Student Name - Ma Aye Aye Maw

Module Name -Inrenational Marketing and Sale Management

Program - Professinal Diploma in Inrenational Marketing
and Sale Management
Intake -4
Assignment -3
Lecture - Daw Cho Me Maung Maung
Contents
1. What are the benefits to consumers arising from international trade? Are they the same for industrial goods as
for consumer goods? What costs to consumers arise from international trade?..........................................................2
2. How to make decision about product development if your company is to operate effectively in foreign
markets?........................................................................................................................................................................3
International Marketing Mix.......................................................................................................................................3
Global Marketing Mix: Consumer Products................................................................................................................3
Global Marketing Mix: Price...........................................................................................................................................4
International Pricing Challenges.................................................................................................................................5
Export Price Escalation................................................................................................................................................5
Inflation.......................................................................................................................................................................5
Currency Movements..................................................................................................................................................5
Transfer Pricing............................................................................................................................................................5
Anti-dumping Regulations..........................................................................................................................................5
Price Coordination......................................................................................................................................................5
Countertrade...............................................................................................................................................................6
Global Marketing Mix: Promotion..............................................................................................................................6
Advertising and Culture..............................................................................................................................................6
Setting a Budget..........................................................................................................................................................7
Promotional Strategy..................................................................................................................................................7
Ad Regulations............................................................................................................................................................7
Choosing an Agency....................................................................................................................................................7
Other Communication Options...................................................................................................................................8
Globally Integrated Marketing Communications GIMC..............................................................................................8
Global Marketing Mix: Distribution................................................................................................................................8
Distribution Processes and Structures........................................................................................................................8
Distribution Patterns...............................................................................................................................................8
Direct advertising....................................................................................................................................................9
Choosing Your Middleman..........................................................................................................................................9
Home-Country Middlemen.....................................................................................................................................9
Foreign -Country Middlemen..................................................................................................................................9
Factors Affecting Choice of Channels......................................................................................................................9
Application of four P’s...............................................................................................................................................10
1. What are the benefits to consumers arising from international trade?
Are they the same for industrial goods as for consumer goods? What
costs to consumers arise from international trade?

· Active change members of the family amongst international locations create employment
opportunities, and buyers reap as employment is their supply of purchasing energy for home and
foreign items and services.

• The nature of possible benefits of importing patron items are apparent – namely, decrease price,
an expand in grant and variety of items from which customers can choose, an being in a position
to get admission to the consequences of technological tendencies and advancements. While no
longer pretty so obvious, the effect of importing goods is the same. However, it is not a direct
benefit, but depends on the have an impact on that such imports have on domestic manufacturing
region of the economy.

• Consumers have a stake in the exports of domestic corporations to the extent that excessive
quantity creates economies in the production manner which are then passed on. That is,
promoting abroad helps to reap economic system in manufacturing at home, which ability lower
costs to buyers of home products. At the same time, in order to pay for imports, there must be a
capital outflow. Not solely does this have a negative effect upon the country’s balance of
payments, but there ought to be a lessening of much wished foreign currency. Increased
opposition to locally produced goods may additionally exist, and labor should be affected if this
opposition led to misplaced income and earnings redundancy in employment.
2. How to make decision about product development if your company is to operate
effectively in foreign markets?

International Marketing Mix

Global Marketing combines the advertising and promoting of items and offerings with an
increasingly interdependent and built-in international economy. It makes the corporations
stateless and except walls.
The 4P's of Marketing − product, price, place, and merchandising − pose many challenges when
utilized to world marketing. We take each one of the P’s personally and attempt to locate out the
problems related with them.

Global Marketing Mix: Consumer Products

The product and service mix is one of the most important substances for the world marketer
today. The various demand for merchandise and offerings in the generation of globalization is
mind-blowing. Presence of industrialized and emerging markets, increasing buying power, and
the increase of Internet has made the clients aware, smart, and greater demanding. The end result
is a larger competition between firms.

