental Rapid
process One market at the time Multiple markets
simultaneously
Primary sources of Experiential learning; Prior experience of
knowledge few networks of founders;
relationships many small networks of
relationships
Intent to learn Low to high Very high
Knowledge Barrier Driver
Apple’s Supply Chain
⬗ Analog Devices (ADI)
⬗ Glu Mobile (GLUU)
⬗ Jabil Circuit (JBL)
⬗ Micron Technology (MU)
⬗ Murata Manufacturing Ltd.
⬗ Nidec
⬗ Qualcomm (QCOM)
⬗ Samsung
⬗ STMicroelectronics (STM)
⬗ Texas Instruments (TXN)
⬗ Hon Hai Precision Industry Co./FOXCONN
130
Foxconn claiming that India and Vietnam will become regional "manufacturing hubs
Hon Hai has revealed that the company is now diversifying away from its main Chinese production base to mitigate the
impact of disruptions. It’s spending more than NT$17 billion building factories in India and Vietnam, responding to
customers’ needs, Chief Financial Officer David Huang said at an earnings conference last year. Those two countries will
become regional manufacturing hubs, he added.
Various Stages of A-Team Formation
Early Stage Conflict Stage Co-ordination Stage
Domain and Boundary of sharing “I now share the view that opening my
Merida and Giant Opened their plant to competitors is not
plants to share production know how was not clear among members threatening. I tell my employees that
for part suppliers If we loose our edge only because
Encouraged Suppliers to share know some competitors have visited our
plant, then really we do not enjoy any
how with among each other competitive advantage. I addition, I
Chairman and Executives visited gradually understand what my core
supplier to solidify personal competencies are and how to protect
relationships them”.
https://www.youtube.com/watch?v=YPx-pvngMAo
Dunning’s eclectic approach
The “OLI” or “eclectic” approach to the study of foreign direct investment (FDI) was developed by John Dunning.
The Net Competitive Advantage which firms of one nationality Trademark,
Production
possess over those of another nationality in supplying any particular Ownership- Technique,
O market or set of markets. These advantages may rise either from the Specific - Entrepreneur
firms’ privileged ownership of, or access to, a set of income Advantages ial skills,
returns to
generating assets, or from their ability to co-ordinate these assets scale
with other assets across national boundaries in a way that benefits
them relative to their competitors or potential competitors
Existence of
Location raw
The extent to which firms choose to locate these value-adding material,
L Specific low wages,
activities outside their national boundaries Advantages special taxes
or tariffs
Advt by own
The extent to which firms perceive it to be in their best interests to Internalizat production
I internalize the markets for the generation and /or use of these rather than
ion
producing
asset; and by so doing add value to them Advantages through
JV/Lic
Dunning’s eclectic approach
Internationalization Decision Location Decision Internalization Decision

Decision
Types
YES Location YES YES
Ownershi Internalisa
Advantage
p
s in host
tion FDI
Advantage advantage
country
N NO NO
O
No Produce at Contractual
Decision Home then
International Arrangements
Activities Export eg. Licensing
Ownership- Location Internalizat
Specific - Specific ion
Advantages Advantages Advantages
▪ Model 3, S, X, Y ▪ EV sales, which include battery-powered ▪ Land Purchase to

▪ Tesla’s hardware cars and plug-in hybrids, reached 1.2 million Construction to
architecture — a flat in China in 2018—more than half the electric producing first
pack of batteries at the vehicles sold worldwide batch of vehicles,
base, two electric ▪ China’s market for electric cars is strong, Tesla has done
engines (front and there are regulations that have made itself.
rear), no transmission, ownership of gasoline-powered cars much
etc. is an advantage more expensive than electric ones.
▪ Tesla was awarded an exemption from the
country’s 10% sales tax on cars
▪ It also qualified for a government subsidy of
24,750 yuan ($3,560) per vehicle.
Segmentation and Targeting
👉Market segmentation represents an effort to identify and categorize
groups of customers and countries according to common characteristics.
👉Targeting is the process of evaluating the segments and focusing

marketing efforts on a country, region, or a group of people that significant
potential to respond. Targeting reflects the reality that a company should
identify those consumers it can reach most effectively, efficiently, and
profitably.
Measurable Substantial Accessible Differentiable Actionable

The size, purchasing Segments are large & The segment can be The segments are Effective program can
power and profitable enough to effectively reached and conceptually be formulated for
characteristics of the serve. A segment served distinguishable and attracting and serving
segment can be should be the largest respond differently to the segments
measured possible homogenous different marketing mix
group worth going after elements and program
with a tailored
marketing program
Religion
Education
Geography Language
Political Factors
Demography
Economy
Industrial Structure
Technology
General Characteristics Specific Characteristics
High degree of measurability, Low degree of measurability,

accessibility & actionability accessibility & actionability
High degree of
relevance in specific Cultural
situation Characteristics
Lifestyle
Personality
Attitude and tastes
International Market Segmentation
Micro-segmentation
There are four main categories of segmentation:
1. Demographic Gender, marital status, age, income level and level of education.
How do the ages, races, and ethnic backgrounds of our customers affect what they buy?
2. Geographical Location data, such as country, state, regional area, city and neighbourhood.
Where are our customers located, and how can we reach them? What products do they buy based on their locations?
3. Psychographic Values, attitudes, and beliefs based on social status, personality type and lifestyle.
What do our customers think about and value? How do they live their lives?
4. Behavioural Loyalty to a brand, purchase history and purchase intent.
What benefits do customers want, and how do they use our product?
By Behavior By Demographics By Geography By Psychographics

