Foreign market analysis

1. Foreign Market Analysis
Ahmad Thanin

2. What is
Foreign
Market
Analysis
A market analysis studies the
attractiveness and the dynamics of a
special market within a special industry.
It is part of the industry analysis and
thus in turn of the global environmental
analysis.
Market research is any organized effort
to gather information about target
markets or customers.
• It is a very important component of business
strategy

3. Marketing:
A Universal
Discipline
Marketing is the process of focusing
the resources & objectives of an
organization on environmental
opportunities and needs
Marketing is also a set of concepts,
tools, theories, practices, procedures
and experiences
• Although marketing is a universal discipline,
marketing practice varies from country to
country

4. The Marketing Concept
The concept has changed dramatically over the years
The old concept:
• Focus on products
The new concept (around 1960):
• Focus was a customer orientation
Development of the marketing mix (4P’s):
• Product.
• Price.
• Place.
• Promotion
The Strategic Concept (1990s):
• Focus on customer in the context of the broader external environment Competition, government policy and regulation Economic, social and
technological macro forces
• Focus on stakeholder value employees, customers, shareholders, society

5. • Marketing principles were extended to
7Ps in 1981:
• Therefore, some companies use 7Ps of
marketing instead of basic 4Ps.
• People
• Process
• physical evidence.

6. Product
The product can be either a good or a service you provide to customers.
• One important thing that often marketers ignore is to see the appeal of your product and market for it before deciding what you want to offer.
If you want to sell a profitable product, then you need to do thorough
• planning and look at your product from customers’ eyes
• consider all the essential factors in your plan.
These factors may include questions such as
• costumers’ needs, the quality of your product,
• how is it different from others and
• what is its selling point, as well as
• how safe it is for your customers.
You not only need a quality product but also be able to successfully define the quality of your product to your
prospective consumers and turn them into consumers.

7. Price
The price is the money the customer has to pay for the product or services they receive.
There are two types of pricing
• cost-oriented prices
• market-oriented prices.
In market-oriented prices, there is more to price than the contribution price, and it needs thorough market research. Some things to look
into are:
• What your customers are willing to pay.
• The price of the same type of products offered by your competitors.
• And the goals your company has set to reach.
Moreover, the price is selected after determining the market value. Or on the value, you offer through your product or service.
If you ask for a higher price than market value, customers will have more expectations from your product, and you should live up their
expectations if you want a successful business.
The price can also be adjusted with time to make sure it is right for your current market

8. Place
Place refers to the process of bringing your products and services to the customers.
The place is wherever your product or services are available for purchase and customers can buy them.
• It could be a brick-and-mortar store, an online website, or you can use multiple channels to reach a broader audience.
It is essential for a business to choose the right place that is convenient for customers, and reach out to the potential
customers to increase the sale of the product.
Therefore, careful planning of the placement or distribution of your product is important for a successful business.
• For instance, knowing where your prospective customers are, where your location should be, and how to connect your potential customers to your location is an
essential part of your business growth.
Additionally, in today's digital age, no matter where your store or services are located, a digital presence can make a huge
difference in reaching out to your potential customers. As more and more people tend to search online for their needs.

9. Promotion
Promotion is creating awareness for your products, services, company, and brand.
• All the ways a company use to build awareness for their product and services are known as promotion.
Promotion should give customers a reason to choose your product or service, as well as show
the prospective customers the benefits of using your product.
Promotion is the backbone of marketing and as crucial for businesses as the quality of the
products they produce.
• It refers to communicating with the target audience through different channels and creating awareness for your
product and services.
There are different methods used to let the market know about your product or services.

10. Some of the most popular ways marketers use to
reach out to their prospective customers.
Email marketing:
• Email marketing refers to reaching out to your target audience through emails.
Advertisement:
• Advertisement is a paid promotional tool marketers use to promote their products or services. It includes social media
ads, tv, magazine advertisements, and local marketing tricks like supporting events with branded clothing for staff
and/or attendees.
Search Marketing:
• Search marketing is generating leads from search engines like Google & Bing through SEO & SEM.
• It includes techniques like rank blog content or landing page on product/service relevant queries to drive website
traffic.
Sales promotions:
• Sales promotion is temporary incentives, such as deals, or trail offered for a short period of time.
• These promotions are used to encourage prospective customers to try out the product and services before buying.

11. Some of the most popular ways marketers use to
reach out to their prospective customers.
Direct marketing:
• Direct marketing is when you directly reach out to your target audience and build relationships through
two-way communication.
Public Relations:
• Public relations are presenting a favorable image of your products and services.
Event Marketing:
• Event marketing refers to reaching your potential customers through trade shows, webinars, virtual
events, conferences, and so on.
Product-led growth:
• PLG is a user-focused growth model in which user acquisition, expansion, conversion, and retention are all
product-driven.

12. People
People are also an important part of any business organization.
• From team members to branch manager to customer service representatives, all play a vital role in the progress of
a business organization.
Hiring the right people who are trained and able to do the right job is essential for a
business organization.
• Additionally, excellent customer service that listens to customers' concerns and needs and satisfies them is
necessary for business growth.
The people who have the ability as well as are driven and trained to do their work can make
a massive difference in creating and implementing the marketing plan in the right way.

