International Marketing

Discussing the concepts
Chapter1:
1.What is marketing and what is its primary goal? What is export marketing? What is
international marketing? What is global marketing? What is international marketing
management? Explain the concept “global localization”
Marketing is a management function, a process by which companies create value for customers
and build strong customer relationships to capture value from customers in return.
Primary Goal:
–
–

Create value for customers and build customer relationships from understanding the
marketplace and customer needs
Capture value from customers in return

Export marketing includes the management of marketing activities for products which cross the
national boundaries of a country, the scope of export marketing involves the only activity of
exporting cargo/commodities and services
International marketing is the application of marketing principles in more than one country, by
companies overseas or across national borders. the scope of international marketing involves
setting up of the overseas branch for processing, assembling, packaging & direct manufacturing.
International marketing run through direct investment, joint ventures and collaborations turn-key
projects.
Export marketing will respond to domestic market competition whereas international
marketing will not respond to the interest of the domestic market.
Global marketing: Global marketing is more than simply selling a product internationally.
Rather, it includes the whole process of planning, producing, placing, and promoting a
company’s products in a worldwide market. Large businesses often have offices, factories at
different location in the foreign countries they market to, but with the expansion of the Internet,
even small companies can reach customers throughout the world.
International Marketing Management is the management of companies’ marketing process. It

is the art and science of selecting target markets and building profitable relationships from target
market globally and is consistent with the companies’ decisions on:
1. Company’s Strategies
2. Company’s International Business Strategies
3. International Entry Strategies

Global Localization (Glocalization) means customizing a product or service offered by a
global entity, according to consumers of specific region. It is is the adaptation of international
products around the particularities of a local culture in which they are sold. The process allows
integration of local markets into world markets.


2.Compare and contrast customer needs, wants, and demands. Describe the market offering,
customer value and satisfaction, exchange and relationships. Explain the difference between
share of customer and customer equity.
Needs
Wants
Demands
States of felt deprivation.
The form human needs take as
When backed by buying power,
They include basic physical needs
they are shaped by culture and
wants become Demands. Given
for food, clothing, warmth, and
individual
their wants and resources,
safety; social needs for belonging
personality.
people demand products with

and affection; and individual needs
An American needs food but
benefits that add up to the most
for knowledge and self expression. wants a Big Mac, french fries, and
value and satisfaction
Marketers did not create these
a soft drink. A person in Papua
needs; they are a basic part of the New Guinea needs food but wants
human makeup.
taro, rice, yams, and pork. Wants
are
shaped by one’s society and are
described in terms of objects that
will satisfy those needs.
Market offerings: Some combination of products, services, information, or experiences
offered to a market to satisfy a need or want. Market offerings are not limited to physical
products. They also include services — activities or benefits offered for sale that are essentially
intangible and do not result in the ownership of anything. Examples include banking, airline,
hotel, tax preparation, and home repair services.
Customer Value and Satisfaction: Consumers usually face a broad array of products and
services that might satisfy a given Need. To choose among these many market offerings
customers form expectations about the value and satisfaction that various market offerings
will deliver and buy accordingly. Satisfied customers buy again and tell others about their good
experiences. Dissatisfied customers often switch to competitors and disparage the product to
others. Marketers must be careful to set the right level of expectations. If they set expectations
too low, they may satisfy those who buy but fail to attract enough buyers. If they set expectations
too high, buyers will be disappointed.
Customer-perceived value: The difference between total customer value and total customer
cost. Customers compare their perceived values among companies to make buying decision.
Customer satisfaction: The extent to which a product’s perceived performance matches a

buyer’s expectations
Exchange is the act of obtaining a desired object from someone by offering something in return.
In the broadest sense, the marketer tries to bring about a response to some market offering. The
response may be more than simply buying or trading products and services. A political
candidate, for instance, wants votes, a church wants membership, an orchestra wants an
audience, and a social action group wants idea acceptance.


Marketing consists of actions taken to build and maintain desirable exchange relationships with
target audiences involving a product, service, idea, or other object. Beyond simply attracting new
customers and creating transactions, companies want to retain customers and grow their
businesses. Marketers want to build strong relationships by consistently delivering superior
customer value.
Share of Customer
The portion of the customer’s purchasing
that a company gets in its product
categories.

Customer Equity
The total combined customer lifetime
values of all of the company’s customers.
It’s a measure of the future value of the
company’s customer base. Clearly, the more
loyal the firm’s profitable customers, the
higher its customer equity. Customer equity
may be a better measure of a firm’s
performance than current sales or market
share. Whereas sales and market share
reflect the past, customer equity suggests the
future

For example, Amazon.com is highly skilled at
leveraging relationships with its 88 million
customers to increase its share of each
customer’s purchases. Originally
an online bookseller, Amazon.com now offers
customers music, videos, gifts, toys,
consumer electronics, office products, home
improvement items, lawn and garden
products, apparel and accessories, jewelry,
tools, and even groceries

In the 1970s and 1980s, Cadillac had some of
the most loyal customers in the industry. To
an entire generation of car buyers, the name
Cadillac defined American luxury. But
cadillac customers were getting older
(average age 60) and average customer
lifetime value was falling. Although
Cadillac’s market share was good, its
customer equity was not. To increase
customer lifetime value and customer equity,
Cadillac needs to come up with more stylish
models and marketing that can attract younger
buyers.