• Benefits sought from the product • Age/generation • Region (continent, country, state, • Activities
neighborhood)
• How often the product is used (usage rate) • Income • Size of city or town • Interests
• Usage situation (daily use, holiday use, etc.) • Gender • Population density • Opinions
• Buyer’s status and loyalty to product • Family life cycle • Climate • Values
(nonuser, potential user, first-time users,
regular user)
• Ethnicity • Attitudes
• Family size • Lifestyles
• Occupation
• Education
• Nationality
• Religion
• Social Class
Means End Chain Theory
The means-end approach is based on a theory that product and service attributes are associated with consequences, or
product benefits and risks, and even the personal values the product can help consumers fulfill. The result is a value
chain linking a product attribute to its functional consequence, to the psychosocial (or emotional) consequence, to the
underlying personal value.
Attribute Consequences Value
State of mind
Tangible Immediate or consumer
product feature tangible functional trying to
benefits, emotional achieve
benefits or
experiential benefits
Hierarchical Value Maps for a bread consumption
Hierarchical Value Maps for some healthy food category
Hierarchical Value Maps for Wine consumption
Attributes Benefits/Consequences Value
Online Content Can be watched anytime Time management
anywhere
Multiple User Can be used by two users at No compromise on
the same time own choice
Netflix’s probable psychographic
Multiple Language Can see famous movies from Satisfaction of the
segmentation
content different region with subtitles inner self
inquisitiveness
New Bollywood Can now afford missing to Aware of the latest
movies watch a movie in theatre content
Subscription Can subscribe when I feel My content my choice
Choice like
Recommend Get to see more of what I like Help develop my
suggestions thoughts around
same topic
Screening of Segments
Preliminary screening Fine-grained screening
This is where markets/countries are This is where the firm’s competitive

screened primarily according to e power (and special competences)in
external screening criteria (the state the different markets can be taken
of the market). In the case of SMEs into account.
the limited internal resources (e.g.
financial resources) must also be
taken into account. There will be a
number of countries that can be
excluded in advance as potential
markets.
Dimensions of market/country attractiveness and competitive strength
Market/country attractiveness Competitive strength
▪ Market size (total and segments) Market share

▪ Market growth (total and segments) Marketing ability and capacity (country-
▪ Buying power of customers specific know-how)
▪ Market seasons and fluctuations Products fit to market demands
▪ Average industry margin Price
▪ Competitive conditions (concentration, Contribution margin
intensity, entry barriers, etc.) Image
▪ Market prohibitive conditions (tariff/non- Technology position
tariff barriers, import restrictions, etc.) Product quality
▪ Government regulations (price controls, Market support
local content, compensatory exports, etc.) Quality of distributors and service
▪ Infrastructure Financial resources
▪ Economic and political stability Access to distribution channels
▪ Psychic distance (from home base to foreign
market)
The market attractiveness/competitive strength
matrix
A countries. These are the
primary markets (i.e. the
key markets), which offer
the best opportunities for
long-term strategic B countries. These are the
development. Here secondary markets, where
companies may want to opportunities are identified
establish a permanent but political or economic risk
is perceived as being too
high to make long-term
irrevocable commitments.
C countries. These are the These markets would be
tertiary or ‘catch what you handled in a more pragmatic
can’ markets. They will be way due to the potential risks
perceived as high risk, and identified. A comprehensive
so the allocation of marketing information
resources will be minimal. system would be needed.
Objectives in such
countries would be short
term and opportunistic;
companies would give no
real commitment. No
significant research would
be carried out.
Konica Minolta Solutions Europe makes an international market screening for its laser printers
Konica Minolta Printing Solutions Europe is a

wholly owned subsidiary of Konica Minolta
Holding, Inc. in Tokyo, Japan. It is an innovative
developer, manufacturer and supplier of
document printing solutions.
The product line includes colour and

monochrome laser printers, associated supplies
and accessories. These products can be applied
for general office, electronic publishing, graphic
design, advanced imaging and home office
applications.
The most important competitors in laser printers

are Hewlett Packard (the market leader),
Lexmark, Oki, Epson, Canon, Samsung, Dell and
Xerox.
Filter 1: regional macro screening
Filter 2: preliminary market screening
Filter 3: specific country screening
Filter 4: specific market screening
Filter 5: city market screening

Konica Minolta Printing Solution in
Netherland focuses its business exclusively
on Europe, Middle East and Africa (EMEA).
The company has the knowledge to export
to these continents and within these areas it
is
knowledgeable about marketing across
different cultures, norms and values.
This part of the screening is based on

the preference of Konica Minolta. The
company wants to concentrate on the
countries near the Netherlands, i.e.
European countries. These countries
are also interesting because of high
potential markets.
This part of the screening is also based on

Konica Minolta’s preference. The company
wants to invest its time and money in
Belgium, but the main problem in this
market is that Konica Minolta has too little
knowledge of the most important
distribution channel, the business users who
have the highest potential for Konica
Minolta.
Konica Minolta selected the largest

industrial areas in Belgium – Antwerp,
Brussels, Charleroi-Bergen, Gent, Luik –
because of their huge profit potential.
Filter 5: city market screening

The city regions Antwerp and Brussels have the most
activity in comparison to the other industrial areas in
Belgium. Therefore these two city regions have the largest
concentration of market potential for the Konica Minolta
printers. Despite the fact that competition in these two city
regions is also very tough, Antwerp and Brussels are chosen
as the top priorities for the further specific marketing
planning.
Polaris Optic AB
During the 1950s and 1960s, Staffan Preutz embarks on his lifelong commitment to experimenting with glasses. His interest
in the wide world has been stimulated at an early age and serves as a driving force throughout his life. At the age of 15,
Staffan starts work as an apprentice in his father’s optician’s shop and soon begins to dream of his own glasses factory.
Polaris Optic AB
1971 marks the establishment of Preutz Optik in Luleå, Sweden, where the first rimless glasses see the light of day. By this
time, Staffan Preutz has already built up a successful career as a glasses designer, and is building up a significant network in
Europe. The new shop is a great success, and the innovative glasses quickly become a popular trend.
Polaris Optic AB
1981 sees the rimless trend move east as the Japanese market discovers Polaris. The Iwaki family, which
runs a chain of exclusive optician’s shops in Tokyo, starts to sell the brand. And the rest, as they say, is
history. Japan has remained one of the most important markets for Polaris ever since.
Polaris Optic AB-Offerrings
Polaris Optic AB has three different products called Classic, Fashion and SP. The classic model is the core product and it
has the largest volumes and is mainly sold towards their main segments females from ages 25 and upwards with the focus
on approximately 35 year old females. The Fashion is a model that is more open to other targets groups and the SP model is
a unisex model, however most of the customers are male.
The SP model is radically different from the other models in terms of design. The SP is an eyewear that is bowless as well as
rimless, instead of bows the glasses are placed at the temples. The characteristics for the SP segment are that the wearers
are not afraid to be noticed and wish to differentiate themselves. The SP model is unique to the market so the model is
automatically linked to Polaris Optic AB and it is one of the advantages that Polaris Optic AB can benefit from if the models
become more wide spread. This new concept of both rim and bowless eyewear is however facing its hardest skepticism from
the opticians rather than from consumers. Gunnar Petterson believes that the reason why it is the opticians that are
skeptical to this model are mainly based on traditions, eyewear have always had bows for the last 300 years. The prices for
all these models are in the upper scale of pricing, the most exclusive model have frames that are made of gold.
Polaris Optic AB: Market Segmentation Factors
Market size
That they want a large part of the population to have high income; also there should be a large customer base.
Geographical closeness
They want so that it will be easier to communicate to the subsidiaries and forms of business partners meaning short travel times.
Psychographic
That people are early adopters, aware of fashion, spend money on themselves and want to stand out from the crowd.
Cultural closeness
That the countries should be similar to Sweden in culture, design preferences and personal behaviors. Japan is the exception.
Language
Easier to understand if everyone involved speaks good English, so they can communicate. This is an important criterion for Polaris Optic
AB; they cannot have people translating for them since it is time consuming and makes things more difficult.
Political risk
Something Polaris Optic AB takes into consideration. Besides general recommendation from foreign ministry, they also take monetary risk
into consideration and market stability. This is why they do not conduct business in Russia and the Baltic states.
B to B Segmentation Characteristics
The Important Product Policy Questions…
• To decide on what to offer internationally product-wise