13. Process
Some businesses often use one more marketing principle that is called process.
The process refers to the whole experience of product or services; from start to
finish.
It also applies to help provided after the product is delivered.
It includes how long it takes to deliver the product or service and how you handle
the customers.
After the whole process, if your customers are happy and satisfied, that makes a
huge difference in how fast your business grows

14. Physical Evidence
It includes the things customers see when interacting with a business.
• Make sure the environment where product or services are provided are user-friendly and attractive; the packaging
you use is appealing to the customers and represent your brand.
Physical Evidence also includes the customers' experience with the product or service.
• It gives some solid knowledge of your product or service for the first-time costumers.
• Wherein, a customer can read or see the result of your product and develops some level of trust that encourages
them to choose it.
Physical Evidence is any physical interaction the business has with the costumers in stores
or digital;
• it also includes the case studies and testimonies from satisfied customers.
• Companies build brand awareness with all these interactions and increase their sales.

15. Packaging
Packaging is another principle of marketing.
The right package makes a big difference in making a good initial
impression.
Packaging refers to the way your product or services are represented to
the people.
Good packaging is the best way for your product to get noticed and stand
out so that people choose your product instead of your rivals.
The packaging is the opportunity for you to make your product more
attractive and different from others.
It creates a powerful first impression that makes people choose your
product among other competitors.

16. The 3 Principles of Marketing
Customer
Value
Competitive
Advantage
Focus

17. Customer
Value • create customer value that is
greater than the value created by
competitors
Goal:
• Expand or improve product and/or
service benefits
• Reduce the price
• Combine these two elements
Strategy:

18. Competitive
Advantage
Goal:
• Create competitive advantage through
differentiation
Advantage can exist in any element of a
company’s offer
One way to penetrate a new national
market is to offer a superior product at a
lower price.

19. Focus
Focus is the concentration of
attention and resources
Requirement to create
customer value at a
competitive advantage
A clear focus on customer
needs and wants

20. What is Global Marketing?
Global marketing is an internationalization
strategy.
The company conceptualizes a product or service
such that it suits the global consumer
requirements.
The company frames a universal tactic for
planning, production, placement and promotion
of these products or services across the globe.

21. Advantages of
Global Marketing
Global marketing is a
beneficial strategy
when it comes to the
internationalization of
business operations if
the product or service
offered has a universal
demand.

22. Disadvantages
of Global
Marketing
Global marketing is a
narrow concept since it is
not suitable for every
business organization.

23. Example OF Global
Marketing
• The case of Apple the brand maintains a
uniformity in handset’s design and features
while targeting the consumers in various
countries.
• Walmart is another example of global
marketing.

24. What is International
Marketing?
International marketing refers to the process of
business expansion across the domestic
geographical boundaries by setting up
subsidiaries in the target markets of different
countries.
These subsidiaries design and adopt the
marketing principles and strategies according to
the needs of the target local market.

25. Advantages of
International Marketing
• International marketing has
provided an opportunity for
domestic companies to meet the
requirements of customers
existing in vast and varied
geographical market segments

26. Disadvantages of
International Marketing
• International marketing provides an edge
over the other internationalization
strategies when it comes to creating
footprints worldwide.

27. Example oF International
Marketing:
Dunkin’ Donuts adopted international
marketing strategy by selling the products
according to the consumer’s liking and
preference across the worldwide target
markets.
It sold Grapefruit Coolatta Donuts in South
Korea, while Seaweed Donuts in China.

28. Other Examples of Global Marketing Strategies
Product Design Apple/Google/McDonalds/Toyota
Brand Name Coca-Cola/Apple/BMW
Product Positioning Unilever/Harley Davidson/Apple/Samsung
Packaging Gillette/Apple
Sourcing Toyota/Honda/Nike/Wal-Mart/Apple
Innovation Apple/Google/Samsung/Tata/Foxconn
Distribution IKEA/Apple/H&M
Customer Service Caterpiller/Dell/Apple/Lexus

29. Global
Marketing Vs
International
Marketing
• refers to carrying out marketing
operations from the company’s
headquarter while selling products or
services worldwide in different countries.
Global marketing
• can be understood as going global by
establishing subsidiaries in the prospective
local market of different countries, to
execute suitable marketing strategies.
international marketing

30. Difference Between Global Marketing and
International Marketing
BASIS GLOBAL MARKETING INTERNATIONAL MARKETING
Meaning Global marketing is the application
of a single marketing strategy in the
worldwide market, for a product or
service.
International marketing refers to the company's
penetration into the prospective markets of
different countries by directly engaging in the
local marketing environment.
Product or Service
Offerings
Standard product or service Customized product or service
Marketing People Cross-cultural marketing personnel
employed at the company’s head
office
Native marketing employees placed in the target
foreign markets
Marketing Research
and Development
It requires intense market research
due to the company's physical
absence in the prospective global
market.
It comparatively needs less research and
development since the company has a physical
existence in the international market and can
analyze the market.

