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Questions and Answers
What is a potential disadvantage of entering international markets incrementally?
What is a potential disadvantage of entering international markets incrementally?
What does the preliminary analysis and screening phase focus on?
What does the preliminary analysis and screening phase focus on?
Which of the following is NOT a factor considered during the preliminary analysis phase?
Which of the following is NOT a factor considered during the preliminary analysis phase?
Which entry mode involves expanding into multiple overseas markets at once?
Which entry mode involves expanding into multiple overseas markets at once?
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What must be matched according to the preliminary analysis for successful international market selection?
What must be matched according to the preliminary analysis for successful international market selection?
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Which factor is NOT considered an indicator of market potential?
Which factor is NOT considered an indicator of market potential?
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What is one component of marketing support infrastructure?
What is one component of marketing support infrastructure?
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Which of these refers to a negative aspect of a country's political and legal environment?
Which of these refers to a negative aspect of a country's political and legal environment?
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Which of the following describes exchange rate controls?
Which of the following describes exchange rate controls?
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What is included in the preliminary screening phase of market analysis?
What is included in the preliminary screening phase of market analysis?
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What aspect is NOT matched with a country's qualities during analysis?
What aspect is NOT matched with a country's qualities during analysis?
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Which characteristic is related to marketing efforts in a foreign market?
Which characteristic is related to marketing efforts in a foreign market?
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Which of the following is a reason for potential trade barriers?
Which of the following is a reason for potential trade barriers?
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What was the main purpose of Ford's 'immersion event' in preparation for the Fiesta launch in China?
What was the main purpose of Ford's 'immersion event' in preparation for the Fiesta launch in China?
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Which advertising strategy did Ford employ for the launch of the Fiesta in China?
Which advertising strategy did Ford employ for the launch of the Fiesta in China?
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In what way did Ford adapt the Fiesta's offerings for the Chinese market compared to Europe?
In what way did Ford adapt the Fiesta's offerings for the Chinese market compared to Europe?
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What aspect of the Fiesta was emphasized in the second campaign targeting Mei's parents?
What aspect of the Fiesta was emphasized in the second campaign targeting Mei's parents?
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Which of the following statements reflects a key difference in consumer preferences noted by Ford's research?
Which of the following statements reflects a key difference in consumer preferences noted by Ford's research?
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What is the first step in developing a marketing plan for a target market?
What is the first step in developing a marketing plan for a target market?
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Which element is part of the strategic marketing plan?
Which element is part of the strategic marketing plan?
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What characterizes the tactical marketing plan?
What characterizes the tactical marketing plan?
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What does an evaluation and control system in marketing planning achieve?
What does an evaluation and control system in marketing planning achieve?
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Who is Ford’s target market for the new Fiesta in China?
Who is Ford’s target market for the new Fiesta in China?
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Which of the following phases involves continuously assessing variables that impact a marketing plan's success?
Which of the following phases involves continuously assessing variables that impact a marketing plan's success?
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Why did Ford anticipate that launching the new Fiesta would help reverse their declining sales in China?
Why did Ford anticipate that launching the new Fiesta would help reverse their declining sales in China?
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What is a primary goal of Ford's global car strategy?
What is a primary goal of Ford's global car strategy?
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What is the focus of Phase 1 in the marketing process?
What is the focus of Phase 1 in the marketing process?
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Which of the following is NOT a basis for segmentation discussed?
Which of the following is NOT a basis for segmentation discussed?
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What major question is addressed in Phase 2 of the marketing process?
What major question is addressed in Phase 2 of the marketing process?
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What is meant by 'micromarket segmentation'?
What is meant by 'micromarket segmentation'?
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Which of the following does NOT influence competitive conditions during Phase 1?
Which of the following does NOT influence competitive conditions during Phase 1?
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What is the primary goal of adapting the marketing mix in Phase 2?
What is the primary goal of adapting the marketing mix in Phase 2?
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Why is global marketing management becoming significant according to the content?
Why is global marketing management becoming significant according to the content?
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Which of the following elements is considered uncontrollable in the marketing environment?
