Upload
nazshah
View
21.960
Download
4
Tags:
Embed Size (px)
Citation preview
Learning Objectives
Differentiation b/w Local and foreign marketUnderstanding of communication & Promotion
INTRODUCTION• Export marketing is not just a process to find
buyers/importers and approach them with the expectation of export orders but a well planned strategic marketing process one should follow and performed well to get success in International Market.
• major export marketing efforts get failed due to lack of implementing strategic marketing action plan.
Export marketing
Cross culture communication
Promotion &Communication
Importance of Communication
Helpful in Buyers & Sellers• Decision power• Product/service education• Open door policy• Two way communication.
Exporter’s massage
sent (encoded)
Foreign buyer’s
receipt of massage
(decoded)
Dimensions of attitude & Behavior on Communication
Hierarchy SequenceTraditional learning---------------Learn-feel-DoLow involvement------------------Learn-Do-FeelDissonance attribution----------Do-feel-learnDependency------------------------Feel-Do-Learn
Promotion & CommunicationDecisions
Decisions are taken on the basis of• What Massage?• What Communication Media?• How Much Effort Or Money to Spend?
Push Vs Pull strategy
Factors Affecting Promotion Mix
1. Funds Availability
2. promotion Cost
3. Degree of
competition
4. type of product
5. Entry Mode
6. Market type.
7. Non monitory
resources
8. Market size
9. Media availability
Export Marketing As Communication(verbal & Non verbal)
1. Verbal( Spoken or written)
2. Non verbal (gestures & Acts )
Non verbal (gestures & Acts )Communication
1. Appearance2. Chornemics3. Haptics4. Kinesics5. ocukesics
6. Olfaction7. Oreentation8. Paralinguistic's9. Posture 10. proxemics
Communication & Promotion Blunders• Blunders /mistakes They Happen due to Differences :
• Language • Culture• Norms • Values• Incomplete/weak plan
What are the After Effects?• Loss
Alternative Techniques of promotion
Alternative Techniques of promotion
1. Personal selling2. Sales Promotion3. Publicity4. Advertising5. Direct Marketing
1. Personal selling
“Person to person Communication between a companies representative and perspective
buyer.”Domestic & International Personal selling differentiate on the basis of behavior.Personal selling tools include
– Personal presentation – Trade shows (exhibitions and fairs. Le marche)
Functions of Sales People in international scenario
(Personal selling)
• The Actual selling Activity• Customer Relation• Information Gathering And Communicating.
Stages Of personal Selling
1.Prospecting2.Pre approaching
3.Problem solving 4.Approaching
5.Presenting 6.Handling Objections
7.Closing The sale 8. Follow-up
Personal Sellingis best in Situations Like:
• Restrictions on Advertising• Closed Media Facilities• Strong & rigid Govt. Hold • Risky Political Situations.
2. Sales Promotion
“This includes all sales activities that supplement & Strengthen personal selling & advertising.”
• Short-term incentives to encourage the purchase or sale of a product or service
• Sales promotion is done with vast array of devices .
Sales Promotion devices(best for export Marketing)
1. Foreign catalogs.2. Samples.3. House origin & company published
Magazines.4. Films Slides & personal computers.5. Trade fairs Exhibitions.6. Point Of Purchase materials.7. Consumer promotion materials.
Sales Promotion devices(best for export Marketing)
Foreign catalogs
• Ever Present• Silent• Accurate• All knowing
Foreign catalogs (Purpose )1. Creates interest & Attract leadership2. Mirror the personality of manufacturer or
Exporter 3. Carry the reputation of the manufacturer or
Exporter .4. Make buying easy5. Create the Desire for ownership6. Supply all the facts that a sales person would
present in person.
Sales Promotion devices(best for export Marketing)
Samples
“Means of avoiding distance business difficulties”Sampling types• Direct Sampling• Residential Agents, branch office mangers&
traveling Sales People.
Sales Promotion devices(best for export Marketing)
House organ & company published Magazines
• Gives knowledge on competitors strategy• good will building & Institutional Advertising.
Sales Promotion devices(best for export Marketing)
Films ,Slides & personal computers
Motion picture & video tape• Combining the illustration with spoken words• Expensive• Time Consuming
Slide films• Less Expensive• Time Effective
Personal Computers• Easy access• Wider Range
Sales Promotion devices(best for export Marketing)
Trade fairs Exhibitions
“A concentrated exhibition of the products of many manufacturers/exporters. “
Types• The broad general • Specialized
Sales Promotion devices(best for export Marketing)
Point Of Purchase materials
Sales Promotion devices(best for export Marketing)
Consumer promotion materials
Sales Promotion, Pro and Con
Advantages:•Motivation method for special efforts•Short-term sales increase•Defined target audience•Defined role/objectives•Indirect roles (e.g., wider distribution)
Disadvantages:•Only short-term•Hidden costs•Confusion•Price cutting -Brand image•Postponement effect•Significant government regulation•Lack of effectiveness sometimes (learning effect)
4. Publicity & Public Relations
Publicity: A special form of public relations that involves news stories about an organization or its products.
Public relations: A planned communication effort by an organization to contribute to generally favourable attitudes and opinions toward an organization and its products.
