ISM - MODULE 1 - UNIT 1 PDF

MODULE 1: MARKETING PRODUCTS & SERVICES ATTRACTING INTERNATIONAL CUSTOMERS UNIT 1: ADAPTING PRODUCTS & SERVICES PRODUCT ADAPTION: GATHER PRODUCT INFORMATION MARKET RESEARCH: GATHER MARKET INFORMATION DEFINE CUSTOMER: GA...

MODULE 1: MARKETING PRODUCTS & SERVICES ATTRACTING INTERNATIONAL CUSTOMERS UNIT 1: ADAPTING PRODUCTS & SERVICES PRODUCT ADAPTION: GATHER PRODUCT INFORMATION MARKET RESEARCH: GATHER MARKET INFORMATION DEFINE CUSTOMER: GATHER CUSTOMER INFORMATION PRODUCT & SERVUCE PERSIVED VALUE: GATHER PERCIVED VALUE INFORMATION VALUE PROPSITON STATEMENT: MARKETING TOOL ENHANCING PERCIVED VALUE: STRATEGIC APPROCHES GROWTH HACKING: MARKETING STRATEGY ADABTAION DECISIONS: STRATEGIC CHOICES INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: Adaptation Options – product customization 1- No or Minor  Definition: Keep products/services the same or make only small changes. Modifications  When to Use: Similar specifications across markets (like paint). Parts supplied without changes (like microprocessors). Unique products marketed for status (like luxury watches). Commodities sold based on price (like wheat). Example: An Australian consulting firm uses the same processes in New Zealand, as no legal adaptations are required. 2- Mandatory  Definition: Change products/services to meet legal requirements. Modifications  Examples: Complying with local ingredient laws (e.g., beer in Germany). Adhering to safety and quality standards (e.g., food inspection). Meeting environmental regulations. 3- Marketability  Definition: Modify products/services to enhance appeal and competitiveness. Improvements  Focus Areas: Changing design, features, or packaging to attract customers. Adding new functionalities to meet evolving consumer preferences.  Benefits: Better alignment with consumer preferences, Increased competitiveness in diverse markets.  Challenges: Higher costs due to customization, Complexity in operations and maintaining consistency. 4- Global  Definition: Create a product/service that suits multiple markets. Product  Goal: Develop a standardized offering that appeals to diverse consumer bases while maintaining essential features. Adaptation  Advantages: Economies of scale in production and operations, Faster recovery of investments. Simplified management and control procedures, Enhanced global brand recognition.  Disadvantages: Reduced marketing flexibility for local needs, Less creativity and innovation from local teams. Potential loss of local talent due to lack of incentives. Key Considerations: The choice between standardization and adaptation depends on factors like market demand, competition, and potential profitability. Companies must balance efficiency with the need to meet local market requirements. Page 1 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: Adaptation Options – product customization Commodity  Definition of Commodities Products Commodities are basic goods that are interchangeable with other goods of the same type. They are typically raw materials or primary agricultural products that can be bought and sold. Examples include: Agricultural Products: Wheat, corn, rice, and soybeans. Natural Resources: Oil, natural gas, and metals like gold and silver.  Price Basis: Selling on a Price Basis When a product is sold exclusively on a commodity or price basis, it means that the primary factor influencing the purchasing decision is the price rather than any distinguishing characteristics of the product itself. In this context: Uniformity: All units of the commodity are essentially the same in quality and function. For example, one bushel of wheat is largely equivalent to another bushel from a different supplier. Market Dynamics: Prices for commodities are determined by supply and demand in the market. Factors such as weather conditions, global demand, and production levels can significantly impact prices.  Example: Wheat: In the case of wheat: Interchangeability: Wheat is considered a commodity because it does not have significant branding or unique features that differentiate one supplier's wheat from another's. Price Sensitivity: Buyers typically focus on getting the best price available rather than being loyal to a particular brand or supplier. For instance, a bakery may choose to purchase wheat from whichever supplier offers it at the lowest price at that time.  Implications Market Competition: Since many suppliers offer similar products, competition is intense, leading to price wars. Limited Brand Loyalty: Consumers are less likely to develop strong brand preferences because the product lacks differentiation. Focus on Efficiency: Suppliers often strive for operational efficiency to reduce costs and offer competitive pricing. In summary, when a product like wheat is sold exclusively on a commodity or price basis, it emphasizes the importance of pricing in consumer decision-making due to the uniform nature of the product across different suppliers. Page 2 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: MARKET RESEARCH: gather market information Purpose To identify necessary and optional adaptations for products and services in international markets. Process  Review existing research and conduct further detailed studies as needed.  Analyze the potential market's legal, political, economic, socio-cultural, and geographic environments during the feasibility stage.  Continue research throughout the development of the international business plan and market entry strategy. Identifying  Mandatory Adaptations: Adaptations Organizations must gather information on legal requirements from government authorities, focusing on areas such as: Health and safety regulations, Intellectual property laws, Standards for labeling and packaging.  Professional Services Regulation: Certain services (healthcare, legal, engineering) require adherence to specific certifications and standards. Research Topics  Conduct various types of research to understand customer preferences: for Customer  Concept Screening: Assessing ideas before full development. Needs  Customer Satisfaction Studies: Measuring how well products meet consumer expectations.  Segmentation Research: Identifying distinct customer groups within a market.  Pricing Strategy Research: Understanding how to price products competitively. Cultural  When conducting research in foreign markets, be mindful of cultural biases: Considerations Ensure accurate translations and culturally appropriate research methods. Utilize local researchers to enhance understanding of cultural nuances. This structured approach to market research is essential for effectively adapting products and services to meet the diverse needs of international consumers. Page 3 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: DEFINING THE CUSTOMER – gather customer information & identify their needs & preferences Topics B2B Customers, Customer Profile, Identifying the Needs and Preferences of Customers, Photo-Elicitation Research Technique, Market Segmentation, Impact of Culture, Language Considerations Importance of Defining customers is crucial for businesses as it helps tailor marketing strategies and product offerings. defining The first step in this process is to differentiate between customer types, specifically whether the potential buyer is a business (B2B), a consumer (B2C), or both. Understanding For B2B customers, understanding the economic development level of a country is essential. This research can reveal several B2B Customers - challenges these customers face, including: the economic  Availability of Technology: Example: A software company is trying to sell its cloud-based inventory management system development to manufacturers in different countries. level of a country In Germany: Most manufacturers have high-speed internet and modern computers, making implementation straightforward. In rural India: Many manufacturers might still use paper-based systems due to unreliable internet connections and outdated computer systems. The software company might need to offer a simplified, offline version of their product.  Labor Force Skills and Costs: Example: A company selling industrial robots for automotive manufacturing. In Japan: The labor force is highly skilled in technology but expensive. The robots might be marketed as a way to enhance productivity and precision. In Vietnam: Labor is less expensive but may lack advanced technical skills. The robots could be marketed as a way to improve quality consistency and compete globally.  