International Market Analysis and Strategy Formulation

1
International Market Analysis and Strategy
Formulation
2
Four Major Marketing Tasks

• Assessing and understanding customer needs and
  expectations.
• Creating customer value based on this
  understanding.
• Delivering the value in a superior manner
• Communicating the value to current and potential
  customers and other stakeholders.

3

• Select a product/Service
• Set marketing objectives
• Conduct market opportunity analysis
• Select target markets
• Analyse marketing strategy options
• Assess reactions of business environment to the
  different strategy options
• Rank the strategy options in terms of goal
  attainment index
• Develop an implementation plan

4
Marketing Objectives

• Profit level
• Sales growth
• Market share
• Degree of risk,
• Resource commitment 
• Non-Economic objectives
• Corporate image

5
Product Analysis

• Product attributes
• Core product attributes/functions
• tangible or enhanced product attributes
• augmented product attributes
• Geographical spread
• Local
• international
• global.
• Market segment appeal

6

• Product quality and design
• Price
• Service requirements
• Requirements relating to physical and work
  environment specifications
• Delivery requirements
• Conditions of payment
• Other transactional cost concerns

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Sensitivity Analysis

• An optimistic estimate
• A Normal estimate
• A pessimistic estimate

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• Product adaptation requirements
• Cultural requirements
• Legal requirements
• Technical requirements
• After sales service? Can such services be
  provided online? Are there qualified local
  technicians to be hired for such services?
• Expected prices
• Currency stability

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Product-Market Strategy

• A product specialisation strategy
• Segment specialisation strategy
• A selective strategy
• Single product-segment

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Entry mode considerations

• Industry-specific determinants
• Firm-specific determinants
• Target market determinants
• Home country determinants

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Determinants of International Entry Modes

• Industry-specific factors
• Industrys degree of
  internationalisation
• Choice of entry mode by key competitors

• Target market factors
• Government policies
• Avaliability of local distributors
• Local infrastructure

• Home-country factors
• Policies on investment abroad
• Bilateral agreements
• Domestic market size and competition

Entry Mode

• Firm-specific factors
• Firms degree of
  
  
  internationalisation
• Marketing objectives
• Nature of product
• Availability of resources

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Entry mode Screening Model

• Consider All Entry Modes
• Direct Indirect Exports
• Contractual Relations
• Foreign Direct Investments

• Assess Entry Modes
• Industry-specific factors
• Firm-specific factors
• Target market factors
• Home country factors

Filter 1

• Compare entry modes in terms of marketing
  objectives
• Profit
• Market share
• Sales growth
• Longterm image

Filter 2
Rejected Entry Modes

• Compare remaining entry modes in terms of risks
  and competitor reactions
• Leakage of trade secret
• Aggressive competition

Filter 3

• Rank remaining entry modes in terms of overall
  assessment
• Internal determinants
• External determinants

Filter 4
Select
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3Ps

• Promises
• Processes
• Providers