• Should the company keep a commitment to its existing product mix as the
products reach maturity?
• How strongly should the firm follow a strategy of new product acquisition/ Product
innovation? Standardizatio
n
• What are the organizational requirements for following each of the above
approaches?
Product
Adaptation
Standardization Adaptation
• Economies of Scale- Low cost of • Greater market share in specific

production segment which might otherwise be
• Quicker ROI returns lost
• Easier Organization and control of • Greater motivation by local
product Management management
• Allows product enhancement • Ability to match or exceed
without doing too much change competitive offerings
• “Made in” is important • Takes account of cultural
differences
• Responsive to changes in local
legislation
What makes a ‘product’? The Components of International Products
To decide on what to offer

internationally product-
wise, it is essential to know
What needs to be done to make it acceptable to

the international market?
⬗ What is brand?
⬗ What is Brand positioning?
⬗ What is associative network model?
⬗ The CBBE model
⬗ How do organization try to measure brand?
⬗ What is brand exploratory and brand inventory?
⬗ What is Young and Rubicam’s Brand Asset Valuator
Model?
Brand Positioning
✓ Act of designing the company’s
offer and image so that it occupies
a distinct and valued place in the
target customers’ minds
✓ Finding the proper “location” in
the minds of consumers or market
segment
✓ Allows consumers to think about a
product or service in the “right”
perspective
173
Elements of Brand
Positioning
Statement
1.Target Customers
2.Frame of Reference
3.Point of Difference
4.Reasons to Believe (RTB)
Lakme
Industry: Personal Care
Products: Cosmetics, beauty products
and Salon Services
Founder: Yagya Arya
Year Founded: 1952
Parent Brand: HUL
Tagline: Lakme reinvent
175
The contemporary Indian beauty expert - Lakmé coto offer a wide range of
high performance and world class cosmetics, skincare products, and beauty
salons. Combining international cosmetic technology with an in-depth
understanding of the Indian woman’s needs, Lakmé also offers its consumers
a comprehensive beauty experience through its products that are ideal for a
variety of Indian skin tones..
The contemporary Indian beauty expert - Lakmé coto offer a wide range of high
performance and world class cosmetics, skincare products, and beauty salons.
Combining international cosmetic technology with an in-depth understanding of
the Indian woman’s needs, Lakmé also offers its consumers a comprehensive
beauty experience through its products that are ideal for a variety of Indian skin
tones..
M.A.C Cosmetics
Industry: Personal Care
Products: Cosmetics, beauty
products
Founder: Frank Toskan
Frank Angelo
Year Founded: 1984
Tagline: All Ages All Races All
Sexes
177
M·A·C is the world’s leading professional makeup authority because
of our unrivalled expertise in makeup ARTISTRY.
M·A·C celebrates diversity and INDIVIDUALITY – we are for All
Ages, All Races, All Sexes. M·A·C is a proud COMMUNITY of
professional makeup artists working together to bring our vision to
life. M·A·C is at the forefront of fashion TRENDSETTING,
collaborating with leading talents from fashion, art and popular
culture. Our Artists create trends backstage at fashion weeks
around the world. M·A·C believes in SOCIAL RESPONSIBILITY,
with initiatives such as VIVA GLAM and the M·A·C AIDS Fund at
the heart and soul of our unique culture
Definition of Brand?
A “name, term, sign, symbol, or design, or a combination of them intended
to identify the goods and services of one seller or group of sellers and to
differentiate them from those of competition.
Definition of Brand?
Differential effect that brand knowledge has on consumer response to the
marketing of that brand
Vertical
Positioning
Horizontal
Positioning
Reverse Positioning
Breakaway
Positioning
Stealth Positioning
181
1.Promoting more frequent usage of
the product among current users.
2. Developing more varied usage of
the product among current users.
3. Creating new users for the product
by expanding the market.
4. Finding new uses for the basic
material.
Keller’s CBBE Model
Brand Elements
Logos and
Brand Names URLs
Symbols
Characters Slogans Jingles
Packaging
187
Qualitative Research
Techniques
Comprehensive profile of how all the products
and services of a company are marketed and
Projective
brandedFree Associations Techniques
Profiling requires marketers to catalogue:

Visual and written form for each product or
Zaltman Metaphor
service Elicitation
sold Neural Research
Method
Technique (ZMET)
The inherent product attributes or
characteristics of the brand
Pricing, communications, and distribution
Ethnographic and
Brand Personality
policiesand Value Experimental
Methods
188
Free Associations
What do you like lest about the
Comprehensive profile
What do you like best about the of how
brand? What are its positive aspects
all the products
brand? What are its negative aspects
and services of a company orare
or advantages? marketed and
disadvantages?
branded
What do you find unique about the
Profiling requires
brand? Howmarketers
is it differentto catalogue:
from other
brands?
▪ service sold
Who uses the brand? What kind pf persona?
▪ What type of situations do they use the brand?
▪ When and Where they use the brand?
▪ characteristics
Why do people use theof theWhat
brand? branddo they get out of using it?
▪ How do they use the brand? What do they use it for?
policies
189
Maison Haire Experiment
Maison Haire Experiment
Projective Techniques
Completion and Interpretation
Comprehensive profile of how all the products
Tasks
Comparison
and servicesTasksof a company are marketed and
Archetypes.
branded
service sold
Thebelieves
Rapaille inherentchildrenproduct
experience attributes or exposure to
a significant initial
characteristics
an element of the
of their world called brand moment.” The pattern
the “imprinting
that emerges when we generalize these imprinting moments for the
Pricing,
entire communications,
population and distribution
is the archetype, a fundamental psychological
policies
association, shared by the members of the culture, with a given
cultural object. Different cultures have dramatically different
archetypes for the same objects.
192
Zaltman Metaphor
Elicitation
Comprehensive Technique
profile of how all the products
and services
Technique of ainterconnected
for eliciting companyconstructs
are marketed
that influenceand
thought
and behaviour.
branded
The technique is based on the idea that “most social communication is
nonverbal” and, as a result, approximately two-thirds of all stimuli
Visual
received and
by the written
brain form
are visual . for each product or
service sold
characteristics of the brand
policies
193
ZMET
A sample is selected of usually 10-25 people, about a week
before the interview
The participants are asked to collect eight to 10 pictures that
represent their thoughts and feelings about a research topic,
thus trying to eliminate researcher-bias.
The interview consists of series of steps:
1. Storytelling: Exploring individual visual metaphors