Energy Costs and Availability: Example: A company selling energy-efficient industrial refrigeration systems. In Norway: With abundant hydroelectric power, energy costs are relatively low. The focus might be on the system's advanced features rather than energy savings. In Nigeria: Where power outages are common and energy costs are high, the system could be marketed for its energy efficiency and ability to operate on backup power.  Supply Chain Issues: Example: A company selling 3D printers for manufacturing spare parts. In the United States: With well-established supply chains, the 3D printers might be marketed as a way to reduce inventory costs and speed up customization. In landlocked Chad: Where importing spare parts can be expensive and time-consuming, the 3D printers could be marketed as a solution for creating urgently needed parts on-site. Page 4 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: DEFINING THE CUSTOMER - gather customer information & identify their needs & preferences Understanding Understanding these factors helps B2B companies tailor their products, marketing strategies, and sales approaches to meet B2B Customers - the specific needs and challenges of their customers in different economic environments. For instance: the economic  The software company might offer training and IT support services in markets with less technological expertise. development  The robotics company could emphasize different benefits (cost savings vs. quality improvement) depending on the labor level of a country market.  The refrigeration company might bundle their product with solar panels in areas with unreliable energy supply.  The 3D printer company could offer comprehensive material libraries and training for markets with supply chain difficulties. By recognizing and addressing these challenges, B2B companies can position themselves as problem-solvers, offering not just products but solutions tailored to the specific economic context of their customers. Understanding Conducting a study of local competitors is also vital. This analysis can uncover: B2B Customers -  Product Features: Understanding what competitors offer in terms of pre-sale, post-sale, and repair services can help Competitor identify gaps in the market. Analysis  Unmet Needs: Identifying challenges that competitors have not addressed allows businesses to position their products or services effectively. Understanding Research about a business audience is essential for creating a comprehensive business profile that summarizes key B2B Customers - characteristics such as: Research about a Demographics, location, estimated demand, purchasing decision-makers, industry status, and unresolved challenges. business This profile serves as a foundational tool for businesses to develop targeted marketing strategies, enhance communication with potential clients, and ultimately drive growth by addressing customer needs effectively Understanding Creating a business profile involves gathering and analyzing information about a business audience to summarize its key B2B Customers - characteristics. Key Components  Demographics: of a Business This section includes essential information about the business audience, such as the size of the company (e.g., small, Profile medium, or large), the industry it operates in, and relevant characteristics like employee count and annual revenue. For example, a medium-sized manufacturing firm might have 150 employees and generate $10 million in annual revenue.  Location: The geographical location of the business is critical, as it can influence market dynamics, logistics, and customer interactions. For instance, a company based in an urban area may have different operational challenges and opportunities compared to one in a rural setting. Page 5 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: DEFINING THE CUSTOMER - gather customer information & identify their needs & preferences Understanding  Estimated Demand: This aspect assesses the potential market demand for products or services offered by the business. B2B Customers - It involves analyzing industry trends, customer preferences, and economic indicators to forecast growth opportunities. Key Components For example, if there is a rising trend in sustainable products, a company might estimate increasing demand for its eco- of a Business friendly offerings. Profile  Purchasing Decision Makers: Identifying who makes purchasing decisions within the organization is vital for effective marketing strategies. This could include roles such as procurement managers, financial officers, or executive leadership. Understanding these roles helps tailor communications and marketing efforts to address their specific needs and concerns.  Industry Status and Players: This section provides insights into the competitive landscape, including major competitors within the industry and their market positions. It helps identify how the business stands relative to its competitors and what unique value propositions it offers.  Unresolved Problems or Challenges: Recognizing the challenges faced by the business audience is crucial for developing solutions that meet their needs. This could involve issues like supply chain disruptions, regulatory compliance challenges, or technological limitations that hinder operational efficiency. Understanding  Targeted Marketing Strategies: A well-defined business profile allows companies to create targeted marketing campaigns B2B Customers - that resonate with specific customer segments. Importance of  Enhanced Communication: Understanding key decision-makers enables more effective communication strategies that Creating a address their concerns directly. Business Profile  Informed Product Development: Insights into unresolved problems can guide product development efforts to create solutions that meet market demands.  Competitive Advantage: By analyzing industry status and competitors, businesses can identify gaps in the market and position themselves strategically. Understanding  Research about a customer is essential for creating a comprehensive profile for customers or specific market segment. B2C Customers -  Customer profiles are essential tools used by businesses to understand their target audience better and make informed Research about a decisions regarding overall business operations. They are vital for businesses seeking to adapt their offerings and business marketing strategies effectively.  By analyzing demographic data, estimating demand, understanding purchase motivations, and recognizing challenges within diverse markets, companies can create tailored experiences that resonate with their target audience. This approach not only enhances customer satisfaction but also drives loyalty and long-term success in competitive environments. Page 6 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: DEFINING THE CUSTOMER - gather customer information & identify their needs & preferences Understanding  Product and Service Adaptations: Customer profiles inform businesses about what modifications or enhancements may B2C Customers – be necessary for their products or services to better align with customer expectations. Importance of  Marketing Decisions: By understanding customer demographics, motivations, and behaviors, companies can craft Customer Profiles targeted marketing campaigns that resonate with specific segments, improving engagement and conversion rates.  Diversity Across Markets: Customer profiles recognize that audiences can vary significantly across different regions and cultures. Factors such as income levels, cultural norms, living standards, fashion preferences, religion, politics, and attitudes toward imported products play a crucial role in shaping customer behavior. Understanding  Demographic Portrait: This section provides a comprehensive understanding of customers through various B2C Customers – demographic characteristics, including: Key Aspects of  Age: The age range of the target audience. Customer Profiles  Gender: Gender distribution within the customer base.  Career or Job: Common professions or industries where customers are employed.  Income Level: Average income levels that influence purchasing power.  