Report on

Marketing in Internation Business

Submitted to:
Mr. Arshid Ayyaz

Submitted by:
Adeel Khan

(MBLE-13-39)

Class:
BBA 8 th (eve)

DEPARTMENT OF BUSINESS
ADMNISTRATION BZU BHADUR SUB
CAMPUS LAYYAH

Marketing
The action or business of promoting and selling products or services, including market
research and advertising

What is International Marketing?

International marketing is the application of marketing principles in more than one
country, by companies overseas or across national borders. International marketing is
based on an extension of a companys local marketing strategy, with special attention
paid to marketing identification, targeting, and decisions internationally
For International Marketing two steps are fruit full which are

1. Target Marketing
2. Marketing Management
Target Marketing
A target market is a group of customers a business has decided to aim its marketing
efforts and ultimately its merchandise towards. A well-defined target market the first
element of a marketing strategy

Steps in target marketing

Target marketing is a three step process;
Market segmentation
Dividing a market into distinct groups of buyers with different needs, characteristics, or
behavior who might require separate products or marketing strategies
Market targeting
Tthe process of evaluating each market's attractiveness and selecting one or more
segments to
Market positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to
competing products in the minds of target consumers

Identification and Screening

Preliminary Screening
The parameters used for the preliminary screening may vary from product to product.
However, parameters like the size of population, per capita income, structure of the
economy, infrastructural factors, political conditions etc. are commonly used. Information
about some of the factors would enable a company to eliminate certain markets from its
consideration.
Estimating Market Potentials by Product Type
Determining the market potential of a product is part of a successful marketing process
and requires marketing research. You'll need to examine at least three factors that will
determine whether the market potential of your product is worth the investment. You
need to analyze your potential customer base, analyze your competition and analyze the
current environmental conditions that may affect market potential.
Estimating Sales Potential for Companys Product
Sales potential is the estimated market share that company expects to capture in a market
in a stipulated time period after entering the market. Sales potential results are very
important for a company in determining whether to enter a market or not depending on
the estimated profitability from sales potential.
This is the share of market potential allocated to a specific geographic area for a
particular product, or the share of the total market potential that a manufacturer can
reasonably expect to sell. The overall figure is always optimistic and must be pruned
down by other factors.
Identifying Segments in Target Market
This tool will help you evaluate your marketing research to identify potential market
segments, identify characteristics of each market segment, and select a target market.

Marketing management
Marketing management is defined as the process of overseeing and planning new product
development, advertising, promotions and sales. An example of marketing management
is creating an advertising plan and implementing that plan.
Standardization:
Standardization is a framework of agreements to which all relevant parties in an industry
or organization must adhere to ensure that all processes associated with the creation of a
good or performance of a service are performed within set guidelines. This is done to
ensure the end product has consistent quality, and that any conclusions made are
comparable with all other equivalent items in the same class.
Pros and Cons of Standarization:

Why would a company want to use global standardization? Well, if a customer in the
United States uses a product one way, and a customer in Japan uses the product the same
way, a company can utilize global standardization. So, what are the positive aspects?
Costs - a company does not have to pay for special marketing for
each market. One marketing strategy can be used in multiple
areas of the world, therefore cutting the cost of having to develop
several marketing strategies.
Brand - a strong brand can have the same effect in different
areas around the world. What makes a strong presence in one
country, can have the same effect in other countries.
Now, there is at least one negative aspect to global standardization.
Sensibility - while some countries may appreciate and accept a product, others may not
agree or have a different opinion about that product. A Western country may view a car or
a washing machine as normal in everyday life, while a developing country could view the
same item as a luxury. And while one country may sell a health product using sensual
advertisement, a more conservative country might need a more rational message. These
differences in perspective could force a company to develop a more customizable market
strategy for different areas of the world.
Adaptation

Companies that operate in international markets must take into account local differences
in language, culture, legal and regulatory requirements and distribution channels.
Offering standard products in all territories can lead to failure if the product does not
meet local market standards, requirements or regulations. Adaptation enables your
company to succeed in individual markets by developing a thorough understanding of
local requirements and modifying different aspects of your marketing strategy.
Pros and Cons of Adaptation:

Pros
Respect local specification and expectations
Excellent local image
Customer keep their landmark and feel noticed

Cons
High Cost
Time consuming and poor speed of execution
Difficulty to know what consumer wants

Factors Affecting Product Adaptation

Product adaptation is the process by which a company adjusts and improves upon a
product to make it more appealing to the target market. The owner might adapt her own
product or improve upon an existing product offered by another company. It's important
for a business owner to continuously evaluate her product line to determine whether
adjustments are in order.
1. Target Market
Noticing changes in the moods, opinions and needs of your target market is a key factor
in the product adaptation process. Business owners use feedback from focus groups and
online forums to keep in touch with the needs of customers. A climate of ever-changing
technology also affects the opinions of consumers. If you see a trend developing, such as
a demand for a new feature for an existing software program, adapting the product to that
consumer need might help increase sales.
2. Packaging

Response to the packaging of the product is another important consideration when

evaluating the need for a product adaptation. Your decisions regarding packaging should
depend on the cost, added value and protection the package provides for the actual
product inside as well as how attractive it is to customers. While changing the packaging
of the product could confuse some longtime, dedicated users, a simple packaging change
may help boost sales of the item in other cases. If you get a lot of comments from
customers to the effect of "This is a great product, but I never would have picked it up if
my friend hadn't referred it to me," you could have a packaging issue. For example, a
publisher might adapt a book by changing a plain and uninteresting cover into a more
colorful and descriptive cover with an eye-catching title.