3.Explain how a company designs a customer-driven marketing strategy. What are the five
different marketing management orientations?
To design a customer-driven marketing strategy. Companies need to answer two questions:
1. What customers will we serve (what’s our target market)?

Target customers are customer groups that company choose to serve.
The company must first decide whom it will serve. It does this by dividing the market into
segments of customers (market segmentation) and selecting which segments it will go after
(target marketing). Some people think of marketing management as finding as many customers


as possible and increasing demand. But marketing managers know that they cannot serve all
customers in every way. By trying to serve all customers, they may not serve any customers
well. Instead, the company wants to select only customers that it can serve well and profitably
For example, Nordstrom profitably targets affluent professionals; Dollar General profitably
targets families with more modest means.
2. How can we serve these customers best (what’s our value proposition)?
The way to serve target customers is the way a company differentiate and the way it positions
in the market.
The company must also decide how it will serve targeted customers—how it will differentiate
and position itself in the marketplace. A brand’s value proposition is the set of benefits or values
it promises to deliver to consumers to satisfy their needs.
Such value propositions differentiate one brand from another. They answer the customer’s
question, “Why should I buy your brand rather than a competitor’s?” Companies must design
strong value propositions that give them the greatest advantage in their target markets.
For example, the Smart car is positioned as compact, yet comfortable; agile, yet economical; and
safe, yet ecological. It’s “sheer automotive genius in a totally fun, efficient package. Smart
thinking, indeed.”
Five Marketing Management Orientations:

1. Production concept

The idea that consumers will favor products that are available and highly affordable and that the
organization should therefore focus on improving production and distribution efficiency.
2. Product concept

The idea that consumers will favor products that offer the most quality, performance, and
features and that the organization should therefore devote its energy to making continuous
product improvements.
3. Selling concept

The idea that consumers will not buy enough of the firm’s products unless it undertakes a largescale selling and promotion effort.
4. Marketing concept

A philosophy that holds that achieving organizational goals depends on knowing the needs and
wants of target markets and delivering the desired satisfactions better than competitors do.
5. Societal marketing concept


The idea that a company’s marketing decisions should consider consumers’ wants, the
company’s requirements, consumers’ long-run interests, and society’s long-run interests.
4.Define strategic planning and briefly describe the four steps that lead managers and the firm
through the strategic planning process. Discuss the role marketing plays in this process. Explain
the main contents of an international marketing plan
Strategic planning: The process of developing and maintaining a strategic fit between the
organization’s goals and capabilities and its changing marketing opportunities.

1. At the corporate level, the company starts the strategic planning process by defining its

overall purpose and mission (see Figure 2.1).
2. This mission (A statement of the organization’s purpose what it wants to accomplish in the
larger environment) is then turned into detailed supporting objectives that guide the entire
company.
3. Next, headquarters decides what portfolio of businesses (The collection of businesses and
products that make up the company) and products is best for the company and how much

support to give each one. In turn, each business and product develops detailed marketing and
other departmental plans that support the company-wide plan.
4. Thus, marketing planning occurs at the business-unit, product, and market levels. It supports
company strategic planning with 38 more detailed plans for specific marketing opportunities.
Marketing plays a key role in the company’s strategic planning in several ways. First,
marketing provides a guiding philosophy—the marketing concept—that suggests that company
strategy should revolve around building profitable relationships with important consumer groups.
Second, marketing provides inputs to strategic planners by helping to identify attractive market
opportunities and assessing the firm’s potential to take advantage of them. Finally, within
individual business units, marketing designs strategies for reaching the unit’s objectives. Once
the unit’s objectives are set, marketing’s task is to help carry them out profitably.


Chapter2:
5.Name and describe the elements of a company’s microenvironment
1. The Company
Marketers must work in harmony with other company departments to create customer value and
relationships. In designing marketing plans, marketing management takes other company groups
into account—groups such as top management, finance, research and development (R&D),
purchasing, operations, and accounting. All of these interrelated groups form the internal
environment. Top management sets the company’s mission, objectives, broad strategies, and
policies. Marketing managers make decisions within the strategies and plans made by top
management.
2. Suppliers


Suppliers form an important link in the company’s overall customer value delivery network.
They provide the resources needed by the company to produce its goods and services. Supplier
problems can seriously affect marketing. Rising supply costs may force price increases that can
harm the company’s sales volume. Most marketers today treat their suppliers as partners in

creating and delivering customer value.
3. Marketing Intemediaries
In creating value for customers, marketers must partner with other firms in the company’s value
delivery network - Firms that help the company to promote, sell, and distribute its goods to final
buyers.
4. Competitors
To be successful, a company must provide greater customer value and satisfaction than its
competitors do. Thus, marketers must do more than simply adapt to the needs of target
consumers. They also must gain strategic advantage by positioning their offerings strongly
against competitors’ offerings in the minds of consumers.
5.Publics
Any group that has an actual or potential interest in or impact on an organization’s ability to
achieve its objectives.
6.Customers
Customers are the most important actors in the company’s microenvironment. The aim of the
entire value delivery system is to serve target customers and create strong relationships with
them.