31. Difference Between Global Marketing and
International Marketing
BASIS GLOBAL MARKETING INTERNATIONAL MARKETING
Customer
Engagement
Less customer engagement due to
the distant presence and low
customer interactions.
Customer engagement is quite high due to the
local presence and multiple communication
channels.
Marketing Budget All the budgeting activities for
global marketing are performed at
the company's headquarters
The international subsidiaries perform budgeting
activities at the local level.
Social Media
Marketing
Company has a unanimous social
media page for its global
operations.
Here, there are multiple social media pages of the
company, on Twitter, Instagram or Facebook
segregated according to the country.
Advertising Here, a single commercial runs
throughout the world in various
regional languages of different
countries.
Advertisements in the international market are
tailored exclusively for the local market and vary
drastically from country to country.

32. Difference Between Global Marketing and
International Marketing
GLOBAL MARKETING INTERNATIONAL MARKETING
Promotion Strategy Promotion tactics are adopted
keeping in mind the global
audience perspective
The promotional strategies are designed
individually for every local market
Marketing
Autonomy
Limited to the company's
headquarters.
Spread across the subsidiaries located in different
countries.

33. Driving Forces
Affecting
Global
Marketing
Technology Culture
Market
Needs
Cost Free Markets Peace
Management
Vision
Strategic
Intent

34. The World
Economy -
Overview
Since WWII, we have seen:
• Emergence of global markets
• Integration of world economy
Capital movements are the driving force
Production is “uncoupled” from
employment
Macroeconomics of individual countries
no longer control economic outcomes

35. The World Economy: Important Trends
Economic activity will shift from West to East
Aging worldwide population will demand increasing levels of productivity and efficiency
Shifts and growth in consumer segments will result in changes in the global consumer marketplace
Changing industry structures and emerging new models of corporate organization will be
characteristic of growing global competition
The demand for natural resources will continue to grow
Scrutiny of global firms’ worldwide practices will increase as the reach and sale of global firms
expand
The economics of information will be transformed as the ubiquitous nature of information expands
Talent pools have become global in nature

36. Richest
Countries in
the World
2021
Rank Country GDP-PPP ($)
1 United States 18.62 Tn
2 China 11.22 Tn
3 Japan 4.94 Tn
4 Germany 3.48 Tn
5 United Kingdom 2.65 Tn
6 France 2.47 Tn
7 India 2.26 Tn
8 Italy 1.86 Tn
9 Brazil 1.80 Tn
10 Canada 1.53 Tn

37. Global Trade Environment
Free trade
• refers to a situation where a government does not attempt to restrict what its citizens can buy from
another country or what they can sell to another country.
National Sovereignty
• is the supreme right of nations to determine national policies; freedom from external control.
Domestic Policy.
• Public policy concerned with national issues but that may have direct or indirect bearing on foreign
trade and investment.
Foreign Policy
• The area of public policy concerned with relationships with other countries.

38. Changes in the
Global Trade
Environment

39. General
Agreement
on Tariffs
and Trade -
GATT
Treaty among nations to promote trade
among members established in 1947
Handled trade disputes
Lacked enforcement power
Replaced by World Trade Organization
in 1995

40. The World
Trade
Organization -
WTO
• Forum for trade-related negotiations among 153 members
• Based in Geneva
• Serves as dispute mediator through DSB(The Dispute
Settlement Body)
• Has enforcement power and can impose sanctions

41. North
America—
NAFTA
Canada, United States, Mexico
• All three nations pledge to promote economic growth
through tariff reductions and expanded trade and
investment
• No common external tariffs
• Restrictions on labor and other movements remain
NAFTA established a free trade area in 1994

42. Preferential
Trade
Agreements
Many countries seek to lower
barriers to trade within their regions
• Free Trade Areas
• Customs Unions
• Common Market
• Economic Unions
PTAs give partners special treatment
and may discriminate against others
Over 300 PTAs have been notified to
the WTO

43. Hierarchy of
PFTs

44. Free Trade
Area
Two or more countries agree to abolish
tariffs and other barriers to trade
amongst themselves
Countries continue independent trade
policies with countries outside
agreement
Rules of origin requirements restrict
transshipment of goods from the
country with the lowest tariff to another

45. Customs
Union
Evolution of Free Trade Area
Includes the elimination of internal barriers to
trade (as in FTA)
AND establishes common external barriers to
trade
Examples:
• The EU and Turkey
• the Andean Community
• Mercosur (Argentina, Brazil, Paraguay, and Uruguay)
• CARICOM (Caribbean Community)
• Central American Integration System (SICA)

46. Common
Market
Includes the elimination of internal
barriers to trade
• (as in free trade area)
AND establishes common external
barriers to trade
• (as in customs union)
AND allows for the free movement of
factors of production, such as
• Labor
• capital, and
• information

47. Economic
Union
Includes the elimination of internal barriers to
trade
• (as in free trade area)
AND establishes common external barriers to
trade
• (as in customs union)
AND allows for the free movement of factors of
production, such as labor, capital, and information
• (as in common market)
AND coordinates and harmonizes economic and
social policy within the union

48. Economic
Union
Full evolution of economic
union
• creation of unified central bank
• use of single currency
• common policies on issues such as
agriculture, social policy, transport,
competition, mergers, taxation
• requires extensive political unity
• would lead to a central government
in time