Here are the important factors to consider when going global with a product or service.
The global client makes purchasing decisions to get the nice great merchandise at the most less
costly price. They have information accessible in abundance, thanks to the Internet. Therefore,
innovation takes center-stage to obtain enough attention from workable consumers.
A international marketer need to be bendy enough to adjust the attributes of its merchandise in
order to adapt to the legal, economic, political, technological or climatic wants of a nearby
market. Overall, international marketing requires the firms to have accessible and specific
processes for product adaptation for success in new markets.
Culture can differentiate a standardized product from an tailored one. Making cultural changes in
product attributes is like introducing a new product in your domestic country. The product have
to meet the needs, tastes, and patterns that are permitted by way of the market culture.
Lastly, it is vital to apprehend that a product or service is now not just one "thing." It must be
seen as a section of the total advertising combine so that a tremendous synergy can be built
among unique techniques and actions.

Global Marketing Mix: Price

Pricing is a integral phase of the advertising combine for international firms. Pricing
strategies play a fundamental position when a organization wishes to penetrate into a market
and make bigger its operations.

Drivers in Foreign Market Pricing

The most essential elements that figure out the expenditures are labelled the 4 C’s

-Company , cost, organization goals

-Customer pricesensitivity, segments, consumerpreferences

- Competition marketstructureandintensityofcompetition

- Channels ofdistribution
International Pricing Challenges
Global companies face the following challenges whilst pricing their merchandise and
offerings to suit the requirements of international market −
Export Price Escalation − Exporting consists of greater steps and greater risks than
domestic sale. To make up for shipping, insurance plan and tariffs, and foreign retail prices,
the export fee can also be lots higher than home country. It is essential to understand whether
external clients are inclined to pay an additional rate for the products/services and whether the
pricing will be competitive in that market. If each solutions are negative, then there are two
approaches. One is to find a way to reduce the export price, and the 2nd is to role the product
as an one-of-a-kind or top class brand.
Inflation − Intense and uncontrolled inflation can be a huge obstacle for MNCs. If inflation
fees are rampant, putting fees and controlling fees require full dedication of marketing and
monetary divisions. Some picks to counter inflation encompass changing the factors of
products or their packaging, paying for uncooked materials from cheap suppliers and
shortening credit terms, etc.
Currency Movements − Exchange quotes being unstable, setting a rate approach that can
get rid of fluctuations receives difficult. Key considerations consist of what percentage of
trade charge achieve or loss need to be transferred to clients thepass − throughissue, and
discovering which currency charge costs are given in.
Transfer Pricing − Transfer costs are the fees for transactions that involve exchange of
uncooked materials, components, completed products, or services. Transfer pricing include
stakeholders, such as the company, nearby managers, host governments, domestic
governments, and joint-venture partners. Tax regimes, local conditions, imperfections, joint
challenge companions and the morale of managers have an effect on switch pricing.
Anti-dumping Regulations − Dumping takes place when imports are offered at an unfair
and very low price. Recently nations have adopted anti-dumping laws to shield their
neighborhood industries. Anti-dumping laws need to be regarded when determining
international prices.
Price Coordination − Price coordination is the relationship between expenses charged in
exceptional countries. It is an important consideration whilst finding out the international
pricing model. Price coordination includes the following factors − Nature of customers,
Product differentiation amount, Nature of distribution channels, Competition type, Market
Integration, Internal organizational characteristics, and Government regulations.
Countertrade − Countertrades are unconventional trade-financing transactions along with
non-cash compensation. A financial valuation can on the other hand be used in countertrade
for accounting purposes. In dealings between sovereign states, the time period bilateral
exchange is typically used. Examples encompass clearing arrangements, buybacks, counter
purchases, swap trading, and offsets.

Global Marketing Mix: Promotion

Promotion comes into photograph when a international enterprise wants to speak its imparting to
possible customers. How an employer chooses to promote its products and offerings can have a
direct and giant influence on its sales.

Advertising and Culture

Advertising can create a famous subculture and a culture may also affect the ad as well. Culture’s
affect in advertising is prevalent, specially in culturally-sensitive problems like religion and
politics.
Setting a Budget
A global marketer can consider budgeting guidelines such as share of sales
creatingbudgetasapercentageofsalesrevenues, competitive parity taking competitor
′sadspendingasabenchmark, or objective-and-task
treatingpromotionaleffortstoachievestatedobjectives. Global markets use three strategies to attain
allocation choices −
In bottom-up budgeting, the gadgets independently determine the market price range and request
assets from headquarters.
In top-down budgeting, the headquarters set a whole price range and break up up the resources.
Decisions may additionally also be made at a regional stage and submitted to the headquarters
for their approval.