6.Name and describe the elements of a company’s macroenvironment. Discuss how the
international trade system and the economic, political-legal, and cultural environments affect a
company’s international marketing decisions. Discuss the three ways to enter foreign markets
Company’s Macroenvironment:
1. Demography
The study of human populations in terms of size, density, location, age, gender, race, occupation,
and other statistics. The demographic environment is of major interest to marketers because it
involves people, and people make up markets. Changing demographics mean changes in
markets, which in turn require changes in marketing strategies.
2. Economic Environment
The economic environment consists of economic factors that affect consumer purchasing power
and spending patterns.

3. The Natural Environment


Involves the natural resources that are needed as inputs by marketers or that are affected by
marketing activities. Concern for the natural environment has spawned a so-called green
movement in industries ranging from PCs to diesel locomotives.
5. Technological

Perhaps the most dramatic force now shaping our destiny. The forces that create new
technologies, creating new product and market opportunities.
6. Political and Social

Laws, government agencies, and pressure groups that influence and limit various organizations
and individuals in a given society.
6. Cultural
Institutions and other forces that affect society’s basic values, perceptions, preferences, and
behaviors.
Discuss how the international trade system and the economic, political-legal, and cultural
environments affect a company’s international marketing decisions
A company must understand the global marketing environment, especially the international trade
system. It must assess each foreign market’s economic, political-legal, and cultural
characteristics. The company must then decide whether it wants to go abroad and consider the
potential risks and benefits. It must decide on the volume of international sales it wants, how
many countries it wants to market in, and which specific markets it wants to enter. These
decisions call for weighing the probable rate against the level of risk.
Companies looking abroad must start by understanding the international trade system. When
selling to another country, a firm may face restrictions on trade between nations. Governments
may charge tariffs, taxes on certain imported products designed to raise revenue or protect
domestic firms.
The international marketer must study each country’s economy. Two economic factors reflect

the country’s attractiveness as a market: its industrial structure and its income distribution.
Nations vary greatly in their levels and distribution of income. Some countries have industrial
economies, which constitute rich markets for many different kinds of goods. At the other
extreme are subsistence economies; they consume most of their own agricultural and industrial
output and offer few market opportunities. In between are developing economies that can offer
outstanding marketing opportunities for the right kinds of products.
Economic factors can have a dramatic effect on consumer spending and buying behavior. For
example, until fairly recently, American consumers spent freely, fueled by income growth, a
boom in the stock market, rapid increases in housing values, and other economic good fortunes.
They bought and bought, seemingly without caution, amassing record levels of debt. However,
the free spending and high expectations of those days were dashed by the Great Recession.


Nations differ greatly in their political-legal environments. In considering whether to do
business in a given country, a company should consider factors such as the country’s attitudes
toward international buying, government bureaucracy, political stability, and monetary
regulations. Some nations are very receptive to foreign firms; others are less accommodating
Companies must also consider a country’s monetary regulations. Sellers want to take their profits
in a currency of value to them. Ideally, the buyer can pay in the seller’s currency or in other
world currencies
Cultural Each country has its own folkways, norms, and taboos. When designing global
marketing
strategies, companies must understand how culture affects consumer reactions in each of its
world markets. In turn, they must also understand how their strategies affect local cultures
Three ways to enter foreign markets
Exporting
Entering a foreign market by selling goods produced in the company’s home country, often with
little modification. The simplest way to enter a foreign market is through exporting. The
company may passively export its surpluses from time to time, or it may make an active
commitment to expand exports to a particular market. In either case, the company produces all

its goods in its home country. It may or may not modify them for the export market. Exporting
involves the least change in the company’s product lines, organization, investments, or mission.
Joint venturing
Entering foreign markets by joining with foreign companies to produce or market product or
service. Joint venturing differs from exporting in that the company joins with a host country
partner to sell or market abroad. It differs from direct investment in that an association is formed
with someone in the foreign country. There are four types of joint ventures: licensing, contract
manufacturing, management contracting, and joint ownership.
Direct investment
Entering a foreign market by developing foreign-based assembly or manufacturing facilities. The
biggest involvement in a foreign market comes through direct investment—the development of
foreign-based assembly or manufacturing facilities. If a company has gained experience in
exporting and if the foreign market is large enough, foreign production facilities offer many
advantages. The main disadvantage of direct investment is that the firm faces many risks, such as
restricted or devalued currencies, falling markets, or government changes. In some cases, a firm
has no choice but to accept these risks if it wants to operate in the host country.