2. Expand the Frame: Expanding the metaphoric meaning of images
3. Sensory Metaphor: Eliciting metaphors about the research topic from each
sensory modality
4. Vignette: Using the mind’s eye to create a short story about the research topic
5. Digital Image: Integrating the images to create a visual summary of the
research topic
194
The Most Representative Image
The TRIAD Task
Safran-Comprehensive Portfolio
Taking Care of the Rapid Changes
Business Model-Economic Cycle
Business Model-Economic Cycle
Types of Partnership Arrangements
Cost Highest cost per Highest cost per Low cost per Low cost per customer
customer customer customer
Customers Innovators Adopters Majority Laggards
Competitors None or few Few Maximum no. of Declining number

competitors
Mktg High Product Maximize market Maximize profit while Reduce expenditure
awareness and trial share before too many defending market and milk the brand
objectives & competitors arrive share Cost control is
strategy Motivate customers important
to brand switching
Product Offer a basic product Offer product Product Phase out weak items
Price (profit) Premium Price or Price may decline as Price to match or beat Price competition and
Penetration price but competitors enters the competitors- price under price cuts may lead to
loss due to marketing market pressure from losses
investments distributers
Place Build exclusive or Build selective Build more intensive Phase out unprofitable
selective distribution distribution distribution outlets
Promotion Build awareness among Build awareness and Stress brand differences Reduce to level needed to
early adopters and interest in the mass and benefits retail hard core loyals
channel partners market
Increase to encourage
Use heave sales brand switching
promotion to entice
trials
India topped the list of import refusals by the FDA in August
with 202 products, including soaps, detergents and food
products. Food products constituted nearly 60 per cent of the
refusal list for August, with salt, rice, edible oils, instant
noodles, snacks, bakery products, and carbonated drinks and
juices being rejected.
Violations include mislabeling and products containing

allergens. Among the manufacturers were Hindustan
Unilever, Mondelez India and Nestle India.
Marketing Communication
⬗ Inform
• Attitude
⬗ Remind • Perception
⬗ Explain • Buying
Behaviour
⬗ Persuade
⬗ Influence
Buyer-Seller Relationship in terms of “Communication”
Elements Preventing the Standardization Process
• Increasing sales from existing customers by encouraging them to increase the frequency of
Objective setting their purchases; maintaining brand loyalty via a strategy that reminds customers of the key
advantages of the product; and stimulating impulse purchases.
• Obtaining new customers by increasing consumer awareness of the firm’s products and
improving the firm’s corporate image among a new target customer group.
Budget Decisions Message Decision/Creative Strategy
• Percentage of sales • Creative Strategy

Method • Advertisement Appeal
• Competitive Parity • Format
Approach • Tone
• Objective and Task
Approach

Approach • Tone
Approach
A creative appeal may be defined as

any message designed to motivate the
consumer to purchase. It seeks to
provide the consumer with ‘the reason
why’ they should make a selection of
one brand over another

Approach • Tone
Approach
How is it said? Use of

The tone and format, referred to as Humour
the advertising concept, are an
Competitive vs. integral part of the advertising plan.
non-competitive
They are important to attain
Argumentativ
credibility and create the desired e Vs Narrative
image around the product
Hard-sell Vs
Soft-sell

Approach • Tone
Approach
The format of a creative plan is the way an

advertisement is presented, structured,
and delivered.
• little story around the product;
• testimonials by experts or a famous
personality;
• talking heads;
• characters or animals associated with the
products;
• demonstration;
• product in action;
• cartoon;
7 Cs Framework
Coverage
Contribution
Commonality
Complementarity
Conformability
Cost
Media Decisions
⬗ Reach Percentage of total no. of household in a prescribed area that have been exposed to
the advertising message
⬗ Frequency Number of exposures/times the same message that each household receives
⬗ Gross Rating A numerical indicator to know how many potential audience members might be
Points exposed to a series of commercials. Reach*Frequency
(GRPs)
❑ Lift in Brand consideration set
Awareness ❑ Lift in Sales
❑ Lift in Purchase Intent ❑ Increasing Brand
❑ Purchase Equity
Media Factors Marketing Factors Message and Creativity Factor
Attentiveness Brand Loyalty Image Vs Product Sales

Clutter Usage Cycle Message Complexity
Brand History Message Uniqueness
Target Group New Vs continuing campaigns
Competition
Purchase Cycle
Types of Export Promotion
Methods Direct
⬗ Trade Show Meetings
⬗ Expos
⬗ Conventions Facilitator
⬗ Buyer-Seller Meeting s
⬗ Search Engine Marketing

⬗ Own Website
⬗ Social Media Indirect
⬗ Online Market Place Meetings
Benefits of Direct Meetings
⬗ Meeting with Potential Customers and Future Partners
⬗ Trade Fair and Expos are Possible Sales Opportunities
⬗ The exporter looking for an intermediary (agent or distributor) can attend a trade fair,
and speak to the candidates prior to decision-making
⬗ Improve Skills and Gain Know-How at the Additional Program of the Trade Fair
⬗ It is an opportunity for market research and to check out the competition
⬗ Brand Awareness
⬗ It can be an economical way to reach a wide potential audience. It is estimated that
well over eight out of ten people who attend trade fairs are buying managers
Trade Show
By definition, a trade show is an
exhibition at which business in a
particular industry promote
their products or services. These
are generally not open to the
public and can only be attended
by company representatives and
members of the press.
EXPO
By definition, an expo is a large-
scale exhibition or trade show
often conducted on an
international level. It is a hybrid of
a trade show and conference that
is mainly focused on exhibitors,
but has been sprinkled with a few
sessions or seminars put on by the
show organizers that pertain to
the topic of the expo.
Picture Courtesy Penny Arcade Expo (PAX)