Promotional Strategy
When world entrepreneurs select a standardized approach, the identical global campaign is
applied during all countries.
Advantages − Achieving economies of scale in ad campaigns to minimize cost, keeping a regular
company image.
Barriers − Cultural variations ensuing in poor or ineffective purchaser response, advertising laws
and regulations, editions in diploma of advertising development.
The NIH Syndrome: A Barrier to Standardized Approach
Assessing Global Media Decisions
Global media decisions are a big subject for global firms. The media buying patterns fluctuate
throughout countries. A international marketer need to find the nice media channels in a market.

Ad Regulations
Foreign regulations on advertisements may additionally be present in a specific country.
Research of the legal guidelines in the united states of operation is vital earlier than creating a
campaign, to avoid legal implications and waste of time and money.

Choosing an Agency
Choosing an advert business enterprise can also prove extra positive due to their understanding
of the u . s . and market they are doing commercial enterprise in.
Other Communication Options
Sales events, direct marketing, sponsorships, cellular marketing, product placement, viral
marketing, and public members of the family and publicity are also applicable.

Globally Integrated Marketing Communications GIMC

A GIMC is a device of promotional administration that coordinates world communications -
horizontally fromcountrytocountry and vertically promotiontools. GIMC is intended to
harmonize the promotional and conversation disciplines in every way. All communication cars
can also be integrated so that they deliver the single thinking to all involved in a unified voice.

Global Marketing Mix: Distribution

In order to be profitable in a international market, a marketer should make its products and
reachable to customers at all costs. Distribution channels make up the "place" in the 4 P’s of the
advertising mix alongwithProduct, Price, andPromotion.

Distribution Processes and Structures

The distribution technique offers with product dealing with and distribution, the passage of
possession title , and the purchase and sell negotiations.
Negotiations take vicinity between the producers and the middlemen and then between the
middlemen and the customers.
Traditionally, import-oriented distribution buildings relied on a system where importers
controlled a constant furnish of goods. The advertising was based on the idea of restricted
suppliers, high prices, and smaller number of customers. Today, the import-oriented model is
hardly ever used. Channel structures have turn out to be greater superior with common
development.

Distribution Patterns
To recognize a overseas distribution system, entrepreneurs have to in no way consider that it is
the identical as the domestic one. Many distribution patterns exist in retailing and wholesaling.
Size, patterns, direct marketing, and the resistance to alternate have an effect on the composure
of distribution channels.
Retail dimension and sample − Company’s might also both sell to large, dominant retailers
directly or distribute to smaller retailers
Direct advertising − The venture in underdeveloped nations is dealt with thru direct marketing.
Direct advertising takes place when customers are focused through mail, telephone, email, or
door-to-door selling. This process additionally doesn’t take retailer and wholesaler kinds into
consideration.

Choosing Your Middleman

The channel system starts with manufacturing and ends with the closing sale to the customer. It
is most probably to counter many extraordinary middlemen in the process. There are three sorts
of middlemen in distribution channels −
Home-Country Middlemen − They grant advertising and marketing and distribution offerings from
a home base in the domestic country. The events usually relegate the foreign-market distribution
to others; including producer or world retailers, export administration companies, or buying and
selling companies.
Foreign -Country Middlemen − For a greater control, foreign-country middlemen are hired who
can create a shorter channel and have greater market expertise.
Government- Affiliated Middlemen − Government-affiliated middlemen are frequently
accountable in distribution for the government’s use.

Factors Affecting Choice of Channels

Channel of distribution or middlemen choice ought to precede the perception of the traits of the
overseas market and the installed frequent machine there. The predominant factors to consider
while selecting a specific channel are −

The particular goal market inside and across countries.

The desires in phrases of volume, market share, and earnings margin.

The financial and organizational commitments.

Control of the length and characteristics of the channels.

Application of four P’s

The following illustration depicts the world advertising mix of McDonald’s. It shows how
McDonald’s varies its marketing approach according to the requirements of extraordinary
neighborhood markets.