Chapter 3.


7. Consumer markets refers to the markets where people purchase products for consumption
and are not meant for further sale, where in the seller sells the product for a primary reason of
making profits while buyer buys the products for personal use. This market is dominated by the
products which consumer use in their daily life. Markets dominated by products and services
designed for the general consumer. Consumer markets are typically split into four primary
categories: consumer products, food and beverage products, retail products, and transportation
products. Industries in the consumer markets often have to deal with shifting brand loyalties and
uncertainty about the future popularity of products and services.
Business markets
Business markets operate “behind the scenes” to most consumers. Most of the things you buy

involve many sets of business purchases before you ever see them.Business market in simple
words is business to business market where in the products or services of a particular
organization are sold to or purchased by other organization or business. It also happens in
support industries where the products that are manufactured are components required to be
assembled into the products or services offered by some other business organization.
What are the major differences between the two?
In consumer market the purchase might even be made when the products are not required in day
to day activities. But in business market the business has to buy to stay profitable.
The business buyer is sophisticated in terms of the process involved in buying, decision making
while on the other hand the consumer in the consumer market might not be as sophisticated
The business buyer is an information-seeker, constantly on the lookout for information and
advice. On the other hand the consumer only searches information when he requires to make a
decision.
Packaging is important in consumer market while its nonexistent in the business market.
Expert advice is taken while making purchases in the business market as against the consumer
market.
Consumer market product are simplistic while business products are complicated.
International markets is a market outside the international borders of company’s country of
citizenship
8. Market segmentation The market consists of many types of customers, products, and needs.
The marketer must determine which segments offer the best opportunities. Consumers can be
grouped and served in various ways based on geographic, demographic, psychographic, and
behavioral factors. The process of dividing a market into distinct groups of buyers who have
different needs, characteristics, or behaviors, and who might require separate products or
marketing programs is called market segmentation.
Every market has segments, but not all ways of segmenting a market are equally use-ful. For
example, Tylenol would gain little by distinguishing between low-income and high income pain


reliever users if both respond the same way to marketing efforts. A market segment consists of

consumers who respond in a similar way to a given set of marketing efforts. In the car market,
for example, consumers who want the biggest, most comfortable car regardless of price make up
one market segment. Consumers who care mainly about price and operating economy make up
another segment. It would be difficult to make one car model that was the first choice of
consumers in both segments. Companies are wise to focus their efforts on meeting the distinct
needs of individual market segments.
We should target those segments we can serve most efficiently and effectively: Market
Targeting. This is the second step of setting up a marketing strategy.
Segmentation-> targeting -> differentiation and positioning
Market segment
A group of consumers who respond in a similar way to a given set of marketing efforts.
Market targeting
The process of evaluating each market segment’s attractiveness and selecting one or more
segments to enter.
Positioning
Arranging for a product to occupy a clear,distinctive, and desirable place relative to competing
products in the minds of target consumers.
After having distinguished between the separate segments in a market, the company can select
one or more of these segments to enter. Before doing this blindly, each segment should be
assessed. Therefore, targeting is concerned with evaluating each segment’s attractiveness for the
company and selecting one or more segments to enter. The evaluation of segments is based on
the question which segment the company can serve best. In other words, we should concentrate
on and enter those segment
Whether a company decides to enter one or more segments may also depend on its resources. If
these are limited, it may be better served to focus on one or a few smaller segments, which we
call market niches. In the best case, the company should look for segments competitors overlook
or ignore. Alternatively, a company can decide to enter several segments. This may be based on
a strong relation between the segment in terms of resembling needs, or on the company’s
widespread resources. For instance, clothing companies often target more than only one segment:
males, females, children and so on. A large company such as a major car manufacturer might

even decide serve all market segments by offering a complete range of products.s in which we
can generate the greatest customer value over time.

Variables used in segmenting markets (slide Major Segmentation Variables)
9. 2 factors to evaluate market segment: market segment size and market segment growth


The requirements for effective market segmentation are as follows
a) Measurable: The size, needs, purchasing power, and characteristics of the customers in the
segment should be measurable. Quantification should be possible.
b) Divisible: The segments should be differentiable. There must be clear-cut basis for dividing
customers into meaningful homogeneous groups. They should respond differently to different
marketing mixes. There should be differences in buyer's needs, characteristics and behaviour for
dividing in groups.
c) Accessible: The segment should be reachable and serviceable. It should be accessible through
existing marketing institutions, such as distribution channels, advertising media and sales force.
There should be middlemen to distribute the products.
d) Substantial: The segment should be substantial. It should be large enough in terms of
customers and profit potential. IT should justify the costs of developing a separate marketing
mix.
e) Actionable: It should be actionable for marketing purposes. Organizations should be able to
design and implement the marketing mix to serve the chosen segment.
The way companies identify attractive market segments and choose a market targeting
strategy in IM
(slide: combination of market understanding and company’s capability, 5 options to expand to
international markets, standardization and adaption)
10. The way companies differentiate and position their product for maximum competitive
advantage in the marketplace (slide 5 steps in positioning process)
Chương 4
11. product in marketing is anything that can be offered to the market to exchange, to bring