Convention
A convention is a gathering of
individuals in a particular place
at a particular time to discuss or
engage in a common interest.
While there may be speakers at a
convention, the real goal is to
get one-to-one face time
between people who have a
common personal interest.
Picture Courtesy Cattle Industry Convention & NCBA Trade Show

Buyer-Seller
Meet
BIO FACH
FCE Pharma Canton Fair

Anuga
Canton Fair SIAL

World Expo PAX Online
China International FRUIT COSMOPROF

Import Expo LOGISTICA WORLDWIDE
8-9 Months 6-7 Months 4-5 Months 12-16 Weeks 8-12 Weeks
Identify the Book your Flights & Obtain a copy of the Start to plan the layout of
trade show space at Hotels exhibitors’ manual and read your stand, your
Evaluate the trade Get it requirements for furniture,
your show recommen Check list of the exhibition lighting, electricity, graphics
budget Push for dations organiser’s deadlines and other facilities (water,
the best
possible Start planning your marketing activities to drainage, overhead banners).
promote your presence at the show Check what you receive with
space
Check the exhibitor manual for catalogue your standard package and
entry deadlines and take maximum consider topping up from
advantage of all free or compulsory
marketing options. external sources as well as
through the official rental
You may wish to prepare specialist
literature and consider translating into the agencies.
local language where necessary.
If you have not exhibited previously, start

considering what products you intend to
show. As a rule, most companies have
smaller stands at overseas shows than for UK
ones so you need to decide which products
you intend to display.
8 weeks before 4-8 weeks before 2-3 weeks before
Look into options for transporting your product samples, •Check whether you have ordered all necessary Send out follow up mail or
literature, point of display materials, furniture and equipment (furniture, lighting, exhibitor and set up email shots to existing or
equipment to the exhibition (and home again afterwards). passes, parking permits). potential clients to
Although this might seem a long time ahead, lead times for •For some overseas shows, where English is not widely encourage them to visit.
transport can be fairly long, taking into account time to clear spoken, it may be helpful (or necessary) to employ an Reach out personally to your
goods through customs at the destination country and to interpreter. Fees for interpreters vary greatly and good top 10 or 20 targets and
deliver to the show ground. ones are often booked up long in advance. An interpreter follow up with a phone call.
or host will be your first point of contact with a client and
can be crucial in making a good first impression. It is worth Double check with the show
The easiest solution is to employ a specialist freight organiser about times and
getting a good person who possesses interpersonal and
forwarder who will transport the goods from your own deadlines for set up – some
general communication skills as well as language abilities.
warehouse right to the stand at the show and take care of organisers allow you to work
See this article for more tips on interpreters.
all formalities on the way. through the night if necessary
•Check progress on any specialist literature you are
planning to produce – will it be ready in time for the during set-up, other may
•Send out mail shots, electronically or by post, to encourage impose strict deadlines for
shipping deadline?
existing or potential clients to visit your stand. Try to arrange completion of set-up, removal
•Prepare price lists in suitable currency – either local
fixed appointments wherever possible. Mail shots can focus of tools, equipment and
currency, euros or US dollars may be good alternatives to
on new product launch or special offers which may be of packaging.
sterling prices. Consider options to offer delivery/shipping.
particular interest.
Consider any discounts you are planning to offer for bulk
•Alternatively you might consider some form of incentive
orders, as well as distributor prices and commissions for
offer (such as a discount) to encourage them to visit.
agents in applicable.
•Mail shots will need to be repeated in the run-up to the
•Ensure all staff are briefed and aware of your pricing
show.
structure and policy.
Types of Costs
Booth cost Event Running cost

Participation fees
Conference fees Freight charges

Majorly there are 5 types of cost involved while participating in any trade fair:
i. Participation Fees taking these materials with you)
ii. Booth Cost: Renting a stand usually on a space basis j. Any additional staff costs, if you plan to hire an assistant to
help with the stand or perhaps with interpreting
iii.Event Running Cost k. Any additional market research costs
a. Electricity and other charges, including any required iv. Freight Charges/Travel Cost
fittings
b. Designing the stand (if you plan to have a professionally a. Forwarding
materials to
and insurance costs to get your samples and
the fair (this could be very high if you are
designed stand)
taking heavy industrial machinery with you)
c. Building the stand (you may be able to do this yourself, but b. Delivery of the display goods from the airport or harbour to
you may also require help)
the trade fair
d. Renting or buying display racks and stand furniture c. Customs clearing charges
e. Internet access and usage charges (if required)
f. Security services - this may be fixed or optional fee d. Theincluding
travel costs associated with attending the trade fair,
all follow-up visits after the fair has ended
g. Arranging a reception during the course of the event v. Conference Fees
h. Advertising and publicity charges
i. Printing costs of brochures, catalogues, flyers, posters
and/or business cards (or transportation costs if you are
1. How well does this show fit our marketing needs? 28. Do we need new graphics?
2. How convenient are the show dates? 29. What show services/items need to be ordered?
3. What other events are scheduled on those dates? 30. Are security arrangements necessary?
4. How convenient is the show location? 31. Has booth installation/dismantling been organized?
5. What percentage of attendees fall into our target market? 32. What transport arrangements need to be organized?
6. What percentage of attendees comes from our major service areas? 33. Are there any union restrictions we need to know about?
7. What does show management do to promote the show? 34. Has insurance been arranged?
8. What is the show’s past success rate? 35. Do we have a toolkit organized to take to the show?
9. Which of our competitors also exhibit at this show? 36. Have the necessary hotel arrangements been made?
10. Will show management provide a list of previous exhibitors to contact about 37. When is final payment due for our booth space?
the show? 38. Are credit-card services needed for booth sales?
11. Has anyone from our organization visited the show? 39. Is a vendor’s licence needed?
12. How much will our investment need to be in this show? 40. Has a lead card been designed and printed?
13. What type of promotional assistance does show management offer? 41. Has a lead-logging system been organized for visitor requests?
14. What audience-quality information can show management provide? 42. Has a daily debriefing session been scheduled?
Checklist
15. What return on investment can be expected from each show? 43. Will thank-you letters be sent to every registered visitor?
16. Where does this particular show fit into our present marketing strategy? 44. How will show leads be handled?
17. Do we want to increase sales of existing products/services in existing markets? 45. How will sales from the show be monitored?
(a) Introduce new products/services into existing markets? 46. What kind of reward/recognition will the exhibition staff receive?
(b) Introduce existing products/services into new markets? 47. How will the show be evaluated with respect to future participation?
(c) Introduce new products/services into new markets? 48. Did we manage to keep within the estimated show budget?
(d) Introduce company into existing markets? 49. Does the budget need revising for next year?
(e) Introduce company into new markets? 50. What other shows opportunities could be explored nationally/internationally?
18. What products/product lines need to be displayed?
19. Who is our target audience at this show?
20. What are our objectives in exhibiting?
21. Do we have a written exhibiting plan?
22. Has an exhibiting budget been established?
23. Has our space been reserved?
24. Has the necessary deposit been paid?
25. What booth design will satisfy our objectives?
26. Can we refurbish/use our current exhibit?
27. Do we need a new exhibit?
Engage your
Customers…
Identify some of the Promotion Trend….
Sustainable Development Eco-Friendly Organic
Products
Major Global Trends to