49. The
European
Union (EU)
Initially began with the 1958 Treaty of Rome
Objective is to harmonize national laws and regulations so that goods, services,
people, and money could flow freely across national boundaries
26 countries, UK left the union 2021
500 million people
$15 trillion GNI
Euro currency, 1999
Harmonization of laws and regulations
Price transparency
No customs at national borders

50. The Middle East
Afghanistan,
Bahrain,
Cyprus,
Egypt, Iran,
Iraq, Israel,
Jordan,
Kuwait,
Lebanon,
Oman,
Qatar, Saudi
Arabia,
Syria, the
United Arab
Emirates,
Yemen
Primarily Arab, some Persian
and Jews
95% Muslim, 5% Christian and
Jewish
Oil prices drive commerce
25% of world’s oil in Saudi
Arabia
Arab Spring 2011

51. Africa
• Republic of South Africa
• North Africa
• Black Africa or sub-Saharan Africa
54 nations over three distinct areas
• Viewed as a regional entity
Mena: Middle East and North Africa
• Economic Community of West African States
• East African Cooperation
• South African Development Community
Regional agreements

52. Russia
One of the biggest, most
promising markets in the
world
Consumer confidence
and spending have been
steadily rising
142 million people

53. Asia-Pacific
• China
• Japan
• South Korea
• Taiwan
• Singapore
The five economic “tigers” are
• Thailand
• Malaysia
• Indonesia
Below them are three countries poised to become the next “tigers”

54. Trading Environment of International Trade
The environment of International trade is regarded as the sum total of all the external forces
working upon the firm as it goes about its affairs in foreign and domestic markets.
The environment can be classified in terms of
•domestic,
•foreign and
•international spheres of impact.
The domestic environment is
•familiar to managers and consists of those uncontrollable external forces that affect the firm in its home market.
•However, it may be underlined that some of these forces(e.g., the cost of capital and export restrictions)
•can also have significant effect on global operations of a firm.
The foreign environment
•Can be taken as those factors, which operate in those other countries within which the MNC operates.
Generally, the factors are the same, but they can have widely differing impacts from the home
country situation.

55. The various
Environmental
Forces are as
follows:
Political-Legal Environment
Economic
Cultural
Technological

56. Political-Legal Environment
Political environment refers to the influence of the system of government and judiciary in a nation on
international business.
•The system of government in a nation wields considerable impact on its business.
•The type and structure of government prevailing in a country decides ,promotes, fosters, encourages, shelters, directs and
controls the business of that country.
•A political environment that is stable, honest, efficient and dynamic and which ensures political participation to the people, and
assures personal security to the citizen, is primary factor for economic development.
•The developed economies of the today owe their success to a large extent to the political system they richly enjoyed.
Legal Environment refers to the legal system obtaining in a country.
•The legal system then refers to the rules and laws that regulate behavior of individuals and organizations.
•Failure to comply with the laws means that penalties will be inflicted by the courts depending on the seriousness of the offence.
•The legal system of a country is of immense importance to international trade.
•A country’s laws regulate business practice, define the manner in which business transactions are to be carried out and set down
the rights and obligations of those involved in business deals.

57. Economic Environment
Economic Environment refers to those economic factors, which have impact on
the international trade.
• It includes economic conditions, economic policies, economic system, phases of business cycle,
foreign investment, international organizations (IMF, World Bank, WTO etc.), international
trade agreements etc.
There are various international organizations, which issue various guidelines,
make different rules and regulations for regulating international trade.
• Among these important organizations are international Monetary Fund, World Bank, World
Trade Organization etc.

58. Cultural Environment
In global business activities such as leading,
motivating, decision-making, problem solving
and exchanging information and ideas depend
on the ability of managers and employees from
one culture to communicate successfully with
colleagues, clients and suppliers from other
cultures.
Mistakes in cross cultural communication often
go unnoticed by the communicators, but these
mistakes have potential to cause damage to
international relationships and negotiations.

59. Technological
Environment
Technological Environment like its counterparts
political and legal has a considerable influence
on international business.
Technology has facilitated international business
in at least six ways:
• E-Commerce
• Telecommunications
• Transportation
• Globalization of production of Production
• Globalization of Markets
• Technology Transfer

60. E-Commerce
• The internet allows both small and big companies to expand their global presence at a lower
cost than ever before.
• The internet makes it much easier for buyers and seller to find each other, wherever they may
be located, and whatever their size.
Telecommunications
• Technology such as 3G,4G,MMS etc.
• have fostered closely knit global business.
Transportation
• In addition to developments in computers and telecommunications, several major innovations in
transportation.
• In economic terms, the most important are probably the development of commercial jet aircraft
and super freighters and the introduction of containerization, which simplifies trans-shipment
from one mode of transport to another.

61. Globalization of production of Production
• Technological breakthroughs have facilitated globalization of production.
• A worldwide communications network has become essential for any MNC.
• Factors influencing the location of manufacturing facilities vary from country to country.
• They may be more favorable in foreign countries rather than in home country.
Globalization of Markets
• refers to the process of integrating and merging of the distinct world markets into a single market.
This process involves the identification of some common norm, value, taste, preference and
convenience and slowly enables the cultural shift towards the use of common product or
service.