values and satisfaction to customers.
Key product decision
-Decide on the level and composition of the benefits of the product
Determine where the product is in the market place, its level of need to determine whether it
should produce this product.
-decision on the catalog and catalogues
Danh mục sản phẩm là tập hợp tất cả sản phẩm và sản phẩm cá nhân của người bán hàng cung
cấp trên thị trường / chào bán cho người mua
-Decide on the brand of the product
Make products popular with consumers
-Decision on the packaging, marks mark


Users using the product marking as a product of the product of product and the label of the
markers of the product of the price. Ví dụ, hầu hết các khách hàng xem một lọ Chanel số 5 như
một loại nước đắt tiền đắt tiền, nó từng được niềm ước mơ của nhiều phụ nữ. But also nouoc hoa
close in a lọ bez label will be less at you until that of the future of the best of the world. Do đó,
việc quyết định nhãn là một sản phẩm chiến lược quan trọng của công việc.
-Decide on standardization and product adaptation
The suitability of the product in that area
12. Product mix, also known as product assortment, refers to the total number of product lines
that a company offers to its customers. For example, a small company may sell multiple lines of
products. Sometimes, these product lines are fairly similar, such as dish washing liquid and bar
soap, which are used for cleaning and use similar technologies. Other times, the product lines are
vastly different, such as diapers and razors. The four dimensions to a company's product mix
include width, length, depth and consistency.
Width
The width of a company's product mix pertains to the number of product lines that a company
sells. For example, if a company has two product lines, its product mix width is two. Small and
upstart businesses will usually not have a wide product mix. It is more practical to start with

some basic products and build market share. Later on, a company's technology may allow the
company to diversify into other industries and build the width of the product mix.
Length
Product mix length pertains to the number of total products or items in a company's product mix,
according to Philip Kotler's textbook "Marketing Management: Analysis, Planning,
Implementation and Control." For example, ABC company may have two product lines, and five
brands within each product line. Thus, ABC's product mix length would be 10. Companies that
have multiple product lines will sometimes keep track of their average length per product line. In
the above case, the average length of an ABC Company's product line is five.
Depth
Depth of a product mix pertains to the total number of variations for each product. Variations can
include size, flavor and any other distinguishing characteristic. For example, if a company sells
three sizes and two flavors of toothpaste, that particular brand of toothpaste has a depth of six.
Just like length, companies sometimes report the average depth of their product lines; or the
depth of a specific product line.
Consistency
Product mix consistency pertains to how closely related product lines are to one another--in
terms of use, production and distribution. A company's product mix may be consistent in
distribution but vastly different in use. For example, a small company may sell its health bars and
health magazine in retail stores. However, one product is edible and the other is not. The
production consistency of these products would vary as well.k


Product Market Mix Strategy
Small companies usually start out with a product mix limited in width, depth and length; and
have a high level of consistency. However, over time, the company may want to differentiate
products or acquire new ones to enter new markets. A company can also sell the existing
products to new markets by coming up with new uses for their product.
Decision base: market demand, sales and profitability of each item, the company's objectives in
each period.

Company choice: Extend product portfolio, expand product portfolio or shorten and narrow
product portfolio
13. Core product refers to the core benefit the consumer derives from the product. In some
cases the basic physical product remains the same, the core product differs between markets
because the purpose for which product is used is different in these different markets. This is
called modifications of product design, positioning and communication strategies.
Actual product is the actual form with all tis attributes, in which the product is offered to the
consumer. It has certain characteristics liked a quality level, features, styling, a brand name and
packaging
Augmented product refers to certain additional services of benefits offered with the product
such as installation, delivery and credit facilities, after sales service and warranty.. product
augementaion may not be very important in a seller’s market but they are very important in the
competitive markets which are buyer’s market.
14. Brand (slide) A brand is a name, term, sign, symbol, or design, or a combination of these,
that identifies the maker or seller of a product or service. Consumers view a brand as an
important part of a product, and branding can add value to a product. Customers attach meanings
to brands and develop brand relationships. Brands have meaning well beyond a product’s
physical attributes. For example, consider Coca-Cola
A powerful brand has high brand equity. Brand equity is the differential effect that knowing the
brand name has on customer response to the product and its marketing. It’s a measure of the
brand’s ability to capture consumer preference and loyalty. A brand has positive brand equity
when consumers react more favorably to it than to a generic or unbranded version of the same
product. It has negative brand equity if consumers react less favorably than to an unbranded
version.
What do businesses need to do to build & manage a brand?