Follow to Increase visibility
Healthy Habits Social Mission Save Planet
Save the ocean Bottom of the pyramid Save Water

A number of factors must be taken into account when determining the extent to which the promotion must be localized
In countries with low levels of economic development, low incomes limit the range of promotional tools available. In
such countries, free samples and demonstrations are more likely to be used than coupons or on-pack premiums.
Market maturity can also be different from country to country; consumer sampling and coupons are appropriate in
growing markets, but mature markets might require trade allowances or loyalty programs.
Local perceptions of a particular promotional tool or program can vary. Japanese consumers, for example, are
reluctant to use coupons at the checkout counter. A particular premium can be a waste of money.
Local regulations in certain countries may rule out the use of a particular promotion such as in-pack coupons or price-
off coupons by mail.
Trade structure in the retailing industry can affect the use of sales promotions. For example, in the United States and
parts of Europe, the retail industry is highly concentrated (i.e., dominated by a few key players such as Walmart). This
situation requires significant promotional activity at both the trade and the consumer levels.
Introduction External Determinants of Channel Decisions
International ❖ Customer Characteristics
Distribution • The size, geographic distribution, shopping habits, outlet preferences and usage
patterns
Decisions
❖ Nature of the Product
• Low-priced, high-turnover convenience products
Intensive Distribution • Consumers are likely to do some comparison shopping and will actively seek
information
Selective Distribution • Transportation and warehousing costs of the product for bulk products
Exclusive Distribution • Direct Selling, servicing and repair, and spare parts
❖ Nature of Demand/Location
• Product perceptions are influenced by the customer’s income and product
experience, the product’s end use, its life cycle position and the country’s stage of
economic development. Geography and Infrastructure is also important
❖ Competition
• Sometimes the alternative is to use a distribution approach totally different from
that of the competition and hope to develop a competitive advantage.
❖ Legal regulations/local business practices

Illustration How the Consumer Behaviour Changes @Brazil
⬗ Brazilian consumers have changed their

purchasing habits: more than 1 million
consumers migrated from hypermarkets to
cash and carry model, as they offer lower
prices. Also, according to Nielsen, between
January and June 2016, 400,000 Brazilian
Brazil Economic Crisis migrated from supermarkets to
hypermarkets. Shifting demand went from
premium brands – the majority is imported –
to more affordable products. Within the
imported categories, retailers kept well-known
brands and changed the mix of products,
opting for less expensive items. According to
Euromonitor, the share of imported products
varies on average from 2% in the supermarkets
to 25% - 30% in the specialty stores. However,
well-known brands and high-end products are
still promoted by Brazilian importers.
Illustration Coca cola's Micro Distribution Centre
Vietnam Madagascar
Micro Distribution Centre (MDC)
Tanzania Cambodia
⬗ To overcome the difficulty of using large delivery trucks on poor road infrastructure.
MDC operators employ locals to sell and distribute goods to retailers using bicycles or
Ghana pushcarts.
Learning from Failures Seven Rules of International Distribution
International The distributers didn’t know how to grow market
Distribution The distributers didn’t invest in business growth
The distributer is just wasn’t ambitious enough
General Observations
Decisions
Neither the
Multinationals nor the
distributers invest
sufficiently in strategic
marketing or in
aggressive business
development in less
developed markets
The key to solving the

problems in international
distribution is to
recognize that the phases
are predictable and that
the multinationals can
plan for them
MNC considers the
Approached by an distributor an
independent local appropriate partner It views the distributor
distributor, MNC agrees because the distributor as a temporary market-
to test the market in the is already serving entry vehicle
distributor’s country customers with products
BEACHHEAD Strategy similar to MNC
Dissatisfied with the

performance after initial
Seeking to avoid risk, It delegates sales and
sales growth, it buys
MNC makes a minimal Marketing responsibility
back the distribution
financial commitment to to the independent
rights, but the
endeavour distributor
negotiations are tougher
than expected
Eventually it sets up a distribution

subsidiary in the country, but the former
distributor dumps inventory into the market,
making it difficult for the corporation to sell
profitably. Business is disrupted.
Game Rule Seven Rules of International Distribution
Decisions
Neither the
distributers invest
marketing or in
aggressive business
development in less
Rule no 1
developed markets
Select Distributer. Don’t let them
select you
distribution is to
plan for them
Decisions
Neither the
distributers invest
marketing or in
aggressive business
development in less
Rule no 2
developed markets
Look for distributers capable of
developing markets, rather than
those with a few obvious
customer contact
distribution is to
plan for them
Decisions
Neither the
distributers invest
marketing or in
aggressive business
development in less
Rule no 2
developed markets
Look for distributers capable of
developing markets, rather than
those with a few obvious
customer contact
distribution is to
plan for them
Decisions
Neither the
distributers invest
marketing or in
aggressive business
development in less
Rule no 3
developed markets
Treat the local distributers as
long term partners, not
temporary market entry vehicles
distribution is to
plan for them
Decisions
Neither the
distributers invest
marketing or in
aggressive business
development in less
Rule no 4
developed markets
Support market entry by
committing money, managers,
and proven marketing ideas
distribution is to
plan for them
Decisions
Neither the
distributers invest
marketing or in
aggressive business
development in less
Rule no 5
developed markets
From the start, maintain control
over marketing strategy
distribution is to
plan for them
Decisions
Neither the
distributers invest
marketing or in
aggressive business
development in less
Rule no 6
developed markets
Make sure distributers provide
you with detailed market and
financial performance data
distribution is to
plan for them
Decisions
Neither the
distributers invest
marketing or in
aggressive business
development in less
Rule no 6
developed markets
Make sure distributers provide
you with detailed market and
financial performance data
distribution is to
plan for them
Game rule Seven Rules of International Distribution
Decisions
Neither the
distributers invest
marketing or in
aggressive business
development in less
Rule no 7
developed markets
Build link among national
distributers at the earliest
opportunity
Seven Rules of International The key to solving the
Distribution
-HBR Review
distribution is to
plan for them
Based on Rather than seeking It encourages the distributor’s
objective distributor with a good leader to initiate marketing and
assessment market fit” look for one with a development projects in co-
choose a good “company fit”-a cultural operation with its own
market and strategy fit the its own management
Anticipating Changes
Because the distributor has
It retains control of contracted to furnish
It makes a substantial
marketing strategy detailed market and
commitment of company
and works with the financial performance data,
resources upfront, despite
local distributor on the company can exploit its
uncertainty of the market’s
market global competitive
prospects
development advantages in the local
market
Establishes a regional marketing organization, with a