62. Technology Transfer
• Technology transfer and globalization are interconnected with each other.
• They are highly interdependent as well.
• The onset of globalization has brought up free passage of goods and services
across the globe.
• The role of technology has also changed from time to time.
• It is currently considered as one of the important factors in the propagation of
globalization.
• Technology transfer consists not only of various scientific researches and
discoveries, but also the transformation of such researches and discoveries into
practical and feasible applications or products.
• Technology transfer is one of the major aspects of globalization.

63. Current

64. Decision Criteria
for International
Business
Political Risk
Market Access
Factor Costs and Conditions
Country Infrastructure
Foreign Exchange

65. Global Market
Segmentation
The process of
dividing the world
market into
distinct subsets of
customers that
have similar needs
(for example,
country groups or
individual interest
groups).

66. Criteria for
Global Market
Segmentation
Geographic segmentation
Demographic segmentation
Psychographic segmentation
Behavior segmentation

67. Geographic
Segmentation
Dividing the world into geographic
subgroups
The advantage of geography is proximity
However, just because people are in
proximity does not mean they are similar

68. Demographic
Segmentation
Based on measurable population
characteristics
• Age
• Income
• Gender
• Education
Generally, national income is the
most important variable

70. Psychographic Segmentation
• Based on attitudes, values and lifestyle
• Measured through extensive item batteries which
cover activities, interests and opinions (AIO-studies)
• Lifestyle surveys,
• the Values and Lifestyles (VALS)

72. Behavior and
Benefit
Segmentation
• Focus on whether and how much people
buy or use a product
• usage rates: heavy, medium, light,
nonusers
• user status: potential users, nonusers,
ex-users, regulars, first timers, users of
competitors’ products
Behavior segmentation
• Focus on the numerator of the value
equation – the B in V=B/P
Benefit segmentation

73. Global Targeting
• Targeting is the act of evaluating
and comparing the identified
groups and selecting one or more
as the prospect with the highest
potential

74. Criteria for Targeting
Current size of the segment
and growth potential
Potential competition
Compatibility and feasibility

75. Marketing Research
• The planning, collection, and
analysis of data relevant to
market decision making and
communication of the results of
this analysis to management.

76. Importance
of Market
Research
Identify Problem Areas in Business
Minimize Business Risks
Well-informed Business Decisions
New Areas for Expansion
Market Trends

77. Methods of
Market
Research
• Interviews
• Online Surveys
• Focus Groups
• Observation
Primary Market Research Methods
• Data available on the Internet
• Government & Non-government agencies
• Commercial information
Secondary Market Research Methods

78. Types of
Market
Research
Primary Research
Secondary Research
Quantitative Research
Qualitative Research
Descriptive Research
Exploratory Research
Causal Research

79. • Primary research means that the researcher is in direct contact with the targeted
customer.
• Companies usually hire third parties to conduct primary market research for them.
• Data collected from primary research could be quantitative (numerical) or qualitative
(non-numerical) depending on the planning and question prepared by the researcher.
Primary Research
• Secondary research is comprised of outside sources like the chamber of commerce,
government, media, agencies, etc.
• Information from such sources is usually published on websites, newspapers, journals, TV
channels, radio, etc.
• We can categories the secondary sources into three main domains; public source,
educational institutions, and commercial sources.
Secondary Research

80. • Quantitative market research is a type and method like surveys, focus
groups, observation, interviews, poles, online questioners and phone
surveys.
• As the name implies that the data collected from the quantitative research is
in the form of figures and numbers.
Quantitative Research
• Qualitative market research is also like quantitative type and methods like
surveys, focus groups, observation, interviews, poles, online questioners and
phone surveys.
• But in the qualitative market research, data is collected in the exploratory
and open-ended which can be interpreted later on.
Qualitative Research

81. • In the descriptive type of market research, the focus is to find the accurate and correct answer about
the market problems.
• The following types of questions are focused, for instance, how is the consumption of our product?
What type of people buying our product? What exactly are the targeted buyers of our product?
Descriptive Research
• In the exploratory type of market research, researchers usually have basic and clear knowledge about
the issue, but research is conducted to get a better insight into the problem.
• The researcher must be clear about his ideas; irrelevant and impractical ideas should be avoided.
Exploratory Research
• In the causal type of market research, the relation between cause and effect and variable is
established to observe the changes.
• If the packaging is changed of a certain product; then how it will affect the product sale and its
durability.
Causal Research

82. Market Research Process
Define the
problem
First of all, the main focus is to find out the exact problem.
Finding the exact problem is the key to the success of market research.
Develop Market
Research Plan
Once the problem is identified, the next step is to develop a plan that how you’re going to conduct market research.
Data Collection Once the plan is laid out for the market research, collect relevant data that is helping the market research plan and answer the
problem defined earlier.
Analyze the Data When you have sufficient data collection to answer questions; now analyze the data to see if any pattern is being formed.
If it does, then what it means to research.
Present the Data If you see any patterns being developed, now put on the paper to see it clearly, or draw a graph or chart to find some relevancy.
Take Action At this stage, you know the answers based on the information available to you.
If your answers address the questions of the stage, then take action and apply the plan.