How to brand quickly enter the market?
- The cause of success of each business may be different, but in terms of overall, it is due to a

general model: willpower - general - professional.


On the will, the board of directors of enterprises has made a bold decision to choose and
implement the penetration method with aggressive and systematic advertising. With financial
humility and lack of experience in all aspects, this is considered to be a bold change in thinking
and bravery in performance.
In terms of total power, in addition to television ads as the main nucleus, support activities are
carried out in a uniform manner: from posters, posters, outdoor banners, point-of-sale
information, Lottery for consumers ... to analytical articles, community relations programs ...
Professionalism is reflected in the fact that these programs are designed and conducted in a very
detailed, in the right way, proving that the business has a thorough research process.
To do the three things is a very difficult set of efforts. In addition to the one element of
perception and will, the other two are of competence, including the ability to seek ideas,
collaborate with the consultant, and financial resources for implementation.
15. Standards and product adaptation
- Product standardization is the use of the same product in the domestic and overseas markets at
all three levels of product interest. Product standardization is an efficient method to reduce costs
and increase quality. By minimizing the differences in your products, you are able to rapidly
increase production, streamline distribution, decrease raw material costs and reinforce product
branding. The best product standardization strategies allow you to balance the need for targeted
adaptation with the cost savings of standardization.
- Adaptation of products is the transformation of products to suit the needs of foreign markets.
Product adaptation is the changes and special modifications are made in order to adjust to each
market. Adaptation is a marketing strategy where new products or services are modified based
on existing products and services. However, this is not to suggest that in doing so they pioneer in
innovation. In order to meet the needs of international customers, the firm may need to adapt its
product to suit individual or regional markets. The company will also need to establish a brand
that can be applied globally or tailored to fit into the local market. Product adaptation strategies
are also being considered as perhaps the most influential aspect for Multi-National Corporations

(MNCs).There are many factors affecting to use adaptation strategies. Some of them are product,
target market, package & design, ingredients, language, culture, religion etc…
- Content is usually standardized: brand
- Business and Standardization Adaptation:
Standardization: cell phones, televisions, cigarettes, chewing gum, razors
Adaptation: cars, motorcycles, home appliances
Factors Affecting Product Adaptation
Cultural Condition and Style


Sometimes a product needs only superficial adaptation in order to fit into a new market.
Different cultures assign meaning to colors, words and numbers very differently, for example.
This may mean that a manufacturer will have more success changing the name or color of a
product while leaving its functional components unchanged. Manufacturers may also need to
change the name of a product to avoid confusion in the translation into a new language or to
avoid using a name already copyrighted or associated with a different product in the new market.
Customer needs
Option for customers with many options when deciding to buy products. Steve Jobs said,
“You’ve got to start with the customer experience and work backwards to the technology. You
cannot start with the technology and try to figure out where you are going to sell it.” Our
outcome-driven approach to innovation enables companies to do exactly that. Understanding
customer needs before developing solutions is the hallmark of the ODI process.
Requirements of the host government
Labeling in local language
Company goal
market shares
Maximize profit margins
How do governments afect product adaption decisions òf companies

16. Factors influencing Packaging decisions and considerations in International Marketing
There are a number of factors that influence decisions in respect of packaging features like size,
shape, design, surface graphics, color schemes, labeling, materials etc.
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Physical Characteristics: Packaging decisions are influenced by certain physical
characteristics of the product like the physical state, weight, stability, fragility,
rigidity, surface finish etc.
Physical characteristics: Certain physio-chemical factors like the effect of moisture,
oxygen, light, flame, bacteria, fungi, chemical action etc., on the product are vary
important factors to considered while making packaging decisions.
Economy: While packaging is very important in marketing, it is costly too. Indeed,
there are a number of cases where the cost of packing is more than the cost of the
content. The rising cost of packaging has become a matter of serious concern. Every
effort should therefore, be made to reduce the packaging costs as much as possible
without impairing the packaging requirements.
Convenience: packaging should also necessarily possess the quality of convenience
from the point of view of consumers, distributors and producer. Hence, apart from the
functional needs, a good package should possess certain features like ease to open and
close, ease to dispense, ease to dispose of, ease to recycle, ease to identify, ease to
handle, convenience to pack, convenience to stack, convenience to display etc.


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Miscellaneous Factors: Apart from the factors mentioned above, packaging decisions
may be influenced by a number of other factors. For example, if there is any statutory
rule in respect of packaging, it will have to be abided by. The socio-cultural factors
could influence packaging decision. Consumer attitudes also have to be given due
consideration. The growth of consumerism in a number of countries, interalia, also
suggests that packaging decisions should be made with meticulous care.