team in the new country and build links among
distributors, thus leveraging synergies and
economies across the company and maximize global
share.
Evaluation Criteria for Evaluating Foreign Distributer
International
Distribution
Decisions
Financial and Company Strength
Product Factors
Marketing Skills
Commitment
Facilitating Factors
International • Financial Soundness
Distribution •
•
Ability to finance initial sales
Ability to raise additional funding
Decisions • Ability to provide adequate promotion and subsequent fund
• Product and Market Expertise
Financial and Company Strength • Ability to maintain inventory
Product Factors • Quality of management team
• Reputation among current and past customers
Marketing Skills • Ability to formulate and implement two-to-three year plans
Commitment
International • Quality and Sophistication of product line
Distribution •
•
Product Complementarity (Synergy or Conflict)
Familiarity with the product
Decisions • Technical know how at staff level
• Condition of physical facility
Financial and Company Strength • Patent security
Product Factors
Marketing Skills
Commitment
• Marketing Management Expertise and Sophistication

• Ability to provide adequate geographic coverage of the market
• Experience with target customers
• Customer service
• On-time deliveries
• Sales force
• Market share
• Participation in trade fairs
• Member in trade association
International • Willingness to invest in sales training
Distribution • Commitment to achieve minimum sales target
• Positive attitude towards the manufacturer’s product programme
Decisions • Undivided attention to product
• Willing to commit advertising resources
Financial and Company Strength • Willing to keep sufficient inventory
Product Factors
Marketing Skills
Commitment
• Connections with influential people (network)

• Working experience/relationships with other manufacturers/exporters
• Track record with past suppliers
• Knowledge of the particular business
• Government relations
• Proficiency in English
International
Distribution
Decisions
Financial and Company Strength
Product Factors
Marketing Skills
Commitment
Introduction Types of Food Retailers
▪ emphasizing fresh perishables
International Super Market

▪ targeting health-conscious and ethnic
consumers
Retailing Decisions
▪ Providing better value with private-label
Conventional Super Market
merchandise
Limited Assortment Super Market
▪ providing a better shopping experience
Food Retailers
Super Centre
Hyper Market
Warehouse clubs are retailers that offer a

Warehouse Club limited and irregular assortment of food and
general merchandise with little service at low
prices for ultimate consumers and small
businesses
Convenience stores provide a limited variety

and assortment of merchandise at a convenient
location in 3,000- to 5,000-square-foot stores
with speedy checkout. Convenience stores
Convenience Store enable consumers to make purchases quickly,
without having to search through a large store
and wait in a long checkout line
Introduction Criteria for Evaluating Foreign Distributer
Conventional Limited Supercenter Warehouse Convenience
International Supermarket Assortment

Supermarket
Club Store
Retailing Decisions Percentage Food 70-80 80-90 30-40 60 90
Food Retailers
Size (000 sq ft) 20-30 7-10 150-220 100-150 2-3
SKUs (000) 20-40 1-1.5 100-150 20 2-3
Variety average narrow broad broad narrow
Assortment average shallow deep shallow shallow
Ambiance pleasant minimal average minimal average
Service modest limited limited limited limited
# of checkout 6-10 2-4 20-30 10-15 1-2

lines
Prices average lowest low low high
Gross Margin % 20-22 10-12 15-18 12-15 25-30

Introduction General MErchandiser
International
Retailing Decisions
General Merchandise
International Pricing Decision
• Does the price reflect the product’s quality?
• Is the price competitive given local market conditions?
• Should the firm pursue market penetration, market skimming, or some other pricing objective?
• What type of discount (trade, cash, quantity) and allowance (advertising, trade-off) should the
firm offer its international customers?
• Should prices differ with market segment?
• What pricing options are available if the firm’s costs increase or decrease? Is demand in the
international market elastic or inelastic?
• Are the firm’s prices likely to be viewed by the host-country government as reasonable?
Exploitative?
• Do the foreign country’s dumping laws pose a problem?

International Pricing Decision
Internal Factors External Factors
Corporate and Government influences
Marketing Objectives and constraints: import
Firm Level Competitive Strategy Environmen controls, taxes, price
Factors tal Factors
Firm Positioning controls
Market Entry Modes Inflation
Currency fluctuation
Stage in PLC
Product Most important product
Factors feature: quality/service
Customer Perceptions
etc.
Customers Ability to pay
Product Positioning Market Nature of Competition
Factors
An American-Built Jeep Grand Cherokee Goes to Japan (estimates)
Item amount of Price escalation total
Ex-works price 0 $30,000