3. Changes in Economic Climate

Changes in the economic climate due to matters that are out of your control affect product
adaptation. If problems in the economy cause an overall reduction in sales, consider using
less expensive materials or modifying the overall design of the product to make it more
affordable for consumers.

4. Actions of Competitors
It's also important for a business owner to keep a close eye on competing products when
evaluating his own offering. The actions and product offerings of competitors is a key
factor that leads to product adaptation. For instance, if a competing baby stroller
company starts offering a stroller with a built in GPS tracking device that customers love,
you could be left behind if you don't eventually adapt your own strollers with this feature .

Product policy:
A strategic rule or rules covering how a good or service is promoted to potential
consumers. A typical product policy created by a business for a manufactured product
might attempt to manage how the item will be perceived by its target market and could
also contain information about how durable the product is.

Product Characteristics:
The characteristics of the product are the features and elements that differentiate it from
other products on the market. Product characteristics help determine the marketing mix,
potential target market and the pricing of a product. A product needs to differentiate itself
in the market and carry distinct characteristics that separate it from its competitors.

Otherwise, there would be no reason for consumers to purchase that product over any
other product on the market.
The unique characteristics of a product should be used as inputs in determining the
product's marketing mix.
The characteristics of the product are the features that differentiate it from other
products on the market.
When companies create a product they have specific features in mind. It can be
characteristics that improve on an existing product or ones that fill a currently
unfilled need. Promoting these features can be a successful approach.
Characteristics of a product also help to determine the price of a product. Premium
features may be able to fetch a premium price.
It is the combination of demand for a product and its price that help to determine
the marketing mix.

Company Considerations
There are many nuances that drive the business decision. When pondering if international
expansion is right for you, consider these four factors:

1. Culture
The cultural difference can determine whether the business is successful or not. If the
product or service doesn't add value or meet the desires of the local markets, there's no
need to go sailing! It is vital to have an intimate understanding about who lives in the
community and what they value. Consider the following:

Does your product or service provide a need or desire by the local consumers?
Are there language and cultural differences? How will you overcome these?
Can you manage the time zone difference effectively?
Are there dietary, religious or lifestyle considerations that could affect your
business?
How are contracts or agreements negotiated?
Is there any business attributes considered offensive or rude when engaging the
local consumers
Are there limitations over business practices?
How will you market the product or service?
What if your product or service doesn't translate well to the local community?

Knowing how to conduct business among the "local" markets is extremely important. Do
not underestimate the effects of cultural differences. You must be willing to invest
significant time and energy in order to pursue an overseas venture. Seek first to
understand the culture.

2. Legal and regulatory barriers

Conducting business in foreign markets is achievable if the business is flexible enough to
work within the local laws and regulation guidelines. Review aspects such as :

Labor and employment laws

Duties and treaties
Restrictions (import and export laws)
Corporate organization practices
Investment and business procedures
Dispute resolution
Trademark requirements
Customs laws and regulatory requirements
Limitations on currency repatriation
Tax laws on products, services and conducting business
Producer/distributor liability provisions

When reviewing legal and regulatory commitments, it is highly advised that you seek
experienced legal counsel for overseas business practices to identify hazards that may
cause barriers for your business. Don't skimp on the cost of using overseas expert legal
counsel, it can save you in the long run.

3. Foreign government consideration

The stability of the local government and its authority are very important when reviewing
overseas business options. Aspects to consider are:

Currency exchange rates

Access to needed resources and materials
Communication and transportation options
Government assistance programs for businesses
Access to affordable capital
Protection policies for businesses
Immigration and employment Laws

Government stability holds the key to contract integrity, employee security and rights,
trademark and intellectual property and many other facets in conducting business. Make
sure to seek "local" expertise over the political and business factors before entertaining
any overseas expansion.

4. Business case
It is essential that the business case responds to the challenges, adversity and rewards of
expanding overseas. Some strategies to consider are:
Perform a market study to understand the market's personality, economic
feasibility, market trends, financial cost patterns and market forecasts
Do a financial feasibility study to determine if the move makes financial sense
Intellectual property and trademark protection, and making sure the governmental
authorities in that location recognize and protect the businesses proprietary needs
Partnership and liaison relationship development seek guidance and opportunity
by engaging in a "local" partnership with an existing client or supplier

Distribution policy

Importer
Distributer
Wholesaler
Retailer
Multiple Channels
Government Department
State Buying Organization
Joint Ventuure, Licensees/Frenchisees

Channel Design
In internation market Determine the 11 C-Factors

Customers
Culture
Competition
Company
Character
Capital
Cost

Coverage
Control
Continuity
Communication

Promotional Policy for Internation Market

Below the line promotion Includes promotion policy which are more personal, traditional
and allow the company control. They can include:
Public Relations- when a business communicates directly with it's public through
press releases and speaking at conferences
Sales promotions - such as 50% extra free, buy one get one free or coupons and
gifts
Sponsorship - where a business will pay to be associated with another product,
person or event. Sportspersons are often sponsored by sports companies.
Direct sales - when a representative of the business will visit potential customers
TV, Radio and Cinema - allows businesses to target a large group of people
Newspapers - allow advertisers to reach specific groups of people
The web (internet)- allows businesses to reach a large international audience at a
very low cost.

Outdoor/transport - advertisements on the side of busses, outside shops and on

billboards enable