Level of Educational Attainment: Education backgrounds that may affect product choices.  Geographic Location: Regions or areas where customers reside.  Language(s) Spoken: Primary languages that may impact communication strategies.  Estimated Demand: This aspect involves analyzing collected research to estimate both current and future demand for products and services. It helps businesses understand market trends and growth potential.  Purchase Motivation: Understanding what drives customers to make purchases is crucial. Key questions include: Are customers motivated by savings or convenience? Do they seek safety or unique features? What cultural factors influence their values and preferences? This information helps businesses position their products effectively against competitors.  Competitive Advantage: Identifying what sets a business apart from its competitors is essential for developing effective marketing strategies.  Key Challenges and Needs: Recognizing unresolved problems or challenges faced by customers allows businesses to create solutions that directly address these issues.  Digital Age Considerations: customer profiles may also include insights into the customer journey—from initial brand awareness to becoming loyal customers. This journey mapping helps businesses understand how customers interact with their brand at various touchpoints. Page 7 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: DEFINING THE CUSTOMER - gather customer information & identify their needs & preferences Understanding Identifying the needs and preferences of customers is an ongoing process that combines digital monitoring with traditional B2C Customers - research methods. identifying the By capturing and analyzing relevant data, businesses can gain valuable insights into customer behavior, enabling them to needs and adapt their offerings effectively and enhance overall satisfaction. preferences of This proactive approach not only helps in meeting current demands but also positions companies for future growth by customers anticipating changing customer needs. Importance of  Informed Decision-Making: Understanding customer needs allows businesses to make data-driven decisions regarding Identifying product development and marketing strategies. This ensures that offerings align with market demands and customer Customer Needs expectations. and Preferences  Product Development: By identifying specific challenges or preferences that customers face, organizations can design or modify products to better meet those needs. This might involve enhancing features, improving usability, or even creating entirely new products based on customer feedback.  Eliminating Ineffective Products: Continuous analysis helps businesses identify products that are underperforming or no longer meet customer needs, allowing for timely adjustments or discontinuation. Digital The rise of online activity has created opportunities for marketers to gather valuable information about their target audience Monitoring as a through digital monitoring. This includes: Tool to Identify  Capturing Mentions: Organizations can track mentions of their brand, products, services, promotions, and competitors Customer Needs across various digital platforms such as social media, blogs, news sites, and forums. This helps in understanding public and Preferences perception and sentiment.  Analyzing Data: The captured data is analyzed to uncover insights about customer opinions and behaviors. For example, businesses can determine who is discussing their brand and what aspects are being highlighted—positive or negative. Steps in Digital  Capture Data: Gather information from various online sources to create a comprehensive view of customer interactions. Monitoring  Analyze Data: Evaluate the data to identify trends, patterns, and insights related to customer preferences & behaviors.  Identify Insights: Use the analyzed data to understand market segments better & tailor marketing strategies accordingly. Digital Organizations can utilize several types of digital data to gain insights into customer preferences: Monitoring -  Web Analytics: Track website performance metrics such as page views, user flow, and conversion rates to understand Types of Data to how customers interact with the site. ( a detailed report card for the website) Track  On-Site Engagement Analytics: Analyze user behavior on the website to identify areas for improvement in navigation and content. Page 8 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: DEFINING THE CUSTOMER - gather customer information & identify their needs & preferences Digital  Customer Analytics: Gather insights into customer wants and needs through behavioral data collected from various Monitoring - touchpoints. Types of Data to  Life Cycle Analytics: Monitor communication efforts (e.g., emails, newsletters) to evaluate their effectiveness in engaging Track customers.  Marketing Analytics: Track the performance of different marketing channels to assess campaign success. Identify While digital monitoring is crucial, feedback can also be obtained through traditional methods: Customer Needs  Surveys and Interviews: Directly asking customers for their opinions can provide valuable qualitative insights. and Preferences -  Sales Team Input: Feedback from sales representatives who interact with customers can highlight common challenges or Gathering requests. Feedback Beyond  Focus Groups: Engaging small groups of customers in discussions can uncover deeper insights into preferences and Digital Channels motivations. 3-Stage Process When conducting research on customer preferences, a structured approach can be beneficial: for Customer  Identify Problems: Determine the challenges or pain points that customers are facing. Preference  Design Solutions: Develop or adapt products/services that address these identified problems. Research  Test and Gather Feedback: Introduce the product/service to customers and solicit their feedback for further refinement. Web Analytics (data related to website traffic) it tells you how many people visit your site, what they do while they're there, and how you can make their experience better. By understanding this data, businesses can improve their websites to attract more visitors and convert them into customers. On-Site Engagement Analytics is a subset of web analytics that specifically measures how users interact with a website during their visit. It focuses on user engagement metrics that indicate how effectively a site captures and retains visitor interest. For example, it tracks actions that visitors take on a website such as which pages they visit, how long they stay on each page, and what links they click on. Customer Analytics customer analytics relies on various sources of data to provide insights into customer behavior and preferences. By analyzing purchase transactions, website interactions, survey responses, social media activity, call center interactions, and external data. Life Cycle Analytics (Awareness, Consideration, Purchase, Retention, Advocacy) focuses on tracking and analyzing the different phases of a customer's journey, from initial awareness of a product or service to post-purchase behavior and loyalty. This approach allows businesses to tailor their strategies at each stage of the customer journey. Sales Funnel (Awareness, Interest, Consideration, Intent, Purchase, Post-Purchase, is a crucial tool for businesses to visualize and manage the customer journey from awareness to purchase. Conversion Rate The percentage of visitors who complete a desired action, such as making a purchase or signing up for a newsletter. Bounce Rate The percentage of visitors who leave the site after viewing only one page. (measured by on-site engagement analytics) Page 9 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: DEFINING THE CUSTOMER - Photo-Elicitation Research Technique Introduction It is a qualitative research technique that uses photographs to facilitate interviews and encourage discussion. This method is particularly effective for gaining insights into cultural issues and understanding customer perspectives before launching new products or services. Definition: It involves incorporating images into interviews to prompt participants to express their thoughts, feelings, and associations related to the images. The use of visuals can enhance dialogue and reveal deeper insights than traditional verbal questioning alone. Purpose explore participants' social and cultural contexts. By interpreting photos, participants can discuss elements that are significant to them and share their perspectives on what might be important for the researcher to understand. How Photo-  Use of Images: Researchers may use various types of images, such as photographs, advertisements, or personal pictures. Elicitation Works Participants can also be asked to bring their own images that resonate with the topic being studied.  