Exchange rate adj. $2,100 $32,100
Shipping $300 $32,400
Customs fees $1,000 $33,400
Distributor margin $3,700 $37,100
Inspection, accessories $1,700 $38,800
Final sticker price $8,200 $47,000
The Price Quotation
• Export prices are quoted in various ways. The two major systems available for use in
quoting prices are known as trade terms. The use of such terms as FOB, FAS, C&F, and CIF.
• There are two systems of definition that are used by exporters throughout the world –
INCOTERMS 2010 (developed by the International Chamber of Commerce) and Revised
American Foreign Trade Definitions – 1941 (originally developed by the Chamber of
Commerce of the United States and two other trade organizations).
• The exporter and importer, however, need to have a basic understanding of what the terms
mean and the rights and responsibilities of the parties under the terms agreed upon.
• In the Incoterms 2020 a new Incoterm DPU (Delivered at Place Unloaded) is created
replacing the DAT (Delivered at Terminal)
Group E. Contains only the EXW incoterm and puts the least amount of
financial pressure on the seller. He has just the minimum obligation, and the
point of delivery is his address – work office or warehouse. Afterward, the
responsibility and further transport transfers to the buyer.
Group F. Three incoterms appear in this group: FOB, FAS, and FCA. This time,
there is more burden on the seller. He has to pay for the insurance of the
goods until Free on Board or until the carrier takes over the shipment. In
addition to that, he has to hand over the bill of lading to the buyer, along
with other necessary documents.
Group C. It consists of four incoterms: CFR, CIF, CPT & CIP. Similar to the
previous one, the seller now has to pay additional expenses that happen
after the buyer takes over the risk. Those include freight or carriage charges,
as well as Cargo Insurance premium (CIF and CIP).
Group D. It includes three incoterms: DAP, DAT & DDP. This category assigns
even more responsibility to the seller. Furthermore, the point of the delivery
is the final destination – for example, the buyer’s warehouse. However, if the
contract maintains that the delivery should be at a different place, then the
seller completes the delivery once he transfers the goods to the buyer’s
collecting vehicle.
EXW stands for Ex works, and it is one of
the most common incoterms used. In terms
of simplicity and convenience, it mostly
favours the seller. Once he sells the goods
to the buyer, the only thing left is to
package them and transport them to the
arranged location. For example, that could
be his own warehouse.
It is best used if there is a need to combine

goods from multiple suppliers.
Furthermore, it allows the seller to have
more control over the expenses. There is
low liability involved when it comes to the
seller, and the buyer is the one responsible
for any damages. In addition to that, it is
also useful to use it if the seller has a freight
forwarder.
FAS: Free Alongside Ship
There are only a few differences between FOB and FCA, and it mainly concerns the customs
declaration.
FCA stands for Free Carrier, and it assumes that the delivery point is a carrier which takes over
the goods from the seller. If the products happen to be in seller’s warehouse, then his
responsibility ends once he loads them into a truck. However, if he picks another spot to deliver
the packages, the risk transfers to the buyer once the truck arrives.
FCA is less favourable to the buyer because he has to pay for the export and import. He would
also have to arrange the transport. FOB, in contrast, puts a bit more pressure on the seller. It is
an abbreviation for Free Onboard Vessel, and it represents a mixture of different characteristics
of other Incoterms. If they pick FOB, the seller has to arrange transport for the goods, clear
them for export, and then wait until they are loaded onto a vessel. The main difference between
these two incoterms is the mode of transport. FCA is used for multimodal, while FOB is strictly
used for sea or waterways transport. There is also a difference when it comes to the end of the
liability. FCA means that the seller is responsible until he loads the goods onto the buyer’s
carrier. He is not responsible for the unloading or terminal handling charges. In contrast, FOB
requires the seller to load the products onto a ship or a barge, and he also pays for the terminal
charges and duty costs.
CFR: Cost and Freight
This acronym means that the seller covers all the costs of bringing goods from their origin to the port of
destination, including carriage costs and clearing the goods for export except for the insurance. Even
though the seller takes care of the actual loading and transportation of goods up to the port of
destination, the buyer pays the insurance (and therefore assumes the risk) from the moment the goods
are loaded onto the vessel at the port of origin throughout their transit to the port of destination and
beyond. This term is used exclusively for maritime and inland waterway trade.
CIF: Cost Insurance and Freight
This term is identical to the one preceding it – with exception for the insurance portion. With a CIF
arrangement, the seller (not the buyer) assumes the risk (and therefore is responsible for purchasing
insurance) for the goods during transit from origin to the port of destination.
CPT: Carriage Paid To
This term indicates that the seller assumes most of the cost of transportation of the goods
including export fees, carriage charges, and fees at the port of destination. Seller does not pay
for insurance – that is the buyer’s obligation.
he moment that the risk of loss or damage is transferred from seller to buyer is when the goods
are loaded onto the first carrier vessel, despite the seller paying the carriage charges. CPT can
be used for all modes of transportation, including container or roll-on roll-off traffic.
CIP: Carriage and Insurance Paid To
Carriage and insurance paid is much like CPT in that the seller assumes most of the costs of
transportation including export fees, carriage charges, and fees at port of destination. For CIP
arrangements, however, the seller is responsible for purchasing insurance for the goods during
the carriage
While the seller is required to buy insurance for the carriage, the risk of loss or damage is
transferred from seller to buyer when the goods are loaded onto the first carrier vessel. CIP can
be used for all modes of transport but is most common for intermodal (i.e. container) shipping
If EXW puts the least amount of accountability on
the seller, then DDP does the exact opposite. His
job is to handle the cargo, arrange the transport,
and pay for the export and import duties. In
addition to that, the seller also pays the
insurance.
Even though it is a favourable position for the
buyer, sellers can have many problems with DDP.
They would have to know import costs and
obligations in the buyer’s country.
That alone requires them to be extremely careful
when delivering the goods. Apart from that, most
countries have difficult import systems, and only
the locals can know more about them.
CIF Quotations
The reason that the CIF quotation is more difficult to figure accurately is that it is customary in the export business
to add a fixed percentage, usually 10%, to the insured value to take care of extra expenses and losses not covered
by the simple CIF value. Therefore the insured CIF value is the sum of the cost, the freight to destination, and the
insurance premium on 110% of the CIF value.
1. Justification of the selected product to be exported from India – 1 slide
2. Environmental Factors important with respect to the product exported and the country – 1 slide
3. Competitor’s analysis – 1 slide
4. Product Concept Note – 2 slides
• Target segment/customers
• Attributes of the product
• Value offerings of the product
• Benefits of the product
5. Marketing program – 3 slides
• Brand positioning statement/brand name
• Communication strategy/Marketing research
• Pricing strategy with justification

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Number of foreign embassies in a country

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ITC Trade Map: Market Analysis Tool

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% Growth in Value (Rs. % Growth in

Value (US Dollar % Growth in

Revealed Comparative Advantage Index

Trade Intensity Index

Target Markets By geography: India, US, Australia, South America,

Style Staff Skills

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Standards Home Local Regional Universal

Focus on Focus on local Focus on Focus on

Local Potentially Global

Business globalization global position

Consolidate Consider Seek Global

Stay at home Seek niches in Prepare for

Nine Strategic Window Model by Solberg

Amount of Resources General Knowledge Main Source of Market Risk

Export Via independent

Establishment of Foreign Sales

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Amount of Resources General Knowledge Main Source of Market Risk

Export Via independent

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