Special Considerations in International marketing:
In addition to the general considerations in packaging mentioned above, there are certain special
factors to be considered in export packaging decisions. Important among them are the following
Regulations in the Foreign Countries:
Packaging and labeling may be subject to government regulation in the foreign countries. Some
countries have specified packaging standards for certain commodities. The trend toward
requiring labeling in a countries native language is growing. If such regulations are not strictly
followed, the goods may be confiscated or may attract some other punitive action.
Buyer Specifications: In some cases, buyers like the exporters to give packaging specification.
While incorporating such specifications it should also be ensured that packaging satisfies other
requirements like the statutory requirements.
Socio-cultural factors: While designing the packaging for a product, socio-cultural factors
relating to the important country like customs, traditions, beliefs etc, should also be considered.
Retailing Characteristics:
The nature of retail outlets is a very important consideration packaging decision. For instance as
pointed out earlier, in some of the foreign markets as a result of the spread of supermarkets and
discount houses, a large number of products are sold on a self-service basis. The package has,
therefore, to perform many of the sales tasks and hence it must attract attention, describe the
products features, give the consumer confidence and make a favorable overall impression.
Environmental factors: Packaging decisions are also influenced by certain environmental factors
like weather and climate factors. The impact of such factors in the place where the product
originates, while the product is in transit and while in the market etc., should be considered. The

package should be capable of withstanding the stresses and hazards of handling and
transportation, stacking, storing etc., under diverse conditions.
Disposability: Attention should also be paid to the aspects relating to the disposal of the
packaging. One of the qualities required for good package is that it could be easily disposed of or
recycled. In some of the developing countries like India many packaging materials easily find
some other use or are recycled. But the situation is different in other countries. Indeed, the
disposal of packaging materials is causing environmental problems in a number of countries
Reusable packages the risk of misusing it for selling bogus products.


26. How companies have direct contacts with international customers?
Trade fair
Participating in trade fairs is one of the traditional marketing tools to reach out to international
buyers. The most important issue when participating in trade fairs is to gather information,
knowledge about fashion trends, tastes of customers and competitors right at the fair. Trade fair
participation can be divided into three stages: before, during and after the fair.
Website
E-commerce is becoming more and more important in international transactions. Both sellers and
buyers find it convenient and cost-effective to transact over the internet. For textiles, you can
refer to some websites such as , ,
or http: / /www.importers.com.
Direct contact with customers
Communicating directly with customers is a good marketing tool. Direct communication can be
in the form of emailing or face-to-face meetings. To be able to successfully transact via email,
you should note:
Firstly, you have to do research on each target customer according to their buying style (direct
purchase, through agents or purchasing organizations) to meet their requirements (price, quality
Quantity, design, ISO, SA 8000 ...). You can find out information about your customers by
visiting their websites or contacting industry associations.
Second, your email needs to be written and sent to the right buyer. Your communication must be

very professional. In the original email, you can give a brief introduction of your business such
as: history of the product, product, quality certification, production capacity, design capacity,
existing customers and people contact. You can also email the product images of your business
to attract the attention of customers. You should also prepare a brochure about your
organization's product quality standards or a brochure about the business, including: business
profile and products and in guest emails. You have the potential to ask them if they would like to
receive those materials.
You can combine face-to-face meetings with customers when attending trade shows. You need
to make an appointment with the customer. When it comes to meeting customers, remember to
bring special things like business cards, company profiles, product catalogs and samples. After
the meeting, remember to send thank you letters to customers.
Remind existing customers
Instead of passively waiting for the customer to come back, you need to actively, actively contact
the current customer. You can give some good reasons to remind your customers, such as: your
company launches new product or get some standard certification. You can also ask your
customers if they are satisfied with the products and services of your business, what you need to
do to further satisfy their needs and show that you want to be business Joint with them more.


You should build long-term relationships with your customers and treat each customer as a
single customer.
Push and pull promotion strategies
Promotion is an important part of any marketing strategy. You can have the best product or
service out there, but unless you promote it successfully, no one will know about it. There are
three basic types of promotional strategies – a push strategy, a pull strategy or a combination of
the two. In general, a push strategy is sales oriented, a pull strategy is marketing-oriented and a
push-pull strategy is a combination of the two.
Push Strategy
A push promotional strategy works to create customer demand for your product or service
through promotion: for example, through discounts to retailers and trade promotions. Appealing

package design and maintaining a reputation for reliability, value or style are also used in push
strategies. One example of a push strategy is mobile phone sales, where manufacturers offer
discounts on phones to encourage buyers to chose their phone. Push promotional strategies also
focus on selling directly to customers, for example, through point of sale displays and direct
approaches to customers.

Pull Strategy
A pull promotional strategy uses advertising to build up customer demand for a product or
service. For example, advertising children's toys on children's television shows is a pull strategy.
The children ask their parents for the toys, the parents ask the retailers and the retailers the order
the toys from the manufacturer. Other pull strategies include sales promotions, offering discounts
or two-for-one offers and building demand through social media sites such as YouTube.