Which of the following elements is considered uncontrollable in the marketing environment?
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Study Notes
International Market Selection Process
- There are two possibilities for entering international markets: incremental or simultaneous.
- Incremental means entering one market at a time, gaining experience before moving to the next.
- Simultaneous means entering multiple markets concurrently, reducing the risk of competitors entering those markets first.
Phase 1: Preliminary Analysis and Screening
- This phase involves a thorough assessment of potential foreign markets and the environment a company plans to operate within.
- It considers both home-country and host-country constraints, marketing objectives, and company strengths and weaknesses.
- Characteristics to assess include market growth, sensitivity to imports, customer concentration, quality and performance sensitivity, availability of substitutes, competitive conditions, and relevant legislation and socio-political factors.
International Macro-Segmentation
- Indicators used to assess market potential include GDP per capita, industrial and agricultural sector statistics, market size and potential, consumer buying power, FDI figures, marketing support infrastructure, distribution and logistics, strategic alliance partners, and telecommunications and transportation infrastructure quality, and financial firms.
Phase 1: Preliminary Analysis and Screening
- Preliminary screening involves reviewing factors such as export restrictions, GDP per capita, car ownership per 1,000 people, population per hospital bed, and geographical proximity.
Phase 1: Preliminary Analysis and Screening
- A company's strengths and weaknesses, products, philosophies, operational approaches, and objectives must align with a country's characteristics.
- During the second stage of screening, considerations include the adequacy of management resources, degree of institutional support, pricing strategies, advertising and promotion campaigns, product design and development, technological investment, cost competitiveness, and manufacturing scale and logistics.
Phase 1: Preliminary Analysis and Screening
- "Fine-grained" screening is employed to help prioritize markets based on their attractiveness and a company's competitive strength.
Micro-Segmentation
- Market segmentation is based on demographic, psychographic, behavioral, and geographic variables.
Global Marketing Management
- As global markets become more homogeneously diversified, companies should consider factors beyond just country-level segmentation.
- Other factors to assess are essential, as climate, language groups, media habits, age, and income.
Different Segment Scenarios
- Global segments refer to markets where consumer behavior, needs, and preferences are similar across borders.
Phase 2: Defining Target Markets and Adapting the Marketing Mix
- This phase delves deeper into the marketing mix elements to define a culturally adaptable strategy.
- It aims to achieve corporate objectives and goals by factoring constraints from the uncontrollable aspects of the environment.
- Key questions addressed include:
- Are there identifiable market segments for shared marketing mix tactics?
- What cultural and environmental adaptations are necessary for successful marketing mix implementation?
- Can adaptation costs be accommodated for profitable market entry?
Phase 3: Developing the Marketing Plan
- A marketing plan is developed for the target market, be it a single country or a global market set.
- It commences with a situational analysis and culminates in an entry mode selection, outlining specific actions.
- The plan establishes what, by whom, how, and when, including budgeting, sales, and profit expectations.
Marketing plan
- Marketing plans operate at two levels:
- The strategic plan outlines target markets and value propositions based on the most profitable opportunities.
- The tactical plan defines specific marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and services.
Phase 4: Implementation and Control
- The planning process is dynamic, with constant interaction between phases and information accumulating throughout.
- An evaluation and control system monitors performance against set objectives and ensures corrective action is taken when needed.
- This system encourages consideration of all variables affecting plan success and provides an integrated global view of market interrelationships.
Ford's Fiesta Marketing in China
- Ford's target market for the Fiesta in China is "Mei," a young, single, college-educated female in urban areas.
- The new Fiesta represents Ford's global car strategy to reduce development costs and achieve economies of scale.
- Understanding Mei's lifestyle, attitudes, and goals helped Ford develop an ad campaign tailored to this segment.
- The research revealed the importance of customization for Chinese consumers, prompting Ford to offer greater color options compared to European markets.
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Description
Explore the critical steps for selecting and entering international markets through either incremental or simultaneous strategies. This quiz covers the preliminary analysis, market assessment, and macro-segmentation indicators essential for evaluating foreign market potential.