84. Market Analysis
• Through all of these analyses the
strengths, weaknesses, opportunities
and threats (SWOT) of a company can
be identified.
• Finally, with the help of a SWOT
analysis, adequate business strategies
of a company will be defined

85. SWOT
ANALYSIS
Strengths and
weaknesses
Performance
Trends
Resources and
capabilities
Opportunities
and threats
Mission and
objectives
Environmental
scanning

86. Visiting the Potential Market
Essential after assessment and selection of potential market(s)
• to confirm (or contradict) assumptions regarding market potential
• to gather additional (primary) data
• to develop a marketing plan in co-operation with the local agent or distributor
Goals:

87. Industry Analysis Forces Influencing Competition
Industry analysis is a critical part of understanding a company’s market position.
It should tell you whether a company is faring better or worse than companies that offer similar
products and services.
At its core, industry analysis is designed to help you figure out how a company operates within an
industry
Every successful marketing strategy begins with strong industry analysis coupled with a deep dive
into the competition.
This is how to use Porter’s Five Forces to conduct an industry analysis.

88. • Porter’s Five Forces, based on Michael Porter’s groundbreaking article for the
Harvard Business Review, is a competitive analysis framework that helps you
examine the competitive market forces in an industry or segment.
What is Porter’s Five Forces?
• Intensity of competitive rivalry
• Bargaining power of suppliers
• Bargaining power of buyers
• Threat of substitutes
• Threat of new entrants
What’s Included in an Industry Analysis Using Porter’s 5 Forces?

90. Global Competition and
National Competitive
Advantage
• The inevitable consequence of the expansion of global marketing activity is
the growth of competition on a global basis

91. Factor Conditions
HUMAN
RESOURCES
PHYSICAL
RESOURCES
KNOWLEDGE
RESOURCES
CAPITAL
RESOURCES
INFRASTRUCTURE
RESOURCES

92. TYPES OF COMPETITIVE STRATEGIES
• Differentiation
• Cost Leadership
• Focus – Differentiation Focus and Cost Focus
Classification according to Michael Porter
• Operational Excellence
• Product Leadership
• Customer Intimacy
Classification according to Michael Treacy and Fred Wiersma

93. Competitive
Advantage of
Individual
Companies
• Cost-Leadership Advantage
• Differentiation
Broad Market Strategies
• Focused Differentiation
• Cost Focus
Narrow Target Strategies

94. Competitive Advantage of Individual
Companies

95. WHEN IS THE GENERIC COMPETITIVE STRATEGY USEFUL?
The GCS is useful when a
company is looking to gain an
advantage over a competitor.
• If a company wants to ‘win’
the advantage over other
businesses, it does so by
winning sales and taking
customers away from
competitors.
An advantage in business,
though, does not come easily.
• It must be developed and
established firmly within the
framework of a company.
• Using a business strategy is
not a one-off or a weekend
exercise; it must become the
driving force of the company.
In order to do this successfully,
a company must implement a
Generic Competitive Strategy.
• Not confined to a specific
industry or company, the
methodology can be used in
for-profit companies of any
kind, as well as not for profit
organizations.
• No matter what type of
business, the principles
behind the GCS are universal
and can be applied to any
company.

96. GCS is based on three generic strategies:
Cost leadership,
• A business that wants to achieve an edge through cost leadership will become an
expert in lowering costs while maintaining prices.
• The goal should always be to reduce the costs associated with doing business,
while continuing to charge the same price as its competitors.
• This gives the company a greater profit, without having any extra expenses.
• Another method of maximizing the Cost Leadership position is by lowering the
selling point.
• Because the costs associated with the products are already low, the company is still
making a healthy profit.
• This allows the company to under bid the competitors while still preserving profits.

97. GCS is based on three generic strategies:
differentiation,
• The differentiation strategy seeks to set a company apart by creating
products that are different than a competitors.
• The specific ways that a company differentiates itself from the
competition will depend on the industry of the company, but may include
features, support and functionality.
• The uniqueness of the company – the differentiation – must only be a
feature that a customer is willing to pay a premium price for.
• A company that focuses on differentiation may be disappointed to realize
that their market share is continually changing and comes with a set of
risks.

98. GCS is based on three generic strategies:
Focus
• The company that uses the Focus strategy is selecting a niche market, and then
determining the scope of the focus.
• Within the Focus strategy is the option to use either cost leadership or differentiation.
• It may be confusing to keep in mind that the Focus strategy is dealing with a specific,
niche market.
• Focus does not mean a smaller market simply because the company is small – it means
that the company has chosen to add value to their products and offer them to a select
number of customers.
• Because the company who chooses a Focus strategy deals exclusively with their client
base, they develop a loyal relationship which can generate sales and profits for the
future.

99. CREATING
THE GENERIC
COMPETITIVE
STRATEGY
Before creating a Generic Competitive
Strategy, a company must decide which
strategy to employ.
Taking into account the strengths of the
company may give an indication of the best
strategy to choose, but should not be rushed
simply to move to the next item
To determine the best strategy for the
company, follow a few NEXT simple steps:

100. To determine the best strategy for the company, follow
a few simple steps:
Create a Strengths, Weakness, Opportunities, Threats (SWOT) chart for each of the
three strategies.
• Once that is completed, it may be clear that a strategy would not be appropriate.
• If that is the case, eliminate that strategy, and continue to the next step.
Conduct an analysis of the industry the business is in.
• Finding out specifics about the business industry can lead to an increased understanding of the market
and how to best position the company.
Compare the SWOT analysis to the business industry results.
• Select the most viable options from the SWOT analysis and compare to the business industry analysis.

