International Marketing Principles and Strategy Essentials
1. Value Chain Definition
The set of activities performed by a firm to deliver value to the market.
2. Ansoff Matrix: Market Development
Selling current products into new markets.
3. Global Marketing Standards
Packaging and labelling requirements often differ from the home country.
4. Publicity Control
Publicity is usually not under the direct control of the company.
5. Standardization Strategies
Standardization strategies are often used with industrial products.
6. International Marketing Basis
International marketing is based on the capabilities of the firm to face international competition.
7. Questionnaire Utility
Questionnaires are used to gather quantitative and qualitative data.
8. Intermediary Roles
An intermediary that influences the final selling price is a distributor.
9. Brand Equity Benefits
The benefits of brand equity include both financial and strategic advantages.
10. Country of Origin Effects
Perceptions and attitudes toward country of origin can be positive or negative.
11. Global Product Positioning
A global product is positioned similarly in countries where the product is at the same stage of its lifecycle.
12. Product Heterogeneity
The concept regarding the nature of these products is heterogeneous.
13. Export Costs
The agent’s commission is typically paid by the exporter.
14. Branding Elements
A name, sign, or symbol used to identify a product is known as a brand.
15. Superior Value Development
To develop superior value, a firm must understand consumers, the market, and competitors.
16. Personal Selling
If a company sends representatives to interact with clients, it is using personal selling.
17. Product Life Cycle: Maturity
A product reaches maturity when sales stop growing and demand stabilizes.
18. Maximum Selling Price
The maximum selling price is determined by what customers are prepared to pay for the product.
B. International Pricing Strategies
Companies can use different pricing strategies in international markets depending on customer value, competition, costs, and objectives:
- Cost-based pricing: Calculating production and distribution costs and adding a profit margin.
- Value-based pricing: Pricing based on the value perceived by customers and their willingness to pay.
- Market penetration pricing: Setting low prices to enter a market quickly and gain market share.
- Skimming pricing: Introducing a product at a high price to maximize profits from early adopters, usually for innovative or premium products.
- Competitive pricing: Setting prices according to competitors’ rates in the market.
- Premium pricing: Positioning products as high-quality or exclusive.
In international markets, firms must also consider exchange rates, local regulations, purchasing power, taxes, distribution costs, and customer perceptions. The final objective is to create customer value while maintaining profitability.
1. IBEC Marketing Mix Strategy
- PRODUCT: Industrial B2B traceability solutions with high quality.
- PLACE: Expansion to Europe through fairs, business trips, and distributors.
- PRICE: Prices are acceptable but mostly rated as average.
- PROMOTION: Utilizes advertising, website redesign, and workshops. Promotion has room for improvement.
2. Strategic Recommendations
- PRODUCT: Adapt products to EU regulations and specific customer needs.
- PLACE: Strengthen distributor relationships and continue attending industry fairs.
- PRICE: Implement competitive pricing and offer discounts for initial contracts.
- PROMOTION: Enhance digital marketing, SEO, and industrial advertising efforts.