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Basic aspects of International Marketing

There are three basic aspects of International marketing are as follows:-

              The new product development process
              Demand management
              Sales marketing process



   (1) The new product development process can be defined as follows:-




This process characterizes itself as integration between Marketing, R&D/Engineering and
Manufacturing. Besides, several operating levels are active within the new product
development process.

The steps shown in figure will be explained below:

Product idea generation

The first step in the process means the creation of a large number of product ideas. New
product ideas can come from many sources: customers, scientists, competitors, company
(sales) people or channel members, etc. However in order to eliminate unpromising product
ideas in the NPD process as early as possible, and to ensure that the development efforts fit
into a firm's product strategy, the process must be closely tied to the strategic (marketing)
planning .

Idea screening

As the purpose of idea generation is to create a large number of ideas, the purpose of the
succeeding stages is to reduce the number of ideas to an attractive practical few. The first
idea-pruning stage is screening. During the idea screening stage, the ideas are analyzed
against a set of predetermined criteria, to determine which ideas are pertinent and appropriate
for the company. The product ideas have to match with company objectives, (product line)
strategies and resources. Therefore, a variety of tools and techniques have been provided, to
assist in screening new product ideas, including rating scale and checklist models of product
success/failure discriminators.
Business analysis and forecasting

Before the screened idea will further be developed into a prototype, first production cost,
profitability and demand have to be forecasted, for example, by using the following
techniques: PERT(=Program Evaluation Review Technique) or CPA(=Critical Path
Analysis). With these techniques there can be given an answer to the following questions:
"Can we make it?", "Should we make it?" and "Can we sell it?”

Product development and testing

When the answers to the above questions are positive, the approved idea can be further
developed into a prototype and finally in a physical product. Then will be tested if the
product is safe and efficient.

Market testing

After the company is satisfied with the product's functional performance, the product is ready
to be dressed up with a preliminary marketing program and to be tested. The purpose of
market testing is to learn what the product's impact is in a competitive environment and how
customers and dealers react to handling, using and purchasing the actual product. This will
provide much more accurate details on market acceptance and thus, sales and profit.

Market research and commercialization

The final stage of the new product development process is commercialization. At the
commercialization stage the marketing manager must ensure he has the answers to the
following questions: when the product will be launched, to whom, where and how.


   (2) Demand management process

To get funding for PRODUCT-enabled projects, it's necessary to navigate the PRODUCT
demand management process to prove that you are investing wisely in PRODUCT.
Unfortunately, the process can be as bad as its name. Bad, but necessary, given the
unquenchable thirst for PRODUCT services and the fact that, according to my survey (still in
process),

  Over 50% of business and PRODUCT leaders agree that business leaders make half-baked
  requests and are clueless about enterprise impact
  Nearly 60% of business leaders admit that they want it all — right now — regardless of
  ROI
  Almost 35% admit of business leaders admit to getting enamored with PRODUCT fads
As PRODUCT becomes embedded within every aspect of the business, there's an infinite
number of great ways to apply technology and a lot of business leaders find themselves
competing for the same resources. "Demand management" is a governance process to allocate
limited PRODUCT resources to benefit the enterprise as a whole. When fully implemented,
demand management provides business leaders the information and capabilities to understand
PRODUCT costs, evaluate potential investments and convert PRODUCT-enabled
investments into business results. Demand management consists of six components:




  Strategic planning provides the prioritization context for all investments, including what
  PRODUCT-enabled capabilities are required, how much can be spent on PRODUCT, what
  return is expected, and how PRODUCT will be managed to promote and protect enterprise
  interests while encouraging business unit innovation
  Portfolio management translates strategy in to how much should be spent on each of the
  three types of PRODUCT-enabled investments (e.g., strategic, enhancement, and keeping
  the lights on) and, on an ongoing basis, is used to guide decisions and facilitate cross-
  organization project review
  Decision rights are allocated to ensure responsible PRODUCT decision making consistent
  with the principle that business leaders should have the authority to decide "what"
  PRODUCT is needed while PRODUCT leaders should have the authority to decide "how"
  PRODUCT is delivered
  Financial planning determines the actual amount of funding available for PRODUCT-
  enabled investments and allocates the funding in budgets consistent with the strategic plan,
  portfolio targets and decision rights
  Prioritization and funding decisions occur on an ongoing basis across and down the
  organization in line with decision rights and criteria established during strategic planning,
  portfolio management, and financial planning
  Value management reinforces accountability for realization of tangible business value by
  reviewing projections, ascertaining commitments, monitoring results. The fact that only 5-
  10% of companies hold their business leaders accountable for business value from
  PRODUCT-enabled investments is a huge opportunity for you. If you are willing to
  promise to deliver measurable results, you will go to the front of the line
Yes, the demand management process can be onerous, unless you know how to play the
game. When proposing investments:


  Align with enterprise strategies and clearly define the desired outcomes

  Deliver value with your proposed initiative early and often to justify both one-time and
  ongoing costs and resources

  Show how your project will enhance cross-enterprise collaboration and integrate critical
  processes, information and technology

  Assign the best and brightest employees

  Demonstrate how your proposals will leverage existing technology, improve systems
  performance, reduce "keeping the lights on" costs, and mitigate risks


   (3) Sales marketing process:



The Sales marketing planning and control process is often defined as

The process of defining the action steps, priorities and schedules by which the marketing
strategy will be implemented and making sure that the company is achieving the objectives
that are stated in the marketing plan within the determined budget.

The following steps and activities can be distinguished:-



   Figure: The Sales Marketing Planning and Control process




The assumption is made that the output of this process, called the marketing plan by
marketing people, covers a time period of one year. The input of the annual marketing plan is
the strategic marketing plan, which is the output of the preceding process. When it concerns
an international company, it means that the marketing planning and control process will be
done on Product Group-level. As consequence of this, a more standardized Pan European or
worldwide marketing plan becomes feasible, leading to many advantages in efficiency and
effectiveness.

The steps shown in the figure above will be explained below:

Research of marketing mix and control

Like the strategic marketing planning process, this process also begins with research and
analysis of the marketing and consumer environment. Besides, research for the marketing
mix is necessary, which is focused on sensitivity analysis to various elements of the
marketing mix, analysis for reseller satisfaction, market response, goal achievement, etc.

Financial forecasting

Before the annual objective can be determined, the financial situation has to be forecasted.
On the revenue side it shows forecasted sales volume and average realized price, on the
expense side it shows the forecasted cost of production, physical distribution and marketing.
The difference is the expected profit.

Objectives setting

The annual objectives can be stated for the one year strategy (for example, increase market
share by x% or improve brand awareness by y% in that year) as well as for specific
statements concerning marketing activities. An example of a specific statement is: decrease
cost of sales force as a percentage of sales, improve advertising awareness or improving
company image. These statements have to be quantified and a time horizon has to be set.

Marketing strategy and action program

When the objectives have been set, the marketing managers have to refine the strategic
marketing plan to the annual marketing plan. Specific marketing tactics have to be developed
besides the action programs. The action programs contain the marching orders in response to
the question "How will we get there?", and the actual steps by which strategies will be
implemented to reach the established objectives.

Control

The last step of the marketing planning and control process is control, which forms a distinct
process itself. The control of the annual marketing plan will be handled by the management
of the PMC.

To implement the marketing strategy, marketing management has to decide what level of
marketing expenditures is necessary to achieve the marketing objectives. The total budget has
to be allocated among the several marketing activities and tools in the marketing mix during
the implementation of activities; the company has to review the process of marketing and
sales activities regularly throughout the year. These reviews provide an opportunity to listen
to weak signals and to redirect any parts of the planned action program that are off target

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Basic aspects of international marketing

  • 1. Basic aspects of International Marketing There are three basic aspects of International marketing are as follows:-  The new product development process  Demand management  Sales marketing process (1) The new product development process can be defined as follows:- This process characterizes itself as integration between Marketing, R&D/Engineering and Manufacturing. Besides, several operating levels are active within the new product development process. The steps shown in figure will be explained below: Product idea generation The first step in the process means the creation of a large number of product ideas. New product ideas can come from many sources: customers, scientists, competitors, company (sales) people or channel members, etc. However in order to eliminate unpromising product ideas in the NPD process as early as possible, and to ensure that the development efforts fit into a firm's product strategy, the process must be closely tied to the strategic (marketing) planning . Idea screening As the purpose of idea generation is to create a large number of ideas, the purpose of the succeeding stages is to reduce the number of ideas to an attractive practical few. The first idea-pruning stage is screening. During the idea screening stage, the ideas are analyzed against a set of predetermined criteria, to determine which ideas are pertinent and appropriate for the company. The product ideas have to match with company objectives, (product line) strategies and resources. Therefore, a variety of tools and techniques have been provided, to assist in screening new product ideas, including rating scale and checklist models of product success/failure discriminators.
  • 2. Business analysis and forecasting Before the screened idea will further be developed into a prototype, first production cost, profitability and demand have to be forecasted, for example, by using the following techniques: PERT(=Program Evaluation Review Technique) or CPA(=Critical Path Analysis). With these techniques there can be given an answer to the following questions: "Can we make it?", "Should we make it?" and "Can we sell it?” Product development and testing When the answers to the above questions are positive, the approved idea can be further developed into a prototype and finally in a physical product. Then will be tested if the product is safe and efficient. Market testing After the company is satisfied with the product's functional performance, the product is ready to be dressed up with a preliminary marketing program and to be tested. The purpose of market testing is to learn what the product's impact is in a competitive environment and how customers and dealers react to handling, using and purchasing the actual product. This will provide much more accurate details on market acceptance and thus, sales and profit. Market research and commercialization The final stage of the new product development process is commercialization. At the commercialization stage the marketing manager must ensure he has the answers to the following questions: when the product will be launched, to whom, where and how. (2) Demand management process To get funding for PRODUCT-enabled projects, it's necessary to navigate the PRODUCT demand management process to prove that you are investing wisely in PRODUCT. Unfortunately, the process can be as bad as its name. Bad, but necessary, given the unquenchable thirst for PRODUCT services and the fact that, according to my survey (still in process), Over 50% of business and PRODUCT leaders agree that business leaders make half-baked requests and are clueless about enterprise impact Nearly 60% of business leaders admit that they want it all — right now — regardless of ROI Almost 35% admit of business leaders admit to getting enamored with PRODUCT fads As PRODUCT becomes embedded within every aspect of the business, there's an infinite number of great ways to apply technology and a lot of business leaders find themselves competing for the same resources. "Demand management" is a governance process to allocate limited PRODUCT resources to benefit the enterprise as a whole. When fully implemented, demand management provides business leaders the information and capabilities to understand
  • 3. PRODUCT costs, evaluate potential investments and convert PRODUCT-enabled investments into business results. Demand management consists of six components: Strategic planning provides the prioritization context for all investments, including what PRODUCT-enabled capabilities are required, how much can be spent on PRODUCT, what return is expected, and how PRODUCT will be managed to promote and protect enterprise interests while encouraging business unit innovation Portfolio management translates strategy in to how much should be spent on each of the three types of PRODUCT-enabled investments (e.g., strategic, enhancement, and keeping the lights on) and, on an ongoing basis, is used to guide decisions and facilitate cross- organization project review Decision rights are allocated to ensure responsible PRODUCT decision making consistent with the principle that business leaders should have the authority to decide "what" PRODUCT is needed while PRODUCT leaders should have the authority to decide "how" PRODUCT is delivered Financial planning determines the actual amount of funding available for PRODUCT- enabled investments and allocates the funding in budgets consistent with the strategic plan, portfolio targets and decision rights Prioritization and funding decisions occur on an ongoing basis across and down the organization in line with decision rights and criteria established during strategic planning, portfolio management, and financial planning Value management reinforces accountability for realization of tangible business value by reviewing projections, ascertaining commitments, monitoring results. The fact that only 5- 10% of companies hold their business leaders accountable for business value from PRODUCT-enabled investments is a huge opportunity for you. If you are willing to promise to deliver measurable results, you will go to the front of the line
  • 4. Yes, the demand management process can be onerous, unless you know how to play the game. When proposing investments: Align with enterprise strategies and clearly define the desired outcomes Deliver value with your proposed initiative early and often to justify both one-time and ongoing costs and resources Show how your project will enhance cross-enterprise collaboration and integrate critical processes, information and technology Assign the best and brightest employees Demonstrate how your proposals will leverage existing technology, improve systems performance, reduce "keeping the lights on" costs, and mitigate risks (3) Sales marketing process: The Sales marketing planning and control process is often defined as The process of defining the action steps, priorities and schedules by which the marketing strategy will be implemented and making sure that the company is achieving the objectives that are stated in the marketing plan within the determined budget. The following steps and activities can be distinguished:- Figure: The Sales Marketing Planning and Control process The assumption is made that the output of this process, called the marketing plan by marketing people, covers a time period of one year. The input of the annual marketing plan is the strategic marketing plan, which is the output of the preceding process. When it concerns an international company, it means that the marketing planning and control process will be
  • 5. done on Product Group-level. As consequence of this, a more standardized Pan European or worldwide marketing plan becomes feasible, leading to many advantages in efficiency and effectiveness. The steps shown in the figure above will be explained below: Research of marketing mix and control Like the strategic marketing planning process, this process also begins with research and analysis of the marketing and consumer environment. Besides, research for the marketing mix is necessary, which is focused on sensitivity analysis to various elements of the marketing mix, analysis for reseller satisfaction, market response, goal achievement, etc. Financial forecasting Before the annual objective can be determined, the financial situation has to be forecasted. On the revenue side it shows forecasted sales volume and average realized price, on the expense side it shows the forecasted cost of production, physical distribution and marketing. The difference is the expected profit. Objectives setting The annual objectives can be stated for the one year strategy (for example, increase market share by x% or improve brand awareness by y% in that year) as well as for specific statements concerning marketing activities. An example of a specific statement is: decrease cost of sales force as a percentage of sales, improve advertising awareness or improving company image. These statements have to be quantified and a time horizon has to be set. Marketing strategy and action program When the objectives have been set, the marketing managers have to refine the strategic marketing plan to the annual marketing plan. Specific marketing tactics have to be developed besides the action programs. The action programs contain the marching orders in response to the question "How will we get there?", and the actual steps by which strategies will be implemented to reach the established objectives. Control The last step of the marketing planning and control process is control, which forms a distinct process itself. The control of the annual marketing plan will be handled by the management of the PMC. To implement the marketing strategy, marketing management has to decide what level of marketing expenditures is necessary to achieve the marketing objectives. The total budget has to be allocated among the several marketing activities and tools in the marketing mix during the implementation of activities; the company has to review the process of marketing and sales activities regularly throughout the year. These reviews provide an opportunity to listen to weak signals and to redirect any parts of the planned action program that are off target