101. Strategic
Positions
• A limited number of activities related to
delivering a product
Variety-based
• A specific customer segment with a
comparatively broad set of needs
Needs-based
• Uniquely or preferentially reach a specific
market
Access-based

102. Competitive
Innovation
and
Strategic
Intent
Layers of Advantage
• Less risks if wide portfolio of
advantages exist
Changing the Rules
• Refuse to play by the rules set by
industry leaders
Collaborating
• Using know-how developed by other
companies

103. Hyper
competition
Hyper competition’ describes a dynamic,
competitive world, in which no action or
advantages can be sustained for long
The only advantage of a company is to
manage dynamic strategic interactions:
• Cost-quality, timing and know-how, entry barriers
and deep pockets
Companies must seek unsustainable
advantages

105. Product
Decision
and Pricing
• are offered in a portion of a national market
Local products
• are offered in a single national Market
National products
• are offered in multinational, regional markets
International products
• are offered in the global market. They are
international and multi-regional
Global products

106. The Global
Product
Launch
Introducing the product into countries in three or
more regions within a narrow timeframe.
Successful launches require:
• Involvement of country managers
• Pre-launch attention to localization
• Increased education and
support of the sales channel
Benefits of a global launch
• Showcases the product
• Removes old models at once
• Captures new product’s higher margins

107. Market
Expansion
Strategies
• concentrated markets/concentrated countries
Narrow focus:
• diverse markets/concentrated countries
Country focus:
• concentrated markets/diverse countries
Country diversification:
• diverse markets/diverse countries
Global diversification:

108. Global Brands
A symbol about which customer have beliefs and perceptions
Same name or same meaning in another language
Similar image and position
Guided by same strategic principles
Marketing mix may vary from country to country

109. Product
Positioning
Attribute or Benefit
Quality/Price
Use/User
High-Tech Positioning
High-Touch Positioning

110. Global Product Positioning: Strategic
Alternatives
Different
Same
Same Different
edlich
Product
Communications Strategy 2:
Product Extension,
Communications
Adaptation
Example: Motorbikes
Strategy 1:
Dual Expansion
Example: Applications Software
Strategy 4:
Dual Adaptation
Example: Greeting Cards
Strategy 3:
Product Adaptation,
Communication
Extension
Example: Electrical products

111. Creating a Product-Market Profile
Who buys our
product?
Who does not buy
our product?
What need does our
product serve?
What problem does
our product solve?
What are customers
currently buying?
What price are they
paying?
When is our product
purchased?
Where is our
product purchased?
Why is our product
purchased?

112. Visiting the Potential Market
Essential after assessment and selection of potential market(s)
Goals:
• to confirm (or contradict) assumptions regarding market potential
• to gather additional (primary) data
• to develop a marketing plan in co-operation with the local agent or distributor

113. Global Product
Development
The heart of the global marketing process that focuses on building adaptability into products
to achieve worldwide appeal.
The product development process
The main goal is to build adaptability into products and product lines for worldwide appeal.
• Step 1: Idea generation
• Step 2: Screening
• Step 3: Product/process development
• Step 4: Scale up
• Step 5: Commercialization

114. Basic
Pricing
Concepts
Cost
The
experience
curve
Competition Demand

115. The Setting of Export Prices
ASSESSMENT OF PRICING ENVIRONMENTS
Pricing Policy Selection
Pricing Strategy Determination
Setting of Specific Price

116. ASSESSMENT OF PRICING ENVIRONMENTS
EXTERNAL
Market-related factors
•Nature of demand/target
audience characteristics
•Government regulations
(e.g., duties)
•Exchange rate stability
Industry-related factors
•Competition intensity
•Nature of competition
INTERNAL
Marketing Mix
•Product (e.g., old/new;
standardized/differentiated
•Distribution system (e.g., length)
•Promotion needs (e.g., sales
efforts)
Company characteristics
•Extent of internationalization
•Countries exported to
Management attitudes
•Importance of exports
•Overall price position of firm

117. Penetration
Pricing
Uses price as a competitive weapon
to gain market position
Means that the product may be sold
at a loss for a certain time to gain
market share
Companies new to exporting cannot
absorb such losses

118. Gray
Market
Goods
Trademarked products that are
exported form one country to
another where they are sold by
unauthorized persons or
organizations
Bring a product produced in one
country into another in competition
with authorized importers – parallel
importing

119. DUMPING
A company exports a product at a
price lower than the price it
normally charges in its own home
market
Dumping is an important global
pricing issue, because it is
sometimes regarded as unfair
competition

120. Global Marketing
Channels and
Communication
The firm sells to its customers:
• directly through its own sales
force.
• indirectly through
independent intermediaries.
• indirectly through an outside
distribution system with
regional or global coverage.

