A

Presentation
On

International Marketing Mix Decisions

Prepared by:
Dodiya Dipak G. (09)
Gajera Nitin M. (12 )
(MB A-4 t h sem.)
Submitte d To:
Mr. Monarch Joshi
Indu Management Institute-
Ankodiya (Vadodar a)
What Is Product?

A Product is often considered in a narrow sense

as something tangible that can be described in
terms of physical attributes, such as shape,
dimension, components, form, color, and so on.

Perhaps the best way to define product as “ a

bundle of utilities or satisfaction.”
New Product Development:

There are six distinct step in new product

development.
 Generation of new product idea
 Screening of idea
 Business analysis
 Product development
 Test marketing
 Full scale commercialization
Product Positioning

 Product Positioning is marketing strategy that

attempts to occupy an appealing space in a
consumer’s mind in relation to the spaces
occupied by other competitive product.
Product Adoption
In breaking into foreign market, marketers should
consider factors that influence product
adoption . As explained by diffusion theory , at
least six factors have a bearing on the adoption
process which is as below
1. Relative advantage
2. Compatibility
3. Trialability
4. Observability
5. Complexity
6. Price
Theory Of International PLC

 The international product life cycle theory

developed and by economists to explain trade
in a context of comparative advantage,
describe a diffusion process of an innovation
across national boundaries. The life cycle
begins when a developed country , having a
new product to satisfy consumers needs, wants
to exploiters technological breakthrough by
selling abroad.
 Stages of International Product Life Cycle

Stage Import/ Target Market Competitors Production Cost

Export
(O)Local None USA Few: local firms Initially high
Innovation
(1)Overseas Increasing USA & Advance Few: local firms Decline owing to
Innovation Export Nations economies of
scale
(2)Maturity Stable Advance Advance Nations Stables
Export Nations & LDCs
(3)Worldwide Declining LDCs Advance Nations Increasing
Imitation Export owing to lower
economies of
scale

(4)Reversal Increasing USA Advance Nations Increase owing

Import & LDCs to comparative
disadvantage
Branding Levels And Alternatives

There are four levels of branding decisions:

 No brand versus brand
 Private brand versus manufacturer’s brand
 Single brand versus multiple brand
 Local brands versus worldwide brand
 A Branding Model For Decision Making
1).BRANDING VS. NO BRANDING DECISION No Unbranded Commodity
Does the product have production consistency and
salient attributes which can be differentiated?
Yes Branding

2).MANUFACTURER’S OWN BRAND VS. PRIVATE NO Private Brand

BRAND DECISION
Is the manufacturer the “least dependent person”?
Yes Manufaracturer’s Own Brand
3).GLOBAL BRAND VS. LOCAL BRANDS DECISION No Global Brand
Are there intermarket differences (demographically
and/or psychographically?)
Yes Local Brand
4).SINGLE BRAND VS. MULTIPLE BRANDS DECISION No Single Brand
Are there intermarket differences (demographically
and/or psychographically

Yes Market Segmentation And Multiple Brand

Brand Characteristics

 Negative Connotation
 Desired Product Image
 Unique or Distinctive
Pricing Strategies

 The Role Of Pricing

Price is an integral part of a product – a product
cannot exist without price. It is difficult to
think or talk about a product without
considering its price. Price is important
because it affect demand , and an inverse
relationship between the two usually prevails.
Pricing Decision

 Pricing decision depends on the several elements

which are as below
1. Supply and Demand
2. Cost
3. Elasticity and Cross Elasticity of Demand
4. Exchange Rate
5. Market Share
6. Tariffs and Distribution Cost
7. Culture
Dumping
Dumping , a form of price discrimination , is the
practice of charging different price for the
same product in similar markets. As a result ,
imported goods are sold at prices so law as to
be detrimental to local producers of the same
kind of merchandise.
Types Of Dumping:
1. Sporadic Dumping
2. Predatory Dumping
3. Persistent Dumping
4. Reverse Dumping
Countertrade

Countertrade is one of the oldest form of trade, is

government mandate to pay for goods and
service with something other than cash. It is a
practice which requires a seller , as a condition
of sale, to commit contractually to reciprocate
and undertake certain business initiatives that
compensate and benefits the buyer.
Types Of Countertrade

 Barter
 Counter purchase
 Compensation trade
 Switch trading
 Offset
 Clearing agreement
Price Quotation

 A quotation describe a specific product ,

states the price for that product as well as a
specified delivery location, sets the time of
shipment, and specific payment terms
Methods Of Financing & Means Of
Payment
 Consignment
 Open Account
 Cash in Advance
 Bill Of Exchange
 Bankers’ Acceptance
 Letter Of Credit
Packing: Function & Criteria

Much like the brand name, packing is another

part of a product. Packing serves two primary
purpose:
1. Functional
2. Promotional
Mandatory Package Modification

 A package change may be either mandatory or

at the discretion of the marketer. A mandatory
change is usually necessitated by government
regulations. Sometimes, it is for safety and
other reasons. Sometimes, packaging
regulations are designed more for protection
against imports than for consumer protection.
Optional Packing Modification
 Optional modification of package , although
not absolutely necessary , may have to be
undertaken for marketing impact or for
facilitating marketing activity.
Distribution

Companies use two principle channels of

distribution when marketing abroad:
1. Indirect selling
2. Direct selling
Types Of Intermediaries: Direct Channel

 Foreign Distributer
 Foreign Retailer
 State-Controlled Trading Company
 End User
Types Of Intermediaries: Indirect
Channel
 Export Broker
 Manufacturer's Export Agent
 Export Management Company
 Cooperative Exporter
 Webb- Pomerence Association
 Purchasing/Buying Agents
 Country Controlled Buying Agents
 Resident Buyer
 Export Merchant
 Export Drop Shipper
 Export Distributor
 Trading Company
Channel Decision

As in any domestic market, the international

market requires a marketers to make at least
three decision which is:
 Channel length
 Channel width
 Number of distribution channel
Determinants Of Channel Types

 There is no single across the board solution for all

manufacturers’ channel decisions. Yet there are certain
factors that can assist a manufacturer in making good
decision which is as below:
 Legal Regulations
 Product Image
 Product Characteristics
 Middlemen’s Loyality & Conflicts
 Local Customs
 Control
Documentation

 It is not an exaggeration to say that “paper

moves cargo .” To move cargo
documentation is a necessity
Types Of Documents

 There are major two types of documents

which is as below;
 Shipping Documents
 Collection Documents
Types Of Shipping Documents

 Export License
 Shipper’s Export Declaration Form
 Report of Request For Restrictive Trade Practice
 Certificate of Registration
 Hazardous Certificate
 Packing List
 Shipper’s Letter of Instruction
 Dock Receipt
Types Of Collection documents

 Commercial Invoice
 Foreign Custom Invoice
 Consular Invoice
 Certificate of Origin
 Inspection Certificate
 Special Purpose Documents
 Insurance Certificate
 Air Waybill
 Bill of Lading
Thank You