Encouraging Dialogue: During one-on-one interviews, researchers ask participants to describe their thoughts about the images. This process can trigger memories and reveal hidden opinions that might not surface through standard interview techniques.  ZMET® Technique: One specific approach within photo-elicitation is the Zaltman Metaphor Elicitation Technique (ZMET). In this method, participants select photos that remind them of a product or brand (without showing the actual product). The researcher then asks questions to uncover unconscious associations related to those images. Benefits of  Cultural Insights: it is particularly useful in cross-cultural research, as it allows researchers to explore how cultural values Photo-Elicitation influence perceptions and behaviors regarding products or brands.  Enhanced Understanding: Visuals can evoke emotional responses and memories, leading to richer data collection. Participants often feel more comfortable discussing sensitive topics when guided by images.  Uncovering Motivations: By understanding the underlying motivations behind customer choices, businesses can create more effective marketing strategies and product offerings.  Collaboration:The interview process becomes collaborative, with participants guiding the conversation based on their selected images, which can lead to deeper insights. Applications  Market Research: Businesses use it to understand consumer preferences and cultural influences before launching new products.  Social Research: Researchers employ it to explore social issues and gather qualitative data from diverse populations.  Product Development: Insights gained from photo-elicitation can inform product design and marketing strategies by aligning them with customer values and preferences. Page 10 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: DEFINING THE CUSTOMER – MARKET SEGMENTATION Definition Market segmentation is the process of dividing a broad target market into smaller, more manageable groups of consumers who share similar characteristics, needs, or behaviors. This targeted approach not only enhances customer satisfaction but also drives business growth by optimizing marketing resources and improving product relevance in the marketplace. Importance  Targeting Specific Needs: Businesses can focus on the unique needs and values of each group. This targeted approach helps of Market ensure that products and services are relevant to the intended audience. Segmentation  Avoiding Broad Definitions: If a target market is too broadly defined, customer needs can vary significantly, leading to confusion and ineffective marketing strategies. For example, an engineering consulting firm might segment its clients into private sector, public sector, and international clients. Each group has different expectations and experiences, even if they all require engineering services.  Enhanced Customer Understanding: Segmenting customers allows businesses to gain deeper insights into buyer expectations and decision-making processes. This understanding is crucial for developing products that resonate with specific customer groups. Types of  Demographic Segmentation: Dividing the market based on demographic factors such as age, gender, income level, education, Market and occupation. Segmentation  Geographic Segmentation: Segmenting customers based on their location, such as country, region, or city. This is particularly important for businesses operating in multiple countries or regions.  Psychographic Segmentation: Grouping consumers based on their lifestyles, values, interests, and personalities. This helps businesses connect with customers on a more emotional level.  Behavioral Segmentation: Segmenting customers based on their behaviors related to the product or service, such as purchasing habits, brand loyalty, and usage frequency. Benefits of  Tailored Marketing Strategies: Businesses can create customized marketing messages that resonate with each segment's Market unique characteristics and needs. This increases the likelihood of engagement and conversion. Segmentation  Improved Product Development: Understanding specific customer preferences allows companies to design or adapt products that meet the demands of different segments effectively.  Competitive Advantage: By focusing on specific segments, businesses can differentiate themselves from competitors who may not address those particular needs as effectively.  Resource Optimization: Targeting specific segments helps organizations allocate their marketing resources more efficiently, ensuring that efforts are directed toward the most promising opportunities. Page 11 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: DEFINING THE CUSTOMER – MARKET SEGMENTATION Example The Australian Fishing Operation The importance of understanding customer preferences is illustrated by an example involving an Australian fishing operation exporting tuna to Japan. Initially, they struggled to sell their fish at high prices due to color differences that Japanese consumers associated with quality. After conducting research in Japan’s wholesale market, they learned that the color indicated a lack of Japanese origin. By adjusting their shipping practices to only send tuna with desirable coloring, they were able to sell at higher prices in Japan’s raw fish market. Psychographic & Behavioral Segmentation:  Psychographic segmentation focuses on the "why" behind customer behaviors—such as values, lifestyles, and interests  behavioral segmentation emphasizes the "how" of customer interactions with products or services—like purchasing habits and usage rates. Example on Psychographic  Lifestyle Segmentation: A health food brand identifies a segment of customers who lead active lifestyles, such as fitness enthusiasts and outdoor adventurers. They tailor their marketing to emphasize how their products provide energy and nutrition for activities like hiking, running, or gym workouts.  Personality Segmentation: A cosmetics company discovers that many of its customers have outgoing and adventurous personalities. They shift their marketing strategy to focus on vibrant colors and bold styles, promoting their products as perfect for social events and parties.  Values-Based Segmentation: A clothing brand focuses on sustainability and ethical production. They target environmentally conscious consumers by highlighting their eco-friendly materials and fair labor practices in their marketing campaigns. Example on Behavioral  Purchase Behavior: An online retailer analyzes customer purchase history and identifies frequent buyers who tend to buy in bulk. They create a loyalty program that offers discounts for bulk purchases, encouraging these customers to continue buying at higher volumes.  Usage Rate: A software company segments its users into categories based on how often they use their product: light users, moderate users, and heavy users. They develop targeted communication strategies for each group, offering training sessions for light users to increase engagement while providing advanced tips for heavy users.  Loyalty Status: A coffee shop chain identifies its most loyal customers through a rewards program. They create exclusive promotions and personalized offers for these loyal patrons, enhancing retention and encouraging word-of-mouth referrals.  Benefits Sought: A skincare brand segments its customers based on the benefits they seek from products, such as anti-aging, hydration, or acne treatment. The brand develops targeted messaging that highlights how each product meets the specific needs of these different customer groups. Page 12 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: DEFINING THE CUSTOMER – IMPACT OF CULTURE Role Culture plays a critical role in shaping consumer behavior and influencing business practices in international markets. Understanding cultural differences is essential for businesses looking to succeed globally; it enables them to tailor their products, marketing strategies, and communication styles to meet the unique needs of diverse customer segments. Understanding  Unique Consumer Preferences: Cultural While globalization has led to some homogenization of tastes, consumers in different countries still exhibit distinct Impact preferences. For example, Coca-Cola has successfully adapted to various markets, but McDonald’s learned that selling beef hamburgers in India is not viable due to the cultural significance of cows as sacred animals. This highlights the necessity for businesses to understand local customs and adapt their offerings accordingly.  Cultural Values and Market Segmentation: Different cultures have varying values that influence buying decisions. Factors such as price sensitivity, the importance of personal relationships, comfort and convenience, and societal causes can all play a role. For instance, in many Asian cultures, establishing a long-term business relationship is prioritized over immediate pricing concerns. This means businesses must focus on building trust and rapport before discussing costs.  Challenges of Cultural Differences: Cultural differences can pose challenges for international trade practitioners. Misunderstanding cultural norms can lead to unintentional offenses that jeopardize business relationships. For example, in Latin America, casual physical contact is common among business associates; refusing such contact could be perceived as unfriendly.  Influence on Buying Decisions: Culture shapes how customers prioritize different aspects when making purchasing decisions. For example: Price: In some cultures, price may be a primary concern, while in others, the quality or brand reputation may take precedence. Personal Relationships: In cultures that value relationships, customers may prefer to buy from brands they trust or have a personal connection with. Local Preferences: Some consumers may prefer locally sourced products due to national pride or a desire to support local economies.  Importance of Understanding Norms: Recognizing the social and business norms of different cultures is crucial when selling services or products internationally. This understanding can enhance communication and negotiation processes and foster stronger relationships with customers and partners. Page 13 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: DEFINING THE CUSTOMER – IMPACT OF CULTURE Examples of  Cultural Sensitivity in Communication: Effective communication is vital in international business. Different cultures have Cultural Impact unique communication styles—some may prefer directness while others value subtlety. For instance, Western cultures often emphasize assertiveness in discussions, while Eastern cultures might prioritize harmony and indirect communication.  Long-Term Relationships vs. Transactional Approaches: In many cultures, particularly in Asia, building long-term relationships is essential for successful business transactions. Companies that focus solely on short-term sales may struggle to establish trust and loyalty among customers who value relationship-building.  Adapting Marketing Strategies: Businesses must adapt their marketing strategies to align with cultural values and preferences. For example, a company selling luxury goods might highlight exclusivity and prestige in one market while emphasizing quality and durability in another. UNIT 1: DEFINING THE CUSTOMER – LANGUAGE CONSIDERATION Introduction Language considerations are essential for successful international marketing and communication. Businesses must go beyond simple translations to understand cultural nuances (small differences), regional variations, and nonverbal cues (signal) that influence how messages are perceived. By consulting with individuals familiar with local cultures and languages, companies can avoid costly mistakes and create marketing strategies that resonate with their target audiences effectively. This approach not only enhances brand perception but also fosters trust and loyalty among consumers in diverse markets. Importance of  Cultural Significance: Language is a fundamental element of culture. It shapes how people think and communicate. When Language in entering new markets, businesses must adapt their text for product labels, advertisements, and other content to International resonate with local audiences. This adaptation should be done by individuals who have a deep understanding of the local Marketing language and its cultural context.  Translation Challenges: Literal translations often fail to capture the intended meaning due to cultural differences. For instance, the Japanese word “hai” translates to “yes” in English but can imply different levels of agreement or acknowledgment depending on the context. This highlights the importance of understanding the subtleties (tenderness) and nuances of language beyond direct translation.  Regional Variations: Different regions may have distinct dialects, slang, and figures of speech that need to be considered when crafting marketing messages. For example, a syrup product was incorrectly translated as “blandsaft” in Swedish, which refers to concentrated fruit juice rather than syrup, leading to misleading survey results.  Nonverbal Communication: Understanding nonverbal language is equally important. Gestures (sign or signal) can have different meanings across cultures; for example, a nod may mean "yes" in some cultures but could signify something else in others. Recognizing these differences is vital for effective communication. Page 14 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: DEFINING THE CUSTOMER – LANGUAGE CONSIDERATION Examples of  Marketing Campaign Failures: Language Several companies have faced backlash due to poor translation choices: Considerations Coors Beer: The slogan "Turn it Loose" was translated into Spanish as something inappropriate related to diarrhea. Ford: A campaign tagline intended to promote quality ended up suggesting that cars had "high-quality corpses" in Belgian translation. Gerber Baby Food: The name "Gerber" sounded like "to vomit" in French, leading to negative perceptions of the product.  Localization vs. Translation: Localization involves adapting content not just linguistically َ ‫ لغويا‬but also culturally. For example, marketing materials for a Spanish-speaking audience should consider whether the target market is in Spain or Latin America, as expressions and preferences differ significantly.  Understanding Customer Preferences: A European syrup producer's failure to accurately translate their product led them to misunderstand customer preferences in Sweden. By ensuring accurate localization and understanding local terminology, they could better align their offerings with market expectations. UNIT 1: PERCEIVED VALUE OF PRODUCT Introduction  It refers to the worth that customers assign to a product or service based on their expectations, experiences, and the benefits they believe they will receive.  It encompasses various elements such as quality, price, functionality, design, and brand reputation.  This perception is important because it is a critical factor in consumer decision-making. By understanding what drives customer perceptions and adapting the company offerings accordingly, businesses can enhance the perceived value of their products or services. This approach not only increases customer satisfaction but also drives sales and fosters long-term loyalty in competitive markets. Page 15 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: PERCEIVED VALUE OF PRODUCT Understanding  Customer-Centric Approach: Perceived value is determined by the customer, meaning businesses should start by Perceived Value understanding what their customers value. This involves researching customer preferences, motivations, and expectations in specific markets.  Influencing Factors: Various characteristics of a product can impact its perceived value, including: Price: The cost of a product can influence its perceived value. Higher prices may suggest higher quality or exclusivity. Quality: High-quality products are often perceived as having greater value. Functionality/Utility: Products that effectively meet customer needs are seen as more valuable. Design and Prestige: Aesthetic appeal and brand prestige can enhance perceived value, especially for luxury items like diamonds. Safety/Security: Products that ensure safety or security can be seen as more valuable.  Examples of Perceived Value: to illustrates how different characteristics impact purchasing decisions Diamonds: High perceived value due to design and prestige, with low emphasis on price. Stereo Equipment: Medium perceived value influenced by quality and functionality. Fresh Fruit: High perceived value based on quality and freshness. Enhancing  Adapting Products and Marketing Strategies: Once businesses understand customer motivations, they can adapt their Perceived Value products or services to enhance perceived value. This may include adding new features, improving design, or modifying how products are marketed.  Highlighting Key Features: Businesses should emphasize features that resonate with customers’ values. For example: Quality Assurance: Highlighting warranties or after-sales service can enhance perceived quality. Functionality: Demonstrating multiple uses for a product (e.g., "orange juice isn't just for breakfast") can increase its perceived utility. Prestige Marketing: Selling luxury items through exclusive outlets can enhance their perceived value.  Creating Positive Customer Experiences: The overall customer experience, from purchasing to post-sale support, significantly influences perceived value. A positive experience reinforces the notion that the product is worth its price.  Brand Reputation and Social Proof: A strong brand reputation can elevate perceived value. Positive reviews, testimonials, and endorsements from trusted sources can enhance customers' perceptions of a product's worth. Page 16 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: PERCEIVED VALUE OF SERVICE Introduction It refers to how customers evaluate the worth of a service based on their experiences and expectations. Unlike tangible products, services are intangible, making it more challenging for providers to convey value. Understanding how customers assess services is crucial for service providers to enhance satisfaction and loyalty. Understanding  Intangible Nature: Services are inherently intangible, meaning they cannot be touched or owned like physical products. Perceived Value This makes it essential for service providers to effectively communicate the value of their offerings. of Services  Relationship Between Perceptions and Expectations: The perceived value of a service is closely tied to customer expectations. The formula can be summarized as: Satisfaction = Perceived Value −Expecta ons If customers feel that a service exceeds their expectations, they are satisfied; if it falls short, they are dissatisfied.  Variability Among Customers: Different customers have unique perceptions and expectations influenced by factors such as culture, life experiences, and age. Service providers must understand these variations to meet customer needs effectively. Components of Perceived Value= (Results +Process + Emotional Value) / (Price + Inconveniences + Uncertainties) Perceived Value  Numerator (Benefits Received): Results: The outcomes customers expect from the service (e.g., successful completion of a task). Process: The delivery aspects of the service, including wait times and quality of interaction. Emotional Value: The feelings and emotional responses customers have during the service experience.  Denominator (Costs Incurred): Price: The monetary cost of the service. Inconveniences: Any additional costs, such as waiting times or logistical issues. Uncertainties: Risks or unknowns associated with the service that may cause anxiety for customers. Strategies to  Understanding Customer Expectations: Service providers should conduct research to understand what customers in their Enhance target market expect. This knowledge allows them to set benchmarks for perceived value. Perceived Value  Improving Service Delivery: If customers frequently experience long wait times, reducing these times by adding staff can significantly enhance perceived value. However, perceptions of wait times can vary among individuals.  Highlighting Key Features: Providers can emphasize aspects that matter most to customers, such as quality assurance (e.g., warranties) or emotional benefits (e.g., exceptional customer care).  Managing Costs and Uncertainties: Offering competitive pricing, minimizing inconveniences, and providing guarantees can help alleviate customer concerns and enhance perceived value.  Creating Positive Experiences: Ensuring that the overall experience meets or exceeds customer expectations in terms of results and process can increase emotional value and satisfaction. Page 17 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: PERCEIVED VALUE OF SERVICE Conclusion In summary, the perceived value of services is a critical factor in customer satisfaction and loyalty. By understanding the relationship between perceptions and expectations, service providers can tailor their offerings to meet customer needs effectively. Enhancing perceived value involves improving service delivery, managing costs and uncertainties, and creating positive emotional experiences for customers. By focusing on these areas, businesses can foster stronger relationships with their clients and drive long-term success in competitive markets. Example of Perceived Value Calculation Let’s consider a practical example involving a premium coffee shop: Scenario: A customer visits a local coffee shop that offers gourmet coffee.  Step 1: Evaluate Benefits (Numerator) Results: The customer expects a high-quality coffee experience, which they perceive as worth $5 (the benefit they expect). Process: They enjoy a pleasant atmosphere and friendly service, which adds another perceived value of $2. Emotional Value: Drinking this coffee makes them feel relaxed and happy, adding an emotional benefit valued at $1. Total Benefits = Results + Process + Emotional Value = $5 + $2 + $1 = $8  Step 2: Evaluate Costs (Denominator) Price: The coffee costs $4. Inconveniences: They had to wait in line for 5 minutes, which they value at $1 (the time spent). Uncertainties: There’s some uncertainty about whether the coffee will meet their expectations, which they estimate at $0.50. Total Costs = Price + Inconveniences + Uncertainties = $4 + $1 + $0.50 = $5.50  Step 3: Calculate Perceived Value Now we can calculate the perceived value using the formula: Perceived Value = Total Benefits / Total Costs Perceived Value = 8 / 5.50 ≈ 1.45  Interpretation A perceived value of approximately 1.45 indicates that the customer feels they are getting about 1.45 times the value of what they are paying for their coffee. Since this ratio is greater than 1, it suggests that the customer perceives the coffee as a good deal, which increases the likelihood of them returning to the shop and recommending it to others.  Conclusion: Understanding and calculating perceived value helps businesses tailor their offerings to meet customer expectations effectively. By enhancing benefits and managing costs, companies can improve perceived value, leading to higher customer satisfaction and loyalty. This example illustrates how businesses can apply the perceived value formula to assess their products' attractiveness in the eyes of consumers. Page 18 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: VALUE PROPOSITION STATMENT Introduction It is a crucial marketing tool that communicates the unique benefits and value that a product or service offers to its customers. It serves as a promise of value to be delivered and helps differentiate a business from its competitors What is a Value It concisely explains how a product or service will deliver specific benefits, solve customer problems, or improve their Proposition situation. Statement? It also answers the fundamental question: Why should customers choose this product or service over others? An effective value proposition should clearly articulate the unique advantages that resonate (resound) with the target audience. Key Aspects of a  Relevancy: clearly explain how a product or service can solve a customer’s problems or improve their situation. It should Value Proposition demonstrate how the product or service delivers specific benefits. This involves outlining the tangible and intangible Statement advantages that customers will gain from using the product, such as increased efficiency, cost savings, or enhanced quality of life.  Quantified Value: Providing quantifiable metrics or examples can strengthen a value proposition. For instance, stating that a product saves users "30% more time" or "reduces costs by 15%" gives potential customers concrete reasons to consider the offering.  Unique Differentiation: The statement must articulate why customers should choose this particular organization over its competitors. Key  Clarity: The statement should be straightforward and easy to understand at a glance. Characteristics of  Attention-Grabbing: It should capture the audience's attention immediately. an Effective  Specificity: Clearly describe what the product/service is and who it is for. Value Proposition  Emphasis on Benefits: Focus on key benefits rather than just features.  Visual Elements: Incorporate images or videos that reinforce the message.  Avoid Hype: Stay away from exaggerated claims; focus on genuine value.  Highlight Differences: Clearly state how this offering differs from competitors. Structure of a The format and level of detail can vary depending on the document type (e.g., website, proposal). However, a strong value Value Proposition proposition typically includes: Statement  Headline: A powerful statement that captures the essence of the value being offered.  Subhead line: Additional context that clarifies the offering.  Visual Elements: Images or graphics that enhance understanding and engagement. Page 19 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: VALUE PROPOSITION STATMENT Example of a A fictional company called "EcoClean," which sells eco-friendly cleaning products: Value Proposition Statement: Value Proposition  Headline: "Clean Your Home, Protect Your Planet." Statement  Subhead line: "EcoClean offers powerful cleaning solutions made from 100% natural ingredients that are safe for your family and the environment."  Visuals: Images of happy families using EcoClean products in their homes, along with before-and-after shots of cleaned surfaces. Example of a A fictional company called "QuickFit," which offers an innovative fitness app: Value Proposition Statement: Value Proposition  Headline: "Transform Your Fitness Journey with Personalized Workouts." Statement  Subheadline: "QuickFit provides tailored workout plans based on your goals and fitness level, ensuring you achieve results faster."  Key Benefits: Personalized plans designed by certified trainers. Track your progress with real-time analytics. Access to a supportive community for motivation.  Visuals: A video showcasing users achieving their fitness goals using the app Benefits of a  Increased Customer Attraction: Strong Value A compelling value proposition helps attract potential customers by clearly communicating what they stand to gain. Proposition  Enhanced Differentiation: It distinguishes a brand in a crowded marketplace by emphasizing unique benefits.  Improved Conversion Rates: By addressing customer pain points and demonstrating clear benefits, businesses can increase their conversion rates.  Guided Marketing Strategies: A well-defined value proposition guides marketing effort and ensures consistency across all platforms.  Customer Loyalty: When customers feel that they are receiving genuine value, they are more likely to become repeat buyers and advocates for the brand. Page 20 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: ENHANCING PERCEPTIONS OF VALUE Introduction Is a strategic approach that organizations can use to increase how customers perceive the worth of their products or services. This involves not just the inherent qualities of the offerings but also the terms of the transaction, customer service, and overall experience The goal is to create additional value through innovative approaches to trade, logistics, financing, after-sales service, and product development. Ultimately, enhancing perceived value leads to increased customer satisfaction, loyalty, and competitive advantage in the marketplace. Key Strategies for  Alternative Trade Options: Enhancing Counter-Trade: Organizations can offer alternative forms of trade, such as bartering or counter-trade agreements. This Perceived Value can be particularly beneficial in international markets where currency exchange may be challenging. By allowing customers to trade goods or services instead of cash, businesses can create a more attractive transaction.  Innovative Logistics Approaches: Improving logistics can significantly enhance perceived value. For example, faster delivery times, reliable shipping options, and efficient inventory management can make a product more appealing. Customers often value convenience and timely access to products.  Creative Financing and Payment Terms: Offering flexible payment options, such as installment plans or deferred payments, can make high-cost items more accessible to customers. This approach reduces the financial burden on customers and enhances their perception of value.  Comprehensive After-Sales Service: Providing robust after-sales support can greatly enhance perceived value. This includes: Operator and Maintenance Manuals: Clear instructions help customers use products effectively. How-to Online Troubleshooting: Accessible support resources empower customers to resolve issues independently. Warranties: Offering warranties reassures customers about the quality and reliability of the product.  Product Design and Development Process: Changing the design or development process of a product to increase its benefits can enhance perceived value. This could involve incorporating customer feedback into product design, ensuring that features align with user needs and preferences. Page 21 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: ENHANCING PERCEPTIONS OF VALUE Example of A fictional company called "SmartHome," which sells smart home devices: Enhancing  Alternative Trade Options: SmartHome offers a trade-in program where customers can exchange old devices for Perceived Value discounts on new purchases, making it easier for them to upgrade.  Innovative Logistics: They implement same-day delivery in urban areas, enhancing convenience for customers who want immediate access to their products.  Creative Financing: SmartHome provides financing options that allow customers to pay for devices in monthly installments without interest for the first six months.  Comprehensive After-Sales Service: The company includes a detailed online manual, video tutorials for setup and troubleshooting, and a one-year warranty on all products.  Product Development: SmartHome regularly surveys customers for feedback on existing products and incorporates suggestions into new models, ensuring that they meet user expectations. UNIT 1: GROWTH HACKING What is Growth It is a marketing strategy focused on rapid growth, primarily for startups and small businesses. It emphasizes using creative, Hacking? low-cost strategies to acquire and retain customers quickly. The key idea is to find innovative ways to grow a business without relying solely on traditional marketing methods. Key Components  Creative Marketing: Using unconventional methods to attract customers, such as viral campaigns or unique promotions. of Growth  Data Analytics: Analyzing customer data to understand behavior and measure the success of marketing efforts. Hacking  Automation and Engineering: Utilizing technology to streamline processes and make marketing efforts more efficient.  Experimentation: Continuously testing different strategies to see what works best for acquiring and retaining customers. Automation and  Marketing automation involves using software to automate routine marketing tasks across multiple channels, such as Engineering email, social media, and web campaigns. By automating these processes, businesses can ensure that the right content reaches the right customers at the right time.  Example of Marketing Automation in Action: Consider a company that sells fitness products: Automated Email Campaigns: When a new customer signs up for their newsletter, they automatically receive a welcome email followed by a series of emails showcasing product benefits, tips for using the products, and special offers. Behavioral Triggers: If a customer abandons their shopping cart, an automated reminder email is sent with a discount offer to encourage completion of the purchase. Segmentation for Personalization: Based on purchase history and browsing behavior, customers receive tailored recommendations for related products or accessories. Page 22 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: GROWTH HACKING The Four Steps in  Product-Market Fit the Growth What It Means: This step is about ensuring that your product meets the needs of your target customers. Hacking Process How It Works: Marketers identify who their ideal customers are and what problems they face. They work closely with product developers to create a product that effectively solves those problems. Example: If a startup is launching a fitness app, they would research what features potential users want (like workout tracking or nutrition advice) and ensure those features are included in the app.  Find the Growth Hack What It Means: This step focuses on discovering effective marketing strategies that align with how customers learn about and shop for products. How It Works: Marketers experiment with different ways to reach customers, often using low-cost or creative methods. Example: The fitness app might use social media influencers to promote their app, offering them free access in exchange for reviews or shout-outs, rather than spending money on traditional ads.  Turn Customers into Advocates ‫مدافعون‬ What It Means: This step is about encouraging satisfied customers to share their experiences and recommend the product to others. How It Works: Marketers create easy ways for customers to refer friends or share their experiences on social media. Example: The fitness app could implement a referral program where users earn rewards (like premium features) for inviting friends to join the app.  Retention and Optimization What It Means: This step focuses on keeping existing customers engaged and satisfied while continuously improving the product based on feedback. How It Works: Marketers analyze data on user behavior to identify areas for improvement and ensure customers remain happy with the product. Example: The fitness app might track how often users log workouts and send personalized tips or reminders to encourage regular use, thus increasing retention Page 23 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: ADABPTION DECISIONS Introduction Adaptation Decisions refer to the strategic choices, organizations make regarding how to modify their products, services, or marketing approaches to meet the specific needs of different markets. This process is critical for businesses operating in international markets where consumer preferences, cultural differences, and competitive landscapes vary significantly. It is vital for organizations looking to succeed in diverse international markets. By conducting thorough market research, collaborating across teams, evaluating financial implications, and considering intellectual property protections, businesses can effectively tailor their products and marketing strategies to meet local needs. Factors  Market Research: Organizations conduct thorough market research to understand local consumer preferences, cultural Influencing nuances, and competitive dynamics. This research informs how they should adapt their offerings to resonate with the Adaptation target audience. Decisions  Product Definition: The way a product is defined—its features, benefits, and intended use—plays a significant role in adaptation decisions. Products that serve different functions in various markets may require more substantial modifications.  Product Life Cycle: Understanding the product life cycle stages (introduction, growth, maturity, decline) helps organizations determine how to adapt their products or services at different points in time. For example, a product in the maturity stage may need updates or new features to maintain consumer interest. Collaborative  Marketing Team: Provides insights from the customer perspective and identifies market trends. Decision-Making  Design Team: Works on product modifications based on feedback and market needs.  Operations and Maintenance Teams: Ensure that adaptations are feasible from a production and support standpoint.  Sales and Customer Service Teams: Offer insights into customer interactions and feedback.  Finance Team: Evaluates the cost implications of adaptations against potential revenue increases. Options for  Same Product, Same Message: Adapting Example: Coca-Cola uses this approach by maintaining its core product and marketing message across various markets Messages and where the product fulfills similar needs. Products  Same Product, Different Message: Example: Bicycles are marketed differently depending on their use; they may be seen as recreational ‫ ترفيهي‬items in North America but as essential transportation in countries like China or India.  Different Product, Same Message: Example: Esso (Exxon) adjusts its gasoline formulations for different climates (e.g., winter vs. summer blends) while keeping the same promotional messaging about quality.  Different Product (for the Same Use), Different Message: address same fundamental need - see note Page 24 of 25 INTERNATIONAL SALES & MARKETING – MODULE 1 – UNIT 1 UNIT 1: ADABPTION DECISIONS Evaluating When making adaptation decisions, organizations must consider the financial implications: Financial  Cost of Adaptations: Estimating the costs associated with modifying products or marketing strategies is crucial. Considerations  Potential Revenue Increase: Organizations should assess whether the expected increase in sales justifies the costs of adaptations.  Market Commitment: The degree of commitment to a specific foreign market influences adaptation decision. Companies with long-term goals may invest more heavily in adaptations than those with short-term objectives. Intellectual When entering new markets with adapted products or services, organizations must also consider protecting their intellectual Property property (IP): Considerations  Regulatory Framework: Understanding local laws regarding IP registration is essential for safeguarding innovations.  International Standards: Organizations should investigate whether international IP standards are recognized in their target markets.  Consulting IP Specialists: Engaging with IP lawyers or specialists can help navigate complex legal landscapes related to patents, copyrights, and trademarks. Note: Different Product (for the Same Use), Different Message: involves modifying both the product and its marketing message to cater to varying cultural preferences and consumer behaviors, while still addressing the same fundamental need. Example: Sunscreen Products  Product Variation: In many Western countries, chemical sunscreens (which absorb UV radiation) and mineral (Physical) sunscreens (which reflect UV radiation) are both available. However, the formulations and ingredients differ significantly.  Different Marketing Messages:  In Western Markets (e.g., USA, Australia): Chemical Sunscreens: These are often marketed with messages emphasizing lightweight feel, invisible finish, and water resistance. The focus is on convenience and aesthetics, appealing to consumers who prefer a non-greasy, easy-to-apply product that blends well with the skin. Mineral Sunscreens: These are promoted as being more suitable for sensitive skin and environmentally friendly. Marketing messages highlight their natural ingredients, safety for coral reefs, and effectiveness for people with skin conditions. The messaging often emphasizes being "reef-safe" and suitable for children or those with sensitive skin.  In Tropical Regions (e.g., Southeast Asia): In countries like Thailand or Indonesia, where sun exposure is intense and year-round, both types of sunscreens might be marketed differently: Chemical Sunscreens: These may be marketed with a focus on high SPF ratings and long-lasting protection, appealing to consumers who spend a lot of time outdoors. The messaging might emphasize protection against sunburn and skin damage due to high UV indexes. Mineral Sunscreens: Here, the marketing may focus on cultural preferences for natural products and skin health. Advertisements might highlight how mineral sunscreens provide immediate protection upon application, making them ideal for beachgoers or outdoor enthusiasts. Page 25 of 25