122. Channel
Structure
How to structure the
distribution channels is the
most important long-term
marketing mix decision a
firm may make.
Channel structures are
designed to manage
multidirectional (horizontal
and vertical) connections in:
physical movement of goods
and services
transactional title flows
information
communications flows

123. Channel
Design
Considerations
• What do they need, why, when, and how?
Customer characteristics
• The structural linkages and functional
characteristics of existing channels.
Distribution culture
• What channels does the competition use?
Competition
• Determined by company objectives for market
share and profitability.
Company objectives

124. Major categories of channel utility are:
• Place
• Time
• Form
• Information
Channel Control
• Inventory financing
• Cumulative rebates
• Merchandise returns
• Promotional support

125. Different
Types of
Global
Organizations
• A firm which maintains operations in multiple
countries but manages the operations from a
base in the home country.
Multinational Corporation (MNC)
• A firm that maintains operations in several
countries but decentralizes management to the
local country.
Transnational Corporation (TNC)
• A firm that has eliminated structural divisions
that impose artificial geographic barriers and is
organized along business lines.
Borderless Organization

126. Networked Global Organization
Decentralized Federation Model Networked Global Model

127. Roles for
Country
Organizations
• A competent national subsidiary that may be serving
as a partner in developing and implementing strategy.
Strategic Leader
• Country organization with a distinctive competence.
Contributor
• Most entities hold this role. It provides critical mass for
the global effort.
Implementor
• The international company has a low competence
country organization, or none at all.
Black Hole

129. Selling Versus Marketing
Starting
point
Focus Means Ends
Selling Factor Products Selling and
promoting
Profits through
sales volume
Marketing Target
market
Customer
needs
Integrated
marketing
Profits through
customer
satisfaction

130. Designing
the Sales
Force
Decisions must be made regarding the numbers,
characteristics, and assignments of sales personnel
Different market requirements regarding direct
sales and customer approach
Territory allocation
Customer call plans

131. Recruiting Marketing and Sales Personnel
The largest personnel requirement abroad for most companies is the
sales force
Expatriates
• Numbers are declining
• Important for highly technical or involved products
• High cost
• Cultural and legal barriers
• Limited number of high-caliber personnel willing to live abroad

132. Motivating Sales Personnel
National differences must always be considered when motivating the
marketing force
Individual incentives that work effectively can fail completely in other cultures
Communications are important in maintaining high levels of motivation
A company needs to make clear the opportunities for growth within the firm

133. Sales Promotions in International Markets
Sales promotions
• Marketing activities that stimulate consumer purchases and improve retailer or
middlemen effectiveness and cooperation
• Short-term efforts directed to the consumer or retailer to achieve specific objectives
In markets with media limitations the percentage of the promotional
budget allocated to sales promotions may have to be increased

134. International Advertising
Perform marketing
research.
Specify the goals of
the communication.
Develop the most
effective message(s)
for the market
segments selected.
Select effective
media.
Compose and secure
a budget.
Execute the
campaign.
Evaluate the
campaign relative to
the goals specified.

135. Growing
Popularity
of Global
Advertising
Spur short-term sales
Build long-term product identities
Significant savings in production
costs
Growth of pan-European or pan-
Asian brands

136. Types of Advertising
Strategies
Seasonal advertising
Area specific advertising
Complexity reduction advertising
Social Media Handles and Campaigns
Defining a Target market

137. Agency Selection
Criteria:
Company organization
National responsiveness
Area coverage
Buyer perception

138. Global Integrated Marketing Communications
Reasons for Developing
an Effective Global
Campaign:
•Helps determine the global
market for a product
•Acts as a cornerstone for
coherent global strategy

139. Factors Influencing International Marketing
Strategy

142. Global
Integrated
Marketing
Communications
• Any sponsored paid message
placed in a mass medium
Advertising:
• is the global use of the same
advertising appeals and
messages
Global Advertising

143. International Advertising
Perform marketing research.
Specify the goals of the communication.
Develop the most effective message(s) for the market segments selected.
Select effective media.
Compose and secure a budget.
Execute the campaign.
Evaluate the campaign relative to the goals specified.

144. Growing Popularity of Global Advertising
Spur short-term sales
Build long-term product identities
Significant savings in production costs
Growth of pan-European or pan-Asian brands

145. Negotiation
Business negotiations are perhaps the most
fundamental business rituals.
The basic elements of business negotiations are the
same in any country.
They relate to the product, its price and terms,
services associated with the product, and finally,
friendship between vendors and customers.
One standard rule in negotiating is “know thyself”
first, and second, “know your counterpart.”

146. Customer Engagement
The future of marketing is about relevance
and engagement
The web is all about value exchange
We are witnessing a consumptive shift from
mass consumption to individualized
consumption

147. Encouraging Social
Engagement
Traditional consumption of media is
not engaging
To foster engagement, action on the
part of the consumer is required
• “Curation” is the act of rating, reviewing and
otherwise passing judgment on content
available in a social setting

148. Using Data to Drive Business Value
Customer
Experience
Dashboard:
• Web analytics
• Customer experience
• Voice-of-the-customer programs
• User testing
• Experience research
• Social listening

149. Management and promoting Internal
cooperation
Moving human
capital within the
organization
Teaching about what
a person knows and
believes about what
it takes to succeed.
Developing a
“boundary-less”
organizational
perspective.

150. The Future of Foreign Market Analysis and
global marketing
• source of high profits
• cushion slack in domestic markets
International markets
• vulnerability
• outrage
• collaboration
• politics
• connection
Common sense for a new global age as emerged characterized by: