Origins and Scattering Factors of IM Definitions & Concepts

They go back to the 17C through the work of Jacques Savary, “The perfect trader”. Mrk & IM: Background on the basic concept: IM is the perf of business acts
And in 1748, he published a universal dictionary of trade. The mrk thinking translates designed to plan, price, promote, & direct the flow of a comp’s goods & services to
into a cst obs of sociological devs in the world & adapted to the diff needs of int custs. consumers/users in more than one nation for a profit.
The dev factors of IM: The period of thirty glorious (1945-1975): During the The usefulness of IM: The emergence of a new int competition forces comps to
postwar period, the U.S. that funded the reconstruction through the Marshall Plan: rethink their stra. They need to adapt to mrk skills, both on the domestic market and
took adv of the European demand for large csmp. They have many subsidiaries outside their borders.
located in Western Europe, particularly in UK & Germany. Awareness of US products The interdependence of mrk with other business fcts: Business fcts induced
was confirmed and impregnated as "The American way of life". system perf at diff levels:
💡 The USA has discovered the concept of mrk abroad: ● The control of the supply
● Export surplus prod./the product has reached the end of its life cycle at home. ● Cost optimization of purchases permitted by the mrk
● To fill the needs of some markets when there is missing merchandise. ● R&D department
The period of oil shocks (1979-1980 & 1983-1984) Definitions & Concepts: "IM is a process that aims to optimize resources and focus
They have played a role in accelerating the imp of IM for three main reasons: the goals of an org through the opp of a global market". Since the 90s, the mrk stra is
● The harshness of the resulting int competition. oriented around the following alts:
● Looking for a better ROS in target markets. 1.How appr is it to adopt the opposite att to the local market & adjust each case(export
● Need to predict the future in a more uncertain world that entitles a less erroneous market) to diff products & mrk policies?
assessment of opp. 2.Can we sell products that were engineered to be stdized across the world?
The 90s: Including the EC in 1993 and getting from a market economy to Central and 3.Can we finally stop and search for a midline stdization of manufacturing but by
Eastern Europe. adopting locally?
The beginning of the 21st century: 9-11 and its repercussions on the world ec. ⇒ These alts emerge three basic concepts:
The new conds & consts on market access: The competitiveness of nations, ● The export mrk: The comp engaged in it is committed to each foreign market &
among the key factors in measuring it: A labor-abundant and cheap, The abundance their own mrk policy. The shares are diffiated for all elements of the mrk mix.
of natural resources, Exchange rates and interest rates, The budget deficit of a Adaptation is consistent in each export market.
country, Export promotion by the government, The Subsidy, Protectionist measures ● IM manag: The comp applies a stdized global stra.
The competitiveness of nations can now be assessed through new basic factors: ● The appr stdization(think global- act local): It’s a middle position between the sys
● The criteria for the classical ec theory that gather around basic factors. adaptation & adaptation to stdization. It can meet the demands of local consumers
● Demand conditions that are related to each country. while establishing commercial and fin profitability.
● The combination of perf among diff actors in the sector within a country. Chars of IM: IM differs from domestic mrk by the fact that it interprets more numerous
● The business stra, their org, and the intensity of local competition. & complex vars. These vars are mainly constituted by the sociocultural chars of the
💡 The combination of all these factors results in the establishment of "Diamond perf" country.
that connects the interdependence of factors of competitiveness of a country. IM will lead the comp to:
Constraints ● Be managed by people with a mind more eclectic
● Increased global competition at the firm: The commoditization of tech allows ● Choose tools & techs appr to the specific int markets
newly industrialized countries to become int competitors: directly related to the The particular Mindset: Tolerance and acceptance of socio-cultural diffs, Ability to
transfer of manufacturing licenses, sales of plants, or hand installed in the NIC, which understand the sociological changes, Curiosity about foreign market, Innovation, Use
in turn exported manufactures to rich countries. tools for obs and analysis of foreign markets
● The diff of maintaining the advantageous positions: The Use of diffiated Tools: IM tools must take into account: Local economic culture,
○ Search for new competitive advs (The Challenge) The moral and religious values, The level of economic dev, The sociological diffs in
○ Develop technological innovation the country
○ Ensure a good position in its local market Objs of IM
○ Implement an int stra ● Allow the comp to maintain its position in foreign markets it occupies, taking into
○ Relying on the "made in" and its symbols & enjoy the int reputation of a nation account the slope of the annual market:determined in terms of market share.
● Allow progress in the markets where it operates.
 ● Identify new markets, microsegs on current markets, or new foreign markets. his own intuition & personal int in each market as well as the networks of relationships
● Identify & validate new concepts likely to find broad opp in the global market. that have dev in each market.
Functions of IM Pre-Selecting: Studies of Screening: Unlike large comps, SMEs don’t have
● Identify pot markets with facilities appr & penet costs related to size & the expertise sufficient fin resources to carry out a market study on all countries in order to select
(export diagnosis). their target markets. During a pre-study, SMEs identify & select a priori more attractive
● Understand the psych related to the purchase & csmp. and accessible markets. The company can eliminate some uninteresting markets for
● Analyze the competitive position of competitors. which it does not have the resources and skills. This pre-selection study must be
● Identify pot niches compared to specificities of business. rapid, inexpensive and based on the analysis of general & summary info, also easily
● Stop a policy of penetration. accessible in a documentary search
● Determine the product policy and the policy range. Geographic indicators: The geo location, distance, geology & natural resources…
● Setting bus. goals qnty value by market, seg, & line. Economic data: Tade data, agreements, tech cooperation/fin protocols, the local
● Implement measures to support business networks. tissue bank (efficiency of the banking system…) and credit conds, cons spending…
● Prog tactical actions with direct competitors. Demographic indicators: Tot pop, density & the level of concentration, growth rate, °
Applications: Purchases: Finding the best conditions (quality, logistics, price…) of urbanization, age dist, purchasing power and dist by income class, ethnic groups,
imposes a competition, a sys selection of int suppliers. This is called the IM purchases literacy level…
(also mrk upstream relative to the market-oriented sales & mrk downstream). Political environment: Political regime and its stability, ec policy, trade barriers, non-
Mega Mrk: Some large global comps try to imp actions intended to restore their image tariff barriers, tax policy, oreign invst regime, ° of bureaucracy, att to corruption…
to public opinion. These actions come under “mega mrk”. They aim to com the Global Studies: Allows the comp to dev a knowledge of the market addressed by
humanity of these companies both at the indv and collective levels. analyzing its structure, operation, consts… In doing so, the comp can confirm the ° of
attractiveness of the markets in the S-MT.

How to Select my Export Market?

Legal Environment: Legislation making consp (mandatory info, labeling, packaging,
after-sales…), social legislation, legislation on commercial contracts, envt legislation…
Disjunctive criteria: it is necessary and if not found the option of the market is Competitive Structure: Concentration/not of the competitive structure, local & foreign
deleted. competitors, size, market share, sales & growth rate, prod eq, foreign markets for local
Conjunctive criteria: a must while choosing a market. competitors, SWOT, product policy (width & depth ranges, tech & commercial chars of
Sometimes the export occurs by chance (for example after participating in a mission products, brand, packaging…), competitors pricing, competitors dist policy (n° &
or fair trade), even in response to unsolicited orders. location of outlets , dist…), competitors pos, target segs, political com (msgs, & target
SME (Small & Medium Enterprises) undervalue the importance of international areas of ad, promo, trade shows…).
market research during the selection process of their target markets. This fact can be Social and cultural factors: Languages, religions, pop culture, habits & customs,
explained by several reasons: values, atts, pref, beliefs, bhvs and lifestyles…
● Some are not aware of the diffs between the domestic & foreign markets chars Demand chars: Current market size, potential, demo chars, consumer income level,
● Some, lacking fin resources & time, consider the imp of such studies costly compared budget. Purchase decision criteria, reqs regarding the quality & chars of the product,
to the potential benefits. lifestyle, atts, needs, cult factors… Where/ when/ how do they buy? What are their
● Some are not familiar with international data sources and analysis tools favorite types of points of sale? The study can lead the comp to define precisely the
● Already exp SMEs consider their exp in the country preferable to a market study diff elements of the mrk plan.
● Some business leaders select an export market simply based on their personal Product: Market research on the product can be designed to measure its acceptability
feelings and affinities. by consumers through testing… It can also be designed to assess the level of
One of the main causes of failure abroad is related to preparation & lack of specific adequacy to market to look for possible improvements and necessary modifications,
knowledge that these foreign markets are. The selection of an export market based on the opinion of potential consumers.
traditionally goes through the following three steps: The Price: Research should help the comp to set a price strategy for the market:
1.Pre selection Studies survey of prices of competitors and estimating the psychological price accepted by
2.Global studies consumers.
3.Up date studies Distribution: Allows choosing mode of penetration & channel most apprp
During these three phases, the comp must gather info on a n° of factors that may Includes the study of the local dist structure, key deciders, analysis of the perf of each
affect its operations and perf of the markets. However, the exporter must not neglect dist channel, research & selection of industrial & commercial partners…
 Com: To seek areas for advertising, test a priori the effectiveness of a msg International life cycle and IPP
(pre-test/copy-testing) & assess the memory (post-test). 1.Emergence of a new tech & immediate global mrk from the innovator.
2.Follower countries in turn make tech & mang competition in their resp origin markets

Int Product Policy

3.The innovator sees competition in int markets by his followers who export the tech
4.The innovator sees competition on its own home market by followers of the first &
Core Component: Consists of the physical product, its design & fct feats. second gen countries which may be semi-dev/newly industrialized countries that
Product variations can be added/deleted to satisfy local diffs on the product platform; have lower cost structures because of the low labor cost.
it can affect product processes and req add capital invst. Strategy niche, range strategy: The company must choose which product(s) will
Fct feats can be added/eliminated dep on the market. occupy the niche. To define these choices is to implement the IPP. Wherein each
Add changes may be necessary to meet safety & electrical stds or other mandatory seg is formed of a diff n° of slots, each one corresponds to a type of product that can
(homologation) reqs. meet the need of the seg. The comp will finally decide:
The Basis of the int Product Policy: Definition: The int dimension opposes ● To cover all markets instead of occupying niches uniformly in all countries.
corporate policies & consts of various kinds. These changes are legal/customary ● The occupations differ according to habits and the position of competitors, namely,
related to geography, meteorology or sociology. diff niches in diff countries.
Internal constraints ● To determine what product (adapted, standardized) to occupy a particular niche.
● Fin: to meet mrk budgets for the dev of commercial pos in various foreign markets. Qualitative aspects of IPP: Effect of prism changes: The physical border-crossing
● Consts: prod vol, diversity,& range of int stds for a product can create distortions that can have benefits/disadvs: the prism effect:
● Relocation of product lines. when an exporting comp is facing a changing export skills of a p/s. The effect of prism
● Logistical. may be:
External constraints ● Transparent: the same skills to the domestic market.
● Consts to the specific socio-cultural, political & ec conditions of each market. ● Positive: improved skills
● Consts closely dep on the evolution of tech products related to business. ● Negative: diminished skills
● Consts on the nature of the products. Elements of international positioning: The international positioning: That
Concepts Mrk and IPP: The Alt Adaptation/Stdization: The IPP is based on an alt: marketing is "adaptive" or "multimarket", it’s necessary to conduct a study of each
● the niche stra (single or multiple) country's position of competition. This study will:
● the decision to adapt/stdize products ● inform the existence of competition in a particular market niche
Adaptation: physical modification of the product: its perf, name, packaging, image. ● Analysis of the "product mix" by niche
Some changes are related to the official merchantability and other related to specific ● Analysis of competitors' pricing policies for products
req related to law, natural considerations of the foreign market. ● Analysis of image factors (affective & emo) that can generate an adv to competitors;
These are the stds for the product and its components, conditions & methods of ● Identifying niches where the company is able to meet demand & where it has a
manufacture: called regulatory adaptation unrelated to mrk dimension. competitive adv
The changes related to the socio-cult aspects: We talk about mrk adaptation The choice ranges, products and their variations by country. It will also depend on the
aiming at a product that meets the needs, desires of consumers or users. "vacuum" left by the competition in a particular seg.
There are two types of adaptation for product strictly related to mrk: IPP & types of buyers: One of the tasks of a product manager is to identify a type of
● To dev a specific product for a foreign market. custs for the product. Previously, the International Product Manager will:
● To have a new visual makeup of a product without changing the substance ● Identify and select target segments.
Selection criteria ● Photograph competition by segs and after by niches
● The law ● Analyze the product lines already marketed
● The nature of the product: the "made in " tech products, the products subject to ● Identify the "categories" of custs/users by product
global industry stds, common products , products with " universal formula " ● Determine the type profile of consumers in relation to the product.
● The brand: the principal means of identification This typology of consumers is needed in the dev of com. It will promote msgs aimed
● The ec calculations related to the cost of small series directly at buyers who are in the "heart of the target."
● The nature of the choice of dev: The Comp will operate in the same seg with the The concept of competitive profile: Definition: Product perception by potential
same products in several markets. customers can be diff from one market to another. To find distortions between
markets, global product manager must conduct studies designed to identify strengths
 reasons for rejecting the product and the major advantages that place it at over ● The cost price of products whose level dep on both the conds of prod of the comp &
competitors. the ext factors.
The polygon competitiveness and cobweb: The product manager must also take ● The importance of existing pot market at a certain price and the price sensitivity of
into account the estimated remaining (in months) on the life cycle of the product and consumers
time to write down the cost of adaptation. The results of the survey will also help to ● Competition and its own pricing stra
correct the bad image attributes with a communication partner. These results can be ● Reg consts on pricing and competition protection
represented in a visual form in the so-called spider technique. ● The stra of the comp
Fixing the Cost Export: The Structure of Cost Export Returns: The cost of a

Pricing for Int Markets

product is obtained by incorporating all charges of fin acc. This tech has been adopted
by Japanese companies like Sony.
The Strategic Choice in Terms of Price: The price(stra var): The price level will Stage costing purchase: Net of duties & taxes on imported components.
dep on the pos. & image of the product, the importance of the cust. At the stage of calculating prod costs: All tech adaptation and/or commercial products
Strategies Price Levels: Market Penetration (entry) Strategies: To set low prices costs:
to quickly capture a sig market share. The comp hopes to achieve profit by selling ● Operating costs of the export dep
large quantities while deterring new conquerors from entering the market. The profit ● The costs of market prospects
per unit is very limited. ● Mrk costs in foreign markets
Skimming Strategies: To introduce new products at a higher price that may be ● Preparation fees of export documents
gradually reduced throughout its life cycle. In some cases (luxury goods), the price ● Fin costs(loans to custs, payment techs, currencies…)
will remain high and the comp will continue to sell to a limited number of custs. ● The costs of hedging risks (insurance premiums, use of certain banking tech ...)
The possibilities of choice between these types of stras in the context of int bus dev ● Costs of market penetration, according to the Incoterm used(storage costs, port
depend mainly on: Novelty of the product on the market/Nature of the product. charges, transportation, insurance, pay freight, duties, and taxes...)
Diffiated Pricing Strategies: Comps mostly put a range of products in which they’ll The Components Of The Cost Of Producing Export
offer a variety of price levels. This diffial pricing stra can reach a wider variety of cust ● The purchase of imported raw materials costs.
segs. However, the price should not be the only diff. An identical product offered at diff ● The costs of tech adaptation and/or commercial.
prices in the same market would lead to a loss of image of this product. Prod Costs Excluding Specific Export
Stdization stra or Price Adjustment Strategies: Adjusting the price in foreign ● Operating costs of the export dep: personnel, local, depreciation of eq…
markets is the most common situation. This allows to enjoy higher margins in some ● Exploration expenses markets: market research, explor. missions in the country.
markets. A diff product pos in TM allows such a practice. The major drawback is that ● Mrk costs: dist, ad, sales promo, & overall com with the market, after-sales services.
this adaptation presents the risk of diversion of traffic, the sign diffs between ● Fin costs: payment techs, currency of payment, payment terms.
neighboring countries creating pirate supplies. ● The hedging costs of risk: The risk of non-payment of his client, the exchange
The impact of modes of presence: The choice of a presence in a foreign market has risks, the risk of the product.
a sig impact on the pricing & esp the ° of control by the exporter. The Pricing from Partial Costs: The var costing: Used to estimate neutrality for
Indirect exporter: several price assps, the min qnt to be sold so as not to lose money. To think in terms
● No control on prices of contribution margin & contribution to fixed costs and profit.
● Agent controls selling prices to dists Contribution margin: the diff between the selling price & the unit var cost of the
Exclusive importer: product.
● Can control according to Importer/Exporter strength The marginal cost method: It leads to coexisting prices for the same product in diff
● Subsidiary control retail prices. markets (surplus prod).
● Opp to act on the price. Market Conditions: The Pricing from the Order:
Regulations Related to Prices: Setting a price abroad can be const by two types of ● The price represents to the consumer a cost vs the pot benefits derived from the
regs: possession of the product.
● Local policies price: controls to fight against inflation. ● The price is analyzed by consumers as an indicator of value: In fact, it is a source
● The anti-dumping regs may exist at a int/national level. of info that could change the perception of the product.
The elements determinants of price: The price fixed by the comp must take into The Pricing from the Competition: The comp can practice:
account several factors: ● A policy of lower prices than the competition
● A policy of aligning prices on the prices of competitors avoiding a price war & ● The commission agents
reports of competition on product quality, promotion… ● Manag companies for export (MCE) that need to be dev. They’re either consulting
● A policy of higher prices than the avg market price: apply if the comp does have a firms/ export/ specialized services of banks/ chambers of commerce. They act as
distinct adv. export manager timeshare for and on behalf of the exporting comp.
Price Quotations: Price for goods for int sale can include specific elements affecting They offer two types of services:
the price, such as: credit, sales terms, transport… ● Replace the fcts of an export dep(logistics & admin of export sales).
Administered Pricing: An attempt to establish prices for an entire market. Such ● Prospect, recruit agents, participate in int events & dev sales.
prices may be arranged through the cooperation of competitors/ state/ local gvts/ int Earnings by turnover:
agreement. In general, the end goal of all administered pricing activities is to reduce ● 3 to 5% to the sales administration
the impact of price competition or eliminate it. ● 7-10% for transactions of commercial rep (prospecting, lounge, negotiation ...)
Cartel: When various companies producing similar products/ services work together Conventional methods: direct approach: The direct market approach: Allows a
to control markets for the types of goods & services they produce. The cartel better knowledge of the market on which the exporter operates.
association may use formal agreements to set prices, establish levels of prod and The direct approach "with distance": Allows a first step to test the market without
sales for the participating companies. having to invest in the creation of local structures.
The exclusive sales agent: Works in close collab with the export dep esp when he’s

Penetrate Int Markets

supported on the ground by the regular rounds of an export manager, an area
manager , or chief export product.
Methods of Presence: Definition: The way that the comp wants to operate in a Exclusivity may be total or relative:
foreign market. It has to choose between: To operate on one or several markets / To ■ Total exclusivity: When the agent works only for the exporting comp, considered
market the products by itself only / Produce, build and/or to make there / Granting as a full-fledged employee. He may engage & work with sub- commission agents.
rights to use the brand and/or to authorize to a third parties the right to manufacture. ■ Exclusivity may be relative because:
Constraints: Internal: Identifiable through diagnosis and mainly export consts: ■ The vol of sales is not sufficient for the demand;
● Prod capacity ■ The exporter is working on several product lines and specializes dist of these
● The ability of the comp to mobilize men to keep track of sales network ■ The market is vast
● The ability to raise budgets to promote & support it ■ It works its product lines under diff names
● The ability to fin invts such as commercial subsidiaries or manufacturing products The importer dist: He replaces a commercial subsidiary and thus creates a mrk stra.
abroad during a long period. A commercial contract refers spec to info such as:
External: The particularities of the target country and fall into two cgs: ● Respect for the corporate image
● The chars that are inherent to local regs, exp: it is forbidden to work through an ● The positioning of diff ranges
agent in some countries, or to create a comp with 100% foreign capital... ● The amount of adve budget share
● Some are related to the mrk dimension, the lack of tech skills among intermediaries, ● The promotional budget to spend annually ,
the competition, the need for after-sales service , the mini geo coverage in the dist ● The obligations of after-sales service
The economic solution indirect modes: Three classic ways to enter a foreign ● The obligations of the busy commercial network
market: ● The nature of information system
● To work directly on the market ● The objs of market share.
● To be associated in order to operate on the market The exclusive dist: The only one allowed to dist partners’ products in a certain
● To transfer the shares of logistics and trade shares to third parties without any market. Very close to the importer dist. Used when the comp wants to reduce costs,
possibility of control. penetrate a new market. It is beneficial when there is a good dist.
Indirect methods: These intermediates are: The direct appr through the imp of the comp: When the market has a high ° of
● The export companies in Tunisia attractiveness, direct imp offers the adv of credibility to "invest" in the country..
● Buying offices The representative office: Coordinate a network of agents and receive onsite
● Commissionaires selling (and buying ) important custs & service providers(ex: adv agencies).
● National freight forwarders op on behalf of their clients Branch: This type of configuration allows the comp to benefit from a larger than that
● Foreign freight forwarders op on behalf of their local custs proposed by the local sales office structure. Its means of mrk are the same as a sales
● Local import companies subsidiary in:
● The implementation of operational actions ● Potential conflicts of interest and the sharing of authority
● Its ability to manage information ● Difficulty in legal arrangement
● Competitive Intelligence (business and tech)

Int Com Policy

Commercial subsidiary: The main adv is to position itself as a comp whose name
has a local sounding. It allows controlling mrk costs and the selling price.
Industrial subsidiary: The assembly operations are the preliminary step to full The Definition Of A Com Stra: The Concept Of Global Com: The com of the comp
integration within an industrial site. The local assembly also allows to bypass includes all its signals towards its envt. They aren’t the same & don’t have the same
protectionist policies in the exchange. The mrk plan, on-site prod reinforces the image objs.
of the comp as regards technical products. Consumers are better satisfied: security, The Diff Types Of Com
service sales & after-sale service, tech control. ● Corporate: intended to desc the reality of the comp to its partners.
Associated ways: Export manager timeshare: He works a fixed number of days per ● Instit: inform the public & its staff of the value sys that underpins the org aims
month for each comp. He is paid on the basis of a fixed monthly salary, with a ● Brand: guides the choice of buyers. Brand com is an answer to the desires of cons.
commission rate on sales. ● Product:exposes the qlts of the product claiming its tech chars, perf/ benefit
IBM export (Int Business manag): All companies belong to the same chain. They associated with the purchase.
are complementary but not competing. Com Tools: Must be adapted to the level of the com. Traditionally there are 5 types of
The export franchise: Two sectors are distinguished: industry & "mass market". It technical com: advertising, sales promo, PR, com event, live mrk.
is applied to the franchise industry sector or a transfer of license to manufacture Strategic options: stdization/adaptation: Comp that has opted for a global mrk will
and/or sale of a brand. A contract allows reproducing a product and its tech, and use a std com. Comp that has opted for a polycentric mrk will adapt com.
market in a specific territory. This process allows the person who grants a license to Stdization: The advs:
collect royalties on each product manufactured and sold. ● The creation and strengthening of a global brand image, product or comp.
The Kangaroo export or PIGGY PACK: Wrks on the principle of commercial ● Reducing costs of creating and producing messages.
partnership. It is to be represented and distributed by a foreign comp controlling a dist ● Reducing confusion in case of recovery media or consumer mobility.
that is generally mounted from the beginning. The difficulties:
💡 It can be a competitor and partner area on another market in the world. ● Its effectiveness dep on the supposed universality of certain needs and intization of
The manag contract: The investor owns the products, the comp is resp for the daily CB hypothesis.
manag (commercial and acc manag, launch & promo, recruit & supervision of staff). ● Cultural diffs result in diff motivations of CBr with the same product.
Aform of presence that allows a comp to make an invst in a foreign country & entrust ● Diffs in legislation.
the daily manag to a local comp. ● Adaptation is very expensive, leads to a disparity image, & prevents synergy
The developed methods: Piggy-back cross: Three main forms: between actions in diff markets.
● Rep locally on a resp home market products partner. Homogenization: An intermediate sol between stdization and adaptation that results
● A reciprocal rep abroad. in the desire to impose an identical pos of the product or the same image of the comp.
● A mixed perf. The advs:
The acquisition of a dist comp: Used to avoid national barriers. The exporter can ● The creation of a global uniform image of the products and the comp
partially or completely own a chain of stores. ● Taking into account local specificities, both legal & pro or cultural
The joint venture: Definition: relate either to a joint creation by two partners of diff The disadvs:
nationalities, to build an industrial/ commercial comp, or having a significant ● The cost of campaigns that are tailored to each country,
participation in the capital by a foreign comp operating in the export market targeted ● The rigidity of decision-making and control over local proposals by the head of com
by a national export comp. at headquarters.
The advs: The creative advertising: Creation stra based on the answer to three questions:
● Save time and experience ● How do competitions attack advertising?
● Sharing investment ● What is the benefit/ consumer expected?
● Naturalization of the comp ● What media can be used to support this benefit?
● Easier acceptance by local authorities The media and tools: The choice of media and supports is a strategic decision. In
The disadvs: fact, their role is to convey the msg, with the greatest possible efficiency for targets.
● Tools and int media: TV, radio, press…
● Internet: Catalogs: Present in more detail the comp's products. They constitute a negotiating
○ Banners, conventional/enriched sound, video, 3D, interactive (called rich- tool and a tool for sale.
media ) Presentation of comp: Operating in int markets, they can be presented as a resume
○ Sponsorship which highlights all evidence to give credibility to the comp: Aerial photography of the
○ The ranking on search engines prod sites and head office, presentation of tech innovations etc… Naturally, the board
○ Membership: the comp pays sites that create links to its products. must submit upscale graphics and printing qualities.
Criteria selection of media Visual media: Film, video, DVD, CD and slideshow help enhance the image of the
● Client coverage: Dep on the country, some are used more than others, which is the comp to show its achvts, to give life to his refs, and demonstrate expertise.
attendance of the media market and cultural diffs in media use. Public Relations: Definition and objs: PR acts are info & com deployed by a group
● The av of media: This is a fct of the opening of media advertising. It is prohibited in to establish and maintain good relations between the group and the diff sectors of
certain media and reg in some media. Msg content is reg in some media. public opinion. The purpose of PR is to establish and maintain (+) relationships
● Possibility to do: This criterion takes into account the completion dates (creation & between the comp & its envt. The tools are :
tech realization) and the avg budget needed for a campaign. ● The newspaper business
The intization of promotional activities: A problem rarely arises in promo material. ● Information on commercial networks
Most of the actions are carried out in each market according to local consts. These ● The print media
operations are an area of special cooperation with dists and also a form of Direct mrk: An interactive system that uses 1+ com media in order to provoke a
entertainment sales network. reaction and/or measurable transaction. Com has the effect of arousing an
The Comp litterature: Role of doc: The tech & commercial doc of the comp is the immediate/ST response & providing means to transmit response to the comp directly .
first means of com, whether on the domestic or int markets. It must inform, dev, The vectors of direct mrk
convince & sell. It must present the comp, located in the pro context and publicize ● The file: database
products. ● The mail
● The sales force of the comp supports the arg ● The telephone mrk
● To inform gvt deps, banks, service providers, the local dist & facilitate its arg and ● Telematics: teletext , the videodisc video, toll
promo of products ● Television
● To convince the cust of the value of the products The promotional activities abroad: They not only allow to monitor and observe
Whatever the form taken by the documentation, it must: changes, but also to promote the image of the comp participating in int events such as
● Provide a clear picture of the skills of the comp, fairs, exhibitions or pro conferences. The int fairs: int events are a unique opp to
● Not be too large gather under one big global supply of a sector.
● Be original to draw attention

Social & Cultural Envts

● Translated into English and the lang of the dest country.
● Be updated regularly
● A visual rec that guarantees the rec of the origin of the doc (same logo, same color Culture’s Pervasive Impact: Culture and csmp: Diff types of food are consumed in
range…) diff cultures. The geo of the country also shapes food habits. Culture also inf the laws,
● Knowing that its content must result from the collab of diff tech and commercial age limits. The legal envt also has imps for the csmp of cigarettes. Although
services of the comp. expenditures on tobacco generally are rising in these countries bc of increasing taxes,
Forms of documentation: Brochures: Also called platelets, allowing you to the amount consumed is declining universally. The dramatic decline of tobacco csmp
synthesize the course of the comp, its acts and resources. They should include: in Spain represents a huge cultural shift that the world seldom sees.
● The prod, the expertise of the comp , Culture and Disease: How people die varies substantially across the countries.
● Tech pot: eq manufacturing, quality control, delivery… The Traditional Definition of Culture: The sum of the values, rituals, symbols,
● The sales network, service after-sales... beliefs, & thought processes that are learned & shared by a group of people, then
● Human potential transmitted from gen to gen:
● References of the comp… ● Resides in the individual’s mind
This info must be given by focusing on visuals. It is necessary to draw the doc of the ● Rec that large collectives of people can be like-minded
TM to understand how the reader thinks. We as humans are able to adapt to changing envts through innovation. Indvs can
learn culture from social institutions through socialization & acculturation. We also
learn & adapt to a culture through role modeling, or imitation of peers. People also countries and demonstrates a direct inf of lang on cult values, expectations, &
make decisions about csmp & prod through app of their cultural-based knowledge. conceptions of time.
Origins of Culture: Geography: Geo inf manifest themselves in our deepest cultural Bilingualism:custs process ads diffly if heard in their native vs 2nd language.
values dev through the millennia, & as geo changes, humans can adapt almost Biculturalism:custs can switch ids & perception frames
immediately. Includes climate, topography, flora, fauna, & microbiology. Influences Beliefs: Mainly stem from religious training, & vary from C2C. Myths, beliefs,
history, tech, and economics superstitions, or other cult beliefs are an important part of the cult fabric of a society &
History: The impact of specific events in history can be seen reflected in tech, social inf all manners of bhv.
institutions, cultural values, & CB. Thought Processes: Culture seems to matter more in snap judgments than in longer
The political economy: Most of 20C, 4 apprs to gov competed for world dominance: deliberations. Studies demo a deeper impact of culture on sensory perceptions,
● Colonialism: Casualty of World War II particularly aromas. Newer p&s require greater consideration of cultural factors. The
● Fascism: Fell in 1945 diff in perception—focus vs big picture—is associated with a wide variety of diffs in
● Communism: Crumbled in the 1990s values, prefs, and expectations about future events.
● Democracy/free enterprise Cultural sensitivity & tolerance: Successful foreign mrk begins with cultural
Tech: The effect of birth control techs sensitivity. Being culturally sensitive will reduce conflict, improve com, & increase
Social Institutions: Family: The tech of birth control has affected families & reduced success in collab relationships. The int marketer should have an appreciation of how
family sizes around the world. Family forms & fcts also vary around the world, even culture changes & accept/reject new ideas bc the marketer usually is trying to
around the country. The ratio of male to female children is affected by culture & introduce sth completely new or to improve what is already in use.
latitude. These diffs lead to diffs in how children think & behave. The paradox in cultural change: Culture is dynamic in nature: a living process. It’s
Religion: The impact of religion on the value systems of a society & mrk must not be conservative & resists change. It’s the acc of a series of the best solutions to problems
underestimated. In most cultures, the first social institution infants are exposed to faced in common by members of a given society.
outside the home: church, mosque, shrine… The inf of religion is often quite strong, so Cultural borrowing: It’s a responsible effort to learn from others’ cult ways for better
marketers with little/no understanding of a religion may offend deeply. sols to a society’s particular problems. Regardless of how or where sols are found,
School: The literacy rate of a country is a potent force in ec dev. once a particular pattern of action is accepted by society, it becomes the approved
● According to the WB, no country has been successful economically with less than way and is passed on and taught as part of the group’s cult heritage.
50% literacy. Planned & Unplanned cultural change: The first step in bringing about planned
● When countries have invested in educ, the ec rewards have been substantial. change in a society is to determine which cult factors conflict with an innovation, thus
Com with a literate market is much easier than com with one in which the marketer creating resistance to its acceptance. The next step is an effort to change those
must depend on symbols & pics. factors from obstacles to acceptance into stimulants for change.
The media: The relative perf of educl sys is seen as a leading indicator of ec Introducing innovation: Marketers have two options when introducing an innovation
competitiveness. Media time has replaced family time. to a culture:
The gvt: Gvts try to inf the thinking and bhvs of adult citizens for their’ “own good.”In ● Wait for changes to occur.
some countries, the gvt owns the media & regularly uses propaganda to form ● Spur change: Introducing an idea/product and deliberately setting about to
“favorable” public opinions. Gvts also affect ways of thinking indirectly, through their overcome resistance & cause change that accelerates the rate of acceptance.
support of religious orgs and schools. They inf thinking & bhv through promulgation, Cultural Congruence: Not all mrk efforts require change to be accepted. Cultural
promo, & enforcement of a variety of laws affecting csmp and mrk bhvs. congruence involves mrk products similar to ones already on the market in a manner
Corporations: Most innovations are introduced to societies by comps, many times by as congruent as possible with existing cultural norms, thereby minimizing resistance.
multinational comps which efficiently dist new p&s based on new ideas from around
the world. As a result: Cultures change & New ways of thinking stimulated.
Elements of Culture: Rituals: Patterns of bhv & interaction that are learned and
repeated: Marriage ceremonies, Funerals, Graduation rituals…etc. They coordinate
everyday interactions and special occasions & let people know what to expect
Symbols: Anthropo Edward T. Hall tells us that culture is com. Learning to interpret
correctly the symbols that surround us is a key part of socialization.
Language: A social institution, often with political importance.
Linguistic distance: determines diffs in values & the amount of trade between