Combination Strategies
Some companies use a combination of both push and pull strategies. For example, Texas-based
textile producer Cotton Incorporated uses a push/pull promotional strategy. They push to create
customer demand through constantly developing new products and offering these products in
stores; and pull customers towards these products through advertising and promotion deals.
According to marketing expert Blair Entenmann, in an article he wrote for his company
Marketing Help. there is no single correct combination of push and pull. The amount spent on
each type of strategy will depend on factors such as budget, the type of product, the target
audience and competition.

When To Use


Push promotional strategies work well for lower cost items, or items where customers may make
a decision on the spot. New businesses use push strategies to develop retail markets for their
products and to generate exposure. Once a product is already in stores, a pull strategy creates
additional demand for the product. Pull strategies work well with highly visible brands, or where

there is good brand awareness. This is usually developed through advertising.
Sending direct mail
Communicating directly with customers is a good marketing tool. Direct communication can be
in the form of emailing or face-to-face meetings. To be able to successfully transact via email,
you should note:
Firstly, you have to do research on each target customer according to their buying style (direct
purchase, through agents or purchasing organizations) to meet their requirements (price, quality
Quantity, design, ISO, SA 8000 ...). You can find out information about your customers by
visiting their websites or contacting industry associations.
Second, your email needs to be written and sent to the right buyer. Your communication must be
very professional. In the original email, you can give a brief introduction of your business such
as: history of the product, product, quality certification, production capacity, design capacity,
existing customers and people contact. You can also email the product images of your business
to attract the attention of customers. You should also prepare a brochure about your
organization's product quality standards or a brochure about the business, including: business
profile and products and in guest emails. You have the potential to ask them if they would like to
receive those materials.
You can combine face-to-face meetings with customers when attending trade shows. You need
to make an appointment with the customer. When it comes to meeting customers, remember to
bring special things like business cards, company profiles, product catalogs and samples. After
the meeting, remember to send thank you letters to customers
For example, when you want to send mail to a particular customer, it is necessary to determine
the gender and product that the company wants to sell for their benefit, accompanied by
documents that do not mail spam to people. Consumer is an international customer who clicks on
and reads the mail of that company
27. Why should Vietnamese companies participate in international trade fairs? Discuss factors
that Vietnamese companies should study when participating trade fairs.
a. Trade fairs are a very powerful marketing medium. They bring together thousands of
international buyers and sellers in one place in a short space of time. There are many ways and
sources to look for products and suppliers, but nothing can beat the benefits that the trade fairs

have to offer. Not only Vietnam but most countries in the world are promoting participation in
international fairs for a number of reasons:

Introduce a new product: there is the opportunity to show your product in key players
of your field in a well known exhibition or trade show. ALWAYS have something to sell
at a trade show. It doesn’t matter if you only bring your latest products or have a wide


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variety of products to choose, the opportunity to generate sales shouldn’t be lost because
you didn’t have something for them to buy.
Make new connections: When it comes to influencing a decision, nothing can compete
with face-to-face interaction even if you have built a large network with many
connections. an in-person presentation and short question based conversation afterwards
can help you to close the deal quickly versus an email sharing the latest sales promo
Improve your brand’s image: Having a well designed website and an impressive profile
for you and your company in social networks for b2b is the first step to improve your
brand’s image. In trade shows and exhibitions you have the chance to prove that your
creativity is part of your business

Keep an eye in competition: You have already searched and created your competitive
advantage through social networks for business to business and your researches. Now it is
time to see your competitors in real action. Have one of your partners take a look at your
competitors’ booths and collect evidence to evaluate your competitiveness.

Use media for your promotion: Trade shows and exhibitions get media coverage so you
should be prepared to promote your business through media, either radio or tv stations.

You can create a video or take photographs and then share them through social media to
make a positive feedback for your profile. You should also use any references from media
to share to your profile.

Learn anything new: There are many things to learn about your business’s field, other
products, new ideas and trends. Take this opportunity to improve your knowledge and
experience

Increase your sales: By doing all the above you have created a positive impression for
your company. This will lead to larger brand awareness, bigger interest for your business
and of course it will increase your sales. Remember to use everything in combination with
your social network to inform your connections at the same time for your progress.
Vietnamese companies sometimes organize their own trade shows outside the country. Many
international trade show are also held in Vietnam, throughout the year, where foreign business
people are invited to participate and/or visit. Foreigners interested in Vietnamese products can
contact Vietnamese embassies and/or trade offices in their home countries or VIETRADE or
VCCI or other business associations to be advised of the events. Most important among trade
shows held in Vietnam are two yearly export exhibitions that take place in Hanoi in or around
April and in HCM city in or around October. This event is a good opportunity for foreign
companies to gain a general picture of the Vietnamese economy and meet Vietnamese
partners.


b.


28. Name and describe the common methods for setting promotion budgets. What are the key
drivers that today’s marketer has to understand in planning, executing, managing and evaluating
integrated marketing communication plans for the international markets?