PR tools– Press releases– Sponsorships (Mc Donald’s and the hospital 53753)– Special events (Vodafone and the charity complex)
Activity
• Snatch a Picture
4. Advertising
“Any paid form of non-personal presentation and promotion of ideas, goods, or services”
Advertising categories •Short Run (Awareness) •Long Run (Brand Establishment)
Profiles of major media types
Print - Newspaper
Flexibility; timeliness; good local marketcoverage; broad acceptability; believability
Short life; poor production quality
Television Good mass-market coverage; low cost per exposure; combines sight, sound, and motion; appealing to the senses
High absolute cost; high clutter; less audience selectivity
Radio Good local acceptance; high geographic and demographic selectivity; low cost
Audio only; low attention (“half heard”); fragmented audiences
Print - Magazine
High geographic and demographic selectivity; credibility and prestige; quality production; long life; good pass-along
high cost; no guarantee of position
Outdoor Flexibility; high repeat exposure; low cost; low message competition; good positional selectivity
Little audience selectivity; creative limitations
Online High selectivity; low cost; immediacy; interactive capabilities
Small, demographically skewed audience; low impact; audience controls exposure
Medium AdvantagesMedium Advantages Limitations Limitations
Advertising
• Climate For Advertising• Foreign Media• International media• Media mix
Climate For Advertising“Its result of factors present in socio-economic Cultural
System”Dimensions of the Climate for Advertising• Economic system• Social culture• Cultural Background• Religious climate• monopoly• Censorship• Restrictions on advertising
International media
“Vary considerably from Country-to-country”Print Media• Business Consumer Magazines• News PapersElectronic Broadcast Media• Radio • Television• Internet
Foreign Media
“That circulates & Seen /heard in 2 or more nations.”
1. Print Media2. Electronic Broadcast Media3. Direct marketing
Media mix
Effectiveness in accomplishing advertising objectives which are:
1. Reach2. Frequency3. Continuity4. Size5. Availability
5. Direct marketing
• Direct communications with carefully targeted individual consumers-the use of telephone, mail, fax, e-mail, the internet, and other tools to communicate directly with specific consumers
• Direct marketing– Sending catalogues– Telemarketing
Export Promotion Strategy Involves
• Setting promotional objectives.• Deciding on the types of advertising &
promotional messages.• Selecting media.• Determining how much time, effort &
money to spend.
Export Promotion Strategy Levels
• Enterprise level• Industry Level • Individual level
Objectives of Export Promotional Programs & Strategy
• Specific Attainable goals• Must accomplish specific objective
– To convince buyers of the durability of a product– To illustrate the effectiveness of the product in
satisfying a particular want.– To create an image of the company as a
dependable supplier.
Steps of strategy formulation
• Assessment of size& extent of market• Customer behavior• Buying habits• Competitive circumstances
Export Strategy CategoriesChipsy BMW
Planning advertising Strategy
Planning phase is facing two major Issues• Standardization VS Adaptation• Advertising Transference
Standardization And Adaptation
Standardization versus Adaptation
• The fundamental international product decision after the decision to internationalize.
• International market approach alternatives to adaptation– Sell the product as it is internationally.– Modify product for different countries or regions.– Design new products for foreign markets.– Incorporate all differences into one product and introduce
it globally.
Factors Encouraging Standardization
• Economies of scale in production• Economies in product R&D• Economies in marketing• “Shrinking” of the world marketplace and
increasing economic integration• Global competition
Factors Encouraging Adaptation
• Differing use conditions• Government and regulatory influences• Differing consumer behavior patterns• Local competition• True to the marketing concept
Strategic Adaptation to Foreign Markets
LowLow
HighHigh
Industrial/ Technology IntensiveIndustrial/ Technology Intensive ConsumerConsumer
Need for Need for AdaptationAdaptation
DegrDegree of ee of CultuCultu
ral ral GrouGroundinndin
gg
Nature Nature of of
ProductProduct
Source: Adapted from W. Chan Kim and R. A. Mauborgne, “Cross-Cultural Strategies,” The Journal of Business Strategy 7
(Spring 1987): 31; and John A. Quelch and Edward J. Hoff, “Customizing Global Marketing,” Harvard Business Review 64
(May-June 1986): 92-101.
Factors Affecting Adaptation
Regional, Regional, Country, or Country, or
Local Local CharacteristicsCharacteristics
ProductProductCharacteristicsCharacteristics
CompanyCompanyConsiderationsConsiderations
Decision to Alter the Domestic ProductDecision to Alter the Domestic Product
Advertising Transference
Advertising Transference
“Entry of marketing activity or strategy in a foreign market”
factors of Advertising Transference
• influences of the appeal• mechanics of encoding and decoding• the silent languages
Extension Adjustment Combinations.
• A simple model of transference assumes that 2 countries are either the same or different for each of These factors &
• this leads to 8 different types of Extension Adjustment Combinations
Extension Adjustment Combinations.
Complete Extension
(Nike)
Symbolic Extension.
(Vicks)
Literal Extension.
(Telenor)
Symbolic and Literal Extension.
(Coca Cola)
Simple Adjustment.
(Scooty)
Symbolic Adjustment.
(Instant coffee)
Literal Adjustment.
(Gillete)
Complete Adjustment.
Complete Extension (Nike)China,UAE,India
Symbolic Extension.(Vicks)
Literal Extension.(Telenor)
Simple Adjustment.(Scooty)
Symbolic and Literal Extension.(Nescafe)
Literal Adjustment.(Gillete)
Complete adjustments
Management Issues
Management IssuesControl over planning promotional strategy depends on many factors such as objectives of promotional programs, availability of information on the relevant possible promotional forms and media selection.Broadly control is divided into•Centralized Control•Decentralized Control
References
• http://www.unescap.org/tid/publication/tipub2107_chap3.pdf
• www.wikipedia.com• www.youtube.com• www.slideshare.net• http://www.picsearch.com/• TEXT Book