Developing the International Marketing Plan

1. Developing the International Marketing Plan • Before you can develop international plan, you must identify and understand the target market • Determine if there is or is not a global market

2. Is there a global homemaker market? • Global market segments present important opportunities for standardized marketing • Are there any global markets • Global youth segment • Global elite

3. International Target Marketing Defined as the process of identifying and focusing on those international market segments that the company can serve most effectively and designing products, services, and marketing programs with these segments in mind.

4. International Segmentation The process of identifying countries and/or consumers that are similar with regard to key traits, such as product-related needs and wants, that would respond to a product and related marketing mix. MUST BE performed at country level AND at the consumer level.

5. Effective International Segmentation Requirements (contd.) • Measurability: • The ability to estimate the size of the market. • Important questions: • Are population statistics and economic development data reliable? • Are consumers accessible for data collection? Are they willing respondents?

6. Effective International Segmentation Requirements (contd.) • Substantiality: • The extent to which the international market is large enough to warrant investment. • Important questions: • What is the segment’s growth potential? • What is the projected per capita income in the following ten years? • Are population statistics and economic development data reliable?

7. Effective International Segmentation Requirements (contd.) • Stability over time: • The extent to which international consumer preferences are stable over time. • Important questions: • What is the likelihood that the segment will change as a result of a rapidly changing environment? • How often should we re-evaluate our market segment?

8. Effective International Segmentation Requirements (contd.) • Accessibility: • The ability to communicate with the international target market. • Important questions: • Are population statistics and economic development data reliable? • Are consumers willing respondents for marketing research studies? • Is it possible to effectively communicate with the target consumers?

9. Effective International Segmentation Requirements (contd.) • Actionability: • The extent to which the international target market is responsive to the marketing strategies used. • Important question: • Will consumers buy the company’s product? • Differential response: • The extent to which international market segments respond differently to marketing strategies. • Important questions: • Can we distinguish segments from each other? Do consumers have different preferences in this international market?

10. Bases for Segmentation • Demographic: • Age • Occupation • Education • Income • Ethnicity • Race • Nationality • Life-cycle stage • Social class

11. Bases for Segmentation (contd.) • Demographic (contd.) • Psychographic: lifestyles, values, attitudes, interests, opinions • Hofstede dimensions: • Power-distance • Masculinity-femininity • Uncertainty avoidance • Individualism-collectivism

12. Bases for Segmentation (contd.) • Benefit Segmentation • Example: Cooking oil markets can be segmented based on benefits sought—olive oil is targeted to consumers who seek health benefits. • Geographic Segmentation

13. Bases for Segmentation (contd.) • Usage and User status (contd.) • Usage • Nonusers • Occasional users • Medium users • Heavy users • User Status • User of competitors’ products • Ex-users • Potential users • First-time users • Regular users

14. Describe the target market discussed in the article “Women in Italy Like To Clean The Quick and Easy,” Deborah Ball, WSJ, April 25, 2006, p. 1. Demographic Geographic Psychographic Benefit User Status

15. What marketing decision(s) did P&G make regarding its Swiffer product line? Were they effective? Were they standardized or adapted? • http://www.swiffer.net/index_flash.shtml

16. What marketing decision(s) did Bosch, Whirlpool, Electrolux AB and Reckitt make regarding their dish washing machine product line?Were they effective? Were they standardized or adapted?

17. What marketing decision(s) did Unilever make regarding its Cif product line? Were they effective? Were they standardized or adapted? • http://www.unilever.com/ourbrands/homecare/default.asp The arrival of Cif in 1969, first launched in France and later rolled out in 45 countries, heralded the end of scouring powders. Initially, the brand focused on cream cleansers for the kitchen and bathroom, underpinned by its famous 'Skater' ads, which highlighted how scouring powders can 'scratch like skates on ice'

18. What marketing decision(s) did Bosch, Whirlpool, Electrolux AB and Reckitt make regarding their dish washing machine product line? Were they effective? Were they standardized or adapted? http://www.bosch.com/content/language2/html/index.htm

19. Were P&G’s Target Market Decisions • Differentiated? • Identify or create market segments desiring different product benefits and target each segment with a different brand and different marketing strategies • Concentrated? • Select only one market segment and target it with a single brand. • Example: Mont Blanc pens • Undifferentiated? • Aim the product at the market with a single strategy regardless of the number of market segments. • Example: powder milk, beans

20. How was Swiffer duster positioned in Italy? • Attribute/Benefit • Price/Quality • Uses or Application • Product User • Product Class • Competition

21. International Target Marketing Is Used by Companies to: • Identify consumer segments with similar traits. • Select segments company can serve efficiently. • Develop products tailored to each segment. • Offer products to the target market, communicating through the marketing mix, product traits and benefits that differentiate it in the consumer’s mind.